C A T oil : Interim Report 1st Quarter 2015 Results In Line With Guidance 2015

C.A.T. oil AG Interim Report 1st Quarter 2015

 Massive Rouble devaluation impacts results year-on-year
 Quarterly revenues decrease by 19.9% to MEUR 72.7 (Q1 2014: MEUR 90.7)
 Group result drops by 44.2% to MEUR 5.3 (Q1 2014: MEUR 9.5)
 EBITDA and EBIT margins decrease moderately to 22.3% (Q1 2014: 23%)
respectively 9.3% (Q1 2014: 10.7%)
 Total number of jobs increases by 28% to 1,168 (Q1 2014: 909)
 Order-book for 2015 amounting to MEUR 326.0 on 31 March (@ EUR/RUB
63.4)
 Facilities budgeted in investment programme 2014 almost completely delivered on site
Vienna, 28 May 2015
The massive devaluation of the Russian Rouble versus the Euro amounting to 47% between 31 March 2014 and 31 March 2015 impacted the results of the listed oil- and gas-field service-provider C.A.T. oil AG in the first quarter 2015. In the first three months of the current business year the operating subsidiaries (engaged in Russia and Kazakhstan) of the Vienna based holding company, generated MEUR 72.7 in sales revenues (Q1 2014: MEUR 90.7). Pursuant to the devaluation the group result
dropped by 44.2% yoy to MEUR 5.3 compared to MEUR 9.5 in the first quarter 2014.

Capacities in line with market demands

"The results are in line with our guidance for the business year 2015, which we hereby confirm. After the moderate revaluation of the Rouble during the last months, the order book of C.A.T. oil AG for 2015 amounts to MEUR 326.0 end of March. We are perfectly able to manage this volume with our current capacities.", Yuri Semenov, CEO of C.A.T. oil AG, explaining the current situation on the still conservative oil and gas market in Russia.
With the delivery of two rigs for high class drilling and the core part of the expected fracturing fleet on site, almost all facilities budgeted in the investment programme
2014 have been delivered to their area of employment and are ready to be put into
operation in the first half of 2015.
The capacity expansion of the last 12 months is also reflected in the number of employees: Compared to the first quarter 2014 the average number of staff rose by
17.5% to 3,335 on 31 March 2015 (Q1 2014: 2,837). Due to a more conservative growth path in the first three months 2015 capital expenditure decreased by 16.1%
yoy to MEUR 14.7 (Q1 2014: MEUR 17.5).

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Well Services: High increase in service jobs counts

While in both reporting segments the average revenue per job, denominated in Euro, has been shrinking, the performed jobs clearly increased in the "Well Services" segment. In the first quarter they increased by 30% to a total number of 1,114 (Q1
2014: 856). With an average revenue per job of TEUR 36.2 (Q1 2014: TEUR 55.0)
the segment contributed revenues amounting to MEUR 40.3 (Q1 2014: MEUR 47.1), corresponding to 55.5% of the group's total sales revenues (Q1 2014: 51.9%).
In the second reporting segment "Drilling, Sidetracking, Integrated Project Management" service job counts remained stable at a level of 54 (Q1 2014: 53). Average revenue per job in this segment declined by 26% to TEUR 599.3 (Q1 2014: TEUR 809.9), achieving MEUR 32.4 (Q1 2014: MEUR 42.9) in revenues, corresponding to 44.5% of the group's total sales revenues (Q1 2014: 47.3%).
As a result of the Rouble devaluation cost of sales were down by 18.6% yoy to MEUR 62.0 (Q1 2014: MEUR 76.2) and declined about the same percentage as sales revenues.

Net Income impacted by increased tax expenses

Due to the developments elaborated above EBITDA contracted by 22.1% to MEUR
16.3 (Q1 2014: MEUR 20.9) in the reporting period, while EBITDA margin overall remained stable at 22.3% (Q1 2014: 23%). The Company's profit before tax
decreased by 32.6% yoy to MEUR 6.6 (Q1 2014: MEUR 9.8). As a result of reduced
applicable deferred taxation, income tax expenses more than triplicated to MEUR 1.3 (Q1 2014: MEUR 0.3) and the Company's profit after tax dropped by 44.2% to MEUR
5.3 (Q1 2014: MEUR 9.5).

Liabilities' situation improved, equity strengthened

Between 31.12.2014 and 31.3.2015 total current liabilities sank by 17.3% to MEUR
64.7 from MEUR 78.2. In the same period the Company's interest bearing liabilities remained stable (+1%) at MEUR 115.8 (Q1 2014: MEUR 114.6), this liabilities
include as well intra-group financial liabilities against CAT Holding (Cyprus)
amounting to MEUR 100. Since 31.12.2014 equity went up by 16.3% to MEUR
199.1, equity ratio ameliorated to 50.4% compared to 45.3% at year-end 2014.

Management Board confirms guidance for 2015

Taking into account the results of the first quarter, C.A.T. oil AG's Management Board confirms its guidance for the current business year published in the Financial Report 2014 and continues to expect revenues in 2015 at a level of MEUR 310.0 -
320.0, with an EBITDA between MEUR 75.0 - 85.0 (@ EUR/RUB 75).
Regarding significant events after balance sheet date, the Company informs inter alia about its statement of facts filed on 10 April 2015 with the Central Public Prosecutor's Office for the Prosecution of Economic Crimes and Corruption in Vienna (as already reported in the annual financial statement 2014). The Company has been informed

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that the Prosecutor has commenced investigations. Furthermore, the Company informs about Mr Evgeny Pankratov's resignation from all his positions with immediate effect in May 2015 upon his own request due to personal reasons. Consequently, he is not a member of C.A.T. oil AG's Management Board anymore.
The complete Interim Report for the 1st Quarter 2015 is available on the Company's website.
Contact:
SCHOLDAN & COMPANY Bernhard Grabmayr office@scholdan.com
+43-1-513 23 88-0

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