EANS-News: C.A.T. oil AG
Outstanding results in the first nine months of the
year - guidance for the full year 2013 upgraded
29.11.2013 – 07:32
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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