EANS-News: H1 2013 record operating and financial performance - strategic
investments fuel further profitable growth
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
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Subtitle: Revenues increased by 33.2% yoy to EUR 210.1 million in H1 2013
EBITDA up 55.8% yoy to EUR 52.7 million, with the EBITDA margin expanding to
25.1% from 21.4% in H1 2012
Net income more than tripled to EUR 21.2 million yoy
2013 investment program of EUR 45 million and new capacity additions are on
track
CEO Manfred Kastner reiterates outlook: C.A.T. oil continues its profitable
growth story and is fully committed to its FY 2013 objectives.
quarterly report
Vienna, 30 August 2013 (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, achieved record results in H1 2013. The Company boosted its revenues
by 33.2% yoy to EUR 210.1 million (H1 2012: EUR 157.8 million) and EBITDA by
55.8% yoy to EUR 52.7 million (H1 2012: EUR 33.8 million). The EBITDA margin
widened to 25.1% compared to 21.4% in H1 2012. Net income more than tripled to
EUR 21.2 million yoy (H1 2012: EUR 6.7 million). Despite the weakened Russian
rouble, C.A.T. oil reiterates its guidance for Fiscal Year 2013 based on a
strong growth in demand for oilfield services, the Company's solid order book
and the progress in execution of the 2013 investment program.
Manfred Kastner, C.A.T. oil CEO, commented: "Top operating performance, lean and
efficient organizational structures and strategically tailored investments
according to our customers' needs; that is what C.A.T. oil stands for. Our
performance in the first half of the year clearly demonstrates that we have set
up and executed the right expansion programs at the right time. C.A.T. oil
continues its profitable growth story and is fully committed to its FY 2013
objectives."
Swift business expansion
C.A.T. oil grew its consolidated revenues by 33.2% yoy to EUR 210.1 million (H1
2012: EUR 157.8 million) primarily driven by a combination of new capacity
additions and higher utilization of existing rigs and fleets, the increased job
size and complexity as well as the favorable price environment. The total
service job count went up by 11.3% yoy to 1,866 jobs (H1 2012: 1,677 jobs) and
the average per job revenues increased by 19.7% yoy to TEUR 113 (H1 2012: TEUR
94).
C.A.T. oil has introduced new operating and reportable segments since 1 January
2013: Well Services (fracturing, cementing and completion services) and
Drilling, Sidetracking and IPM (Integrated Project Management). In H1 2013
C.A.T. oil pushed its Well Services' revenues by 29.4% yoy to EUR 113.2 million
(H1 2012: EUR 87.5 million) due to a 10.6% yoy gain in the service job count to
1,754 jobs (H1 2012: 1,586 jobs) and a 17.0% yoy rise on the average per job
revenue to TEUR 65 (H1 2012: TEUR 55). The increase was primarily attributable
to highly dynamic fracturing operations during the reporting period. Drilling,
Sidetracking and IPM segment's revenues increased by 40.4% yoy to EUR 96.0
million (H1 2012: EUR 68.3 million), reflecting a 30% increase in the Company's
sidetracking capacity during the reporting period compared to the end of 2012 as
well as the higher utilization of existing operating capacities. The total
drilling and sidetracking output was up 57.7% yoy to 134 thousand meters (H1
2012: 85 thousand meters).
Profitability advanced as operating costs lagged behind the top line growth
Despite strong business expansion, cost of sales went up only 28.5% yoy to EUR
170.7 million (H1 2012: EUR 132.8 million) as the Company stayed focused on
tight cost control and operating efficiency. As a result, C.A.T. oil boosted its
earnings before interest, tax, depreciation and amortization (EBITDA) by 55.8%
yoy to EUR 52.7 million (H1 2012: EUR 33.8 million), with the EBITDA margin
expanding by 3.7 percentage points to 25.1% (H1 2012: 21.4%). The Company's
earnings before interest and tax (EBIT) came in at EUR 27.2 million, up 109.5%
yoy (H1 2012: EUR 13.0 million). The EBIT margin widened to 13.0% (H1 2012:
8.2%).
Net income more than tripled
C.A.T. oil more than tripled its net income to EUR 21.2 million during the
reporting period (H1 2012: EUR 6.7 million). The Company's net financial result
stood at EUR -1.3 million (H1 2012: EUR -2.6 million) due to foreign currency
exchange losses of EUR 0.3 million (H1 2012: EUR 1.0 million) as well as net
interest expenses of EUR 1.0 million (H1 2012: EUR 1.7 million).
Strong cash generation and solid balance sheet
The Company's funds from operations went up by 52.8% yoy to EUR 43.8 million (H1
2012: EUR 28.7 million) on the back of higher pre-tax profit and depreciation.
Concurrently, cash flow from operating activities advanced 111.6% yoy to EUR
47.6 million (H1 2012: EUR 22.5 million) primarily reflecting the increase in
funds from operations and higher working capital turnover. The Company's capital
expenditures were up by 140.4% yoy to EUR 31.1 million (H1 2012: EUR 13.0
million) owing to progress in execution of the 2013 capital expenditure program
of EUR 45.0 million. In H1 2013, C.A.T. oil added 5 new rigs to expand its
sidetrack drilling capacities by around 30% to 22 rigs as of 30 June 2013 from
17 rigs as of 31 December 2012. Cash flow from investing activities was a net
outflow of EUR 29.1 million (H1 2012: 11.7 million) and cash flow from financing
activities was a net outflow of EUR 6.8 million (H1 2012: EUR 12.5 million).
As of 30 June 2013, cash and cash equivalents increased by 37.1% to EUR 53.2
million as of 30 June 2013 (31 December 2012: EUR 38.8 million) and net debt
(interest-bearing liabilities less cash and cash equivalents) contracted 67.8%
to EUR 3.8 million (31 December 2012: EUR 11.8 million). The Company maintained
a solid balance sheet with an equity ratio of 61.8% as of 30 June 2013 (31
December 2012: 67.0%).
Management reiterates guidance for 2013
C.A.T. oil proved once again its capability to deliver on its targets during the
reporting period. The Company significantly enhanced its top- and bottom-line
results and progressed executing its EUR 45 million capital expenditure program
intended primarily to enlarge its sidetrack drilling and fracturing capacities.
In addition to the successful expansion of its sidetrack drilling capacity by
30% during the reporting period, the Company expanded its fracturing capacity by
around 10% in August. All new equipment stays highly utilized and will
contribute to the Company's FY 2013 results.
The Company is encouraged by buoyant oilfield service market dynamics in Russia
and Kazakhstan and remains optimistic that this trend will sustain during the
second half of the year. Even though the Russian rouble, in which the prevailing
majority of C.A.T. oil's service contracts is denominated, has devalued relative
to the euro by around 9% year-to-date (effective date: 30 June 2013), the
Company's order book went up to EUR 404 million (assuming a revised average
rouble-to-euro exchange rate of 42) at the end of August. Therefore, the Company
reiterates its FY 2013 guidance for revenues of EUR 405 to 425 million and
EBITDA of EUR 95 to 105 million (based on the rouble-to-euro exchange rate of
42).
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 2007-09 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 400 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 Gazprom, Rosneft, Lukoil, TNK-BP 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 H1 2013 weighted
average headcount stood at 2,641 people, most of which are based in Russia and
Kazakhstan.
Key financial figures for H1 2013
[million EUR]
H1 2013 H1 2012 Change (%)
Revenues 210.2 157.8 33.2
Cost of sales 170.7 132.8 28.5
Gross profit 39.5 25.0 57.8
EBITDA 52.7 33.8 55.8
EBITDA margin (%) 25.1 21.4
EBIT 27.3 13.0 109.5
EBIT margin (%) 13.0 8.2
Net income 21.2 6.7 218.7
Earnings per share (EUR) 0.434 0.136 218.7
Equity Ratio (%) (1) 61.8 67.0
Cash flow from
operating activities 47.6 22.5 111.6
Cash flow from
investing activities -29.1 -11.7 148.3
Cash flow from
financing activities -6.8 -12.5 -46.0
Cash and cash equivalents (1) 53.2 28.3 88.0
Total job count 1,866 1,677 11.3
Per-job revenue (thou. EUR) 113 94 19.7
Employees 2,641 2,428 8.8
(1) As of 30 June 2013 and 31 December 2012 respectively
Key financial figures for Q2 2013
[in million EUR]
Q2 2013 Q2 2012 Change (%)
Revenues 111.2 82.5 34.9
Cost of sales 89.5 66.9 33.8
Gross profit 21.7 15.5 39.6
EBITDA 28.7 19.8 44.4
EBITDA margin (%) 25.8 24.1
EBIT 15.7 9.0 74.2
EBIT margin (%) 14.1 10.9
Net income 14.0 4.2 237.4
Earnings per share (EUR) 0.287 0.085 237.4
Cash flow from
operating activities 41.5 13.4 208.7
Cash flow from
investing activities -15.1 -6.1 148.4
Cash flow from
financing activities -10.5 -3.1 239.7
Total job count 994 877 13.4
Per-job revenue (thou. EUR) 112 94 19.0
Further inquiry note:
Thomas Krammer
Tel: +49(0)69-92037-183
Email: thomas.krammer@fticonsulting.com
end of announcement euro adhoc
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company: C.A.T. oil AG
Kärntner Ring 11-13
A-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
