EANS-News: C.A.T. oil made solid progress in business expansion and diversification in 2011

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annual result

Subtitle: • All-time-high in operating activity levels in FY 2011 •
Revenue target exceeded with revenues up 22.7% yoy to EUR 280.7
million • EBITDA of EUR 54.6 million and EBITDA margin of 19.5%,
reflect business expansion and temporary cost effects • The new high
class conventional drilling services will contribute to further
growth in 2012 • Proposed dividend increase to EUR 0.125 per share

Vienna, 30 April 2011 (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 Fiscal Year 2011. C.A.T. oil boosted its revenues by 22.7% yoy to
EUR 280.7 million (FY 2010: 228.8 million) thereby successfully
exceeding its objective of EUR 260-270 million. The strong
development was based on a very healthy demand and supportive
macroeconomic dynamics in Russia and Kazakhstan.

In 2011, C.A.T. oil not only expanded its existing businesses but
also consequently executed the set up of high class conventional
drilling as third core service line. Despite front-up costs related
to the business expansion, the Company continued to operate on a high
level.

Manfred Kastner, CEO of C.A.T. oil, commented: "Fiscal Year 2011
represents an important milestone in our history. Although global
economies slowed down throughout the year, we were able to
successfully grow our traditional business: We pushed our total job
count to a new record-high of 3,366 jobs and exceeded our revenue
target with revenues of EUR 280.7 million. At the same time we very
efficiently expanded into high class conventional drilling. We thus
leverage our existing strength and know-how to set the basis for
additional profitable growth."

"By the end of April, we had obtained service orders for 80% of our
new drilling capacities for 2012. Our talks with customers for
deployment of the remaining 20% are at the completion stage. This
development clearly demonstrates two of our key strengths: on the one
hand our ability to understand the markets and our customers' needs
and on the other, our strong reputation for delivering top-in-class
services based on state-of-the-art technology."

All-time-high in total job count and revenues

In Fiscal Year 2011 C.A.T. oil recorded a strong revenue boost backed
by two effects: Firstly, an increase of 11.7 % yoy to 3,366 jobs (FY
2010: 3,014 jobs) with fracturing and sidetrack drilling operations
going up 15.9% yoy and 7.8% yoy, respectively. Secondly, a strong
upturn in the average per job revenue to TEUR 82.9, up 10.2% yoy (FY
2010: TEUR 75.2).

Cost base influenced by high operating activity levels, greater size
and complexity of jobs and front-loaded costs

In 2011 cost of sales rose by 30.1% yoy to EUR 242.8 million (FY
2010: EUR 186.7 million), reflecting four aspects: front-loaded costs
related to the business expansion, high operating activity levels,
the increased share of more complex horizontal sidetracks and slower
than expected sidetrack drilling operations in Q1 and Q4.

As part of the 2011-12 investment program of EUR 150 million, C.A.T.
oil set up high class conventional drilling: The first conventional
drilling rig has already been in operation since Q3 2011. The
remaining eight rigs were shipped to Russia and adapted for
operations during H2. In addition, two more sidetrack drilling rigs
were added to the portfolio, bringing the total number of those
particular rigs to 17.

General and administrative expenses increased by 7.1% yoy to EUR 19.5
million in FY 2011 (FY10 2010: EUR 18.2 million) primarily driven by
the costs related to the expansion of the business. The total
weighted average headcount went down by 2.6% yoy to 2,360 employees
in FY 2011 (FY 2010: 2,424 employees) and reflect a reduction of
staff due to the outsourced workover, as well as new hires for the
new business line.

Competitive EBITDA margin of 19.5% despite business expansion

Earnings before interest, tax and depreciation (EBITDA) slightly
decreased by 3.2% yoy to EUR 54.6 million in 2011 (FY 2010: EUR 56.4
million). This mainly reflects the higher cost base due to the
business diversification, setbacks in the sidetracking performance in
Q1 and Q4 as well as a one-off effect in the amount of EUR 2.1
million for provisions for long-term and current receivables in Q4.
Despite these effects C.A.T. oil continued to deliver a very
competitive EBITDA margin of 19.5% (FY 2010: 24.7%).

The Company's earnings before interest and tax (EBIT) diminished
39.6% yoy to EUR 16.6 million in 2011 (FY 2010: EUR 27.5 million),
reflecting the lower EBITDA and higher depreciation expense on
investments in the new operating capacities.

Net income came in at EUR 6.8 million in 2011 (FY 2010: EUR 19.5
million) primarily owing to lower operating profit and net financial
result.

Cash flow driven by business expansion

Funds from operations decreased by 4.1% yoy to EUR 46.4 million (FY
2010: EUR 48.3 million) primarily reflecting the combined effect of
lower pre-tax profit and higher depreciation. Cash flow from
operating activities was a net inflow of EUR 29.8 million (FY 2010:
net inflow of EUR 59.2 million) due to lower funds from operations
and the higher net working capital which was driven by business
expansion. Capital expenditure rose 155.3% yoy to EUR 110.6 million
(FY 2010: EUR 43.3 million) primarily due to successful execution of
the investment plan. Cash flow from investing activities was a net
outflow of EUR 108.0 million (FY 2010: net outflow of EUR 39.7
million). Cash flow from financing activities was a net inflow of EUR
73.7 million in 2011 (FY 2010: net outflow of EUR 13.3 million)
mainly due to an increase in long-term borrowings for investment
purposes.

As of 31 December 2011, cash and cash equivalents stood at EUR 30.4
million (31 December 2010: EUR 34.1 million). C.A.T. oil's equity
ratio remained at a comfortable level of 62.3% as of 31 December 2011
(31 December 2010: 83.2%).

Dividend proposal of EUR 0.125 per share

At the AGM on June 15, 2012 the Management and the Supervisory Boards
will propose to increase the dividend by 25% yoy to EUR 0.125 per
share for Fiscal Year 2011. This represents a profit distribution of
90%.

Confident outlook for FY 2012

Despite ongoing uncertainties regarding the global economic prospects
for 2012, C.A.T. oil is confident in a positive outlook for the
current Fiscal Year. The global oil demand is expected to remain
strong and the oil price is likely to stay at a high level. Moreover,
in oil and gas producers in Russia and Kazakhstan have increased
their upstream activities and investment plans since late 2011. These
factors will have a positive effect on demand and support C.A.T.
oil's growth: At the end of April, C.A.T. oil's 2012 order book,
which comprises of orders for fracturing, sidetrack drilling and
conventional drilling, improved 27% yoy to EUR 284 million (based on
a rouble-to-euro exchange rate of 40). The new conventional drilling
capacity is expected to make first positive contributions to revenues
and earnings during the current year.

Manfred Kastner said: "With our diversified service portfolio we are
in an even stronger position to exploit market opportunities. With
our experienced teams and state-of-the-art technology we will be able
to assist our customers to efficiently produce oil wells and deliver
exactly the services they need. We are thus very well positioned for
another year of profitable growth".

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 activate completely
unexploited oil and gas sources.

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 November
2010, the Company introduced a comprehensive investment program with
a volume of EUR 150 million which has mainly been used to set up
conventional drilling as part of the Company's service portfolio.
Furthermore, C.A.T. oil offers cementing and seismic services. Due to
the recent investments C.A.T. oil's fleets and rigs are
state-of-the-art and therefore allow for 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. From January to December
2011, the Company employed an average of 2,360 people, most of which
are based in Russia and Kazakhstan.

Key financial figures for FY 2011

[million EUR]
FY 2011 FY 2010 Change in %
Revenues 280.7 228.8 22.7
Cost of sales 242.8 186.7 30.1
Gross profit 37.9 42.1 -10.0
EBITDA 54.6 56.4 -3.2
EBITDA margin (%) 19.5 24.7
EBIT 16.6 27.5 -39.6
EBIT margin (%) 5.9 12.0
Net income 6.8 19.5 -65.3
Earnings per share (EUR) 0.138 0.399 -65.3
Equity Ratio (%)* 62.3 83.2

Cash flow from
operating activities 29.8 59.2 -49.8
Cash flow from
investing activities -108.0 -39.7 >100
Cash flow from
financing activities 73.7 -13.3 >100
Cash and cash equivalents* 30.4 34.1 -11.0

Total job count 3,366 3,014 11.7
Per-job revenue (thou. EUR) 82.9 75.2 10.2
Employees 2,360 2,424 -2.6

*As of 31 December 2011 and 31 December 2010 respectively

Key financial figures for Q4 2011

[million EUR]
Q4 2011 Q4 2010 Change in %
Revenues 71.0 55.0 29.2
Cost of sales 65.4 46.9 42.2
Gross profit 5.6 9.0 -37.5
EBITDA 8.7 13.0 -33.0
EBITDA margin (%) 12.2 23.6
EBIT -2.0 5.9 >-100
EBIT margin (%) -2.8 10.7
Net income -5.9 3.3 >-100
Earnings per share (EUR) -0.120 0.067 >-100

Cash flow from
operating activities -0.4 14.2 >-100
Cash flow from
investing activities -26.2 -14.8 76.6
Cash flow from
financing activities 21.5 -0.4 >100

Total job count 788 759 3.7
Per-job revenue (thou. EUR) 89.0 72.0 23.6

Further inquiry note:
Thomas M. Krammer
Tel: +49(0)69-92037-183
Email: thomas.krammer@fticonsulting.com

end of announcement euro adhoc
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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