EANS-News: C.A.T. oil AG Outstanding results in the first nine months of the
year - guidance for the full year 2013 upgraded
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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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Subtitle: - Revenues surged by more than 30% yoy to EUR 322.9 million
- EBITDA increased by almost one half yoy to EUR 86.0 million; the EBITDA margin
of 26.6%, up 2.7 percentage points
- Remarkable bottom-line results with net income up 2.5 times yoy to EUR 38.2
million
- Guidance for 2013 raised: revenues expected at EUR 420 to 430 million
(previously EUR 405 to 425 million) and EBITDA at EUR 105 to 110 million
(previously EUR 95 to EUR 105 million)
- CEO Manfred Kastner: We recorded the best performance ever for the first nine
months and clearly exceeded our objectives.
quarterly report
Wien (euro adhoc) - 29 November 2013 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78),
one of the leading providers of oil and gas field services in Russia and
Kazakhstan, achieved outstanding results in the first nine months of 2013. The
Company increased its revenues by more than 30% to EUR 322.9 million (Q1-3 2012:
EUR 246.3 million) and its EBITDA by almost one half to EUR 86.0 million (Q1-3
2012: EUR 58.8 million). The EBITDA margin widened to 26.6% in Q1-3 2013, up 2.7
percentage points compared to 23.9% a year ago, whereas the Q3 2013 EBITDA
margin of 29.5% (Q3 2012: 28.3%) was close to historic quarterly peaks. As a
result, net income surged 2.5 times yoy to EUR 38.2 million in Q1-3 2013 (Q1-3
2012: EUR 15.2 million). C.A.T. oil has successfully accomplished its 2013
investment program: operating capacities expanded by 30% for sidetracking and
10% for fracturing compared to the end of 2012. On the back of the excellent
results in the first nine months of the year and dynamic business performance in
the fourth quarter C.A.T. oil has upgraded its guidance for 2013: The Company
now expects revenues to come in between EUR 420 and 430 million (previously EUR
405 to 425 million) and EBITDA between EUR 105 and 110 million (previously EUR
95 to EUR 105 million).
Manfred Kastner, C.A.T. oil CEO, commented: "We recorded the best performance
ever for the first nine months and clearly exceeded our objectives. Especially
the tremendous results of the third quarter speak for themselves. We are well
underway to deliver a remarkable operating and financial performance also in the
fourth quarter of the year. Moreover, the recent announcement of the
transformative investment program for 2014 to 2106 clearly demonstrates our
confidence in the business' strong growth potential for years to come."
Distinct top-line growth in all segments
C.A.T. oil's consolidated revenues increased by 24.7% yoy to EUR 112.8 million
in Q3 2013 (Q3 2012: EUR 88.5 million) and 31.1% yoy to EUR 322.9 million in Q1-
3 2013 (Q1-3 2012: EUR 246.3 million) due to the strong business expansion. The
total service job count went up by 21.3% yoy to 1,072 jobs in Q3 2013 (Q3 2012:
884 jobs) and 14.7% yoy to 2,938 jobs in Q1-3 2013 (Q1-3 2012: 2,561 jobs).
Despite the weaker local currencies, average per job revenues increased by 5.1%
yoy to TEUR 105 in Q3 2013 (Q3 2012: TEUR 100) and 14.3% yoy to TEUR 110 in Q1-
3 2013 (Q1-3 2012: TEUR 96).
In the first nine months of the year, Well Services' revenues staged a 29.7% yoy
increase to EUR 173.1 million (Q1-3 2012: EUR 133.5 million) on the back of a
13.8% yoy rise in the service job count to 2,762 jobs (Q1-3 2012: 2,426 jobs)
and a 13.9% yoy gain in the average per job revenue to TEUR 63 (Q1-3 2012: TEUR
55). The development was primarily attributed to the swift expansion of
fracturing operations, the greater job size and complexity as well as favorable
price environment during the reporting period.
Drilling, Sidetracking and IPM segment's revenues advanced 35.7% yoy to EUR
149.6 million in Q1-3 2013 (Q1-3 2012: EUR 110.2 million) as the combined
drilling and sidetracking output increased by 45.7% yoy to 217 thousand meters
(Q1-3 2012: 149 thousand meters).
Sound efficiency and profitability gains
Despite strong business expansion, cost of sales inflated only by 21.5% yoy to
EUR 88.2 million in Q3 2013 (Q3 2012: EUR 72.6 million) and 26.1% yoy to EUR
258.8 million in Q1-3 2013 (Q1-3 2012: EUR 205.3 million). Thanks to lean and
efficient organizational and operating structures, C.A.T. oil boosted its
earnings before interest, tax, depreciation and amortization (EBITDA) by 33.0%
yoy to EUR 33.3 million in Q3 2013 (Q3 2012: EUR 25.0 million) and 46.1% yoy to
EUR 86.0 million in Q1-3 2013 (Q1-3 2012: EUR 58.8 million). The EBITDA margin
expanded to 29.5% in Q3 2013 (Q3 2012: 28.3%) and 26.6% in Q1-3 2013 (Q1-3 2012:
23.9%). The Company's earnings before interest and tax (EBIT) rose by 78.9% yoy
to EUR 21.2 million in Q3 2013 (Q3 2012: EUR 11.8 million) and almost doubled to
EUR 48.4 million in Q1-3 2013 (Q1-3 2012: EUR 24.8 million). As a result, the
EBIT margin widened to 18.8% in Q3 2013 (Q3 2012: 13.4%) and 15.0% in Q1-3 2013
(Q1-3 2012: 10.1%).
Stellar bottom-line growth
The outstanding operating performance enabled the Company to attain a stellar
bottom-line growth: Net income recorded an increase of 98.4% yoy to EUR 17.0
million in Q3 2013 (Q3 2012: EUR 8.6 million) and 150.9% yoy to EUR 38.2 million
in Q1-3 2013 (Q1-3 2012: EUR 15.2 million).
Solid cash generation and balance sheet
The Company's funds from operations went up by 40.9% yoy to EUR 72.8 million in
Q1-3 2013 (Q1-3 2012: EUR 51.7 million) and cash flow from operating activities
advanced by 66.1% yoy to EUR 76.8 million (Q1-3 2012: EUR 46.2 million). The
Company's capital expenditures more than doubled to EUR 40.4 million in Q1-
3 2013 (Q1-3 2012: EUR 19.0 million) reflecting good progress in execution of
the 2013 investment program of EUR 45.0 million: From January to September
C.A.T. oil increased its operating capacities by 30% for side-tracking and 10%
for fracturing compared to the end of 2012. Cash flow from investing activities
was a net outflow of EUR 38.1 million in Q1-3 2013 (Q1-3 2012: net outflow of
EUR 17.6 million) and cash flow from financing activities was a net outflow EUR
41.4 million (Q1-3 2012: net outflow of EUR 29.8 million).
As of 30 September 2013, cash and cash equivalents stood at EUR 39.1 million, up
0.8% from EUR 38.8 million as of 31 December 2012. The Company had net cash of
EUR 16.9 million as of the end of September 2013 compared to net debt of EUR
11.8 million as of the end of December 2012. The Company maintained strong
balance sheet with an equity ratio of 67.4% as of 30 September 2013 (31 December
2012: 67.0%).
Revenue and EBITDA guidance for 2013 upgraded
Based upon better than expected operating and financial results during the third
quarter and the elevated activity levels during the fourth quarter, C.A.T. oil
upgrades its revenue and EBITDA guidance for 2013. The upgrade comes along with
further revision of the Company's 2013 estimated average exchange rate to 42.5
rouble-to-euro from 42.0 rouble-to-euro as of end of August 2013 as the Russian
rouble continued weakening during the second half of the year and devalued
relative to the euro by around 10% year-to-date. Nonetheless, the Company raises
its expectations for the 2013 revenues to EUR 420 to 430 million from EUR 405 to
425 million and EBITDA to EUR 105 to 110 million from EUR 95 to EUR 105 million.
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 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 9M 2013 weighted
average headcount stood at 2,673 people, most of which are based in Russia and
Kazakhstan.
Key financial figures for Q1-3 2013
[million EUR] Q1-3 2013 Q1-3 2012 Change (%)
Revenues 322.9 246.3 31.1
Cost of sales 258.8 205.3 26.0
Gross profit 64.1 50.0 56.4
EBITDA 86.0 58.8 46.1
EBITDA margin (%) 26.6 23.9
EBIT 48.4 24.8 94.9
EBIT margin (%) 15.0 10.1
Net income 38.2 15.2 150.9
Earnings per share (EUR) 0.782 0.312 150.9
Equity Ratio (%)[1] 67.4 67.0
Cash flow from 76.8 46.2 66.1
operating activities
Cash flow from -38.1 -17.6 116.6
investing activities
Cash flow from -41.4 -29.8 39.1
financing activities
Cash and cash 39.1 38.3 0.8
equivalents [1]
Total job count 2,938 2,561 14.7
Per-job revenue 110 96 14.3
(thou. EUR)
Employees 2,673 2,469 8.3
[1] As of 30 September 2013 and 31 December 2012 respectively
Key financial figures for Q3 2013
[in million EUR] Q3 2013 Q3 2012 Change (%)
Revenues 112.8 88.5 27.4
Cost of sales 88.2 72.6 21.5
Gross profit 24.7 16.0 54.3
EBITDA 33.3 25.0 33.0
EBITDA margin (%) 29.5 28.3
EBIT 21.2 11.8 78.9
EBIT margin (%) 18.8 13.4
Net income 17.0 8.6 98.4
Earnings per share (EUR) 0.348 0.176 98.4
Cash flow from 29.2 23.7 23.0
operating activities
Cash flow from -8.9 -5.8 52.7
investing activities
Cash flow from 9.1 -17.2 >-100
financing activities
Total job count 1,072 884 21.3
Per-job revenue 105 100 5.1
(thou. EUR)
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-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
