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C.A.T. oil AG increases revenues by 29.2% in the first nine months of 2008
Â• Strong revenue growth to EUR 212 million Â• Sidetrack drilling capacity expanded to 13 rigs Â• EBITDA margin of 23.2% in Q3
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Vienna (euro adhoc) - November 28, 2008 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the leading providers of oil and gasfield services in Russia and Kazakhstan,today announced the results for the first nine months of 2008. The results again reflect the significant expansion of the CompanyÂ´s operations. In Q3 2008 C.A.T. oil increased the total job number by 4.2% to 723 service jobs, up from 694 service jobs in Q3 2007. Due to the higher complexity of sidetrack drilling and fracturing jobs, the average per-job-revenue rose by 13.8% YoY to thou. EUR 100.5 in Q3 2008 from thou. EUR 88.3 in Q3 2007. As a consequence revenues grew significantly both on a quarterly and nine-months basis.
In the previous quarter C.A.T. oil had further increased its sidetrack drilling capacities,which is C.A.T. oilÂ´s fastest growing business and enjoys strong demand by customers. Sidetrack drilling capacity nearly doubled from seven rigs in Q3 2007 to 13 rigs in Q3 2008. At the same time C.A.T. oilÂ´s sidetrack drilling job count rose by 200.0% YoY mainly due to the continued improvement in the operating efficiency and utilization rates of new operating rigs.
Improved EBITDA margin sustained in Q3
Due to the capacity expansion and the continued strong demand for complex, high revenue per job services, revenues in the first nine months of 2008 increased by 29.2% to EUR 212.0 million (9M 2007: EUR 164.1 million). Third quarter revenues were up 18.4% to EUR 72.6 million (Q3 2007: EUR 61.3 million).
C.A.T. oilÂ´s operating cost base was impacted by the expanded operating activities and RussiaÂ´s high inflationary pressures. Cost of sales increased by 43,9% YoY to EUR 168.6 million in the first nine months of 2008 (9M 2007: EUR 117.1 million) mainly due to higher expenditure for materials and supply, direct costs, wages and salaries as well as an increase in depreciation and amortization.
At EUR 41.4 million EBITDA for the first nine months of 2008 was slightly below last yearÂ´s result of EUR 42.7 million. Earnings before interest and taxes (EBIT) declined to EUR 24.5 million (9M 2007: EUR 34.4 million), following a significant increase in depreciation and amortization. EBITDA and EBIT margins were 19.5% and 11.5% respectively (9M 2007: 26% and 20.9%).
On a quarterly basis, C.A.T. oil succeeded in sustaining the improved margin level of the second quarter. In Q3 EBITDA increased 7.9% YoY to EUR 16.8 million (Q3 2007: EUR 15.6 million) which resulted in an EBITDA margin of 23.2% (Q3 2007: 25.5%). EBIT amounted to EUR 10.7 million in Q3 2008 (Q3 2007: EUR 12.4 million), the EBIT margin was 14.7% (Q3 2007: 20.2%).
C.A.T. oil generated a net profit of EUR 12.5 million (9M 2007: 22.6 million) in the first nine months. Compared to last yearÂ´s result, the net profit for the third quarter was slightly down at EUR 5.7 million (Q3 2007: EUR 6.7 million). This was mainly an effect of C.A.T oilÂ´s effective consolidated income tax rate which rose to 46.1% in Q3 2008, from 35.4% in Q3 2007. This development reflects the increase in proportion of taxable gross profits generated by the CompanyÂ´s activities in Kazakhstan, which are taxed at a higher rate than taxable gross profits generated in Russia.
Earnings per share - calculated using an average of 48,850,000 shares - totaled EUR 0.256 in the first nine months, down from EUR 0.462 a year ago.
Operating cash flow significantly improved C.A.T. oilÂ´s cash flow from operating activities increased by 73.1% YoY to EUR 14.7 million in Q3 2008 (Q4 2007: EUR 8.5 million). Cash flow from investing activities was EUR -14.5 million (Q3 2007: EUR -23.3 million) due to capital expenditures for additional operating capacity. Cash flow from financing activities amounted to EUR 1.0 million (Q3 2007: EUR 6.9 million).
C.A.T. oil maintained its very solid financial base. Cash and cash equivalents decreased by EUR 7.1 million to EUR 8.0 million as of 30 September 2008 from EUR 15.0 million as of 31 December 2007. C.A.T. oilÂ´s total shareholdersÂ´ equity increased to EUR 244.6 million as of 30 September 2008 (31 December 2007: EUR 234.9 million) due to an increase of retained earnings. With a balance sheet total of EUR 322.2 million as of 30 September 2008 (31 December 2007: EUR 285.3 million), the CompanyÂ´s equity ratio stood at a comfortable 75.9% at the end of Q3 2008 compared to 82.3% at the end of 2007.
Alongside with the expansion of operational activities, C.A.T. oil increased its headcount by 19.1% in Q3 2008, primarily driven by operating capacity additions: 85.7% YoY for sidetrack drilling and 7.1% YoY for fracturing. In Q3 2008, C.A.T. oil also hired and trained additional personnel for two new drilling rigs, which are to arrive at the company sites by the end of the fourth quarter 2008. By the end of September the average number of employees amounted to 3,636 including part-time-employees (9M 2007: 3,053 including part-time-employees).
Focus on sidetrack drilling as growth driver
C.A.T. oil will continue to focus on preparing its new fleets for their operations in Russia and Kazakhstan to further increase the number of service jobs and realize additional growth.
Manfred Kastner, CEO of C.A.T. oil, said: "The third quarter results demonstrate that C.A.T. oil has solidified its market position as one of the leading providers of oil and gasfield services in Russia and Kazakhstan. In line with our corporate strategy, we have expanded our activities especially in the area of side track drilling and we expect this to pay off next and the following year. Despite the challenging market situation with rising inflation in our core market Russia we remain confident to have set a clear course towards high-margin and strategically important oil and gas field services. Our focus will remain on the expansion of high margin side track drilling as our main growth driver."
About C.A.T. oil AG: Austria-based C.A.T. oil AG (O2C, ISIN: AT0000A00Y78) is one of the leading providers of oil- and gasfield services in Russia and Kazakhstan and is listed in the Prime Standard of the Frankfurt Stock Exchange. One of C.A.T. oilÂ´s core businesses is hydraulic fracturing, a process which helps to open up oil- and gas-bearing rock formations in order to increase or even enable oil and gas production. Hydraulic fracturing is a method to generate high pressure in the oil or gas reservoirs concerned. This pressure causes cracks to appear in the rock through which oil or gas can be produced in larger quantities from the production well, and hence efficiently boosts extraction, particularly in the case of deposits that are difficult to develop or low-output wells. In addition, hydraulic fracturing can be used to revitalize wells which have previously been idle.
Since its IPO in 2006 C.A.T. oil has also increasingly invested in sidetrack drilling and thus built up a second core business. Sidetrack drilling is a method which uses an already existing wellbore to create another one and is used to either avoid irreparable damages of the wellbore or the equipment or to reach further parts of the reservoir. Over the past few years demand for the high-margin sidetrack drilling service has continuously increased. The method allows to efficiently build up additional production capacities and to further exploit the potential of a well. In the field of sidetrack drilling, C.A.T. oil is already number 2 in Russia.
The Company has its headquarters in Vienna and employed an average of 3,636 people in the third quarter of 2008, most of whom are based in Russia and Kazakhstan.Customers include leading oil and gas producers such as Gazprom, KazMunai-Gaz, LUKOIL, Rosneft, and TNK-BP.
C.A.T. oil has been a member of the SDax since September 18, 2006.
Key financial figures for the first nine months of fiscal year 2008 [in million EUR]
Q1-Q3 2008 Q1-Q3 2007 Change in %
Revenues 212.0 164.1 29.2
Gross profit 43.5 47.0 -7.6
EBITDA 41.4 42.7 -3.1
EBITDA margin 19.5% 26.0%
EBIT 24.5 34.4 -28.8
EBIT margin 11.5% 20.9%
Net profit for period 12.5 22.6 -44.5
Earnings per share (in EUR) 0.256 0.462
Balance sheet total 322.2 285.3 12.9
Equity 244.6 234.9 4.2
Equity ratio 75.9% 82.9%
Capital expenditure 34.6 70.2
Cash flow from operating activities 30.1 14.8
Cash flow from investing activities -33.9 -70.7
Cash flow from financing activities -1.6 6.9
Cash and cash equivalents 7.9 15.0
Total job count 2,211 1,826 21.1
Per-job revenue (in thou. EUR) 95.9 89.9 6.7
Employees (average) 3,636 3,053 19.1
Key financial figures for the third quarter 2008 [in million EUR]
Q3 2008 Q3 2007 Change in %
Revenues 72.6 61.3 18.4
Gross profit 17.2 17.5 -1.6
EBITDA 16.8 15.6 -7.9
EBITDA margin 23.2% 25.5%
EBIT 10.7 12.4 -13.6
EBIT margin 14.7% 20.2%
Net profit for period 5.7 6.7 -14.3
Earnings per share (in EUR) 0.117 0.137
Cash flow from operating activities 14.7 8.5
Cash flow from investing activities -14.5 -23.3
Cash flow from financing activities 1.0 6.9
Total job count 723 694 4.2
Per-job revenue (in thou. EUR) 100.5 88.3 13.8
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ots Originaltext: C.A.T. oil AG
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Branche: Oil & Gas - Upstream activities
Index: SDAX, Classic All Share, Prime All Share
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