EANS-News: C.A.T. oil achieved all-time high in job count, profitability and earnings in Q3 2014

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Subtitle: • Despite the rouble devaluation, revenues improved 7.0%
yoy to EUR 120.7 million in Q3 2014 • The Q3 2014 EBITDA went up
16.6% yoy to EUR 38.8 million with the EBITDA margin expanding to
32.2% • Net income surged 40.9% yoy to EUR 23.9 million in Q3 2014 •
CEO Manfred Kastner: “Due to our stellar performance during the third
quarter and the first nine months as well as a good start into Q4 we
reiterate our 2014 guidance despite the challenging environment.”

quarterly report

Vienna, 27 November 2014 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78),
one of the leading providers of oil and gas field services in Russia
and Kazakhstan, successfully continued on its profitable growth track
in the third quarter. The Company successfully boosted revenues and
achieved a significant earnings growth despite persisting
geopolitical instabilities. C.A.T. oil benefited from positive demand
dynamics among its customers and high operating activities. Moreover,
the Group further improved efficiency and maintained tight cost
management.

Manfred Kastner, CEO of C.A.T. oil, commented: "Although we faced
more headwinds due to geopolitics, negative currency effects and
lower oil prices, we were able to further accelerate our operating
performance and earnings growth. Driven by ongoing strong demand for
our services we reached an all-time high in Q3 activity levels. With
our strong earnings growth and profitability we delivered
best-in-class levels in the Russian OFS sector. Thus, due to our
stellar performance during the third quarter and the first nine
months as well as a good start into Q4 we reiterate our 2014 guidance
despite the challenging environment."

Improved Q3 2014 revenues despite negative currency effects

The Russian rouble, which the prevailing majority of C.A.T. oil's
service contracts are denominated in, devaluated against the Euro by
more than 15% yoy during the first nine months of the year.
Therefore, the Company's top-line growth lagged behind the increase
in operating activity levels. Nonetheless, the Company was able to
boost its revenues by 7.0% yoy to EUR 120.7 million (Q3 2013: EUR
112.8 million). The total service job count increased by 17.3% yoy to
1,258 jobs in Q3 (Q3 2013: 1,072 jobs) but the average per job
revenue declined 8.8% yoy to TEUR 96 (Q3 2013: TEUR 105) due to the
lower value of the rouble. On a nine month basis revenues stayed
effectively flat yoy at EUR 323.9 million (Q1-3 2013: EUR 322.9
million). The Company's total service job count rose by 12.8% yoy to
3,315 jobs (Q1-3 2013: 2,938 jobs).

Growth in the Q3 2014 operating activities across all operating and
reporting segments

Well Services' revenues increased by 9.5% yoy to EUR 65.6 million in
Q3 2014 (Q3 2013: EUR 59.9 million). Driven by a strong expansion in
fracturing operations, the segment's job count rose by 17.7% yoy to
1,186 jobs (Q3 2013: 1,008 jobs). The average per job revenue
decreased 7.0% yoy to TEUR 55 (Q3 2013: TEUR 59), reflecting the
rouble devaluation. The share of multi-stage fracturing jobs in the
total fracturing job count surged to 27.6% in Q3 2014 (Q3 2013:
6.7%). Drilling, Sidetracking and IPM was also able to offset partly
negative currency effects by further maximising operating activity
levels and enhance revenues by 3.8% yoy to EUR 55.7 million in Q3
2014 (Q3 2013: EUR 53.6 million). The segment's job count staged a
12.1% yoy rise in the job count to 72 wells and sidetracks (Q3 2013:
64 jobs), whereas the total drilling and sidetracking footage
accelerated by 47,7% yoy to 113.2 thousand meters (Q3 2013: 76.6
thousand meters). The share of horizontal wells and sidetracks
contracted insignificantly to 39.2% of the total (Q3 2013: 40.8%)

Profitability at the record level with the EBITDA margin widened to
32.2% While the revenue growth was hampered by the continued rouble
devaluation, C.A.T. oil benefited from high capacity utilization,
efficiency gains and disciplined cost management and was again able
to strengthen its earnings power. Cost of sales increased only by
1.9% yoy to EUR 89.9 million in the very busy Q3 2014 (Q3 2013: EUR
88.2 million) but decreased by 3.1% yoy to EUR 250.8 million in Q1-3
(Q1-3 2013: EUR 258.8 million).

Earnings before interest, tax, depreciation and amortization (EBITDA)
rose by 16.6% yoy to EUR 38.8 million in Q3 2014 (Q3 2013: EUR 33.3
million), with the EBITDA margin reaching a record level of 32.2% (Q3
2013: 29.5%). In Q1-3 2014, EBITDA rose by 9.1% yoy to EUR 93.8
million (Q1-3 2013: EUR 86.0 million) and the EBITDA margin widened
to 28.9% compared to 26.6% in the corresponding reporting period of
the previous year.

Earnings before interest and tax (EBIT) accelerated at a faster pace
by 23.3% yoy to EUR 26.1 million in Q3 2014 (Q3 2013: EUR 21.2
million) and by 20.7% yoy to EUR 58.4 million in the first nine
months (Q1-3 2013: EUR 48.4 million). The EBIT margin expanded to
21.6% in Q3 2014 (Q3 2013: 18.8%) and 18.0% in Q1-3 2014 (Q1-3 2013:
15.0%).

C.A.T. oil's weighted average headcount was 2,920 employees in Q1-3
2014 (Q1- 3 2013: 2,673 employees). The increase in the headcount by
9.2% yoy reflected additions of managerial, engineering and crew
personnel to the Company's Drilling, Sidetracking and IPM operating
and reporting segment.

Net income surged by 40.9% yoy in Q3 2014

The Group's net income increased considerably by 40.9% yoy to EUR
24.0 million in Q3 (Q3 2013: EUR 17.0 million) and 28.8% yoy to EUR
49.2 million in Q1-3 2014 (Q1-3 2013: EUR 38.2 million).

Strong financial position despite a material ramp up in investments

C.A.T. oil's gross cash flow surged by 10.0% yoy to EUR 31.9 million
in Q3 2014 (Q3 2013: EUR 29.0 million) and by 10.8% yoy to EUR 80.7
million in the nine month period (Q1-3 2013: EUR 72.8 million). Cash
flow from operating activities however diminished by 16.8% yoy to EUR
24.3 million in Q3 2014 (Q3 2013: EUR 29.2 million) and 33.9% yoy to
EUR 50.7 million in Q1-3 2014 (Q1-3 2013: EUR 76.8 million) because
of the higher working capital requirements. Cash payments for the
ordered operating capacities more than quadrupled yoy to EUR 39.6
million in Q3 2014 (Q3 2013: EUR 9.3 million) and more than doubled
yoy to EUR 81.7 million in Q1-3 2014 (Q1-3 2013: EUR 40.4 million).
Cash flow from investing activities resulted in a net outflow of EUR
39.5 million in Q3 2014 (Q3 2013: EUR 8.9 million) and EUR 81.2
million in Q1-3 2014 (Q1-3 2013: EUR 38.1 million). Cash flow from
financing activities was a net inflow of EUR 8.8 million (Q3 2013:
net outflow of EUR 34.6 million) and EUR 23.1 million in Q1- 3 2014
(Q1-3 2013: net outflow of EUR 41.4 million).

As of 30 September 2014, cash and cash equivalents were down 25.8% to
EUR 31.7 million from EUR 42.6 million as of 31 December 2013. C.A.T.
oil maintained a solid balance sheet with an equity ratio of 60.3% as
of 30 September 2014 (31 December 2013: 71.4%).

2015 capacity expansions in line with market developments

Assuming the average rouble-to-euro exchange rate of 50 for 2014 and
57 for 2015-16, C.A.T. oil's 2014-2016 total order book stood at EUR
747 million as of 27 November 2014 (28 August 2014: EUR 785 million
assuming the 2014-16 flat average rouble-to-euro exchange rate of
48). The tender campaign for the next year and beyond has just begun
and C.A.T. oil is highly motivated to win additional assignments.
Based upon the initial talks with customers the Company expects
healthy demand for its services in 2015.

The EU and US sanctions do not impede C.A.T. oil's business as it has
never been engaged in the restricted activity areas such as Arctic
offshore, deep water or shale oil projects, and C.A.T. oil does not
plan to change the course of its business going forward. At the same
time geopolitics, lower energy prices and soft rouble are currently
major challenges for the sector. The Company has therefore decided to
watch carefully the market developments and hold up the decision on
its 2015 capital expenditures until the end of Q1 2015. This should
allow the Company to get greater insights of customers' future plans
and ensure the best possible utilization of its operating capacities.

Year-to-date, the Company added two drilling and two sidetracking
rigs as well as one fracking fleet to its operations and plans to put
one more drilling rig into operations before the yearend. The
remaining three drilling rigs and two sidetracking rigs will be
mobilized to customers' sites in Q1 2015.

Management reiterates guidance

Based on C.A.T. oil's strong nine month results and the good start
into Q4, management is confident in the Company's robust operating
and financial performance. Despite the adjustment of the 2014
forecast average rouble-to-euro exchange rate to 50 from 48 (as of 28
August 2014), management reiterates its guidance for the Full Year
2014. The Company continues aiming at revenues between EUR 420 and
450 million which are expected to come out at the lower end of the
range due to the currency headwinds. Furthermore, the Company
confirms its EBITDA target of EUR 113-121 million. Based on the
top-line growth, efficiency gains and a favorable revenue mix,
management sees a good chance of hitting the upper part of the
forecast EBITDA range.

In respect to the announced, but not yet launched mandatory takeover
offer of Joma Industrial Source Corp. the Company refers to updates
on its website, www.catoilag.com, where news, press releases and
other publications in this context can be found.

www.catoilag.com

Press contact:
FTI Consulting
Carolin Amann
Phone: +49 (0)69 92037-132
Email: carolin.amann@fticonsulting.com

Steffi Susan Kim
Phone: +49 (0)69 92037-115
Email: steffi.kim@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 9M
2014 weighted average headcount stood at 2,920 people, most of which
are based in Russia and Kazakhstan.

Key financial figures for Q1-Q3 2014

[million EUR] Q1-Q3 2014 Q1-Q3 2013 Change (%)
Revenues 323.9 322.9 0.3
Cost of sales 250.8 258.8 -3.1
Gross profit 73.1 64.1 14.0
EBITDA 93.8 86.0 9.1
EBITDA margin (%) 28.9 26.6
EBIT 58.4 48.4 20.7
EBIT margin (%) 18.0 15.0
Net income 49.2 38.2 28.8
Earnings per share 1.01 0.78
(EUR)
Equity Ratio (%)[1] 60.3 71.4

Cash flow from 50.7 76.8 -33.9
operating activities
Cash flow from -81.2 -38.1 113.3
investing activities
Cash flow from 23.2 -41.4 -155.8
financing activities
Cash and cash 31.7 42.6 -25.8
equivalents [1]

Total job count 3,315 2,938 12.8
Per-job revenue (thou. 98 110 -11.1
EUR)
Employees 2,920 2,673 9.2

[1] As of 30 September 2014 and 31 December 2013 respectively

Key financial figures for Q3 2014

[in million EUR] Q3 2014 Q3 2013 Change (%)
Revenues 120.7 112.8 7.0
Cost of sales -89.9 -88.2 1.9
Gross profit 30.9 24.7 25.3
EBITDA 38.8 33.3 16.6
EBITDA margin (%) 32.2 29.5
EBIT 26.1 21.2 23.3
EBIT margin (%) 21.6 18.8
Net income 24.0 17.0 40.9
Earnings per share 0.49 0.35
(EUR)

Cash flow from 24.3 29.2 -16.8
operating activities
Cash flow from -39.5 -8.9 343.3
investing activities
Cash flow from 8.8 -34.6 -125.5
financing activities

Total job count 1,258 1,072 17.3
Per-job revenue 96 105 -8.8
(thou. EUR)

Further inquiry note:
Carolin Amann Tel: +49(0)69-92037-132 Email: carolin.amann@fticonsulting.com
Steffi Susan Kim Tel: +49(0)69-92037-115 Email: steffi.kim@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