C.A.T. Oil Accelerates Growth and Increases Revenues By 24.4% yoy In H1

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 first six months of 2011. Supported by favorable
macroeconomic conditions and, therefore, higher customer activity
levels, C.A.T. oil successfully accelerated its business expansion in
the second quarter. The Company increased its total job count by 11.0%
yoy to 878 jobs and its total revenues by 20.6% yoy to EUR 74.0 million
in Q2 2011. C.A.T. oil′s job count and revenues hereby not only exceeded
the pre-crisis levels, but also achieved new quarterly all time highs.
Despite current uncertainties over the global economic developments in
the second half of the year, C.A.T. oil is well on track to attain its
expansionary plans and, therefore, confirms its positive outlook for the
financial year 2011.

Manfred Kastner, CEO of C.A.T. oil, commented: 'During the second
quarter we successfully advanced our operations and realized a strong
top line growth. In addition, we continued setting up our conventional
drilling business. We are well on track and pleased with the progress we
have made to date. Backed by the strong company development in the first
six months, we are confident for the second half: We will concentrate on
the diversification into our third core business and will retain a focus
on sustaining healthy levels of profitability and top line growth across
the existing businesses.?

H1 revenues up 24.4% yoy due to higher activity levels in Q2

During the first half of 2011 C.A.T. oil increased revenues by 24.4% yoy
to EUR 135.0 million (H1 2010: EUR 108.5 million); the Company
particularly benefited from a strong growth in demand for the existing
service offerings and the seasonal upturn in customers′ activities in
the second quarter.

During the reporting period the total job count increased by 17.0% yoy
to 1,648 jobs (H1 2010: 1,409 jobs), driven by a 24.4% yoy gain in the
fracturing job count and a 13.9% yoy rise in the sidetracking job count.
In the sidetrack drilling business, the Company was able to compensate
for the delays, which occurred during the first quarter, and rolled over
unexecuted orders, thus boosting the job count by 44.1% yoy in Q2.
During the first six months the auxiliary job count stayed effectively
flat yoy upon the completion of the outsourcing of the low margin
workover business in Q2.

C.A.T. oil′s average per job revenue staged a 7.7% yoy increase to TEUR
81 (H1 2010: TEUR 76) in the wake of the improved fracturing prices and
a marginally stronger Russian rouble relative to the euro.

Cost base driven by higher operating activities and the front loaded
costs for business expansion

During the first six months of 2011 cost of sales went up 30.1% yoy to
EUR 116.0 million (H1 2010: EUR 89.2 million) and were impacted by four
effects: significantly higher operating activity levels in the
fracturing and sidetracking businesses, the Q1 setbacks in sidetracking
activities, the completion of the outsourcing processes in the workover
business and the front-loaded costs for the expansion into high class
conventional drilling. The set up of this business, which will become
C.A.T. oil′s third core service line, is well on track. The first
conventional drilling rig was delivered to Russia in Q2 and was put into
operation in July. Eight more rigs will be delivered to Russia during
the second half of 2011 and four of them are scheduled to become
operational by the end of the year.

General and administrative expenses increased 4.9% yoy to EUR 9.6
million (H1 2010: EUR 9.1 million), primarily due to the
expansion-related costs such as additional wages and salaries,
travelling and training expenses. The total weighted average headcount
went down 3.8% yoy to 2,362 employees (H1 2010: 2,455 employees). This
development reflected, on the one hand, the new hires for the set up of
the new business and, on the other hand, the reduction in the headcount
upon the complete outsourcing of the workover operations.

Healthy level of profitability despite expansion into third core
business

C.A.T. oil′s half year earnings also reflect the diversification into
conventional drilling: Although the Company realized a strong revenue
growth, the investment-related expenses were not fully offset.
Nonetheless, gross profit and EBITDA remained stable compared to H1 2010
and amounted to EUR 19.0 million (H1 2010: EUR 19.3 million) and EUR
27.0 million (H1 2010: EUR 26.8 million), respectively. Although the
EBITDA margin declined compared to the prior year period, it remained at
a healthy level of 20.0% (H1 2010: 24.7%). EBIT declined 19.4% yoy to
EUR 10.0 million (H1 2010: EUR 12.4 million), primarily reflecting
higher depreciation expenses related to investments in new operating
capacity. C.A.T. oil′s net income amounted to EUR 6.9 million (H1 2010:
EUR 8.5 million), owing to a lower financial result mainly driven by a
decrease in the Company′s foreign currency exchange gain.

Capital expenditure primarily funded through cash flow

During the reporting period, funds from operations went down 9.2% yoy to
EUR 23.7 million (H1 2010: EUR 26.1 million) largely due to a lower
pre-tax profit. Cash flow from operating activities amounted to a net
inflow of EUR 16.1 million (H1 2010: net inflow of EUR 33.5 million).
Capital expenditure increased to EUR 44.4 million (from EUR 12.4 million
in H1 2010) due to the payments for the new rigs. Cash flow from
investing activities was a net outflow of EUR 43.4 million (H1 2010: net
outflow of EUR 12.4 million) that included the proceeds from the sale of
equipment of EUR 1.1 million (H1 2010: EUR 3.4 million). Cash flow from
financing activities was a net inflow of EUR 17.5 million in H1 2011 (H1
2010: net outflow of EUR 3.8 million), primarily owing to the increase
in long-term and short-term borrowings.

As of 30 June 2011, cash and cash equivalents amounted to EUR 24.4
million (31 December 2010: EUR 34.1 million). C.A.T. oil′s balance sheet
remained strong with a healthy equity ratio of 72.8% as of 30 June 2011
(31 December 2010: 83.2%).

Outlook for the full year 2011 confirmed

Stock markets have recently been highly volatile, reflecting the
uncertainties about the global economic outlook for the remaining months
of 2011. At this point in time, C.A.T. oil expects the macroeconomic
environment in its core markets, Russia and Kazakhstan, to remain
supportive and operating activities to stay on a high level. C.A.T. oil
is confident that it is well positioned to win additional orders in the
remaining months of 2011 and anticipates the total revenues for the
current financial year to exceed the order book level of EUR 239 million
(based on an exchange rate of 40 roubles per euro) as of August 2011. In
addition, C.A.T. oil remains committed to sustaining profitable growth.
Although inflationary pressures and effects of the business expansion
will have an impact on profitability, the Company remains committed to
achieving a 2011 EBITDA margin close to the 2010 level. C.A.T. oil will
capitalize on its strong market position in Russia and Kazakhstan and
continue delivering high quality services to realize further growth.

www.catoilag.com

¹ As of 30 June 2011 and 31 December 2010 respectively

Financial Dynamics

Carolin Amann

Tel.: +49 (0)69 92037-132

CAToilAG@fd.com