C.A.T. oil Successfully Drives Growth and Profitability in H1 2012

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 half of 2012. C.A.T. oil realized
strong revenue and EBITDA growth which was primarily stimulated by
strong demand for its services, the increased per job revenue and
operational efficiency. In addition, the Group has almost completed the
set up of its third core service line of high class conventional
drilling and to date has eight out of nine drilling rigs in operation.
Based on the successful performance in the first six months of the year,
C.A.T. oil remains optimistic. Consequent to the latest additions, the
order book for full year 2012 totaled EUR 307 million as of 30 August
2012, and C.A.T. oil expects to exceed prior-year′s performance.

Manfred Kastner, CEO of C.A.T. oil, commented: ?We have successfully
capitalized on the positive economic environment and our strong market
position to further drive growth. Due to strong demand and a high share
of large and complex jobs we were able to push our revenues by about 17%
and to increase EBITDA by one fourth compared to the first six months of
2011. At the same time we remained fully dedicated to further set up
high class conventional drilling. All of our rigs have successfully been
marketed and during the second quarter we took four more rigs into
operations. Going forward, C.A.T. oil will operate with a very well
diversified portfolio and provide even more services out of one hand.
This makes us an even more valuable and reliable partner for our
customers. Although the economic and financial crisis in the euro zone
continues and impacts confidence in certain regions, dynamics in our
markets are intact. We won additional tenders and are confident that we
will be granted additional orders during the third and fourth quarter.
We are therefore confident to outperform both, revenues and EBITDA of
the prior year.?

Revenue increase of 16.9%

C.A.T. oil grew its revenues by 16.9% yoy to EUR 157.8 million (H1 2011:
EUR 135.0 million), stimulated by an increase in job counts of 1.8% yoy
to 1,677 jobs (H1 2011: 1,648 jobs) and a 13.7% yoy rise in the average
per job revenue to TEUR 93 (H1 2011: TEUR 81). The number of fracturing
jobs rose by 4.1% yoy and the number of sidetrack drilling jobs
decreased by 12.7% yoy due to the greater share of lengthy horizontal
sidetracks. Growth of average revenues per job was driven by the greater
size and complexity of jobs, as well as a higher share of turnkey jobs
and further contribution by the new high class conventional drilling
service.

Cost base developed at a lower rate than revenues

Despite the increased operating activity levels and inflationary
pressures, cost of sales rose only by 14.5% yoy to EUR 132.8 million (H1
2011: EUR 116.0 million). Key drivers for the development mainly were
the greater operating leverage and efficiency gains. The Company′s total
weighted average headcount went up by 2.8% to 2,428 employees (H1 2011:
2,362 employees) primarily driven by the latest hires for the new high
class conventional drilling business.

EBITDA margin up to 21.4%

EBITDA increased by 25.1% yoy to EUR 33.8 million (H1 2011: EUR 27.0
million) primarily driven by the strong revenue growth and the
disproportionally lower development of cost of sales. The EBITDA margin
expanded to 21.4% yoy in H1 2012 (H1 2011: 20.0%).

The Company′s earnings before interest and tax (EBIT) went up 30.4% yoy
to EUR 13.0 million (H1 2011: EUR 10.0 million) resulting in the EBIT
margin of 8.2% (H1 2011: 7.4%).

Net result impacted by extraordinary effects and higher tax rate

The solid operational performance is not fully reflected in net income,
which decreased by 3.0% yoy to EUR 6.7 million during the reporting
period (H1 2011: EUR 6.9 million). The decline was mainly due to the
following three reasons: the negative financial result, provisions for
the seismic operations in India and a higher corporate tax rate.

The Company′s net financial result amounted to EUR -2.6 million (H1
2011: EUR 0.2 million) and was primarily impacted by increased interest
expenses, unrealized and realized foreign currency translation losses
related to inter-company loans, as well as credit facilities in
US-dollars for the payments of the new high class conventional drilling
rigs.

Although the Indian operations only account for a very small portion of
the Group′s business and consist of seismic services only, C.A.T. oil
took steps to prepare for the currently difficult situation in the Assam
region. During the second quarter Assam faced the increased political
instability and violent excesses which also impacted C.A.T. oil′s
operations. As it is currently unclear how this volatile situation will
develop C.A.T. oil has preventively formed reserves and provisions in
the total amount of EUR 2.1 million.

Ongoing strong cash generation

Funds from operations increased by 21.0% yoy to EUR 28.7 million (H1
2011: EUR 23.7 million) primarily reflecting the combined effect of the
higher pre-tax profit and depreciation as well as the lower cash taxes.
Cash flow from operating activities was a net inflow of EUR 22.5 million
(H1 2011: net inflow of EUR 16.1 million) due to the higher funds from
operations and the lower investments in net working capital. Capital
expenditure went down 70.8% yoy to EUR 12.9 million (H1 2011: EUR 44.4
million) reflecting the lower investment plans for 2012. In total C.A.T.
oil has budgeted EUR 30 million for 2012 to finalize the set up of the
new high class conventional drilling business and to maintain capacities
in good working order. Cash flow from investing activities was a net
outflow of EUR 11.7 million (H1 2011: net outflow of EUR 43.4 million).
Cash flow from financing activities was a net outflow of EUR 12.5
million in H1 2012 (H1 2011: net inflow of EUR 17.5 million) mainly due
to an early redemption of long-term borrowings and an increase in cash
dividend paid.

As of 30 June 2012, cash and cash equivalents stood at EUR 28.3 million
(31 December 2011: EUR 30.4 million). C.A.T. oil maintained a healthy
balance sheet with an equity ratio of 61.3% as of 30 June 2012 (31
December 2011: 62.3%).

Confident outlook for FY 2012

Based on the strong performance during the first six months and
additional orders bringing up the order book to EUR 307 million (based
on a rouble-to-euro exchange rate of 40) for full year 2012, C.A.T. oil
remains optimistic with respect to the second half of 2012. Although the
unsolved sovereign debt crisis has called for further cautiousness in
certain regions of Europe, C.A.T. oil currently sees ongoing solid
demand for its services in its markets. In addition, the oil price is at
a high level and supports upstream activities as well as investments of
customers. C.A.T. oil therefore is confident to exceed the prior year
revenue and earnings growth. Assuming stable energy prices and costs as
well as no material deterioration of the economic situation in our its
markets, the Company expects revenues in the range of EUR 300 to 320
million and EBITDA in the range of EUR 67 to 73 million (based on a
rouble-to-euro exchange rate of 40) for full year 2012.