C.A.T. Oil Made Solid Progress in Business Expansion and Diversification In 2011

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 Fiscal Year 2011. C.A.T. oil boosted its
revenues by 22.7% yoy to EUR 280.7 million (FY 2010: 228.8 million)
thereby successfully exceeding its objective of EUR 260-270 million. The
strong development was based on a very healthy demand and supportive
macroeconomic dynamics in Russia and Kazakhstan.

In 2011, C.A.T. oil not only expanded its existing businesses but also
consequently executed the set up of high class conventional drilling as
third core service line. Despite front-up costs related to the business
expansion, the Company continued to operate on a high level.

Manfred Kastner, CEO of C.A.T. oil, commented: 'Fiscal Year 2011
represents an important milestone in our history. Although global
economies slowed down throughout the year, we were able to successfully
grow our traditional business: We pushed our total job count to a new
record-high of 3,366 jobs and exceeded our revenue target with revenues
of EUR 280.7 million. At the same time we very efficiently expanded into
high class conventional drilling. We thus leverage our existing strength
and know-how to set the basis for additional profitable growth.?

'By the end of April, we had obtained service orders for 80% of our new
drilling capacities for 2012. Our talks with customers for deployment of
the remaining 20% are at the completion stage. This development clearly
demonstrates two of our key strengths: on the one hand our ability to
understand the markets and our customers′ needs and on the other, our
strong reputation for delivering top-in-class services based on
state-of-the-art technology.?

All-time-high in total job count and revenues

In Fiscal Year 2011 C.A.T. oil recorded a strong revenue boost backed by
two effects: Firstly, an increase of 11.7 % yoy to 3,366 jobs (FY 2010:
3,014 jobs) with fracturing and sidetrack drilling operations going up
15.9% yoy and 7.8% yoy, respectively. Secondly, a strong upturn in the
average per job revenue to TEUR 82.9, up 10.2% yoy (FY 2010: TEUR 75.2).

Cost base influenced by high operating activity levels, greater size
and complexity of jobs and front-loaded costs

In 2011 cost of sales rose by 30.1% yoy to EUR 242.8 million (FY 2010:
EUR 186.7 million), reflecting four aspects: front-loaded costs related
to the business expansion, high operating activity levels, the increased
share of more complex horizontal sidetracks and slower than expected
sidetrack drilling operations in Q1 and Q4.

As part of the 2011-12 investment program of EUR 150 million, C.A.T. oil
set up high class conventional drilling: The first conventional drilling
rig has already been in operation since Q3 2011. The remaining eight
rigs were shipped to Russia and adapted for operations during H2. In
addition, two more sidetrack drilling rigs were added to the portfolio,
bringing the total number of those particular rigs to 17.

General and administrative expenses increased by 7.1% yoy to EUR 19.5
million in FY 2011 (FY10 2010: EUR 18.2 million) primarily driven by the
costs related to the expansion of the business. The total weighted
average headcount went down by 2.6% yoy to 2,360 employees in FY 2011
(FY 2010: 2,424 employees) and reflect a reduction of staff due to the
outsourced workover, as well as new hires for the new business line.

Competitive EBITDA margin of 19.5% despite business expansion

Earnings before interest, tax and depreciation (EBITDA) slightly
decreased by 3.2% yoy to EUR 54.6 million in 2011 (FY 2010: EUR 56.4
million). This mainly reflects the higher cost base due to the business
diversification, setbacks in the sidetracking performance in Q1 and Q4
as well as a one-off effect in the amount of EUR 2.1 million for
provisions for long-term and current receivables in Q4. Despite these
effects C.A.T. oil continued to deliver a very competitive EBITDA margin
of 19.5% (FY 2010: 24.7%).

The Company′s earnings before interest and tax (EBIT) diminished 39.6%
yoy to EUR 16.6 million in 2011 (FY 2010: EUR 27.5 million), reflecting
the lower EBITDA and higher depreciation expense on investments in the
new operating capacities.

Net income came in at EUR 6.8 million in 2011 (FY 2010: EUR 19.5
million) primarily owing to lower operating profit and net financial
result.

Cash flow driven by business expansion

Funds from operations decreased by 4.1% yoy to EUR 46.4 million (FY
2010: EUR 48.3 million) primarily reflecting the combined effect of
lower pre-tax profit and higher depreciation. Cash flow from operating
activities was a net inflow of EUR 29.8 million (FY 2010: net inflow of
EUR 59.2 million) due to lower funds from operations and the higher net
working capital which was driven by business expansion. Capital
expenditure rose 155.3% yoy to EUR 110.6 million (FY 2010: EUR 43.3
million) primarily due to successful execution of the investment plan.
Cash flow from investing activities was a net outflow of EUR 108.0
million (FY 2010: net outflow of EUR 39.7 million). Cash flow from
financing activities was a net inflow of EUR 73.7 million in 2011 (FY
2010: net outflow of EUR 13.3 million) mainly due to an increase in
long-term borrowings for investment purposes.

As of 31 December 2011, cash and cash equivalents stood at EUR 30.4
million (31 December 2010: EUR 34.1 million). C.A.T. oil′s equity ratio
remained at a comfortable level of 62.3% as of 31 December 2011 (31
December 2010: 83.2%).

Dividend proposal of EUR 0.125 per share

At the AGM on June 15, 2012 the Management and the Supervisory Boards
will propose to increase the dividend by 25% yoy to EUR 0.125 per share
for Fiscal Year 2011. This represents a profit distribution of 90%.

Confident outlook for FY 2012

Despite ongoing uncertainties regarding the global economic prospects
for 2012, C.A.T. oil is confident in a positive outlook for the current
Fiscal Year. The global oil demand is expected to remain strong and the
oil price is likely to stay at a high level. Moreover, in oil and gas
producers in Russia and Kazakhstan have increased their upstream
activities and investment plans since late 2011. These factors will have
a positive effect on demand and support C.A.T. oil′s growth: At the end
of April, C.A.T. oil′s 2012 order book, which comprises of orders for
fracturing, sidetrack drilling and conventional drilling, improved 27%
yoy to EUR 284 million (based on a rouble-to-euro exchange rate of 40).
The new conventional drilling capacity is expected to make first
positive contributions to revenues and earnings during the current year.

Manfred Kastner said: 'With our diversified service portfolio we are in
an even stronger position to exploit market opportunities. With our
experienced teams and state-of-the-art technology we will be able to
assist our customers to efficiently produce oil wells and deliver
exactly the services they need. We are thus very well positioned for
another year of profitable growth?.

www.catoilag.com

¹ ?As of 31 December 2011 and 31 December 2010 respectively

FTI Consulting

Thomas M. Krammer

Phone: +49 (0)69 92037-0

Email:
thomas.krammer@fticonsulting.com