EANS-News: C.A.T. oil AG Business model verified - record operational and
financial results in full year 2013
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Subtitle: Revenues increased by more than one fourth yoy to EUR 426.6 million
EBITDA up 43.6% yoy to EUR 114.9 million efficiency gains boost EBITDA
margin by 3.1 percentage points to 26.9%
Net income surged by more than 140% yoy to EUR 50.8 million
Proposed dividend of EUR 0.35 per share, up 40% from the previous year level
Outlook 2014: revenues in the range of EUR 420 to 450 million and EBITDA from
EUR 113 to 121 million based on the underlying assumption of more than 10% yoy
rouble devaluation
CEO Manfred Kastner: Our strong numbers in 2013 underscore the first year of
all our core services, fracturing, sidetracking and drilling, in full operation,
and clearly confirm our strategy of focusing on efficiency and portfolio
optimization.
annual result
Vienna (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,
delivered superior operating and financial results in 2013: C.A.T. oil boosted
its revenues by more than one fourth yoy to EUR 426.6 million (2012: EUR 336.8
million) and EBITDA by 43.6% yoy to EUR 114.9 million (2012: EUR 80.0 million)
as the EBITDA margin widened by 3.1 percentage points to 26.9% (2012: 23.8%).
Net income surged by more than 140% yoy to EUR 50.8 million (2012: EUR 21.0
million). Along with sound top- and bottom-line growth C.A.T. oil rolled-out
and accomplished its 2013 investment program to reinforce its operating
platform and pave the way for further business expansion. Despite the elevated
geopolitical and macroeconomic uncertainties C.A.T. oil stays firmly adhered to
its profitable growth strategies residing upon its high-class service offering
tailored to the needs of the Russian oil industry.
Manfred Kastner, CEO of C.A.T. oil, commented: "We look back at yet another
exciting year following the successful implementation of the new drilling
service in 2012. Our strong results in 2013 underscore the first year of all
our core services, fracturing, sidetracking and drilling, in full operation,
and clearly confirm our strategy of focusing on efficiency and portfolio
optimization. Having surpassed our bottom-line targets, we revealed the great
potential of our Company, its strengths and capabilities. Building upon these
fundaments we are determined to archive further profitable growth in the
future."
Top-line growth at the record level
Driven by high operating activity and capacity utilization levels as well as a
favorable service mix, C.A.T. oil's consolidated revenues went up by 26.7% yoy
to a new record of EUR 426.6 million (2012: EUR 336.8 million), in line with
the Company's guidance for 2013. The strong demand growth for the Company's
services is witnessed by a 16.3% yoy hike in the total job count to 4,006 jobs
(2012: 3,444 jobs), whereas an 9.7% yoy rise in the average per job revenue to
TEUR 106 (2012: TEUR 97) underscores the strengthened price environment and the
higher average job size and complexity.
The Company's Well Services segment boosted its revenues by 23.9% yoy to EUR
227.4 million in 2013 (2012: EUR 183.6 million) mainly due to a strong upturn
in the Company's fracturing job count on the back of a burgeoning demand for
multi-stage fracking services during the reporting period. Multi-stage fracks
surged to 16% of the Company's total frack jobs (2012: 2%) as Russia's
horizontal drilling footage increased 62% yoy in 2013, according to the
government agency CDU TEK. The segment's job count increased by 16.5% yoy to
3,772 jobs (2012: 3,237 jobs), whereas the average per job revenue rose by 6.3%
yoy to TEUR 60 (2012: TEUR 57).
Drilling, Sidetracking and IPM segment's revenues staged a 30.4% growth yoy to
EUR 199.5 million (2012: EUR 153.0 million). The increase was primarily fuelled
by a 43.1% yoy expansion in the Company's drilling and sidetracking footage to
302 thousand meters (2012: 211 thousand meters). The segment's job count was up
13.0% yoy to 234 wells and sidetracks (2012: 207 wells and sidetracks), whereas
the share of horizontal wells and sidetracks rose to 48% of the Company's
overall drilling and sidetracking mix (2012: 38%).
Efficiency and cost management drive profitability
Despite swinging operating activity levels and the greater average job size and
complexity, the Company's cost of sales was up only by 20.7% yoy to EUR 341.2
million during the reporting period (2012: EUR 282.7 million). Driven by the
new staff additions to sidetracking and drilling operations, C.A.T. oil's total
weighted average headcount rose by 10.0% yoy to 2,773 employees (2012: 2,522
employees). Thanks to the continued focus on efficiency gains and strict cost
management, the Company's earnings before interest, tax, depreciation and
amortization (EBITDA) staged a significant increase of 43.6% yoy to EUR 114.9
million (2012: EUR 80.0 million). Thereby, C.A.T. oil surpassed the upper part
of its EBITDA guidance range of EUR 105 to 110 million for 2013. The EBITDA
margin widened to 26.9% in 2013 from 23.8% in 2012. The Company more than
doubled its earnings before interest and tax (EBIT) to EUR 64.6 million (2012:
EUR 32.1 million), resulting in the EBIT margin of 15.1% (2012: 9.5%).
Net income advanced by more than 140%
The Company's net financial result improved to EUR -1.9 million from EUR -2.3
million a year ago, primarily reflecting foreign currency exchange losses of
EUR 0.7 million (2012: gains of EUR 0.7 million) and net interest expenses of
EUR 1.1 million (2012: EUR 3.0 million). Thereby, the Group's net income was up
141.7% yoy to EUR 50.8 million in 2013 (2012: EUR 21.0 million).
Sound balance sheet and plenty of funding capacity
C.A.T. oil's funds from operations increased by 34.1% yoy to EUR 100.1 million
(2012: EUR 74.7 million) and cash flow from operating activities went up by
28.0% yoy to EUR 107.4 million (2012: EUR 83.9 million). Driven by the
successful implementation of the 2013 investment program aimed at expansion of
the Company's operating capacities by 30% for sidetracking and 10% for
fracturing, capital expenditures surged 71.6% yoy to EUR 64.7 million (2012:
EUR 37.7 million). Cash flow from investing activities was a net outflow of EUR
62.1 million (2012: net outflow of EUR 35.3 million) and cash flow from
financing activities was a net outflow EUR 45.7 million (2012: net outflow of
EUR 39.4 million).
As of 31 December 2013, cash and cash equivalents amounted to EUR 42.6 million,
representing an increase of 9.9% from EUR 38.8 million as of 31 December 2012.
The Company had net cash of EUR 24.6 million as of 31 December 2013 compared to
net debt of EUR 11.8 million as of 31 December 2012. The Company's equity ratio
improved to 71.4% as of 31 December 2013 from 67.0% as of 31 December 2012.
Proposal for a 40% yoy increase in dividend per share to EUR 0.35
To share the 2013 success with the Company shareholders, the Management Board
and the Supervisory Board will propose a dividend of EUR 0.35 per share for
2013 at the AGM on 13 June 2014. This represents an increase of 40% compared to
the previous year's dividend and a payout ratio of around 34%, well above the
Company dividend policy's minimum payout of 20%.
Confident outlook despite geopolitical uncertainties
Based upon encouraging industry trends and healthy demand for C.A.T. oil's high-
class services, the management looks ahead at the current Fiscal Year with
confidence and optimism. Despite Russia's economic growth slows down and
geopolitical tensions over the Crimean crisis aggravate the Russian currency
weakness relative to the euro, the demand growth for oilfield services in
Russia remains robust in 2014.
Supportive operating environment has become evident in the Company's order book
development for 2014 and beyond. As of the end of April, C.A.T. oil's rouble-
denominated service orders were up 27% yoy for 2014 and 71% yoy for 2014-16. In
euro terms, though, the order book increased only 6% yoy to EUR 415 million for
2014 from EUR 392 million a year ago and 42% yoy to EUR 754 million for 2014-16
from EUR 530 million a year ago. The underlying assumption for the average
rouble-to-euro exchange rate is 48 for 2014 and 2014-16 compared to the
exchange rate of 40 a year ago.
Against the backdrop of the record order book, C.A.T. oil expects the FY2014
revenues in the range of EUR 420 to 450 million and EBITDA ranging from EUR 113
to 121 million (based on the average rouble-to-euro exchange rate of 48).
C.A.T. oil reiterates its 2014-16 investment program of EUR 390 million aiming
at expansion of operating capacities by 33% for fracturing, 55% for
sidetracking and 170% for drilling by the end of 2016 compared to the end of
2013.
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 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 2013 weighted average
headcount stood at 2,773 people, most of which are based in Russia and
Kazakhstan.
|Key financial figures for FY 2013 |
|[million EUR] |FY 2013 |FY 2012 |Change (%) |
| | | | |
|Revenues |426.6 |336.8 |26.7 |
|Cost of sales |341.2 |282.7 |20.7 |
|Gross profit |85.4 |54.0 |58.0 |
|EBITDA |114.9 |80.0 |43.6 |
|EBITDA margin (%) |26.9 |23.8 | |
|EBIT |64.6 |32.1 |100.8 |
|EBIT margin (%) |15.1 |9.5 | |
|Net income |50.8 |21.0 |141.7 |
|Earnings per share (EUR) |1.041 |0.431 |141.7 |
|Equity Ratio (%)[1] |71.4 |67.0 | |
| | | | |
|Cash flow from operating |107.8 |81.0 |33.1 |
|activities | | | |
|Cash flow from investing |-62.1 |-35.3 |75.7 |
|activities | | | |
|Cash flow from financing |-45.7 |-39.4 |16.1 |
|activities | | | |
|Cash and cash equivalents [1] |43.0 |35.9 |19.9 |
| | | | |
|Total job count |4,006 |3,444 |16.3 |
|Per-job revenue (thou. EUR) |106 |97 |9.7 |
|Employees |2,773 |2,522 |10.0 |
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[1] As of 31 December 2013 and 31 December 2012 respectively
|Key financial figures for Q4 2013 |
|[million EUR] |Q4 2013 |Q4 2012 |Change (%) |
| | | | |
|Revenues |103.6 |90.4 |14.6 |
|Cost of sales |82.4 |77.4 |6.4 |
|Gross profit |21.3 |13.0 |62.9 |
|EBITDA |29.0 |21.2 |36.8 |
|EBITDA margin (%) |28.0 |23.4 | |
|EBIT |16.2 |7.3 |121.1 |
|EBIT margin (%) |15.6 |8.1 | |
|Net income |12.6 |5.8 |117.6 |
|Earnings per share (EUR) |0.258 |0.119 |117.6 |
| | | | |
|Cash flow from operating |27.6 |32.2 |-14.4 |
|activities | | | |
|Cash flow from investing |-24.0 |-17.8 |35.2 |
|activities | | | |
|Cash flow from financing |-0.3 |-30.5 |-99.0 |
|activities | | | |
| | | | |
|Total job count |1,068 |883 |21.0 |
|Per-job revenue (thou. EUR) |97 |102 |-5.3 |
Further inquiry note:
Thomas Krammer Tel: +49(0)69-92037-183 Email: thomas.krammer@fticonsulting.com
Steffi Fahjen Tel: +49(0)69-92037-115 Email: steffi.fahjen@fticonsulting.com
end of announcement euro adhoc
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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
