EANS-News: New quarterly records underpin significant growth potential for 2013

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Subtitle: • Revenues up 31.3% yoy to EUR 98.9 million in Q1 2013 •
EBITDA boosted by 71.9% yoy to EUR 24.0 million; strong expansion in
the EBITDA margin to 24.3% from 18.5% in Q1 2012 • Net income nearly
tripled to EUR 7.2 million yoy • Additional orders improved 2013
order book to EUR 400 million at the end of May, up 37.9% yoy • CEO
Manfred Kastner reiterates outlook: “Following our excellent start
into the new year we are confident in attaining our ambitious growth
targets for 2013.”

quarterly report

Vienna, 28 May 2013 (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, achieves a record first quarter
high in 2013. C.A.T. oil increased its revenues by 31.3% yoy to EUR
98.9 million (Q1 2012: EUR 75.3 million) and EBITDA by 71.9% yoy to
EUR 24.0 million (Q1 2012: EUR 14.0 million). The EBITDA margin
jumped to 24.3% (Q1 2012: 18.5%). Net income came in at EUR 7.2
million (Q1 2012: EUR 2.5 million) and thus nearly tripled compared
to Q1 2012. Based on the successful roll-out of its 2013 expansion
program well ahead of schedule as well as the booming demand for the
Company's services and recent awards of additional service orders
C.A.T. oil reiterates its outlook for Fiscal Year 2013.

Manfred Kastner, C.A.T. oil's CEO, commented: "We not only achieved
record high revenues but also pushed up our profitability in the
first quarter 2013. At the same time we further increased our market
share. Our successful diversification into drilling is now cushioning
the traditionally negative effects of seasonality in our business to
some extent. Following our excellent start into the new year we are
confident in attaining our ambitious growth targets for 2013."

Consolidated record revenues boosted by more than 30%

In Q1 2013 the Company boosted its consolidated revenues by 31.3% to
EUR 98.9 million (Q1 2012: EUR 75.3 million) on the back of the
higher activity levels and the greater job size and complexity. The
total service job count advanced by 9.0% yoy to 872 jobs (Q1 2012:
800 jobs) and the average per job revenues increased by 23.6% yoy to
TEUR 113 (Q1 2012: TEUR 92).

Following the successful set up of high class drilling services,
C.A.T. oil has introduced a new segment reporting since 1 January,
2013. The Company's operating and reportable segments now consist of
"Well Services" (fracturing, cementing and completion operations) and
"Drilling, Sidetracking and IPM (Integrated Project Management)".

During the reporting period the Company's Well Services' revenues
rose by 25.3% yoy to EUR 54.7 million (Q1 2012: EUR 43.7 million)
driven by the booming demand for the Company's fracturing services as
well as a favorable job composition and pricing environment.

Drilling, Sidetracking and IPM segment's revenues jumped by 48.5% yoy
to EUR 44.2 million (Q1 2012: EUR 29.7 million) based on both, the
increased job count and the higher average per job revenues.

Effective cost management in place

Despite the increased operating activity levels and the greater
average job size and complexity, cost of sales rose only by 23.2% yoy
to EUR 81.1 million (Q1 2012: EUR 65.9 million) primarily due to
strict cost management and efficiency gains. C.A.T. oil's total
weighted average headcount expanded by 9.3% to 2,595 employees (Q1
2012: 2,375 employees) primarily driven by the buildup of personnel
for the new drilling service.

Record high earnings and profitability

The Company's earnings before interest, tax, depreciation and
amortization (EBITDA) reached a new first quarter high of EUR 24.0
million (Q1 2012: EUR 14.0 million), up 71.9% yoy. The EBITDA margin
hiked by 5.8 percentage points to 24.3% (Q1 2012: 18.5%). The record
earnings and profitability in Q1 2013 underpin C.A.T. oil's
exceptional performance, which is based on a solid top-line growth
and high cost efficiency.

The Company's earnings before interest and tax (EBIT) advanced by
189.1% yoy to EUR 11.5 million (Q1 2012: EUR 4.0 million) resulting
in the EBIT margin of 11.7% (Q1 2012: 5.3%).

Net income almost tripled

The Company's net financial result amounted to EUR -1.6 million (Q1
2012: EUR 2.0 million), reflecting foreign currency exchange losses
of EUR 1.0 million (Q1 2012: gains of EUR 2.8 million) as well as net
interest expenses of EUR 0.5 million (Q1 2012: EUR 0.8 million).
Nevertheless, C.A.T. oil's remarkable operational strength translated
into almost a three-fold yoy increase in net income to EUR 7.2
million (Q1 2012: EUR 2.5 million).

Solid balance sheet

The Company's funds from operations rose by 51.8% yoy to EUR 21.6
million (Q1 2012: EUR 14.3 million). Cash flow from operating
activities came in at EUR 6.1 million (Q1 2012: EUR 9.0 million)
primarily reflecting the effects of a seasonal expansion in net
working capital. C.A.T. oil proceeded with timely execution of its
EUR 45.0 million expansion program and added two new sidetrack
drilling rigs to its portfolio during the reporting period. As a
result, the Company's capital expenditures increased by 153.1% yoy to
EUR 14.7 million (Q1 2012: EUR 5.8 million). Cash flow from investing
activities was a net outflow of EUR 14.0 million (Q1 2012: 5.6
million). Cash flow from financing activities was a net inflow of EUR
3.7 million (Q1 2012: net outflow of EUR 9.5 million) primarily due
to an increase in long-term borrowings. As of 31 March 2013, cash and
cash equivalents stood at EUR 34.8 million (31 December 2012: EUR
38.8 million). C.A.T. oil's equity ratio stood at a very healthy
level of 65.6% as of 31 March 2013 (31 December 2012: 67.0%).

Outlook for 2013 reiterated

C.A.T. oil has been persistently executing its 2013 investment
program aiming at expansion of its operating capacities by
approximately 30% for sidetracking and 10% for fracturing and is well
ahead of schedule. Following deployment of two new sidetrack drilling
rigs in February, the Company successfully put three more rigs into
operations in May. All the five new rigs will contribute to the
Company results from June onwards. The additional fracturing fleet
will be ready for operations in the third quarter as scheduled.

In Q1 2013 C.A.T. oil was awarded additional service orders by its
customers. As of end of May 2013, the Company's order book for 2013
stands at around EUR 400 million representing a sharp 38% yoy
increase from EUR 290 million as of the end of May 2012 (based on a
rouble-to-euro exchange rate of 40). The total order book for a
three-year period of 2013-15 amounts to EUR 538 million, up 64% yoy
compared to EUR 329 million for 2012-14 as of the end of May 2012.

Based on the strong market fundamentals and exceptional operating and
financial performance in the first quarter, C.A.T. oil reiterates its
optimistic outlook for Fiscal Year 2013 with revenues of EUR 405 to
425 million and EBITDA ranging from EUR 95 to 105 million (based on a
rouble-to-euro exchange rate of 40).

www.catoilag.com

Press contact:
FTI Consulting
Thomas M. Krammer
Phone: +49 (0)69 92037-183
Email: thomas.krammer@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 2007-09 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
400 million in growth and diversification.

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 Gazprom, Rosneft, Lukoil, TNK-BP 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 2013
weighted average headcount stood at 2,595 people, most of which are
based in Russia and Kazakhstan.

Key financial figures for Q1 2013

[million EUR]
Q1 2013 Q1 2012 Change in %
Revenues 98.9 75.3 31.3
Cost of sales 81.1 65.9 23.2
Gross profit 17.8 9.5 87.6
EBITDA 24.0 14.0 71.9
EBITDA margin (%) 24.3 18.5
EBIT 11.5 4.0 >100
EBIT margin (%) 11.7 5.3
Net income 7.2 2.5 >100
Earnings per share (EUR) 0.147 0.051 >100
Equity Ratio (%) (1) 65.6 67.0

Cash flow from
operating activities 6.1 9.0 -33.0
Cash flow from
investing activities -14.0 -5.6 >100
Cash flow from
financing activities 3.7 -9.5 >100
Cash and cash equivalents (1) 34.8 38.8 -10.2

Total job count 872 800 9.0
Per-job revenue (thou. EUR) 113 92 23.6
Employees 2,595 2,375 9.3

1) As of 31 March 2013 and 31 December 2012 respectively

Further inquiry note:
Thomas 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
Kärntner 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