C.A.T. oil´s Q1 2007 results impacted by growth related costs and significant capacity additions

• Revenues up 27.2% y/y to EUR 47.9 million • Strong appreciation in revenues per job • Operating capacities expanded substantially

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May 31, 2007 - C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78), one of the leading providers of oil and gasfield services in Russia and Kazakhstan, has announced today its Q1 2007 results. Despite hash weather conditions in Western Siberia, leading to a seasonal downturn in job count, the Company sustained dynamic growth and boosted revenues substantially. The increase in revenues was primarily driven by a strong y/y increase in an average per job revenue, which reached a new high during the reporting period. At the same time C.A.T. oil pressed ahead with its aggressive growth strategy and continued adding operating capacity to its core hydraulic fracturing business and other services.

The Q1 2007 revenues rose 27.2% y/y to EUR 47.9 million compared to EUR 37.6 million a year ago. Driven by substantial enlargement of operating capacities, regional diversification, and personnel additions, cost of revenues went up 45.4% y/y to EUR 36.6 million (Q1 2006: EUR 25.2 million). Although general and administrative expenses were successfully reduced 5.9% y/y, the increase in operating costs resulted in a 5.5% y/y decline in EBITDA to EUR 9.5 million compared to EUR 10.0 million in Q1 2006. EBIT amounted to EUR 7.1 million (Q1 2006: EUR 8.0 million). As a result, EBITDA and EBIT margins shrinked to 19.8% and 14.9% respectively (Q1 2006: 26.7% and 21.2%). The Q1 2007 net income totaled EUR 4.9 million (Q1 2006: EUR 5.3 million), and earnings per share - EUR 0.101 (Q1 2006: EUR 0.133).

Investment in regional diversification and expansion of operations

Q1 2007 was again marked by substantial investments in future increase as the demand growth for the Company´s service portfolio accelerates. To meet customer´s needs the Company extensively invested in new equipment and personnel. In Q1 2007 C.A.T. oil set up 10 new workover crews, boosting its total workover operating capacity to 35 crews. For its core business -hydraulic fracturing, C.A.T. oil put three new state-of-the-art fleets into operation at the beginning of Q1 2007. Additional fracturing equipment, consisting of two new fleets, has been ordered and prepaid in order to increase total pumping capacity, and is expected to become operational in Q4 2007.

Overall, C.A.T. oil performed 444 service jobs in Q1 2007, up from 429 jobs a year ago. Simultaneously, the Company significantly increased its average revenues per job to thou. EUR 108,000 in Q1 2007 from EUR 88,000 in Q1 2006 on the back of rising job complexity and changing business mix.
In Q1 2007, the Company´s headcount totaled 2,657 people, a 19.4% increase compared to Q1 2006.

"We are especially pleased with the record level of average revenues per job. As expected, our earnings situation has been characterized by seasonal weather conditions and by the on-going build-up of capacities, as newly operational fleets and teams need some time to achieve the same efficiency levels as the ones which have been operating for many years. We are convinced that our investment program will pay-off with improved growth dynamics during the future periods. We are confident that the following quarters will deliver a very positive momentum. By the end of this year we will have scaled up our capacities by eight more side tracking rigs, of which two will be put into operation in the second quarter 2007. Four new coiled tubing units and two new nitrogen units will be added in the second half of 2007 and further strengthen our position in a growing segment of package well services," outlined Manfred Kastner, CEO of the Company.


About C.A.T. oil AG:
Austria-based C.A.T. oil AG (O2C, ISIN: AT0000A00Y78) is one of the leading providers of oil- and gasfield services in Russia and Kazakhstan. C.A.T. oil´s core business is hydraulic fracturing, a process which helps to open up oil- and gas-bearing rock formations in order to increase or even enable oil and gas production. The C.A.T. oil crews use state-of-the-art methods and technologies to generate high pressure in the oil or gas reservoirs concerned. This pressure causes cracks to appear in the rock through which oil or gas can be produced in larger quantities from the production well, and hence efficiently boosts extraction, particularly in the case of deposits that are difficult to develop or low-output wells. In addition, hydraulic fracturing can be used to revitalize wells that have previously been idle.
The Company has its headquarters in Baden near Vienna and employed 2,427 people at the end of 2006, most of whom are based in Russia and Kazakhstan. Customers include leading oil and gas producers such as Gazprom, KazMunaiGaz, LUKOIL, Rosneft, and TNK-BP. C.A.T. oil has been listed in the Prime Standard of the Frankfurt Stock Exchange since May 4, 2006, and has been a member of the SDax since September 18, 2006.

Further inquiry note:
Claudia Werth
Telefon: +49 (0)69 920 37-114
E-Mail: c.werth@abfd.de

end of announcement euro adhoc

emitter: C.A.T. oil AG
Helenenstraße 56
A-A-2500 Baden
phone: +43(0)2252 437-20
FAX: +43(0)2252 470-26
mail: ir@catoilag.com
WWW: http://www.catoilag.com
sector: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
indexes: Classic All Share, Prime All Share, SDAX
stockmarkets: official dealing: Frankfurter Wertpapierbörse language: English