C.A.T. oil AG: New Quarterly Records Underpin Significant Growth Potential for 2013

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

¹ As of 31 March 2013 and 31 December 2012 respectively

Press:

FTI Consulting

Thomas M. Krammer, +49 (0)69
92037-183

thomas.krammer@fticonsulting.com

or

Steffi
Fahjen, +49 (0)69 92037-115

steffi.fahjen@fticonsulting.com