EANS-News: Petro Welt Technologies AG lifts profitability in the first half of
2016:Revenues in Rouble increased due to effective utilization of production
capacities and value added services, margins and earnings rise due to reduced
costs and strict ...
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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: Sales revenues in rouble increased by 2%, in EUR they declined by
16.4% despite Rouble depreciation of 21.9% yoy on average year basis
EBITDA margin improved from 24.6% to 28.0%
Consolidated net result raised by 16.5% to EUR 14.9 million
Equity base increased by 30.1% equity ratio at 53.2%
Strong liquidity position: managerial cash position grew by 66% on the annual
basis to EUR 67.1 million
6-month report/half-year report
In the first six months of 2016 the Petro Welt Technologies AG, Vienna (formerly
C.A.T oil AG, change of name at August 23, 2016) continued the sound development
of its business operations despite the trouble environment in the industry: The
revenues in Russian Roubles increased by 2% compared to the same period of
previous year. This is attributable to the rise in share of multi-stage
fracturing operations and to the geographical expansion of operations in Siberia
and southern Orenburg.
Management efforts which aimed to optimize cost of sales, administrative and
financial expenses deployed the dynamics of profit before tax in positive
direction in EUR terms which increased by 2.9% despite the continuing
significant Rouble devaluation. Profit before tax reached EUR 18.7 million in
the first half of 2016 after EUR 18.1 million in the same period of 2015. Net
profit demonstrated more considerable growth due to the decrease of effective
tax rate from 29% to 20%.
"External factors and the price pressure from major oil companies were tough,
but we managed to maintain our good market position and started with
geographical expansion and diversification. Thanks to our cost control measures
and our endeavour to improve efficiency wherever we can we increased our EBITDA
margin significantly", comments Yury Semenov, CEO of Petro Welt Technologies AG,
the result of the first half of 2016.
The EBITDA margin improved to 28.0% in the first half of 2016, compared to 24.6%
in the prior-year period. This was also due to the higher gross profit margin
which achieved 19.2% in HY1 2016 compared to 16.9% in HY1 2015.
The overall change in cash and cash equivalents totalled EUR 37.7 million. The
managerial cash position which is calculated as the sum of cash and cash
equivalents and bank deposits increased by 66% from EUR 40.3 million at the
beginning of the reporting period to EUR 67.1 million as at June 30, 2016.
In the first half of 2016, total assets rose by 18.1% to EUR 355.9 million
compared to the end of 2015. Equity increased by 30.1% to EUR 189.3 million at
the end of the reporting period. As a result the equity ratio increased and
reached a level of 53.2% on the reporting date of June 30, 2016 compared to
48.3% as at December 31, 2015.
Confident outlook for 2016
Analysts forecast oil prices at a range of US-Dollar 50.0-60.0 per barrel till
the end of 2016, with annual growth rates of oil and gas production at a level
of 2%. However, the relatively low selling price and its volatility are forcing
major oil companies to limit investment in the development of wells.
For the oil service business, this results in continuing pressure on its prices.
However, one positive factor at the present time is the consequence of the
investment backlog since 2014, which should stimulate the need for applying
different methods to increase oil production. In this regard, the strong market
position of Petro Welt Technologies AG should positively influence the company's
drilling volumes.
The management anticipates the sales revenue for 2016 to reach around EUR 293
million and hopes to keep the improved EBIT margin compared to the previous year
at the range of 12-14%. This could permit to outperform last year's operational
result which is expected to reach EUR 38-40 million in 2016.
The full report on the first six months of 2016 is available for download on our
corporate website at www.catoilag.com.
Further inquiry note:
SCHOLDAN&Comp.
Bernhard Grabmayr
office@scholdan.com
+43-1-513 23 88-0
end of announcement euro adhoc
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company: Petro Welt Technologies 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
