C.A.T. oil AG

C.A.T. oil reports strong increase in revenues and earnings for the first half of 2007

• Revenues increased by 15% to EUR 102.8 million • EBIT up 10.4% year-on-year • Expansion of capacities and regional diversification advanced

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Baden/Vienna (euro adhoc) - August 31, 2007 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the leading providers of oil and gasfield services in Russia and Kazakhstan, today announced its results for the first half of 2007. On the back of a keen demand and continued capacity additions, the Company achieved a strong growth of top line and bottom line results. After a seasonal downturn in job count in the first quarter of 2007, C.A.T. oil accomplished 688 jobs and achieved a new record high of service jobs in the second quarter. On top of that, the Company continued its aggressive growth and diversification strategy by significantly expanding its operating base. Compared to Q2 2006, C.A.T. oil increased its fracturing capacity by 62.5%, its sidetracking capacities by 100% and its workover platforms by 40%.

Two-digit growth in top and bottom line results

Driven by high capacity utilization and a growing job complexity, revenues in the first half of 2007 increased by 15.0% to EUR 102.8 million compared to EUR 89.4 million in the same period last year. Due to strict cost management C.A.T. oil´s cost of sales only grew by 22.6% despite considerable launch costs for the mobilization of new equipment and additional service crews. As a result, EBITDA rose 12.0% to EUR 27.1 million year-on-year (H1 2006: EUR 24.2 million) and EBIT increased by 10.4% to EUR 22 million year-on-year (H1 2006: EUR 19.9 million). EBITDA and EBIT margins amounted to 26.4% and 21.4% respectively. Net income in the first half of 2007 gained 15.3% to EUR 15.9 million compared to EUR 13.8 million last year. Earnings per share amounted to EUR 0.33 (H1 2006: EUR 0.32).

Quarter-on-quarter C.A.T. oil´s EBITDA gained 24.5% to EUR 17.6 million (Q2 2006: EUR 14.2 million). In the same period EBIT also increased by 24.5% to EUR 14.9 million (Q2 2006: EUR 11.9 million).

Due to higher investments in working capital, cash flow from operating activities decreased to EUR 6.4 million from EUR 9.2 million in the first half of 2006 - mainly a consequence of changes in the net working capital of EUR 14.0 million. Cash flow from investing activities amounted to EUR -47.4 million (H1 2006: EUR -10.3 million). This significant increase is mainly due to investments in property and equipment. Additionally, C.A.T. oil made further prepayments for new operating capacities and acquired a 100% stake in oilfield service provider FilOrAm.

The Company´s cash and cash equivalents decreased by EUR 12.0 million to EUR 33.8 million on June 30, 2007, a consequence of C.A.T. oil´s substantial investment program.

Extensive investment program and regional diversification continued

The first half of 2007 was marked by a significant expansion of C.A.T. oil´s capacities and an ongoing strong diversification process. In the second quarter the Company added two more sidetracking rigs, expanding its total sidetracking capacities to four units. Delivery of another three rigs is expected within the third quarter of this year. To meet the opportunities of Russia´s highly lucrative sidetrack drilling market, C.A.T. oil set up a new operating subsidiary, C.A.T. oil Drilling, in April 2007. This step underlines the significant potential of this service for C.A.T. oil. By the end of 2007 the Company will have increased its total sidetracking capacities to ten rigs.

The acquisition of FilOrAm, a former service subsidiary of oil and gas major TNK-BP was another important milestone in the second quarter of 2007. With this move C.A.T. oil not only increased its hydraulic fracturing platform by another fleet but also got strategic access to the important Volga-Urals region in European Russia.

In addition to substantial enhancements of the Company´s equipment base, C.A.T. oil made major investments in staff expansions. In the first half of 2007, the Company had an average of 2,875 employees compared to 2,269 in the same period last year (up 26.7%).

Positive outlook for 2007

C.A.T. oil´s management anticipates sustained future growth for the Company. Manfred Kastner, CEO of C.A.T. oil, outlined: "Our aggressive regional and product diversification combined with the implementation of our extensive investment program of 2007 will translate into an accelerated development of C.A.T. oil. Our Company is at the stage of entering a new phase in its history: the transformation away from a pure pressure pumping specialist into a more comprehensive integrated service provider. The planned expansion into geotechnical services with the launch of the new subsidiary C.A.T. oil-GEODATA at the beginning of Q3 2007 marks another important step in this process. In view of this excellent environment we are optimistic for C.A.T. oil´s future performance."


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. C.A.T. oil´s core business 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. The C.A.T. oil crews use state-of-the-art methods and technologies 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 that have previously been idle.

The Company has its headquarters Baden/Vienna and employed an average of 2,875 people in the first half of financial year 2007, most of whom are based in Russia and Kazakhstan. Customers include leading oil and gas producers such as Gazprom, KazMunaiGaz, LUKOIL, Rosneft, and TNK-BP. C.A.T. oil has been listed in the Prime Standard of the Frankfurt Stock Exchange since May 4, 2006, and has been a member of the SDax since September 18, 2006.

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ots Originaltext: C.A.T. oil AG
Im Internet recherchierbar: http://www.presseportal.ch

Further inquiry note:
Press contact:
A&B Financial Dynamics
Dr. Lutz Golsch Claudia Werth
Tel.: +49 (0)69 92037-110 Tel.: +49 (0)69 92037-114
Email: l.golsch@abfd.de Email: c.werth@abfd.de

Branche: Oil & Gas - Upstream activities
ISIN:      AT0000A00Y78
WKN:        A0IKWU
Index:    Classic All Share, Prime All Share, SDAX
Börsen:  Börse Frankfurt / official dealing

Weitere Meldungen: C.A.T. oil AG

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