EANS-News: C.A.T. oil AG
C.A.T. oil reiterates its 2014 guidance and stays
adhered to its 2014-16 investment plans
11.08.2014 – 06:02
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Subtitle: Business model stays intact Management reiterates its outlook for 2014 despite recent economic sanctions and export controls regarding the Russian oil industry Assessment of the details of the EU and the US restrictive measures ongoing Adherence to the 2014-16 investment program CEO Manfred Kastner: Despite the macroeconomic uncertainties we hold on to our plans. We are confident in our forecast for this year as our operations run smoothly and according to the plan. Company Information C.A.T. oil AG (O2C, ISIN: AT0000A00Y78),one of the leading providers of oil and gas field services in Russia and Kazakhstan, reiterates its outlook for the current fiscal year following the initial assessment of the effects of the latest EU and US export restrictions for the Russian oil industry. C.A.T. oil expects revenues in the range of EUR 420 to 450 million and EBITDA in the range of EUR 113 to 121 million for 2014. The Company assessed the effects of the sanctions on its business model, 2014 objectives and 2014-16 capital expenditure program. While the EU and the US export restrictions for certain items target specific projects pertaining to deep water and Arctic exploration and production and shale oil projects, neither C.A.T. oil nor its subsidiaries have ever been involved in any of the aforementioned projects. The Company's focus has always been pressure pumping, sidetracking and drilling services solely at onshore conventional oil and gas reservoirs in Russia and Kazakhstan. C.A.T. oil has repeatedly stressed that it will consequently follow its proven strategy and neither change its business focus nor the nature of its operations going forward. Thus, the 2014-16 investment program of EUR 390 million is also not intended for any of the restricted activity areas but support of customers' production from maturing conventional oil and gas reservoirs with diminishing productivity. Manfred Kastner, CEO of C.A.T. oil, said: "We have been active in Russia for more than 20 years. Over time we have gone through different economic and political phases. We have always been flexible in our operations and committed to our customers and services. Despite the current macroeconomic uncertainties we thus also hold on to our plans now. We are confident in our forecast for this year as our operations run smoothly and according to the plan." C.A.T. oil's business model resides upon modern technology and a well invested asset base with operating capacities primarily of EU and US origin. After having made the initial assessment, C.A.T. oil is - despite its awareness that export controls are subject to change and that regulators have broad discretion when interpreting export controls - confident in its business model. The planned capacity additions are not intended for deep water, Arctic or shale oil projects. Therefore, the Company believes the latest EU and US export control rules for Russian oil industry do not jeopardize its business model, 2014 operating and financial objectives and 2014-16 investment program. Manfred Kastner further concluded: "We are of course closely following the developments and are constantly evaluating the conditions of the sanctions. At the same time, however, we are concentrating on our operations and the execution of our investment plan. We, therefore, remain focused beyond 2014 as our strategy aims at profitable growth going forward." www.catoilag.com Press contact: FTI Consulting Carolin Amann Phone: +49 (0)69 92037-132 Email: carolin.amann@fticonsulting.com Steffi Fahjen Phone: +49 (0)69 92037-115 Email: steffi.fahjen@fticonsulting.com About C.A.T. oil AG: C.A.T. oil AG is one of the leading independent oil and gas field service contractors in Russia and Kazakhstan and is listed on the Frankfurt Stock Exchange (SDAX). C.A.T. oil provides a range of high quality services, which enable oil and gas producers to extend lifecycle of their fields or bring yet unexploited oil and gas reserves to production. Since its foundation in 1991 in Celle, Germany, C.A.T. oil has built up a leading hydraulic fracturing service, a very effective method of well stimulation by cracking rock formations with pressurized fluids, in Russia and Kazakhstan. Following its IPO in 2006, the Company developed a second core service of sidetrack drilling in 2006-08 and has established a strong presence in Russia's sidetrack drilling market. Sidetrack drilling is a term used to describe drilling of a new wellbore from the upper section of an existing well. In 2011-12, the Company launched the next phase of its growth and diversification strategy and set up high class drilling operations as a third core service offering. High class drilling is the classical technology of drilling vertical, inclined and horizontal wells for extraction of oil and gas. In total, the Company has already invested more than EUR 450 million in growth and diversification since its IPO in 2006. Following the successful set up of high class drilling in 2011-12, C.A.T. oil introduced its new segment reporting in 2013 clustering its activities in "Well Services" (fracturing, cementing and completion operations) and "Drilling, Sidetracking and IPM (Integrated Project Management)". C.A.T. oil's customer base includes the leading Russian and Kazakh oil and gas producers such as Rosneft, Lukoil, Gazprom Neft, Tomskneft VNK, Slavneft, Russneft and KazMunaiGaz. The Company has long-standing relationships with these customers and has been a reliable service provider since its market entrance in the early nineties. C.A.T. oil has its headquarters in Vienna. The Company's Q1 2014 weighted average headcount stood at 2,837 people, most of which are based in Russia and Kazakhstan. Further inquiry note: Carolin Amann Tel: +49(0)69-92037-132 Email: carolin.amann@fticonsulting.com Steffi Fahjen Tel: +49(0)69-92037-115 Email: steffi.fahjen@fticonsulting.com end of announcement euro adhoc -------------------------------------------------------------------------------- company: C.A.T. oil AG Kärntner Ring 11-13 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