EANS-News: C.A.T. oil successfully boosts revenues and earnings in 9M 2012
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Subtitle: Revenues increased by 17.5% yoy to EUR 246.3 million supported by
the record high Q3 revenues
EBITDA grew by 28.1% yoy to 58.8 million and the EBITDA margin widened to
23.9%
Setup of new conventional drilling accomplished and 2012 investment program
expanded
Full Year 2012 guidance reiterated
quarterly report
Vienna, 29 November 2012 (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, today announced its results for the third quarter and the first nine
months of 2012. The Company demonstrated strong operating and financial
performance driven by a vital customer demand, the improved price mix, and
positive contributions from the new conventional drilling service. Backed by a
historic quarterly high in revenues in Q3, C.A.T. oil increased its revenues by
17.5% yoy to EUR 246.3 million on a nine months basis. At the same time the
Company's earnings before interest, tax and depreciation (EBITDA) surged by
28.1% yoy to EUR 58.8 million in 9M, resulting in the EBITDA margin expansion to
23.9%. Concurrently, the net income improved by 20.5% yoy to EUR 15.2 million.
Based upon the strong performance in the first nine months of the year, robust
market fundamentals and favorable current operating activity levels, C.A.T. oil
has reiterated its guidance for FY2012. In addition, the Company decided to
expand the 2012 capital expenditure program to accommodate down payments for the
expansion of its sidetracking and fracturing operating capacities in fiscal year
2013.
Manfred Kastner, CEO of C.A.T. oil, commented: "We have very good news to
report, both, from a financial and operational perspective. The previous quarter
was the strongest Q3 in our Company's history: With revenues at EUR 88.5 million
we achieved a new all time quarterly revenue high accompanied by one of the best
EBITDA margin performances ever. While running at full speed in our traditional
services, we finalized the setup of our third core service: All the nine new
drilling rigs are now operational. C.A.T. oil possesses a well balanced
portfolio of specific, yet complimentary services, which makes us a reliable and
strategic partner for the key oil and gas producers in Russia and Kazakhstan.
Based on our strong performance we reiterate our outlook for fiscal year 2012."
Strong revenue boost
The Company's revenues went up by 17.5% yoy to EUR 246.3 million on a nine month
basis (9M 2011: EUR 209.7 million) and 18.5% yoy to EUR 88.5 million in Q3 (Q3
2011: EUR 74.7 million). The rise was primarily driven by strong customers'
demand, the higher job size and complexity and favorable pricing mix. The new
conventional drilling service which was successively implemented in the course
of the year generated profitable contributions and, therefore, accelerated the
Company's positive momentum. The average per job revenue went up by 17.5% yoy to
TEUR 95 in 9M (9M 2011: TEUR 81) and 24.7% yoy to TEUR 100 in Q3 (Q3 2011: TEUR
80). On a nine month basis the total service job count stayed effectively flat
yoy at 2,561 jobs (9M 2011: 2,578 jobs) and declined by 5.0% yoy to 884 jobs in
Q3 (Q3 2011: 930 jobs) as more complex jobs involved longer execution time.
Cost base reflects scale effects and strict cost management
Cost of sales increased by 15.8% yoy to EUR 205.3 million in 9M 2012 (9M 2011:
EUR 177.4 million) driven by the higher job size and complexity, the share of
sidetracking jobs on a turnkey basis and the new drilling business. However,
cost of sales lagged behind the top-line growth due to strict cost management
and economies of scale. The Company's total weighted average headcount increased
by 4.0% to 2,469 employees in 9M (9M 2011: 2,373 employees) primarily due to the
latest hires for the new high class conventional drilling.
Strong EBITDA and EBITDA margin development
The Company's EBITDA jumped by 28.1% to EUR 58.8 million in 9M (9M 2011: EUR
45.9 million) and 32.4% yoy to EUR 25.0 million in Q3 (Q3 2011: EUR 18.9
million). The EBITDA margin expanded substantially to 23.9% yoy in 9M (9M 2011:
21.9%) and reached an impressive level of 28.3% yoy in Q3 (Q3 2011: 25.3%). The
strong profitability underpins the exceptional performance, which is based on
solid revenue growth and high cost efficiency. Earnings before interest and tax
(EBIT) increased by 33.4% yoy to EUR 24.8 million in 9M (9M 2011: EUR 18.6
million) and the EBIT margin widened to 10.1% yoy in 9M (9M 2011: 8.9%).
Net income increased by 20.5% in 9M
C.A.T. oil increased its net income by 20.5% yoy to EUR 15.2 million in 9M (9M
2011: EUR 12.6 million) and 48.4% yoy to EUR 8.6 million in Q3 (Q3 2011: EUR 5.8
million). The development was bolstered by the improved financial result, which
amounted to EUR -2.3 million (9M 2011: EUR -3.1 million) and EUR 0.4 million in
Q3 (Q3 2011: EUR -3.3 million).
Ongoing strong cash generation
Funds from operations went up by 28.0% yoy to EUR 51.7 million in 9M (9M 2011:
EUR 40.4 million) and cash flow from operating activities staged a 53.4% yoy
increase to a net inflow of EUR 46.2 million (9M 2011: net inflow of EUR 30.1
million) due to the Company's strong operational performance and consistent
working capital management. Capital expenditure decreased by 77.0% yoy to EUR
19.0 million (9M 2011: EUR 83.0 million) reflecting the maintenance capital
expenditure mode the Company operated during the reporting period. Cash flow
from investing activities was a net outflow of EUR 17.6 million (9M 2011: net
outflow of EUR 81.8 million). Cash flow from financing activities was a net
outflow of EUR 29.8 million (9M 2011: net inflow of EUR 52.3 million) driven by
an early redemption of long-term borrowings and an increase in cash dividend
paid.
As of 30 September 2012, cash and cash equivalents amounted to EUR 30.2 million
(31 December 2011: EUR 30.4 million) and net debt was EUR 29.4 million, down
41.7% from EUR 50.5 million as of 31 December 2011. C.A.T. oil maintained
healthy balance sheet with an equity ratio of 65.7% as of 30 September 2012 (31
December 2011: 62.3%).
Objectives reiterated for FY 2012
Based on the strong performance in the first nine months of the year, C.A.T. oil
reiterates its targets for FY 2012: The Company expects revenues in the range of
EUR 300 to 320 million and an EBITDA in the range of EUR 67 to 73 million (based
on a rouble-to-euro exchange rate of 40).
Business expansion in 2013
In response to solid market fundamentals and customers' growing demand for the
Company's services, C.A.T. oil has decided to invest in additional capacities:
Compared to the 2012 level, the sidetracking and fracturing operating capacities
will be further expanded by 20% to 25% and by 7% to 10% respectively in 2013. To
this end, the Company has increased its 2012 capital expenditures program by EUR
20.0 million to EUR 50.0 million and budgeted the 2013 capital expenditures at
EUR 45.0 million, of which EUR 20.0 million are intended for the new capacity
and the balance is due to maintenance capital expenditures.
Manfred Kastner added: "One of C.A.T. oil's key success factors is its strong
market position as well as the trusted and long-standing relationship with
customers. Although the European financial and sovereign debt crisis impacts
economies, particularly in Southern Europe, we continue to operate in highly
dynamic markets. There is a lot of additional potential for our services in
Russia and Kazakhstan that is why we decided to further expand our business. We
will prudently invest in additional sidetracking and fracturing capacities by
adding up to 5 sidetrack drilling rigs and 1 fracturing fleet in the course of
2013. This allows us to further grow our business and to capitalize on our
longstanding activities and our strong position in Russia and Kazakhstan."
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 providers of oil and gas field services in
Russia and Kazakhstan and is listed on 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 unexploited oil fields accessible. The Company's growth is
driven by the following 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 has
established conventional drilling as third core service which allows to access
completely unexploited oil and gas reserves.
Since its foundation in 1991 in Celle, Germany, C.A.T. oil has built up a
leading hydraulic fracturing services business in Russia and Kazakhstan.
Following its IPO in 2006 the Company has invested more than EUR 250 million in
additional services and capacities: sidetrack drilling has become the Company's
second core business. In 2011, the Company initiated a comprehensive investment
program with a volume of EUR 150 million, focusing on the set up of high class
conventional drilling as third core service offering. The new service line will
be fully installed in 2012.
C.A.T. oil's portfolio also includes cementing and seismic services. With its
state-of-the art technology the Company clearly differentiates itself in its
core markets as the equipment allows for very 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. C.A.T. oil has a long-standing relationship with these customers and has
been a reliable service provider since its market entrance in the early
nineties.
The Company has its headquarters in Vienna. In 9M 2012, the Company employed an
average of 2,469 people, most of which are based in Russia and Kazakhstan.
Key financial figures for 9M 2012
[million EUR]
9M 2012 9M 2011 Change in %
Revenues 246.3 209.7 17.5
Cost of sales 205.3 177.4 15.8
Gross profit 41.0 32.3 26.9
EBITDA 58.8 45.9 28.1
EBITDA margin (%) 23.9 21.9
EBIT 24.8 18.6 33.4
EBIT margin (%) 10.1 8.9
Net income 15.2 12.6 20.5
Earnings per share (EUR) 0.312 0.259 20.5
Equity Ratio (%) 65.7 62.3
Cash flow from
operating activities 46.2 30.1 53.4
Cash flow from
investing activities -17.6 -81.8 -78.5
Cash flow from
financing activities -29.8 52.3 >-100
Cash and cash equivalents (1) 30.2 30.4 -0.5
Total job count 2,561 2,578 -0.7
Per-job revenue (thou. EUR) 95 81 17.3
Employees 2,469 2,373 4.0
(1) As of 30 September 2012 and 31 December 2011 respectively
Key financial figures for Q3 2012
[in million EUR]
Q3 2012 Q3 2011 Change in %
Revenues 88.5 74.7 18.5
Cost of sales 72.6 61.4 18.2
Gross profit 16.0 13.3 20.1
EBITDA 25.0 18.9 32.4
EBITDA margin (in%) 28.3 25.3
EBIT 11.8 8.7 36.8
EBIT margin (in%) 13.4 11.6
Net income 8.6 5.8 48.4
Earnings per share (in EUR) 0.176 0.118 48.4
Cash flow from
operating activities 23.7 14.1 68.9
Cash flow from
investing activities -5.8 -38.4 -84.8
Cash flow from
financing activities -17.2 34.7 >-100
Total job count 884 930 -5.0
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
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: 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
