C.A.T. oil AG: New Quarterly Records Underpin Significant Growth Potential for 2013

C.A.T. oil AG: New Quarterly Records Underpin Significant Growth Potential for 2013

  • 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."

VIENNA--(BUSINESS WIRE)-- 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).



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 equivalents1   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

FTI Consulting
Thomas M. Krammer, +49 (0)69 92037-183
Steffi Fahjen, +49 (0)69 92037-115

KEYWORDS:   United States  North America  New York


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