INFORMATION FOR THE MEDIA C.A.T. oil AG: Significant plus in service job count in the first half of 2015 mitigated effects of rouble devaluation

• Sales revenues in euros decreased by 17,0% to EUR 168.5 million due to the strong performance of the Well Services segment - rouble sinks by 34%
• Consolidated net result contracted by 48.1%, coming to EUR 12.8 million
• Equity base and cash flow strengthened
• Stagnating market confirms correctness of decision to pursue conservative investment policy
• Full capacity utilization of all plants in 2015 assured

in EUR million

HY1 2015

HY1 2014

+/- in %

Sales revenues

168.5

203.1

(17.0)%

EBIT

19.3

32.3

(40.4)%

Equity

211.3

171.2

+23.4%

Employees

3.334

2.873

+16%

Vienna/Moscow, 27 August 2015
A significant plus in the service job count during the first six months of the current financial year mitigated the effects of the considerable devaluation of the Russian rouble on C.A.T. oil AG's half-year balance sheet, denominated in euros. Facilitated by the expansion of capacities, which was completed in May, the service job count in the Well Services segment rose by 43% yoy to 2,509, while the Drilling, Sidetracking and Integrated Project Management segment recorded a 20.5% increase to 135 jobs. All in all, the oilfield and gasfield service provider operating in Russia, recorded total sales revenues of EUR 168.5
million (HY1: EUR 203.1 million), a decline of 17% in the same period that saw a 34% drop in the rouble against the euro.
The Group's cost of sales decreased less than sales revenues in the first half of the year. As at 30 June, they amounted to EUR 140.0 million, which is 13% lower than in the first half of
2014 (HY1 2014: EUR 160.9 million). The reasons for this development were the increase in
employees - at 3,334 C.A.T. oil's headcount increased by 16% yoy to 3,334 - and the depreciation of the machine park, which was expanded considerably; on the other hand, higher inflation in Russia prevented strong declines, for instance in administrative expenses.
EBITDA amounted to EUR 41.5 million as at 30 June 2015 (HY1 2014: EUR 54.9 million);
the EBITDA margin was 24.6%, as compared to 27.0% in the previous year. EBIT contracted by 40.4% to EUR 19.3 million in the reporting period, and the EBIT margin dropped from
15.9% to 11.4% in HY1 2014.

Loans raised in earlier periods affected the financial result

Triggered by the increase in accounts payable to affiliates effected during the 2014
expansion programme, interest payable rose to EUR 3.1 million (HY1 2014: EUR 0.9 million), resulting in a negative financial result of EUR 1.1 million. Taking into account the necessary correction of an error in previous financial reports in 2014, taxes on income declined by 22% to EUR 5.3 million (HY1 2014: EUR 6.8 million). At EUR 12.8 million, the consolidated net result for the first half of 2015 was 48.1% lower than the figure reported for the same period
in 2014 (HY1 2014: EUR 24.7 million).

Cash flow and equity strengthened

Shifts in the ratio of the Group's payables to its receivables resulted in an increase in net working capital in the amount of EUR 9.5 million (HY1 2014: EUR -22.3 million); cash flow from operating activities rose to EUR 45.3 million (HY1 2014: 26.4). This, in turn, resulted in a substantial rise in cash and cash equivalents, which, as at 30 June 2015, came to EUR
57.4 million, i.e. 41.4% above the level reported as at 30 June 2014.
Equity was also strengthened in the reporting period, growing by 23.4% to EUR 211.3 million
(31 December 2014: EUR 171.2 million). The Company's equity ratio improved from 46.1%
to 52.5% in the first six month of the current financial year.

Management confirms outlook for the rest of the year

The Management of C.A.T. oil AG has reiterated its outlook for the year 2015, still expecting revenues to lie between EUR 310.0 million and EUR 320.0 million, with an EBITDA of between EUR 75.0 million and EUR 85.0 million (based on a RUB/EUR exchange rate of
75/1). The Company is thus in line with the Russian trend. According to a poll conducted by Bloomberg amongst leading investment analysts in the first half of 2015, hard-currency revenues of Russia's Top 50 companies are expected to drop by around 25% this year.
"Our decision to suspend the further expansion of capacities due to the market situation has proven to be correct. The fact that C.A.T. oil AG has fully marketed its capacities for 2015, which had been expanded in the previous year, shows that we managed to maintain and consolidate our market position even in times of market stagnation," says Yury Semenov, CEO of C.A.T. oil AG.
The full report on the first half of 2015 is available for download on our corporate website at www.catoilag.com.
Rückfragehinweis: Scholdan & Company
Bernhard Grabmayr
+43-1-513 23 88-0 presse@catoilag.comir@catoilag.com

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