EANS-News: C.A.T. oil AG / Business model verified - record operational and financial results in full year 2013

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Subtitle: • Revenues increased by more than one fourth yoy to EUR
426.6 million

• EBITDA up 43.6% yoy to EUR 114.9 million – efficiency gains boost
EBITDA margin by 3.1 percentage points to 26.9%

• Net income surged by more than 140% yoy to EUR 50.8 million

• Proposed dividend of EUR 0.35 per share, up 40% from the previous
year level

• Outlook 2014: revenues in the range of EUR 420 to 450 million and
EBITDA from EUR 113 to 121 million based on the underlying assumption
of more than 10% yoy rouble devaluation

• CEO Manfred Kastner: “Our strong numbers in 2013 underscore the
first year of all our core services, fracturing, sidetracking and
drilling, in full operation, and clearly confirm our strategy of
focusing on efficiency and portfolio optimization.”

annual result

Vienna (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, delivered superior operating and financial
results in 2013: C.A.T. oil boosted its revenues by more than one
fourth yoy to EUR 426.6 million (2012: EUR 336.8 million) and
EBITDA by 43.6% yoy to EUR 114.9 million (2012: EUR 80.0 million)
as the EBITDA margin widened by 3.1 percentage points to 26.9%
(2012: 23.8%). Net income surged by more than 140% yoy to EUR 50.8
million (2012: EUR 21.0 million). Along with sound top- and
bottom-line growth C.A.T. oil rolled-out and accomplished its
2013 investment program to reinforce its operating platform and
pave the way for further business expansion. Despite the elevated
geopolitical and macroeconomic uncertainties C.A.T. oil stays firmly
adhered to its profitable growth strategies residing upon its
high-class service offering tailored to the needs of the Russian
oil industry.

Manfred Kastner, CEO of C.A.T. oil, commented: "We look back at
yet another exciting year following the successful implementation
of the new drilling service in 2012. Our strong results in 2013
underscore the first year of all our core services, fracturing,
sidetracking and drilling, in full operation, and clearly confirm
our strategy of focusing on efficiency and portfolio
optimization. Having surpassed our bottom-line targets, we revealed
the great potential of our Company, its strengths and capabilities.
Building upon these fundaments we are determined to archive
further profitable growth in the future."

Top-line growth at the record level

Driven by high operating activity and capacity utilization levels as
well as a favorable service mix, C.A.T. oil's consolidated revenues
went up by 26.7% yoy to a new record of EUR 426.6 million (2012:
EUR 336.8 million), in line with the Company's guidance for 2013.
The strong demand growth for the Company's services is witnessed
by a 16.3% yoy hike in the total job count to 4,006 jobs (2012:
3,444 jobs), whereas an 9.7% yoy rise in the average per job revenue
to TEUR 106 (2012: TEUR 97) underscores the strengthened price
environment and the higher average job size and complexity.

The Company's Well Services segment boosted its revenues by 23.9%
yoy to EUR 227.4 million in 2013 (2012: EUR 183.6 million) mainly
due to a strong upturn in the Company's fracturing job count on
the back of a burgeoning demand for multi-stage fracking services
during the reporting period. Multi-stage fracks surged to 16% of
the Company's total frack jobs (2012: 2%) as Russia's
horizontal drilling footage increased 62% yoy in 2013,
according to the government agency CDU TEK. The segment's job count
increased by 16.5% yoy to 3,772 jobs (2012: 3,237 jobs), whereas
the average per job revenue rose by 6.3% yoy to TEUR 60 (2012: TEUR
57).

Drilling, Sidetracking and IPM segment's revenues staged a 30.4%
growth yoy to EUR 199.5 million (2012: EUR 153.0 million). The
increase was primarily fuelled by a 43.1% yoy expansion in the
Company's drilling and sidetracking footage to 302 thousand meters
(2012: 211 thousand meters). The segment's job count was up 13.0%
yoy to 234 wells and sidetracks (2012: 207 wells and sidetracks),
whereas the share of horizontal wells and sidetracks rose to 48%
of the Company's overall drilling and sidetracking mix (2012: 38%).

Efficiency and cost management drive profitability

Despite swinging operating activity levels and the greater average
job size and complexity, the Company's cost of sales was up only by
20.7% yoy to EUR 341.2 million during the reporting period (2012:
EUR 282.7 million). Driven by the new staff additions to
sidetracking and drilling operations, C.A.T. oil's total weighted
average headcount rose by 10.0% yoy to 2,773 employees (2012:
2,522 employees). Thanks to the continued focus on efficiency gains
and strict cost management, the Company's earnings before
interest, tax, depreciation and amortization (EBITDA) staged a
significant increase of 43.6% yoy to EUR 114.9 million (2012: EUR
80.0 million). Thereby, C.A.T. oil surpassed the upper part of its
EBITDA guidance range of EUR 105 to 110 million for 2013. The
EBITDA margin widened to 26.9% in 2013 from 23.8% in 2012. The
Company more than doubled its earnings before interest and tax
(EBIT) to EUR 64.6 million (2012: EUR 32.1 million), resulting in
the EBIT margin of 15.1% (2012: 9.5%).

Net income advanced by more than 140%

The Company's net financial result improved to EUR -1.9 million from
EUR -2.3 million a year ago, primarily reflecting foreign currency
exchange losses of EUR 0.7 million (2012: gains of EUR 0.7 million)
and net interest expenses of EUR 1.1 million (2012: EUR 3.0
million). Thereby, the Group's net income was up 141.7% yoy to EUR
50.8 million in 2013 (2012: EUR 21.0 million).

Sound balance sheet and plenty of funding capacity

C.A.T. oil's funds from operations increased by 34.1% yoy to EUR
100.1 million (2012: EUR 74.7 million) and cash flow from operating
activities went up by 28.0% yoy to EUR 107.4 million (2012:
EUR 83.9 million). Driven by the successful implementation of
the 2013 investment program aimed at expansion of the Company's
operating capacities by 30% for sidetracking and 10% for
fracturing, capital expenditures surged 71.6% yoy to EUR 64.7
million (2012: EUR 37.7 million). Cash flow from investing
activities was a net outflow of EUR 62.1 million (2012: net outflow
of EUR 35.3 million) and cash flow from financing activities was a
net outflow EUR 45.7 million (2012: net outflow of EUR 39.4 million).

As of 31 December 2013, cash and cash equivalents amounted to EUR
42.6 million, representing an increase of 9.9% from EUR 38.8 million
as of 31 December 2012. The Company had net cash of EUR 24.6
million as of 31 December 2013 compared to net debt of EUR 11.8
million as of 31 December 2012. The Company's equity ratio improved
to 71.4% as of 31 December 2013 from 67.0% as of 31 December 2012.

Proposal for a 40% yoy increase in dividend per share to EUR 0.35

To share the 2013 success with the Company shareholders, the
Management Board and the Supervisory Board will propose a dividend
of EUR 0.35 per share for 2013 at the AGM on 13 June 2014. This
represents an increase of 40% compared to the previous year's
dividend and a payout ratio of around 34%, well above the Company
dividend policy's minimum payout of 20%.

Confident outlook despite geopolitical uncertainties

Based upon encouraging industry trends and healthy demand for C.A.T.
oil's high- class services, the management looks ahead at the
current Fiscal Year with confidence and optimism. Despite
Russia's economic growth slows down and geopolitical tensions
over the Crimean crisis aggravate the Russian currency weakness
relative to the euro, the demand growth for oilfield services
in Russia remains robust in 2014.

Supportive operating environment has become evident in the Company's
order book development for 2014 and beyond. As of the end of April,
C.A.T. oil's rouble- denominated service orders were up 27% yoy for
2014 and 71% yoy for 2014-16. In euro terms, though, the order book
increased only 6% yoy to EUR 415 million for 2014 from EUR 392
million a year ago and 42% yoy to EUR 754 million for 2014-16 from
EUR 530 million a year ago. The underlying assumption for the
average rouble-to-euro exchange rate is 48 for 2014 and 2014-16
compared to the exchange rate of 40 a year ago.

Against the backdrop of the record order book, C.A.T. oil expects
the FY2014 revenues in the range of EUR 420 to 450 million and
EBITDA ranging from EUR 113 to 121 million (based on the average
rouble-to-euro exchange rate of 48).

C.A.T. oil reiterates its 2014-16 investment program of EUR 390
million aiming at expansion of operating capacities by 33%
for fracturing, 55% for sidetracking and 170% for drilling by
the end of 2016 compared to the end of 2013.

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 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 2013
weighted average headcount stood at 2,773 people, most of which are
based in Russia and Kazakhstan.

|Key financial figures for FY 2013 |
|[million EUR] |FY 2013 |FY 2012 |Change (%) |
| | | | |
|Revenues |426.6 |336.8 |26.7 |
|Cost of sales |341.2 |282.7 |20.7 |
|Gross profit |85.4 |54.0 |58.0 |
|EBITDA |114.9 |80.0 |43.6 |
|EBITDA margin (%) |26.9 |23.8 | |
|EBIT |64.6 |32.1 |100.8 |
|EBIT margin (%) |15.1 |9.5 | |
|Net income |50.8 |21.0 |141.7 |
|Earnings per share (EUR) |1.041 |0.431 |141.7 |
|Equity Ratio (%)[1] |71.4 |67.0 | |
| | | | |
|Cash flow from operating |107.8 |81.0 |33.1 |
|activities | | | |
|Cash flow from investing |-62.1 |-35.3 |75.7 |
|activities | | | |
|Cash flow from financing |-45.7 |-39.4 |16.1 |
|activities | | | |
|Cash and cash equivalents [1] |43.0 |35.9 |19.9 |
| | | | |
|Total job count |4,006 |3,444 |16.3 |
|Per-job revenue (thou. EUR) |106 |97 |9.7 |
|Employees |2,773 |2,522 |10.0 |

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[1] As of 31 December 2013 and 31 December 2012 respectively

|Key financial figures for Q4 2013 |
|[million EUR] |Q4 2013 |Q4 2012 |Change (%) |
| | | | |
|Revenues |103.6 |90.4 |14.6 |
|Cost of sales |82.4 |77.4 |6.4 |
|Gross profit |21.3 |13.0 |62.9 |
|EBITDA |29.0 |21.2 |36.8 |
|EBITDA margin (%) |28.0 |23.4 | |
|EBIT |16.2 |7.3 |121.1 |
|EBIT margin (%) |15.6 |8.1 | |
|Net income |12.6 |5.8 |117.6 |
|Earnings per share (EUR) |0.258 |0.119 |117.6 |
| | | | |
|Cash flow from operating |27.6 |32.2 |-14.4 |
|activities | | | |
|Cash flow from investing |-24.0 |-17.8 |35.2 |
|activities | | | |
|Cash flow from financing |-0.3 |-30.5 |-99.0 |
|activities | | | |
| | | | |
|Total job count |1,068 |883 |21.0 |
|Per-job revenue (thou. EUR) |97 |102 |-5.3 |

Further inquiry note:
Thomas Krammer Tel: +49(0)69-92037-183 Email: thomas.krammer@fticonsulting.com
Steffi Fahjen Tel: +49(0)69-92037-115 Email: steffi.fahjen@fticonsulting.com

end of announcement euro adhoc
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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