EANS-News: C.A.T. oil AG 2009: Increase in profitability and rise to market leadership in both core services

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Subtitle: • All time high in job count of 3,002 jobs
• Rise to market leadership in Russia in core well services
• Net profit up more than three times to EUR 8.4 million
• First time since the IPO: dividend proposal of EUR 0.30 per share

Vienna 28 April 2010 (euro adhoc) - 28 April 2010 - C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78), one of the leading providers of oil and gas field services in
Russia and Kazakhstan, today announced the results for the Full Year 2009.
Despite the global recession and the volatile market conditions C.A.T. oil has
been able to reach a record level in its operations while at the same time
growing market share, improving profitability and further strengthening its
strong balance sheet.

Job count reached all-time-high - particularly strong growth in sidetrack
drilling business
Particularly in the first half of 2009, oil and gas producers were heavily
im-pacted by the crash in oil prices and, therefore, kept budgets and new orders
at very conservative levels. Whereas demand for the seismic business went down
sharply, orders for C.A.T. oil´s core services, hydraulic fracturing and
sidetrack drilling, slowly picked up during the summer. C.A.T. oil was not only
awarded new assignments but also accomplished more jobs than ever before. As a
result, the Company was able to increase the annual job count to an all-time
high of 3,002 jobs (2008: 2,381 jobs).

In Fiscal Year 2009 growth driver number one has again been C.A.T. oil´s
si-detrack drilling business, which saw a rise in a job count by 37.6% yoy
despite the opposite trend in the Russian sidetrack drilling market during this
difficult year. Starting with two rigs at the time of the IPO and adding 13
modern Ger-man rigs within the last three years, C.A.T. oil has become the
number one among independent service providers in Russia by job count and a
number of active rigs. The strategy to offer state-of-the-art technology and
highest service quality made all the difference. Measured against a number of
jobs, C.A.T. oil´s market share expanded to an estimated level of around 22% in
2009 from approximately 18% in 2008.

C.A.T. oil was also able to further expand its other core business, hydraulic
fracturing: job count in this service area also went up by 4.8% yoy despite the
market turbulences in 2009. On a job count measure, the Company fracturing
market share in Russia and Kazakhstan inflated to the estimated 28% in 2009 from
around 26% in 2008.

Manfred Kastner, CEO of C.A.T. oil, commented: "C.A.T. oil has mastered the
enormous challenges of 2009. The combination of our high quality approach,
modern technology and customer orientation has been even more appreciated during
these difficult times and our clients rewarded us with more jobs than ever
thereby boosting C.A.T. oil in number one positions in both - side track
drilling and hydraulic fracturing jobs." He added: "In addition, we have reacted
early on and taken comprehensive measures to successfully decrease our costs
despite the new high in jobs".

Streamlined operations and improved cost base
Throughout 2009 the Company implemented a comprehensive cost cutting program
with the goal to reduce its cost base and increase profitability. Due to
workflow improvements in its operations and renegotiated supplier contracts,
C.A.T. oil was, despite the record level in job counts, able to reduce costs of
sales by 15.0% yoy to EUR 193.3 million (2008: EUR 227.5 million); as part of
the cost cutting program, also general and administrative expenses were
suc-cessfully cut by 31.5% yoy to EUR 18.6 million (2008: EUR 27.1 million) and
wages and salaries declined by 25.8% yoy to EUR 33.8 million (2008: EUR 45.6
million). The reduction of personnel costs was primarily attained through
outsourcing of auxiliary functions while maintaining the highly skilled
operating workforce. In 2009, C.A.T. oil´s total weighted-average headcount was
down 20.7% yoy to 2,873 employees (2008: 3,621).

Foreign currency effects impacted revenues
The high operating activity levels and the significantly improved cost
efficiency were, however, not fully reflected in C.A.T. oil´s earnings in
Financial Year 2009. C.A.T. oil´s revenues were particularly impacted by a 17.5%
yoy decline in the average Rouble exchange rate to the Euro and by softer
prices, particu-larly in sidetrack drilling. Although flat yoy in Rouble terms,
the Company revenues in Euro terms decreased by 17.4% yoy to EUR 228.3 million
(2008: EUR 276.2 million). The Company´s average per job revenues amounted to
TEUR 75.0 (2008: TEUR 95.0). The trend though reversed and the Rouble has
strengthened against the Euro since the end of 2009.

Increased EBITDA and EBIT margins
C.A.T. oil´s earnings before interest, corporate tax, depreciation and
amortiza-tion (EBITDA) for the reporting period decreased by 3.9% yoy to EUR
45.3 million (2008: EUR 47.2 million). The EBITDA margin expanded to 19.9%
(2008: 17.7%), reflecting C.A.T. oil´s persistent cost management and
efficien-cy improvements. The decline in the Company´s 2009 EBITDA was largely
attributed to a EUR 7.1 million loss before interest, corporate tax,
depreciation and amortization (2008: loss of EUR 4.4 million) from the Formation
Evaluation reportable segment, which primarily consists of seismic services.
Since demand and price for oil were down, oil and gas producers significantly
re-duced their exploration activities. As a consequence, demand for C.A.T. oil´s
seismic services went down sharply and the Company decided to reduce its
operating capacity.

Opposite to this negative development, EBITDA from the Well Service seg-ment
(net of inter-company effects), which primarily represents the Company´s core
businesses, was up 1.5% yoy to EUR 52.4 million, (2008: EUR 51.6 million). The
segment´s EBITDA margin went up to 23.3% (2008: 19.2%).

Due to the decreased EBITDA and higher depreciation, the Company´s earn-ings
before interest and corporate tax (EBIT) declined 11.4% yoy to EUR 18.4 million
(2008: EUR 20.7 million), but the EBIT margin expanded to 8% from 7.5% in 2008.

The net financial result improved 57.7% yoy to EUR -3.6 million (2008: EUR -8.4
million), mainly due to lower unrealized and realized foreign currency
translation losses on euro-denominated inter-company loans. Higher net inter-est
expense of EUR 1.4 million (2008: EUR 1.1 million) - resulting from higher
interest-bearing liabilities - also impacted the net financial result.

C.A.T. oil´s pre-tax profit for 2009 rose 20.2% yoy to EUR 14.8 million (2008:
EUR 12.3 million), primarily reflecting the improved net financial result.
Higher pre-tax profit in combination with lower effective income tax rate led to
a sig-nificant increase in net income, which went up more than three times to
EUR 8.4 million in 2009 (2008: EUR 2.6 million). Earnings per share amounted to
EUR 0.172 in 2009, up from EUR 0.053 in 2008.

Stronger balance sheet and very solid financial situation
C.A.T. oil´s lower requirements for working capital enabled the Company to
increase cash flow from operating activities 155.9% yoy to EUR 62.4 million
during the reporting period (2008: EUR 24.4 million). After three years of
in-tense investments in new fracturing and sidetrack drilling capacities and in
view of the global recession in 2009, C.A.T. oil has reduced its capital
expend-itures to a maintenance level. Except for one sidetrack drilling rig
which came into operations in Q4 2009 no further capacities were added. The
Company´s capital expenditures were thus down 72.8% yoy to EUR 12.0 million in
2009 (2008: EUR 44.2 million). Cash flow from investing activities was a net
outflow of EUR 10.9 million in 2009 compared to a net outflow of EUR 43.2
million in 2008. As a result, C.A.T. oil generated a positive free cash flow of
EUR 51.5 million in 2009 (2008: net outflow of EUR -18.9 million).

Cash flow from financing activities was a net outflow of EUR 36.9 million in
2009 (2008: EUR 28.4 million). The development primarily reflected a deliber-ate
early repayment of a EUR 30.0 million three-year loan. Cash and cash equivalents
more than doubled to EUR 29.1 million at 31 December 2009 (31 December 2008: EUR
14.4 million). Thanks to its continued conservative fi-nancial policy, C.A.T.
oil operates on the basis of a very strong balance sheet with an equity ratio of
84.6% at 31 December 2009. (31 December 2008: 73.4%). The Company enjoyed net
cash of EUR 29.0 million at 31 December 2009 compared to net debt of EUR 21.3
million at 31 December 2008.

First time since IPO: dividend proposal of EUR 0.30 per share
Manfred Kastner said: "Our results during the highly challenging fiscal year
2009 demonstrate that our cautious financial policy and our focused business
strategy have proven their sustainability. We have successfully capitalised on
our advantages in terms of combining modern technology with our experi-enced and
motivated teams. Our proven logistics have been determined and persistent in
becoming the market leader in our core businesses. Therefore, we have decided
that our shareholders shall participate in these positive de-velopments. For the
first time since the IPO, Management and Supervisory Board will suggest to
shareholders on the Annual General Assembly to pay a dividend of 0.30 Euro per
share". It is expected that the record date for the proposed dividend will be 22
June 2010 and the payment date will be 28 June 2008.

It is also the Company´s intention to develop and adopt a dividend policy in Q2
2010 to ensure that also in the future, shareholders adequately participate in
the Company´s success. Further, the Company would target to return to
shareholders, subject to a satisfactory earnings situation and additional
condi-tions, at least 20% of the Company´s consolidated net profit. With respect
to its future dividend policy C.A.T. oil will determine it flexibly according to
a number of factors, among them cash flow development, financing and investment
requirements to support the Company´s further growth and diversification as well
as market conditions, liquidity levels and a flexible capital structure.
The dividend for Fiscal Year 2009 will be suggested to the shareholders on the
Annual General Assembly which takes place on June 18, 2010 in Vienna .

Cautious optimism for 2010 based on first signs of recovery
Since the second half of 2009 market conditions - and in particular the oil
price and the value of the Rouble - have significantly improved and in the first
quarter of 2010 signs of an economic recovery became apparent throughout the
world. C.A.T. oil also experienced positive effects of this trend as the
Company´s order book filling process for Financial Year 2010 normalized in terms
of timing and level. The Company received renewals of contracts for its core
services, as well as new assignments, some of them even running until 2012. At
the end of January, C.A.T. oil´s 2010 order book volume thus amounted to around
EUR 206 million (based on the 2010 conservative Rouble-to-Euro exchange rate
assumption of 43) and the Company is confident that - with the oil demand and
price continuing its recovery - oil and gas producers will increase their
activities further.
Despite the improved market sentiment, C.A.T. oil is cautiously optimistic for
2010. Manfred Kastner said: "There is light at the end of the tunnel, at the
same time, however, we cannot be sure how long the tunnel is and we have not yet
seen a fundamental recovery of markets. We will, therefore, remain as flexible
and as determined as ever, stretch our advantages and use our skills to the
maximum to realize further growth for the benefit of C.A.T. oil, its customers
and shareholders."

www.catoilag.com
Press contact:
FD
Carolin Amann Lucie Maucher
Tel.: +49 (0)69 92037-132 Tel.: +49 (0)69 92037-183
Email: [email protected] Email: [email protected]

About C.A.T. oil AG:
C.A.T. oil AG is one of the leading providers of oil and gas field services in
Russia and Kazakhstan and is listed at the Frankfurt Stock Exchange (SDAX).
C.A.T. oil offers a wide spectrum of services to increase the lifecycle of an
oil field or to make abandoned oil fields accessible. The Company´s growth is
driven by three significant factors: Existing oil fields need to be stimulated
due to shrinking oil and gas resources in order to optimize capacities.
Simultaneously, idle wells are reactivated or made accessible through new
methods in order to deploy wells to their maximum. Additionally C.A.T. oil
offers seismic services which help to identify new oil and gas sources.
Since its foundation in 1991 in Celle, Germany, C.A.T. oil has built up a
leading hy-draulic fracturing services business in Russia and Kazakhstan.
Following its IPO in 2006 the Company has invested more than EUR 200 million in
additional services and capacities: sidetrack drilling has become the Company´s
second core business. Apart from the services mentioned above, C.A.T.oil´s
diversified service portfolio includes coiled tubing, formation evaluation
services, well work-over, cementing and seismic services. Due to the recent
expansion investments C.A.T. oil´s fleets and rigs are state-of-the-art and
therefore allow for time-efficient and effective deployment. C.A.T. oil´s
customer base includes the leading Russian and Kazakh oil and gas producers
amongst them Gazprom, KazMunaiGaz, LUKOIL, Rosneft and TNK-BP. With all of them
C.A.T. oil has a long-standing relationship and has been a reliable service
pro-vider since its market entrance in the early nineties.
The Company has its headquarters in Vienna and employed an average of 2,873
people on 31 December 2009, most of whom are based in Russia and Kazakhstan. The
Company´s order book for 2010 amounted to approximately EUR 200 million in
January 2010

Key financial figures for FY 2009
[in million EUR] FY 2009 FY 2008 Change in %
Revenues 228.1 276.2 -17.4
Cost of sales 193.3 227.5 -15.0
Gross profit 34.7 48.7 -28.7
EBITDA 45.3 47.2 -3.9
EBITDA margin (in%) 19.9 17.7
EBIT 18.4 20.7 -11.4
EBIT margin (in%) 8.0 7.5
Net income 8.4 2.6 n/a
Earnings per share (in EUR) 0.17 0.05 n/a
Equity Ratio (in %) 84.6 73.4 15.3

Cash flow from operating activities 62.4 24.4 n/a
Cash flow from investing activities -10.9 -43.2 74.8
Cash flow from financing activities -36.9 28.4 n/a
Cash and cash equivalents1 29.1 14.4 n/a

Total job count 3,002 2,381 26.1
Per-job revenue (in thou. EUR) 75.0 95.0 -21.1
Employees 2,873 3,621 -20.7

As of 31 December 2009 and 31 December 2008 respectively

Key financial figures for Q4 2009

[in million EUR] Q4 2009 Q4 2008 Change in %
Revenues 51.2 64.2 -20.2
Cost of sales 49.8 58.9 -99.9
Gross profit 1.4 5.3 -72.8
EBITDA 5.2 5.8 -10.2
EBITDA margin (in%) 10.1 9.0
EBIT -2.0 -3.8 -47.3
EBIT margin (in%) -3.9 -5.9
Net income -3.5 -9.9 75.0
Earnings per share (in EUR) -0.071 -0.203 61.0

Cash flow from operating activities 24.0 -5.7 n/a
Cash flow from investing activities -5.1 -9.3 45.4
Cash flow from financing activities -8.7 30.0 n/a

Total job count 650 630 3.2
Per-job revenue (in thou. EUR) 79 101 -21.8

Further inquiry note:
Carolin Amann
Tel.: +49(0) 69-92037132
E-Mail: [email protected]
end of announcement euro adhoc
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issuer: C.A.T. oil AG
Kärtner Ring 11-13
A-A-1010 Wien
phone: +43(0) 1 535 23 20 - 0
FAX: +43(0) 1 535 23 20 - 20
mail: [email protected]
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

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