Leading the Way Financial Results 2015

Transcription

1 Leading the Way Financial Results 2015 Vienna, 17 May 2016 Conference Call

2 DISCLAIMER You must read the following before continuing: This document has been prepared by C.A.T. oil AG ( C.A.T. oil or the Company ) for information purposes only, solely for use at presentations by the Company held in connection with meetings with invited (potential) investors, analysts and selected stakeholders, and must be treated confidentially by attendees at such presentations and must not be distributed, passed on or otherwise disclosed. The information and opinions contained in this document has not been independently verified and no representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information and opinions in these materials are provided as at the date of this document and are subject to change without notice. This document contains various forward-looking statements which reflect the Company s management s current views with respect to certain future events, performances and financial results all of which are per se uncertain and subject to various internal and external factors. None of the Company, any of its affiliates, advisors or representatives accepts any obligation to update any forward-looking statements set forth herein or to adjust them to future events or developments. None of the Company or any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this document or its contents, or otherwise arising in connection with this document, or any action taken by you or any of your officers, employees, agents, affiliates or associates on the basis of this document or its contents. Nothing in this document is, or shall be relied upon as, a promise or representation by the Company, any of its affiliates, advisors or representatives. This document does not constitute, or form part of, an offer or invitation to purchase any shares or a recommendation regarding the shares of the Company and neither it nor part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This material is given in conjunction with an oral presentation and should not be taken out of context 2

3 THE MANAGEMENT BOARD Yury SEMENOV CEO Valeriy INYUSHIN CFO, Deputy CEO 3

4 HIGHLIGHTS OF C.A.T. OIL GROUP IN 2015 Optimized ownership structure Market position was maintained in drilling and expanded in fracturing Increase in jobs and revenues in Roubles Increased synergies generated among the subsidiaries Foundation of management company Petro Welt Technologies (Pe.We.Te. LLC) Sufficient EBITDA margin and operating cash flows generated Rating agency regards business model of C.A.T. oil as stable Currency and oil price stress earnings and financial results in Euro 4

5 C.A.T. OIL FINANCIAL RESULTS 2015 AT A GLANCE in Euro mio Change in % Revenue EBITDA EBITDA margin in % EBIT EBIT margin in % Net profit Equity ratio in % Net debt/ebitda Earnings per share Employees 3,303 2,

6 ECONOMIC ENVIRONMENT IN 2015 Key Russian economic indicators Indicators 2015/2014 Change 2014/2013 Change Economic growth (GDP) -3.7% 0.7% Industrial production -3.4% 1.7% Oil production 1.3% 1.1% Investments -8.4% -1.5% Inflation (CPI) 15.5% 7.8% Producer Price Index (PPI) 12.4% 6.1% Real disposable income -4.0% -0.7% Oil production is one of positive examples in Russian industry in the context of recession Prudent government and Central Bank management limited greater damages Sources: Ministry of Economy of Russia, Rosstat 6

7 RUSSIAN GDP AND OIL OUTPUT DYNAMICS In 2015 oil production in Russia lost correlation with GDP dynamics and reached record level of 533 mio of tons at post-soviet period Sources: Ministry of Economy of Russia, Rosstat 7

8 CURRENCY AND OIL PRICE DEVELOPMENT 2015 Strong interaction between oil price and currency exchange rates have direct impact on C.A.T. oil s financials expressed in Euro Source: 8

9 NEW STRUCTURE FOR EFFICIENT MANAGEMENT LLC Petro Welt Technologies has been founded in fall 2015 Enhance efficiency in the operating subsidiaries and generate synergies Single source for internal services regarding HR, procurement, financials and liquidity Introduce state of the art quality standards 9

10 CAPACITY EXPANSION & ORDER BOOK STATUS Capacity Additions Sidetracking Rigs Fracturing Fleets Drilling Rigs existing capacities added 2014 added 1. HY 2015 Revenues and Order Book in EUR mio (31 March 2016) S 26 S 16 S 15 All equipment on site and nearly 100% contracted for Current order book for amounts to EUR mio reflecting reliable commercial position of CAToil Group despite the difficult market environment Revenues Order book as of 31 March

11 REVENUE DEVELOPMENT IN 2015 Well Services Drilling Sidetracking, IPM -20.0% 10.8% -27.8% -23.7% 11.2% -31.4% ,772 4, Revenue Jobs Ø Revenue/Job Revenue Jobs Ø Revenue/Job in EUR mio in thsd. EUR in EUR mio in thsd. EUR Service Profile % Other Services 2.1% Cementing 19.5% High Class Drilling 25.9% Sidetrack Drilling 51.8% Hydraulic Fracturing Revenues per Customer in % of total EUR mio Rosneft Lukoil Gazprom Neft Slavneft 2015 (in % of total revenue of EUR 322 mio) Tomskneft Others 11

12 2015 REVENUE RECONCILIATION Though number of jobs and revenue in Rouble increase, revenue in Euro terms contracts in line with the exchange rate of the currency (yoy 33.4%) Revenue 2014 in Euro mio Well Services Sidetracking, Drilling, IPM Revenue

13 NET INCOME DEVELOPMENT 2015 Net Profit Reconciliation in Euro mio Net Income 2014 Earnings per share (36.94) EBIT Change Tax Change (5.35) Interest & FX Change Net Income 2015 (62.2)% Group s net income contracted by 62.5% yoy to EUR 20.3 (2014: EUR 54.1) due to compressed EBIT, higher taxes, interest and significant FX-changes The more pronounced drop in the net profit compared to the profit before tax (-62.5% versus -59.1% yoy) can be primarily attributed to the increase in the effective tax rate from 24% in 2014 to 30% in 2015 Consequently earnings per share diminished to EUR 0.42 (2014: EUR 1.11) unchanged average number of shares outstanding: 48,850,000 13

14 DEVELOPMENT OF BALANCE SHEET STRUCTURE 31 Dec Dec Balance sheet positions EUR mio Share EUR mio Share Current assets % % Non-current assets % % Assets % % Current liabilities % % Non-current liabilities % % Equity % % Liabilities and equity % % Solid balance sheet structure helps to accept future challenges 14

15 DEVELOPMENT OF NET DEBT Key figures 31 Dec Dec Liabilities against C.A.T. Holding (Cyprus) Ltd., in EUR mio Trade payables, in EUR mio Other liabilities with the exception of accrued liabilities, in EUR mio Less: cash and cash equivalents, in EUR mio Net debt, in EUR mio Total equity, in EUR mio Net debt to equity ratio, in % 71.9% 59.3% Total net debt/ebitda-ratio: 1.3x 15

16 CASH FLOW DEVELOPMENT in EUR thousand Profit before tax 28,873 71,126 Cash flows from operating activities 67,328 80,140 Cash flows used in investing activities -67, ,295 Cash flows from financing activities -29,175 84,749 Cash and cash equivalents 28,465 58,238 Lower profit partly compensated by improved Dynamics of working capital WC 2015: (1.0)EUR mio WC 2014: (20.1) EUR mio 16

17 MOODY S: RATING CONFIRMED WITH STABLE OUTLOOK Moody s confirmed Ba3 rating on 27 April 2016 Ratings rationale highlights robust business model, wellinvested modern asset-base, strong market position and order book, conservative financial and liquidity policy Stable rating outlook reflects expectation that C.A.T. oil will continue to demonstrate healthy operating and financial results during market downturn and maintain a strong liquidity profile and a conservative financial policy. 17

18 OUTLOOK & GUIDANCE BUSINESS YEAR 2016 Economic performance of Russia should improve, returning to growth rates in the 4 th quarter of 2016 Oil production in Russia expected to remain on level of 2015, investment activities in the oil industry could restart in the second half of 2016 Company expects revenues in ruble to raise by 1 or 2% in 2016, based on fully marketed capacities Margins regarding EBIT and EBITDA are expected around 12% and 25% respectively 18

19 DIVIDEND INVESTMENT To keep strong self-financial position (mostly for capex Attractive investment opportunities in the market C.A.T. oil AG to play an active role in the consolidation process in the oil field industry Solid balance sheet structure imperative for acquisitions 19

20 PEERS COMPARISON in EUR thousand Revenue EBIT Net profit Revenue EBIT Net profit Nabors 3,481, , ,743 5,144, , ,115 Calfrac 1,053,852 20, ,184 1,702, ,630 45,680 Trican 183,597-7, , ,147 67,705 8,110 C.A.T. oil 322,475 30,963 20, ,115 67,901 54,109 Total 5,041, , ,808 7,735, , ,215 Sources: AR 2015 of companies C.A.T. oil only company with positive bottom line 20

21 PEERS COMPARISON OF CHANGE OF KEY FINANCIALS CAToil versus peer group Revenues Operating income Net profit -21.8% -34.8% -54.4% -77.8% -62.5% -71.5% CAToil Peer group 21

22 STOCK MARKET COMPARISON OF PEER GROUP 140 CAToil Calfrac Trican Nabors Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

23 INVESTOR RELATED INFORMATION Financial Calendar for June 2016 Record Date, ex-dividend 28 June 2016 Dividend Payment 26 August 2016 Halfyear-Report November 2016 Interim-Report Q IR Contact C.A.T. oil AG Kärntner Ring A-1010 Vienna Phone: +43 (0) Internet: 23

24 THANK YOU FOR YOUR ATTENTION! 24