EANS-News: C.A.T. oil shows strong operational and financial performance in Q1 2012
30.05.2012 – 08:32
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- quarterly report Subtitle: Revenues up 23.5% yoy to EUR 75.3 million Strong EBITDA growth of 61.4% yoy to EUR 14.0 million Improved profitability with EBITDA margin of 18.5% All new high class conventional drilling rigs successfully marketed Vienna, 30 May 2012 (euro adhoc) - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the leading providers of oil and gas field services in Russia and Kazakhstan, today announced its results for the first quarter of 2012. C.A.T. oil succeeded in both, top- and bottom-line growth: revenues rose by 23.5% yoy to EUR 75.3 million (Q1 2011: 61.0 million) and earnings before interest, tax and depreciation (EBITDA) increased by 61.4 % yoy to EUR 14.0 million (Q1 2011: EUR 8.7 million). The EBITDA margin expanded to 18.5% (Q1 2011: 14.2%). Net income amounted to EUR 2.5 million during the reporting period (Q1 2011: EUR - 1.0 million). Besides that, C.A.T. oil obtained additional orders for the remaining two new rigs and has thus successfully accomplished the marketing of its third core service, high class conventional drilling, bringing the total 2012 order book to EUR 290 million. Manfred Kastner, CEO of C.A.T. oil, commented: "In the first quarter we had good tailwinds, namely strong demand for our services, increased activity levels, as well as mild winter conditions. We persistently drove our revenues and earnings, by expanding both, our traditional and new businesses. In addition, we crossed the target line in marketing our new conventional drilling capacities. All of our new rigs obtained orders for 2012 and will be successively put into operations by the beginning of Q3. The new service will make first noticeable contributions to our growth this year and beyond. With our diversified and compelling service portfolio, state-of-the-art technology and well-trained employees we are thus in a stronger position to capitalize on the underlying opportunities in our core markets." Strong revenue growth A 23.5% yoy growth in C.A.T. oil's revenues to EUR 75.3 million (Q1 2011: EUR 61.0 million) was based on two factors: a 16.0% yoy rise in the average per job revenue to TEUR 92 (Q1 2011: TEUR 79) and a 3.9% yoy increase in the total job count to 800 jobs (Q1 2011: 770 jobs). Fracturing and sidetracking jobs were up 9.9% yoy and 7.9% yoy, respectively. The increased per job revenue primarily stemmed from the greater size and complexity of service jobs, as well as improved price levels; in addition the strengthened Russian rouble against the euro had a positive impact. Cost base reflects high operating activity levels Despite the higher operating activity levels and the greater job size and complexity, cost of sales rose at a slower pace than the top line and only increased by 18.6% yoy to EUR 65.9 million (Q1 2011: EUR 55.5 million) General and administrative expenses rose by 9.7% yoy to EUR 5.4 million in Q1 2012 (Q1 2011: EUR 4.9 million). The increase mainly reflected the set-up costs for the new conventional drilling service. Effectively there had been no change in the Company's total weighted average headcount, which stood at 2,375 employees in Q1 2012 (Q1 2011: 2,362 employees) due to the following counter trends: on the one hand, C.A.T. oil saw a headcount reduction related to the outsourcing of the remaining workover business in Q2 2011; on the other hand, the new hires for the new conventional drilling business. Earnings swing and margins expansion EBITDA increased by 61.4% yoy to EUR 14.0 million (Q1 2011: EUR 8.7 million) on the back of the strong top-line growth. As a result, the EBITDA margin expanded to 18.5% yoy in Q1 2012 (Q1 2011: 14.2%). The Company's earnings before interest and tax (EBIT) went up more than 6.5 times yoy to EUR 4.0 million in Q1 2012 (Q1 2011: EUR 0.5 million), and the EBIT margin increased to 5.3% (Q1 2011: 0.9%). Net income came in at EUR 2.5 million during the reporting period (Q1 2011: EUR - 1.0 million) primarily due to the combined effect of the higher EBIT and the improved net financial result to EUR 2.0 million (Q1 2011: EUR 0.3 million). The higher net financial result primarily owed to foreign currency translation gains of EUR 2.8 million in Q1 2012 (Q1 2011: EUR 0.2 million). Improved cash generation Funds from operations increased by 79.9% yoy to EUR 14.3 million (Q1 2011: EUR 7.9 million) primarily reflecting the combined effect of the higher pre-tax profit and depreciation. Cash flow from operating activities was a net inflow of EUR 9.0 million (Q1 2011: net inflow of EUR 0.3 million) due to the higher funds from operations and the lower investments in net working capital. Capital expenditure declined 79.1% yoy to EUR 5.8 million (Q1 2011: EUR 27.8 million) reflecting the lower investment plans for 2012. As the majority of the EUR 150 million investment program had already been executed in 2011, C.A.T. oil budgeted the remaining EUR 30 million for 2012 to finalize the setup of the new drilling business and to maintain capacities in good working order. Cash flow from investing activities was a net outflow of EUR 5.6 million (Q1 2011: net outflow of EUR 27.4 million). Cash flow from financing activities was a net outflow of EUR 9.5 million in Q1 2012 (Q1 2011: net inflow of EUR 6.0 million) mainly due to an early redemption of long-term borrowings. As of 31 March 2012, cash and cash equivalents stood at EUR 23.0 million (31 December 2011: EUR 30.4 million). In Q1 2012, C.A.T. oil strengthened its balance sheet as witnessed by the increased equity ratio to 66.9% (31 December 2011: 62.3%). Confident outlook for FY 2012 C.A.T. oil confirms its positive view of the 2012 Fiscal Year business prospects. The Company expects the global oil demand to remain strong and provide sufficient support to the oil price. The additional demand for the Company's services comes from the increased upstream activities and investments by its customers. As C.A.T. oil has efficiently marketed all the new high class conventional drilling rigs it expects the first noticeable revenues and earnings contributions to become visible this year. Three of the new rigs have already been in operations since Q1 2012; the remaining six rigs will be successively put into operations by the beginning of Q3. At the end of May, C.A.T. oil's 2012 order book, which comprises of orders for fracturing, sidetracking and conventional drilling, stood at EUR 290 million (based on a rouble-to-euro exchange rate of 40) compared to EUR 284 million at the end of April. C.A.T. oil is confident that it is well positioned to receive additional orders in the coming months and anticipates the total revenues for Fiscal Year 2012 to surpass the current order book level. www.catoilag.com Press contact: FTI Consulting Carolin Amann Phone: +49 (0)69 92037-132 Email: carolin.amann@fticonsulting.com Thomas M. Krammer Phone: +49 (0)69 92037-183 Email: thomas.krammer@fticonsulting.com About C.A.T. oil AG: C.A.T. oil AG is one of the leading providers of oil and gas field services in Russia and Kazakhstan and is listed on the Frankfurt Stock Exchange (SDAX). C.A.T. oil offers a wide spectrum of services to increase the lifecycle of an oil field or to make unexploited oil fields accessible. The Company's growth is driven by the following factors: Existing oil fields need to be stimulated due to shrinking oil and gas resources in order to optimize capacities. Simultaneously, idle wells are reactivated or made accessible through new methods in order to deploy wells to their maximum. Additionally, C.A.T. oil has established conventional drilling as third core service which allows to access completely unexploited oil and gas reserves. Since its foundation in 1991 in Celle, Germany, C.A.T. oil has built up a leading hydraulic fracturing services business in Russia and Kazakhstan. Following its IPO in 2006 the Company has invested more than EUR 250 million in additional services and capacities: sidetrack drilling has become the Company's second core business. In 2011, the Company initiated a comprehensive investment program with a volume of EUR 150 million, focusing on the set up of conventional drilling as third service offering. The new service line will fully be installed in 2012. C.A.T. oil's portfolio also includes cementing and seismic services. With its state-of-the art technology the Company clearly differentiates itself in its core markets as the equipment allows for very time-efficient and effective deployment. C.A.T. oil's customer base includes the leading Russian and Kazakh oil and gas producers amongst them Gazprom, KazMunaiGaz, LUKOIL, Rosneft and TNK-BP. C.A.T. oil has a long-standing relationship with these customers and has been a reliable service provider since its market entrance in the early nineties. The Company has its headquarters in Vienna. As of 31 March 2012, the Company employed an average of 2,375 people, most of which are based in Russia and Kazakhstan. Key financial figures for Q1 2012 [million EUR] Q1 2012 Q1 2011 Change in % Revenues 75.3 61.0 23.5 Cost of sales 65.9 55.5 18.6 Gross profit 9.5 5.5 73.5 EBITDA 14.0 8.7 61.4 EBITDA margin (%) 18.5 14.2 EBIT 4.0 0.5 >100 EBIT margin (%) 5.3 0.9 Net income 2.5 -1.0 >100 Earnings per share (EUR) 0.051 -0.020 >100 Equity Ratio (%)* 66.9 62.3 Cash flow from operating activities 9.0 0.3 >100 Cash flow from investing activities -5.6 -27.4 -79.4 Cash flow from financing activities -9.5 6.0 >-100 Cash and cash equivalents* 23.0 30.4 -24.3 Total job count 800 770 3.9 Per-job revenue (thou. EUR) 92 79 16.0 Employees 2,375 2,362 0.6 * As of 31 March 2012 and 31 December 2011 respectively Further inquiry note: Thomas M. Krammer Tel: +49(0)69-92037-183 Email: thomas.krammer@fticonsulting.com end of announcement euro adhoc -------------------------------------------------------------------------------- company: C.A.T. oil AG Kärtner Ring 11-13 A-A-1010 Wien phone: +43(0) 1 535 23 20 - 0 FAX: +43(0) 1 535 23 20 - 20 mail: ir@catoilag.com WWW: http://www.catoilag.com sector: Oil & Gas - Upstream activities ISIN: AT0000A00Y78 indexes: SDAX, Classic All Share, Prime All Share stockmarkets: regulated dealing/prime standard: Frankfurt language: English