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1 MEDIA/ASX RELEASE 6 August 2013 Titan Energy Services annunces $9.1m NPAT fr FY13 and FY14 $21m - $23m EBIT target ASX ticker: TTN 2012/13 (FY13) Highlights Recrd full year result well abve guidance Net prfit after tax (NPAT) quadrupled t $9.1m Earnings befre interest and tax f $14.5m up 272% year-n-year and duble the cmpany s initial target fr FY13 Strng sharehlder returns Full Year earnings per share f 22.2 cents 147% imprvement n the prir crrespnding perid, including an $18m capital raising fr Hfc Oilfield Services Fully franked 3.5 cents per share final dividend annunced, taking FY13 dividends t 5.5 cents per share 175% imprvement n FY12 Business grwth Furth Atlas Drilling rig built and deplyed n 1+1 cntract Resurces Camp Hire expansin 674 rms at 30 June (186% increase n June 2012 capacity) $1.9m EBIT frm Nektar Remte Hspitality in first full year f trading - 62,694 man days catered during year Hfc Oilfield Services acquired fr $20.9m 1 frecast 2H EBIT f $2.6m achieved Debt facilities increased, an additinal $10m in capital expenditure funding ver FY14 and FY15 Investment in key leadership rles thrughut the grup Outlk cntinued grwth expected $21m $23m EBIT expected fr FY13 (52% increase n FY13) Strng grwth prspects in Queensland CSG and ther markets Cntinuing fcus n diversificatin Onging cnsideratin f pprtunities t grw rganically and thrugh acquisitin Nte (1) Adjustment t the acquisitin price frm $21.7m t $20.9m due t imprvement in Hfc cash psitin frm the time f annuncement t settlement f the acquisitin. 1

2 Results summary Results ($ millin unless stated therwise) Revenue FY13 FY12 Variance % EBIT Margin % % 272% 8.3% NPAT Margin % % 296% 5.6% EPS 22.2c 9.0c 1 147% Dividend 5.5c 2.0c 175% Results verview Titan Energy Services (TTN) tday released audited accunts fr the 12 mnths t 30 June As freshadwed in the unaudited results release n July 23, the cmpany cmfrtably exceeded earnings guidance in its first full year f trading since listing in December During FY13, Titan achieved EBIT f $14.5m, 272% grwth n the $3.9m EBIT recrded during FY12. Other highlights included: NPAT f $9.1m up 296% n the previus crrespnding perid; and Strng earnings per share grwth t 22.2 cents per share, cmpared t 9.0 cents per share during FY12. Titan s directrs als declared a fully franked 3.5 cents per share final dividend. This reflects a 25% return f NPAT t sharehlders, in line with the cmpany s dividend plicy. The final dividend takes ttal dividends declared during FY13 t 5.5 cents per share, a 175% imprvement n FY12. Titan s Bard has als declared that the cmpany s Dividend Reinvestment Plan (DRP) will apply t the final dividend and a 5% discunt will apply t the price f shares issued under the DRP. A timetable fr the final dividend payment, alng with key DRP details, is included in the appendix t this annuncement. FY13 has been a successful year fr the Titan grup by many measures, managing directr Jim Sturgess said. We have exceeded frecasts and delivered recrd returns fr sharehlders in ur first full year since listing. At the same time, we have invested in cmpany infrastructure and systems that will supprt ur gals fr future diversificatin and grwth. This investment included the acquisitin f a furth business, Hfc Oilfield Services, during the secnd half. Integratin cntinues, with Hfc adding an imprtant dimensin t ur prtfli f services. We have als invested in ur peple and made sme key appintments this year, including pivtal leadership, safety, peratinal and business develpment rles. Nte (1) EPS f previusly reprted fr the year ended 30 June 2012 has been retrspectively adjusted t reflect the impact f share issues during the current year that if in existence at 30 June 2012, wuld have impacted the EPS calculatin, per the requirements f AASB

3 Operatinal Review With the acquisitin f Hfc Oilfield Services during the secnd half, the Titan grup nw has fur cre business units: Atlas Drilling Resurces Camp Hire (RCH) Nektar Remte Hspitality; and Hfc Atlas Drilling delivered recrd results during FY13, with utilisatin increasing frm 82% during FY12 t 91% during FY13. Utilisatin is expected t remain strng during FY14 with three f the fur rigs n lnger term cntracts. Rig 1 will cme ff cntract in September, hwever early discussins with ptential clients have generated interest and psitive feedback. RCH als delivered a recrd result and imprved utilisatin during a perid f significant expansin. Rm numbers almst tripled during the year, frm 236 at June 2012 t 674 at June 2013 while achieving utilisatin f 84%. During the year, RCH built a strng team t manage the grwth and expand the business. This team includes newly hired sales staff tasked with bradening the cmpany s client and gegraphic base. Nektar, a start-up business, secured eight cntracts and generated $1.9m in EBIT in its first full year. Nektar is grwing in line with sister business RCH and has significant pprtunity t expand int new markets, nt nly thrugh servicing prtable accmmdatin camps but als in permanent camp management and catering and niche management pprtunities. Already, the business has enjyed sme success in this regard, with Nektar recently awarded a cntract t manage the Rma Airprt Café. A business develpment manager has als been appinted t help facilitate future grwth. Hfc, a business that was established in 1980 and has grwn t becme ne f Australia s leading dwnhle tl-rental cmpanies, prviding drilling tls and ilfield equipment, perfrmed t expectatins bth peratinally and financially, since acquisitin during the secnd half. Hfc has mved int new premises, which will supprt its gals fr grwth and prduct range expansin during FY14. Titan has als invested in its peple with a view t imprving capacity, service delivery and sales capability. Balance Sheet and Cashflw Net debt was $12.4m at 30 June 2013, cmpared t $8.0m fr the crrespnding perid last year. The increase reflects Titan s investment in capital expenditure t build Rig 4 and deferred cnsideratin payable n the Hfc acquisitin ($5.8m). Titan recently agreed cmmercial terms fr increased funding facilities with GE Cmmercial Crpratin. As a result, an additinal $10m in capital expenditure funding has been prvided, taking ttal facilities t $34.7m. Titan expects this funding will be sufficient t meet its capital expenditure requirements ver the medium term. Capital expenditure fr FY13 was $9.7m, with the majrity allcated t the investment in Rig 4, grwth f the RCH business and additinal rental equipment within Hfc. 3

4 Outlk Titan expects FY14 EBIT between $21m and $23m. If this range is achieved it will be a 52% imprvement n the FY13 result. Titan s grwth in FY14 is expected t be driven by strng cntributins frm the cmpany s cre business units, with: RCH ready t target new gegraphic markets and sectrs. The business starts the new financial year 46% ahead f the weighted average number f rms held in FY13 Hfc cntributing a full year f earnings in FY14 (nly half year in FY13); Atlas Rig 4 perating fr a full year in FY14 (1+1 cntract), cmpared t 8 days in FY13; and Nektar aligned t RCH grwth and ready t expand int new markets Lking ahead, Mr Sturgess said the Titan grup had invested in strng business systems, infrastructure and key rles t supprt nging grwth in a rapidly expanding sectr. Within the Queensland CSG sectr, majr prjects are ramping up, he said. We have the systems and peple in place t ensure we maximise ur pprtunities in that space, as well as pursuing ur diversificatin strategy int new gegraphies and segments. Diversificatin pprtunities include: New CSG pprtunities utside Queensland drilling, camps, catering, rental and ther New gegraphies within Queensland, the Nrthern Territry, Suth Australia and elsewhere New industry segments, including nn-queensland CSG, Oil and Gas infrastructure, rail, rad and pipeline ; and Examining new pprtunities t grw rganically and thrugh acquisitin. As a grup and within each f ur businesses, we are well psitined fr slid grwth. ENDS Fr investr r media inquiries: Mr Jim Sturgess Managing Directr Tel: Abut Titan Titan Energy Services Limited (ASX: TTN) prvides diversified energy and infrastructure services t the il and gas, mining, pipeline, rail, rad and infrastructure sectrs. Thrugh its perating businesses Atlas Drilling, Hfc Oilfield Services, Resurces Camp Hire (RCH) and Nektar Remte Hspitality, Titan prvides expertise in CSG drilling, drilling equipment hire, camp hire and camp management and catering services. Titan perates fur drilling rigs, is a leading prvider f ilfield dwn-hle tl rental in Australia and verseas, perates and rents remte self-cntained camps, and manages catering and camp management cntracts. 4

5 APPENDIX Summary Results Annual Result ($ millin unless therwise stated) FY13 FY12 Variance Ttal Revenue % EBITDA % EBITDA margin - % 25.9% 22.1% 3.8% Depreciatin % EBIT % EBIT margin - % 19.9% 11.6% 8.3% Interest % NPBT % Tax Expense Rate % % 320% NPAT % Basic earnings per share cents % Dividends declared per share cents % Prpsed Dividend Timetable and DRP details Date 6 August 2013 Details Annuncement f Dividend and shares cmmence trading n a cum basis 12 August 2013 Shares cmmence trading n an ex basis 16 August August 2013 t 30 August 2013 DRP pricing perid 6 September 2013 Dividend payment date Recrd date and final date fr submissin f DRP electin frms The shares issued under the DRP will rank equally with existing shares issued by the cmpany. The ten day DRP market pricing perid f shares sld n the ASX will cmmence n Mnday 19 August The calculated DRP price per share will be annunced n Mnday 2 September Sharehlders wishing t participate in the DRP will need t submit their DRP electin frms with Link Market Services Limited n later than 5.00pm AEST n Friday 16 August Infrmatin abut the DRP and a cmplete cpy f the DRP rules can be fund n the cmpany website at Nte (1) EPS f previusly reprted fr the year ended 30 June 2012 has been retrspectively adjusted t reflect the impact f share issues during the current year that if in existence at 30 June 2012, wuld have impacted the EPS calculatin, per the requirements f AASB