EANS-News: New quarterly records underpin significant growth potential for 2013
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Subtitle: Revenues up 31.3% yoy to EUR 98.9 million in Q1 2013
EBITDA boosted by 71.9% yoy to EUR 24.0 million; strong expansion in the
EBITDA margin to 24.3% from 18.5% in Q1 2012
Net income nearly tripled to EUR 7.2 million yoy
Additional orders improved 2013 order book to EUR 400 million at the end of
May, up 37.9% yoy
CEO Manfred Kastner reiterates outlook: Following our excellent start into
the new year we are confident in attaining our ambitious growth targets for
2013.
quarterly report
Vienna, 28 May 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,
achieves a record first quarter high in 2013. C.A.T. oil increased its revenues
by 31.3% yoy to EUR 98.9 million (Q1 2012: EUR 75.3 million) and EBITDA by 71.9%
yoy to EUR 24.0 million (Q1 2012: EUR 14.0 million). The EBITDA margin jumped to
24.3% (Q1 2012: 18.5%). Net income came in at EUR 7.2 million (Q1 2012: EUR 2.5
million) and thus nearly tripled compared to Q1 2012. Based on the successful
roll-out of its 2013 expansion program well ahead of schedule as well as the
booming demand for the Company's services and recent awards of additional
service orders C.A.T. oil reiterates its outlook for Fiscal Year 2013.
Manfred Kastner, C.A.T. oil's CEO, commented: "We not only achieved record high
revenues but also pushed up our profitability in the first quarter 2013. At the
same time we further increased our market share. Our successful diversification
into drilling is now cushioning the traditionally negative effects of
seasonality in our business to some extent. Following our excellent start into
the new year we are confident in attaining our ambitious growth targets for
2013."
Consolidated record revenues boosted by more than 30%
In Q1 2013 the Company boosted its consolidated revenues by 31.3% to EUR 98.9
million (Q1 2012: EUR 75.3 million) on the back of the higher activity levels
and the greater job size and complexity. The total service job count advanced by
9.0% yoy to 872 jobs (Q1 2012: 800 jobs) and the average per job revenues
increased by 23.6% yoy to TEUR 113 (Q1 2012: TEUR 92).
Following the successful set up of high class drilling services, C.A.T. oil has
introduced a new segment reporting since 1 January, 2013. The Company's
operating and reportable segments now consist of "Well Services" (fracturing,
cementing and completion operations) and "Drilling, Sidetracking and IPM
(Integrated Project Management)".
During the reporting period the Company's Well Services' revenues rose by 25.3%
yoy to EUR 54.7 million (Q1 2012: EUR 43.7 million) driven by the booming demand
for the Company's fracturing services as well as a favorable job composition and
pricing environment.
Drilling, Sidetracking and IPM segment's revenues jumped by 48.5% yoy to EUR
44.2 million (Q1 2012: EUR 29.7 million) based on both, the increased job count
and the higher average per job revenues.
Effective cost management in place
Despite the increased operating activity levels and the greater average job size
and complexity, cost of sales rose only by 23.2% yoy to EUR 81.1 million (Q1
2012: EUR 65.9 million) primarily due to strict cost management and efficiency
gains. C.A.T. oil's total weighted average headcount expanded by 9.3% to 2,595
employees (Q1 2012: 2,375 employees) primarily driven by the buildup of
personnel for the new drilling service.
Record high earnings and profitability
The Company's earnings before interest, tax, depreciation and amortization
(EBITDA) reached a new first quarter high of EUR 24.0 million (Q1 2012: EUR 14.0
million), up 71.9% yoy. The EBITDA margin hiked by 5.8 percentage points to
24.3% (Q1 2012: 18.5%). The record earnings and profitability in Q1 2013
underpin C.A.T. oil's exceptional performance, which is based on a solid
top-line growth and high cost efficiency.
The Company's earnings before interest and tax (EBIT) advanced by 189.1% yoy to
EUR 11.5 million (Q1 2012: EUR 4.0 million) resulting in the EBIT margin of
11.7% (Q1 2012: 5.3%).
Net income almost tripled
The Company's net financial result amounted to EUR -1.6 million (Q1 2012: EUR
2.0 million), reflecting foreign currency exchange losses of EUR 1.0 million (Q1
2012: gains of EUR 2.8 million) as well as net interest expenses of EUR 0.5
million (Q1 2012: EUR 0.8 million). Nevertheless, C.A.T. oil's remarkable
operational strength translated into almost a three-fold yoy increase in net
income to EUR 7.2 million (Q1 2012: EUR 2.5 million).
Solid balance sheet
The Company's funds from operations rose by 51.8% yoy to EUR 21.6 million (Q1
2012: EUR 14.3 million). Cash flow from operating activities came in at EUR 6.1
million (Q1 2012: EUR 9.0 million) primarily reflecting the effects of a
seasonal expansion in net working capital. C.A.T. oil proceeded with timely
execution of its EUR 45.0 million expansion program and added two new sidetrack
drilling rigs to its portfolio during the reporting period. As a result, the
Company's capital expenditures increased by 153.1% yoy to EUR 14.7 million (Q1
2012: EUR 5.8 million). Cash flow from investing activities was a net outflow of
EUR 14.0 million (Q1 2012: 5.6 million). Cash flow from financing activities was
a net inflow of EUR 3.7 million (Q1 2012: net outflow of EUR 9.5 million)
primarily due to an increase in long-term borrowings.
As of 31 March 2013, cash and cash equivalents stood at EUR 34.8 million (31
December 2012: EUR 38.8 million). C.A.T. oil's equity ratio stood at a very
healthy level of 65.6% as of 31 March 2013 (31 December 2012: 67.0%).
Outlook for 2013 reiterated
C.A.T. oil has been persistently executing its 2013 investment program aiming at
expansion of its operating capacities by approximately 30% for sidetracking and
10% for fracturing and is well ahead of schedule. Following deployment of two
new sidetrack drilling rigs in February, the Company successfully put three more
rigs into operations in May. All the five new rigs will contribute to the
Company results from June onwards. The additional fracturing fleet will be ready
for operations in the third quarter as scheduled.
In Q1 2013 C.A.T. oil was awarded additional service orders by its customers. As
of end of May 2013, the Company's order book for 2013 stands at around EUR 400
million representing a sharp 38% yoy increase from EUR 290 million as of the end
of May 2012 (based on a rouble-to-euro exchange rate of 40). The total order
book for a three-year period of 2013-15 amounts to EUR 538 million, up 64% yoy
compared to EUR 329 million for 2012-14 as of the end of May 2012.
Based on the strong market fundamentals and exceptional operating and financial
performance in the first quarter, C.A.T. oil reiterates its optimistic outlook
for Fiscal Year 2013 with revenues of EUR 405 to 425 million and EBITDA ranging
from EUR 95 to 105 million (based on a rouble-to-euro exchange rate of 40).
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.
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 Q1 2013 weighted
average headcount stood at 2,595 people, most of which are based in Russia and
Kazakhstan.
Key financial figures for Q1 2013
[million EUR]
Q1 2013 Q1 2012 Change in %
Revenues 98.9 75.3 31.3
Cost of sales 81.1 65.9 23.2
Gross profit 17.8 9.5 87.6
EBITDA 24.0 14.0 71.9
EBITDA margin (%) 24.3 18.5
EBIT 11.5 4.0 >100
EBIT margin (%) 11.7 5.3
Net income 7.2 2.5 >100
Earnings per share (EUR) 0.147 0.051 >100
Equity Ratio (%) (1) 65.6 67.0
Cash flow from
operating activities 6.1 9.0 -33.0
Cash flow from
investing activities -14.0 -5.6 >100
Cash flow from
financing activities 3.7 -9.5 >100
Cash and cash equivalents (1) 34.8 38.8 -10.2
Total job count 872 800 9.0
Per-job revenue (thou. EUR) 113 92 23.6
Employees 2,595 2,375 9.3
1) As of 31 March 2013 and 31 December 2012 respectively
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
