C.A.T. oil AG increases revenues by 37.8% in Q1 2008

DJ C.A.T. oil AG increases revenues by 37.8% in Q1 2008

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May 30, 2008 - C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the leading 
providers of oil and gasfield services in Russia and Kazakhstan, today announced 
the results for the first quarter of financial year 2008. The first quarter 
results clearly reflect the massive expansion of the Company´s operative 
capacities. Overall, C.A.T. oil increased its total job count across all 
services by 64.2% to 729 jobs compared to 444 jobs in Q1 2007. As a consequence, 
revenues in the first quarter rose 37.8% to EUR 65.9 million in Q1 2008 (Q1 
2007: EUR 47.9 million). 
 
The main driver for the steep rise in job count and revenues in the first 
quarter was strong growth in demand for C.A.T. oil´s services supported by the 
improved utilization of new capacity which the Company put into operation in the 
course of 2007. In Q1 2008 C.A.T. oil operated 15 fracturing fleets and 10 
sidetrack drilling rigs in comparison to 12 fracturing fleets and two sidetrack 
drilling rigs in the first quarter of 2007. Consequently, the Company´s 
fracturing job count rose 70.2% and sidetrack drilling job count increased by 
350%. Additionally, auxiliary cementing jobs rose 68.4% and workover jobs 15.9% 
YoY. 
 
Bottom-line results impacted by increasing operating costs 
 
Due to the massive expansion of the operating capacity and job count, C.A.T. 
oil´s cost base significantly increased in Q1 2008. Costs of goods sold rose by 
56.5% YoY to EUR 57.3 million in Q1 2008 (Q1 2007: EUR 36.6 million) mainly due 
to a combination of a 31.4% YoY increase in materials and supply, an 87.5% gain 
in direct costs and a 64.4% rise in wages and salaries due to a 29,8% expansion 
in the Company´s average headcount and a 29.9% rise in average wages. 
Furthermore, depreciation went up 116.7% YoY to EUR 5.2 million in Q1 2008 (Q1 
2007: EUR 2.4 million). Additionally, the extensive increase in the number of 
service jobs was partly offset by a decline in an average-per-job-revenue to 
thou. EUR 90.5 in Q1 2008 in comparison to thou. EUR 107.8 in the first quarter 
of last year. This decrease is mainly due to a combination of the ruble 
devaluation against the euro and weaker fracturing prices as a result of an 
intensifying competition in the Russian fracturing market since late 2007. 
Consequently, C.A.T. oil´s EBITDA decreased by 22.8% YoY to EUR 7.3 million 
compared to EUR 9.5 million in the first quarter of financial year 2007. A 
combination of lower EBITDA and higher depreciation led to a 69.4% decline in 
the Company´s EBIT to EUR 2.2 million in Q1 2008 (Q1 2007: EUR 7.1 million). 
EBITDA- and EBIT-margins decreased to 11.1% and 3.3% respectively (Q1 2007: 
19.8% and 14.9% respectively). The Q1 2008 net income amounted to EUR 0.4 
million (Q1 2007: EUR 4.9 million) and earnings per share were EUR 0.01 (Q1 
2007: EUR 0.10). 
 
The Company´s cash flow from operating activities in Q1 2008 climbed up to EUR 
7.7 million compared to EUR 0.5 million in the same quarter of 2007. Cash flow 
from investing activities was EUR -8.8 million (Q1 2007: EUR 28.6 million) and 
cash flow from financing activities amounted to EUR 0.7 million reflecting 
primarily short-term overdraft facilities at the operating subsidiaries level. 
By the end of Q1 2008 C.A.T. oil had cash and cash equivalents of EUR 12.1 
million compared to EUR 15.0 million at the end of financial year 2007. 
C.A.T. oil´s impressive expansion in operating capacities in the course of 2007 
is also reflected in the average headcount of the Company. In Q1 2008 C.A.T. oil 
had an average of 3,449 employees compared to 2,657 in the first quarter of 
2007. 
 
Strong expansion and diversification to pay off in 2008 
 
The significant investment program of 2007 has laid the foundation for further 
growth in the upcoming quarters. Manfred Kastner, CEO of C.A.T. oil, said: "The 
first quarter results certainly prove that C.A.T. oil keeps on growing. We saw 
persistently increasing demand for our services within the Russian and Kazakh 
oil and gas industry and have expanded our market position throughout our entire 
service portfolio. On the other hand, high front-loaded costs are still having a 
significant impact on our earnings situation. But we are convinced that we have 
set a clear course towards new, high-margin and strategically important sectors 
and that beyond doubt we will finally translate our massive investments into 
high EBITDA growth for 2008." 
 
www.catoilag.com 
 
 
About C.A.T. oil AG: 
Austria-based C.A.T. oil AG (O2C, ISIN: AT0000A00Y78) is one of the leading 
providers of oil- and gasfield services in Russia and Kazakhstan. C.A.T. oil´s 
core business is hydraulic fracturing, a process which helps to open up oil- and 
gas-bearing rock formations in order to increase or even enable oil and gas 
production. The C.A.T. oil crews use state-of-the-art methods and technologies 
to generate high pressure in the oil or gas reservoirs concerned. This pressure 
causes cracks to appear in the rock through which oil or gas can be produced in 
larger quantities from the production well, and hence efficiently boosts 
extraction, particularly in the case of deposits that are difficult to develop 
or low-output wells. In addition, hydraulic fracturing can be used to revitalize 
wells that have previously been idle. 
 
The Company has its headquarters in Vienna and employed an average of 3,449 
people in the first quarter of 2008, most of whom are based in Russia and 
Kazakhstan. Customers include leading oil and gas producers such as Gazprom, 
KazMunaiGaz, LUKOIL, Rosneft, and TNK-BP. C.A.T. oil has been listed in the 
Prime Standard of the Frankfurt Stock Exchange since May 4, 2006, and has been a 
member of the SDax since September 18, 2006. 
 
 
end of announcement                               euro adhoc 
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(END) Dow Jones Newswires

May 30, 2008 02:30 ET (06:30 GMT)