Q3/2009. Third Quarter Report July 1 September 30, 2009

Transcription

1 Q3/2009 Third Quarter Report July 1 September 30, 2009

2 2 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Key Group Figures Selected Group Figures Q1-Q Q1-Q Change in accordance with IFRS TEUR TEUR in % Revenues 176, , % Gross profit 33,287 43, % EBITDA 40,115 41, % EBITDA margin 22.7% 19.5% EBIT 20,337 24, % EBIT margin 11.5% 11.5% Net profit for period 11,904 12, % Earnings per share (in EUR) Balance sheet total 1) 256, , % Equity 1) 209, , % Equity ratio 1) 81.5% 73.4% Capital expenditure 6,666 34, % Cash flow from operating activities 38,417 30, % Cash flow from financing activities 28,171 1,615 Cash and cash equivalents 1) 17,396 14, % Employees (average) 3,024 3, % 1) Each at September 30, 2009, respectively December 31, Editorial Information Publisher C.A.T. oil AG Kaerntner Ring A-1010 Vienna Editor C.A.T. oil AG Werbeagentur Bauderer Financial Dynamics Phone Fax Design and production Werbeagentur Bauderer ir@catoilag.com Website Photography Ulrich Lindenthal, Oleg Korolev

3 C.A.T. oil AG Third Quarter Report July 1 September 30,

4 4 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Editorial Ladies and Gentlemen, Dear shareholders, in the third quarter 2009 a number of sectors saw signs of an economic recovery and stock markets across the world rallied while central banks continued to flood the world with cheap money. The oil industry benefitted especially from stronger than expected economic growth in China and increased demand for oil, higher oil prices, and investors anticipating future inflation. The oil price, although volatile, continued to go up and reached a level of almost USD 75. Due to this development oil producers have increased their production levels and placed additional orders. C.A.T. oil naturally has been able to benefit from this positive trend and recorded a new nine-month high of 2,352 jobs (9M 2008: 2,211). As our customers business activities picked up, demand for our services went up, too: in Q3 we reached an increase of 14.4% YoY in job counts to a level of 827 jobs (Q3 2008: 723). Several of our customers extended their existing sidetrack drilling contracts, thereby increasing our 2009 order book by EUR 14 million to EUR 228 million. Despite the fairly difficult environment in the first months of the year our Rouble revenues for nine months have been up 1.1%. And, more important, we have again won further market share in fracturing and sidetrack drilling in these challenging times which confirms the high and sustainable quality of our services. In Euro terms, however, revenues in Q3 decreased by 18.3% YoY to EUR 59.3 million, due to the Rouble depreciation. We have continued to streamline our operations and to lower our cost base. Despite the increased job counts we were able to reduce cost of sales by 11.0% YoY to EUR 49.3 million and administrative costs by 13.3% YoY to EUR 5.6 million. Our EBITDA went up by 5.1 % YoY to EUR 17.7 million, resulting in an EBITDA margin of 29.8% in Q (Q3 2008: 23.2%) despite highly competitive pricing in the fracturing and sidetrack drilling markets. Our EBIT increased by 6.9% YoY to EUR 11.5 million, the EBIT margin went up from 14.7% to 19.3%. Net profit strongly grew by 59.9% YoY to EUR 9.2 million, primarily reflecting a changed income tax rate.

5 C.A.T. oil AG Third Quarter Report July 1 September 30, Furthermore, we continued to operate from a very solid financial position. As we deliberately reduced our long-term debt to EUR 5.1 million by the end of September, our equity ratio was strengthened to 81.5%. In Q3, cash flow from operating activities grew by 9.8% YoY to EUR 16.1 million (Q3 2008: EUR 14.7 million) and cash and cash equivalents increased to EUR 17.4 (31 December 2008: EUR 14.4 million). As of 30 September 2009, we had a net cash of EUR 9.9 million compared to a net debt of EUR 21.3 million at 31 December Market conditions have improved in the third quarter of We have received additional orders, expanded our market share, accomplished a new high in job count and also increased profitability and our equity base. We will continue to focus on our solid business strategy which has brought us well through the first nine months of 2009 and on delivering high quality services to our customers. This strategy shall navigate us safely into 2010 and reward us when markets will confirm a sustainable recovery. Yours sincerely, Manfred Kastner CEO C.A.T. oil AG

6 6 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Group Balance Sheet TEUR TEUR Current assets Cash and cash equivalents 17,396 14,367 Trade accounts receivable 47,961 50,804 Inventories 33,249 37,045 Prepaid other current assets 11,309 13,764 Tax assets 2,838 2,353 Non-current assets Property, plant and equipment 135, ,560 Intangible assets 42 0 Goodwill 3,688 3,849 Investments Deferred taxes 4,774 3,958 Other assets Total assets 256, Current liabilities Short-term debt 2,386 5,657 Trade accounts payable 17,554 14,937 Income tax payable 914 1,919 Advance payments received Other current liabilities 11,556 13,897 Non-current liabilities Long-term debt 5,100 30,000 Deferred tax liabilities 9,663 8,870 Shareholders equity Share Capital 48,850 48,850 Capital reserves 111, ,987 Retained earnings 96,691 84,787 Foreign currency exchange reserve 48,269 37,019 Total liabilities and shareholders equity 256, ,103

7 C.A.T. oil AG Third Quarter Report July 1 September 30, Xxxxxxxxxxxxxxxxx Consolidated Statements of Income Q Q Q1 Q Q1 Q TEUR TEUR TEUR TEUR Revenues 59,339 72, , ,009 Cost of revenues 49,327 55, , ,558 Gross profit 10,012 17,173 33,287 43,451 Other operating income and expenses 7, General and administrative expense 5,597 6,453 13,761 19,203 Operating result 11,447 10,710 20,337 24,478 Interest income and expenses Foreign currency exchange loss Result before income tax 10,971 10,618 16,478 23,616 Income tax 1,817 4,893 4,574 11,107 Net income 9,154 5,725 11,904 12,509 Earnings per share Consolidated Statements of Comprehensive Income Q Q Q1 Q Q1 Q TEUR TEUR TEUR TEUR Net Income 9,154 5,725 11,904 12,509 Differences currency translation ,136 1,420 Differences net investment 1,046 2,930 7,114 1,329 Other comprehensive income 1,213 3,216 11,250 2,749 Total comprehensive income 7,941 8, ,760

8 8 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Consolidated Statements of Cash Flows Q1 Q Q1 Q TEUR TEUR Cash flows from operating activities Profit before income tax 16,478 23,616 Depreciation and amortization 19,778 17,642 Loss on disposal of fixed assets Change in inventories 3,796 5,607 Change in trade and other receivables 3,955 23,465 Change in trade and other payables ,763 Income tax paid 5,980 11,107 Other non cash income and expenses Net cash provided by (used in) operating activities 38,417 30,074 Cash flows from investing activities Purchase of property, plant and equipment 6,666 34,630 Proceeds from sale of equipment Net cash used in (provided by) investing activities 5,768 33,931 Cash flows from financing activities Change in short-term debt 3,271 1,598 Change in long-term debt 24, Net cash used in (provided by) financing activities 28,171 1,615 Net effect of currency translations in cash and cash equivalents 1,449 1,588 Net change in cash and cash equivalents 3,029 7,059 Cash and cash equivalents at beginning of period 14,367 15,010 Cash and cash equivalents at end of period 17,396 7,951

9 C.A.T. oil AG Third Quarter Report July 1 September 30, Xxxxxxxxxxxxxxxxx Consolidated Statements of Changes in Equity Share Capital- Retained FX Net investment Total capital reserve earnings Reserve in a foreign equity country TEUR TEUR TEUR TEUR TEUR TEUR At January 1, , ,987 82,219 8, ,880 Net profit / loss for the period 12,509 12,509 Differences currency translation 1, ,420 Differences net investment 1,329 1,329 At September 30, , ,987 94,728 9,596 1, ,640 At January 1, , ,987 84,787 20,024 16, ,605 Net profit / loss for the period 11,904 11,904 Differences currency translation 4,136 4,136 Differences net investment 7,114 7,114 At September 30, , ,987 96,691 24,160 24, ,259

10 10 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Notes to the consolidated interim report as of 30 September 2009 Basis of preparation of the consolidated interim report The consolidated interim report of C.A.T.oil AG for the period ended 30 September 2009 was prepared, with the exception of reporting on Operating segments according to IFRS 8, with the assumption in accordance with the International Financial Reporting Standards (IFRS) including the International Accounting Standards (IAS) and the Interpretations issued by the International Accounting Standard Board (IASB) and the interpretations issued by the International Financial Reporting Standard Interpretations Committee (IFRIC). BDO Auxilia Treuhand GmbH, Vienna, performed an ISRE 2410 review of the half year report. The Q reports of the companies included in the consolidated Q report have been prepared applying the same uniform accounting policies as those used as of 31 December The separate interim reports of the consolidated companies have been drawn up as of the balance sheet date of the consolidated interim report. The consolidated interim financial statements are prepared on the historical cost basis. The income statement has been drawn up in accordance with the cost of sales method. The consolidated interim report has been prepared in euros. All figures including previous year s figures are indicated in TEUR. Rounding differences may result because of this kind of notation. Consolidation methods All significant intra-group receivables and liabilities are eliminated in the course of the consolidation. Scope of consolidation The scope of consolidation did not change since 31. December 2008 except for the upstream merger of OOO FilOrAm into OOO CATOBNEFT.

11 C.A.T. oil AG Third Quarter Report July 1 September 30, Segment information IRFS 8 Operating segments substituted effective 1. January 2009 the IAS 14 Reporting on Segments. By 31. December 2008 C.A.T. oil AG did not report on operating segments due to not meeting the quantitative criteria in accordance with IAS After coming into effect of IFRS 8, C.A.T. oil will include Operating segments in its reporting, beginning with the financial statement as of 31. December Foreign currencies All receivables and liabilities denominated in foreign currencies reported in the separate financial statement of the consolidated companies are translated at the rate applicable as on the balance sheet date, irrespective of whether or not they have been hedged. The functional currency of the Russian subsidiaries is the rouble. The official exchange rates of the Central Bank of the Russian Federation are used for translation from roubles to euros. Inventories TEUR TEUR Raw materials 7,896 7,181 Supplies 1, Spare parts and other materials 19,736 23,029 Work in progress 4,509 5,883 Total 33,249 37,045 Notes to the balance sheet Inventories are recognized at the lower value of historical costs and net realizable value. Provisions of impairment of inventories amounted on 30. September 2009 TEUR 1,651 ( : TEUR 1,512).

12 12 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Property, plant and equipment Land and Plant and Operational IT Prepaid Total buildings machinery and office expenses equipment TEUR TEUR TEUR TEUR TEUR TEUR CARRYING AMOUNTS As of ,193 5, , , ,175 As of ,453 7, ,690 1,006 15, ,560 Changes of the tangible fixed assets in comparison to the year-ago quarter amount to: Q1 Q Q1 Q TEUR TEUR Investments 6,666 34,626 Depreciation 19,778 17,642 Disposals at net book value 1, Exchange rate differences 8,255 1,269 Goodwill The reported goodwill of TEUR 3,688 ( : 3,849) results from the consolidation of OOO CATOBNEFT. Goodwill was determined at the closing date in conformity with IAS In the opinion of the management there is any indication for impairment. Shareholders equity C.A.T.oil AG s share capital amounted unchanged as of 30 September 2009 to TEUR 48,850 ( : TEUR 48,850). No distributions were declared by the parent company after 30 September Strong balance sheet C.A.T. oil maintained conservative financial policy, which enabled the Company to sustain a strong balance sheet with the equity ratio of 81.5% at 30 September 2009 (31 December 2008: 73.4%).

13 C.A.T. oil AG Third Quarter Report July 1 September 30, Fixed assets Property, plant and equipment diminished 14.2% to EUR million at 30 September 2009 from EUR million at 31 December 2008, primarily reflecting a net result of depreciation, disposals and additions of fixed assets as well as foreign exchange differences during the reporting period. Goodwill, resulting from consolidation of CATOBNEFT in 2004, declined 4.2% to EUR 3.7 million at 30 September 2009 from EUR 3.8 million at 31 December 2008 primarily due to currency movements. Long-term financial investments, which primarily represent historical equity investments at a subsidiary level, stayed effectively intact at EUR 0.3 million at 30 September 2009 compared to 31 December 2008 due to little change in fair value of the investments over the reporting period. Deferred tax assets rose 20.6% to EUR 4.8 million at 30 September 2009 from EUR 4.0 million at 31 December 2008, primarily owing to gross losses for tax purposes arising from foreign currency translation losses on the euro-denominated inter-company loans. Current assets Total current assets declined 4.7% to EUR million at 30 September 2009 from EUR million at 31 December Trade receivables declined 5.6% to EUR 48.0 million at 30 September 2009 from EUR 50.8 million at 31 December 2008, primarily reflecting lower revenue in euro-terms during the reporting period. Inventories declined 10.2% to EUR 33.2 million at 30 September 2009 from EUR 37.0 million at 31 December The decline was largely due to a 14.3% reduction in inventories of spare parts to EUR 19.7 million at 30 September 2009 from EUR 23.0 million at 31 December Another reason for the decline was a 23.4% contraction in work in progress to EUR 4.5 million at 30 September 2009 from EUR 5.9 million at 31 December 2008 due to completion of certain seismic projects and recognition of expected losses on seismic operations during the reporting period. Pre-paid expenses and other current assets fell 17.8% to EUR 11.3 million at 30 September 2009 from EUR 13.8 million at 31 December The decrease primarily reflected a reduction in advance payments for the employed subcontractor and decline in recoverable value added tax due to the rouble devaluation against the euro during the reporting period. Tax assets increased 20.6% to EUR 2.8 million at 30 September 2009 from EUR 2.4 million at 31 December 2008, owing to the increased advance payments of corporate income tax and other taxes in Q compared to Q Cash and cash equivalents were EUR 17.4 million at 30 September 2009, up 21.1% from EUR 14.4 million at 31 December The Company s total assets were down 9.6% to EUR million at 30 September 2009 compared to EUR million at 31 December 2008.

14 14 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Current liabilities Trade payables increased 17.5% to EUR 17.6 million at 30 September 2009 compared to EUR 14.9 million at 31 December 2008 primarily reflecting the extension in settlement terms the Company obtained from its supplies and contractors beginning Advance payments received from the Company customers increased 94.7% to TEUR 424 at 30 September 2009 from a low base of TEUR 218 at 31 December Income tax payables declined 52.4% to EUR 0.9 million at 30 September 2009 from EUR 1.9 million at 31 December 2008 primarily due to lower taxable gross profits generated during the reporting period. Other current liabilities diminished 16.8% to EUR 11.6 million at 30 September 2009 compared to EUR 13.9 million at 31 December The decrease was primarily attributable to the combined effect of lower vacation and outstanding wages payables because of the reduced headcount and payroll expenses during the reporting period as well as lower property tax payables. Working capital Working capital of EUR 64.9 million at 30 September 2009, down 11.1% compared to EUR 73.0 million at 31 December 2008, provided sufficient liquidity to the Company operations. Interest-bearing liabilities The Company reduced its interest-bearing liabilities 79.0% to EUR 7.5 million at 30 September 2009 from EUR 35.7 million at 31 December The decrease primarily reflected a deliberate early repayment of long term debt in the amount of EUR 24.9 million during the reporting period, resulting in a 83.0% reduction in the Company s long term interest bearing liabilities to EUR 5.1 million at 30 September 2009 from EUR 30 million at 31 December C.A.T. oil s long term interest bearing liabilities arose from a three-year EUR 50 million committed credit line the Company obtained in Q The Company s short term interest-bearing liabilities declined 57.8% to EUR 2.4 million at 30 September 2009 from EUR 5.7 million at 31 December The Company s short term interest bearing liabilities primarily represent rouble-denominated short term loans and overdraft facilities at the subsidiary level. As a result, C.A.T. oil enjoyed a net cash position (cash and cash equivalents less interest bearing liabilities) of EUR 9.9 million at 30 September 2009 compared to net indebtedness (interest-bearing liabilities less cash and cash equivalent) of EUR 21.3 million at 31 December C.A.T. oil s deferred tax liabilities increased 8.9% to EUR 9.7 million at 30 September 2009 from EUR 8.9 million at 31 December The increase primarily reflected a temporary build up in trade receivables, which will generate future tax liabilities, during the first six months of 2009.

15 C.A.T. oil AG Third Quarter Report July 1 September 30, Shareholder equity As of 30 September 2009 the Company had subscribed capital of EUR 48.9 million and capital reserves of EUR million. There had been no change to the Company s subscribed capital and capital reserves since 31 December Foreign currency exchange reserves decreased to a deficit of EUR 48.3 million at 30 September 2009 from a deficit of EUR 37.0 million at 31 December 2008, reflecting the cumulative net effect of a foreign exchange losses on the euro-denominated loans C.A.T. oil AG granted to its foreign subsidiaries for investment purposes on a long term basis. Currency translation effects also arose in reconciling the Company s balance sheet and income statement, which are prepared on the basis of different exchange rates between the Russian rouble and the euro: a quarter-end exchange rate for the balance sheet and an average exchange rate for income statement. Retained earnings increased 14.0% to EUR 96.7 million at 30 September 2009 compared to EUR 84.8 million at 31 December 2008.

16 16 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Notes to the income statement Overall the earning situation of the group is characterised by climate nature of Russia and Kazakhstan. Due to the business cycles, profit contributions of C.A.T.oil group predominantly arise in the second and third quarter of any-one year. Cost of sales Q Q TEUR TEUR Costs of goods and material employed 16,078 19,592 Wages and Salaries 8,004 11,915 Direct costs 16,614 11,901 Depreciation 6,238 6,032 Financial security-, health- and pension fund expenses 1,141 1,932 Other cost of sales 1,252 4,067 Total 49,327 55,439 Personnel expenses Q Q TEUR TEUR Wages and Salaries 9,558 14,056 Financial security-, health- and pension fund expenses 1,319 2,169 Total 10,877 16,225 The average number of employees of the consolidated companies amounted in the first nine months of 2009 to 3,024 thereof 77 part-time-employees (first nine months in 2008: 3,636, thereof 86 part-time-employees). Net income per share Net income per share is calculated in accordance with IAS 33 by dividing the net profit for the group by the average number of shares. There is no dilutive effect on the earnings per share. Q Q Q1 Q Q1 Q Average number per share 48,850,000 48,850,000 48,850,000 48,850,000 Net income (TEUR) 9,155 5,725 11,904 12,509 Net income per share (Euro)

17 C.A.T. oil AG Third Quarter Report July 1 September 30, Earnings situation C.A.T. oil s operating and financial results are characterized by distinct seasonality whereby profit contributions predominately arise in the second and third quarters of any one year as the first and fourth quarters performance is exposed to a slowdown in operations due to harsh weather conditions in West Siberia during winter months. In Q , C.A.T. oil s financial performance was materially impacted by the Russian rouble devaluation against the euro as a majority of the Company service contracts are rouble-denominated. An average exchange rate of the Russian rouble against the euro was 44.3 roubles/euro in Q compared to 36.6 roubles/euro in Q The Russian rouble devaluation negatively impacted the Q3 and Q results C.A.T. oil s strong market position in its core fracturing and sidetracking businesses enabled it to turn improvements in customers demand for well stimulation and rehabilitation services into strong operating and financial performances in Q Witness is a new high in the Company s service job count of 827 jobs in Q3 2009, a 14.4% YoY gain over 723 jobs in Q The Company s average per job revenue though declined 28.6% YoY to TEUR 71.8 in Q (Q3 2008: TEUR 100.4) as average per job revenues were down in euro terms across all businesses. The decline primarily reflected the combined effect of a 17.5% YoY rouble depreciation relative to the euro, softer year-over-year sidetracking rouble prices and changes in fracturing revenue mix. The latter reflected the Company s increased exposure to a client, which suppliers contractors with its own proppant for fracturing operations that results in lower per job revenues. A new high in service job count on strong expansion of fracturing and sidetracking operations Average per job revenue down 28.6% YoY in Q on rouble devaluation, changes in fracturing revenue structure and softer sidetrack drilling rouble prices Despite a material upturn in operating activities in Q3 2009, the total revenues diminished 18.3% YoY to EUR 59.3 million (Q3 2008: EUR 72.6 million). However, the Q total revenues in rouble terms stayed effectively unchanged year-over-year. Seismic revenues were insignificant during the reporting period as the Company s field seismic operations in Russia and abroad were either accomplished or suspended in Q until the next field season. Q revenues down 18.3% YoY For Q , C.A.T. oil s service job count was also at a new peak of 2,352 jobs, up 6.4% YoY (Q : 2,211 jobs). However, the Company revenues fell 16.6% YoY to EUR million (Q : EUR million) due to a 21.6% YoY decline in an average per job revenue to TEUR 75.2 (Q : TEUR 95.9), owing primarily to the rouble devaluation against the euro. Nonetheless, the Company s total revenues in rouble terms staged a marginal increase of 1.1% YoY in Q Q revenues down 16.6% YoY In Q3 2009, the Company remained committed to its comprehensive cost cutting program as witnessed by a year-over-year reduction in C.A.T. oil s operating cost base despite a material upturn in operating activities. Cost of materials and supply diminished 17.9% YoY to EUR 16.1 million in Q (Q3 2008: EUR 19.6 million), reflecting the combined effect of rouble devaluation and lower prices for fuel and some of consumable materials. Wages and salaries declined 32.8% YoY to EUR 8.0 million (Q3 2008: EUR 11.9 million) due to the combined effect of lower headcount and wages. Social security and welfare expenses dropped 41.0% YoY to EUR 1.1 million (Q3 2008: EUR 1.9 Continued progress in cost optimization

18 18 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 million), effectively trailing the decrease in wages and salaries. Other cost of sales was down 75.9% YoY to EUR 1.0 million (Q3 2008: EUR 4.1 million). Direct costs and, therefore, cost of goods sold impacted by reclassification of other operating expenses in Q These positive effects were however clouded by reclassification of EUR 5.2 million of the seismicrelated expected losses, which the Company recognized in H1 2009, from other operating losses into direct costs in Q As a result, direct costs inflated 39.6% YoY to EUR 16.6 million (Q3 2008: EUR 11.9 million). On top of this, depreciation was up 3.4% YoY to EUR 6.2 million (Q3 2008: EUR 6.0 million), primarily reflecting new additions of sidetrack drilling capacity in Overall, the Company s cost of goods sold declined only 11.0% YoY to EUR 49.3 million (Q3 2008: EUR 55.4 million). Nonetheless, the Company s cost of goods sold, net of effects of reclassification and recognition of expected losses from seismic operations, was down 20.4% YoY to EUR 44.1 million (Q3 2008: EUR 55.4 million) despite a 14.4% YoY boost to the Company s service job count. Cost of goods sold down 14.8% YoY in Q For Q , cost of goods sold reduced 14.8% YoY to EUR million (Q : EUR million). The key drivers were a 14.9% YoY reduction in cost of materials and supply to EUR 53.4 million (Q : EUR 62.8 million), a 28.8% YoY decline in wages and salaries to EUR 23.9 million (Q : EUR 33.6 million) and a 33.9% YoY lower social security and welfare expenses of EUR 4.8 million (Q : EUR 7.2 million). Other cost of sales diminished 38.2% YoY to EUR 4.4 million (Q : EUR 7.1 million. Direct costs were however down only 9.2% to EUR 37.4 million (Q3 2008: EUR 41.1) due to effects of the Q reclassification of seismic related losses of EUR 5.2 million from other operating losses into direct costs. Contrary to these cost saving developments, which except for direct costs surpassed the effect of the rouble devaluation, depreciation charge inflated 18.0% YoY to EUR 19.7 million in Q (Q : EUR 16.7 million) in the wake of new sidetrack drilling capacity additions in Gross profit declined 41.7% YoY in Q and 23.4% YoY in Q Consequent to lower revenues in euro-terms and the reclassification effects, gross profit declined 41.7%% YoY to EUR 10.0 million in Q (Q3 2008: EUR 17.2 million) and gross profit margin diminished to 16.9% in Q from 23.7% in Q For Q , gross profit was down 23.4% YoY to EUR 33.3 million (Q : EUR 43.5 million) and gross profit margin declined to 18.8% (Q : 20.5%). General and administrative expenses down 13.3% YoY in Q3 and 28.3% YoY in Q , albeit also impacted by reclassification effects In Q3 2009, the Company s general and administrative expenses diminished 13.3% YoY to EUR 5.6 million (Q3 2008: 6.5 million). Similar to cost of goods sold, material savings in general and administrative expenses were clouded by reclassification of EUR 1.6 million of seismic-related bad debt provisions from other operating losses into general and administrative expenses. This negative effect was however partly offset by reversal of EUR 0.5 million of seismic-related bad debt provision as the Company managed to recover a portion of the overdue receivables. Nonetheless, general and administrative expenses, net of the reclassification effect, we down 30.0% YoY to EUR 4.5 million in Q (Q3 2008: 6.5 million). In Q , the Company attained a 28.3% YoY reduction in general and administrative expenses to EUR 13.8 million (Q : EUR 19.2 million). Other operating income rose 708.3% YoY to TEUR 284 in Q (Q3 2008: TEUR 35). The increase arose primarily from a retrospective 50% cut in the C.A.T. oil Leasing 2008 property taxes following the amendments to the Khanty-Mansyisk region s local taxation of leasing companies.

19 C.A.T. oil AG Third Quarter Report July 1 September 30, For Q , other operating income increased 193.4% YoY to EUR 1.2 million (Q : EUR 0.4 million). In Q3 2009, other operating losses were a reversal of EUR 6.8 million, arising from reclassification of seismic-related EUR 5.2 million of recognition of expected losses and EUR 1.6 million of bad debt provision into cost of goods sold and general and administrative expenses, respectively. In Q3 2008, the Company posted other operating losses of TEUR 45. For Q , other operating losses increased 117.9% YoY to EUR 0.4 million (Q : EUR loss of 0.2 million), reflecting primarily disposals of fixed assets and sales of materials. Reversal of other operating losses due to reclassifications In response to challenging market environment in Q Q1 2009, the Company reduced its total weighted-average headcount to 3,024 employees in Q , down 16.8% YoY from 3,636 employees in Q Weighted average headcount down 16.8% YoY in Q Success in cost cutting measures resulted in a 5.1% YoY improvement in the Company s earnings before interest, corporate tax, depreciation and amortization (EBITDA) to EUR 17.7 million in Q (Q3 2008: EUR 16.8 million) and an expansion in the EBITDA margin to 29.8% (Q3 2008: 23.2%). C.A.T. oil s earnings before interest and corporate tax (EBIT) rose 6.9% YoY to EUR 11.5 million (Q3 2008: EUR 10.7 million) as the increase in EBITDA out-paced higher depreciation expense during the reporting period. The EBIT margin expanded to 19.3% in Q from the Q level of 14.7%. EBITDA improved 5.1% YoY and the EBITDA margin expanded to 29.8% in Q For Q , EBITDA staged a 3.1% YoY downturn to EUR 40.1 million (Q : EUR 41.4 million). The EBITDA margin expanded to 22.7% in Q (Q : 19.5%). EBIT diminished 16.9% YoY to EUR 20.3 million in Q (Q : EUR 24.5 million) as a 6.9% rise in EBIT in Q was outpaced by a 35.5% decline in EBIT in H The EBIT margin stayed intact YoY at 11.5% in Q The Company s Q net financial result was a loss of EUR 0.5 million (Q3 2008: loss of EUR 0.1 million) primarily owing to a combination of unrealized and realized foreign currency translation losses of EUR 0.2 million (Q3 2008: TEUR 12) on the euro-denominated inter-company loans, net interest expense of EUR 0.2 million (Q3 2008: EUR 0.1) and other non-operating expense of EUR 0.1 million (Q3 2008: nil). In Q , net financial result was a loss of EUR 3.9 million (Q : loss of EUR 0.9 million) mainly due to a 560.6% YoY rise in unrealized and realized foreign currency translation losses to EUR 2.5 million (Q : EUR 0.4 million) on the euro-denominated intercompany loans and a 163.3% YoY gain in net interest expense to EUR 1.3 million (Q : EUR 0.5 million). A majority of the inter-company loans extended by C.A.T oil AG to its subsidiaries for investment purposes remain within the Group on a long-term basis. Thus any realization of foreign exchange gains and losses in connection with these loans is not expected in the near future. The increase in net interest expense in Q relative to Q primarily reflected the Company s higher interest-bearing liabilities in H compared to H EUR 19.8 million at 30 June 2009 and EUR 5.5 million at 30 June Net profit up 59.9% YoY on higher operating income and lower taxes in Q3 2009

20 20 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 The Company s pre-tax profit was up 3.3% YoY to EUR 11.0 million in Q (Q3 2008: EUR 10.6 million), primarily owing to counter effects of higher EBIT and higher net financial loss during the reporting period. Net income tax expense diminished 62.9% YoY to EUR 1.8 million in Q (Q3 2008: EUR 4.9 million), primarily reflecting the combined effect of lower statutory income tax rates in Russia and Kazakhstan, decrease in the amount of non-deductible expenses and lower contribution of the Kazakh operations, which are subjected to higher statutory tax rates compared to operations in Russia, to the Company s total gross taxable profit. As a result, the Company s effective income tax rate declined to 16.6% in Q from 46.1% in Q The Group s net income improved 59.9% YoY to EUR 9.2 million in Q (Q3 2008: EUR 5.7 million), translating into earnings per share according to IAS 33 of EUR 0.187, up from EUR in Q There had been no change in the weighted average number of shares outstanding in Q (Q3 2008: 48,850,000). In Q , the Company pre-tax profit contracted 30.2% YoY to EUR 16.5 million (Q : EUR 23.6 million), primarily owing to a 57.6% YoY downturn in pre-tax profit in H Net income tax expense was down 58.8% YoY to EUR 4.6 million in Q (Q : EUR 11.1 million) primarily reflecting the effect of lower gross taxable income reinforced by contraction in the Q effective income tax rate in Q compared to Q Effective income tax rate was down to 27.8% in Q from 47.0% in Q The Group s net income diminished 4.8% YoY to EUR 11.9 million in Q (Q : EUR 12.5 million) primarily reflecting lower pre-tax profit. The Group s earnings per share according to IAS 33 amounted to EUR in Q , down from EUR in Q There had been no change in the weighted average number of shares outstanding in Q (Q : 48,850,000). Financial situation Cash flow from operating activities up 9.8% YoY in Q and 27.7% YoY in Q In Q3 2009, the Company cash earnings rose 19.2% YoY to EUR 14.2 million (Q3 2008: EUR 12.0 million) and cash flow from operating activities was up 9.8% YoY to EUR 16.1 million (Q3 2008: EUR 14.7 million). The increase in cash earnings and cash flow from operating activities primarily reflected a 3.3% YoY upturn in pre-tax profit to EUR 11.0 million (Q3 2008: EUR 10.6 million), a 41.5% YoY decline in cash taxes to EUR 2.9 million (Q3 2008: EUR 4.9 million) and lower working capital requirements. For Q , the Company s cash flow from operating activities rose 27.7% YoY to EUR 38.4 million (Q : EUR 30.1 million) and cash earnings were effectively flat YoY (Q : EUR 30.4 million). The increase in cash flow from operating activities primarily reflected the combined effect of lower requirements for working capital, which diminished EUR 8.0 million in Q as opposed to a EUR 0.3 million increase in Q , a 12.1% YoY gain in depreciation to EUR 19.8 million (Q : EUR 17.6 million) and a 46.2% YoY decline in cash taxes to EUR 6.0 million (Q : EUR 11.1 million). These positive developments were however partly offset by a 30.2% downturn in pre-tax profit to EUR 16.5 million in Q (Q : EUR 23.6 million).

21 C.A.T. oil AG Third Quarter Report July 1 September 30, C.A.T. oil kept capital expenditures at a maintenance level in Q3 and Q since the Company has planned no significant operating capacity additions for The Company s capital expenditures were down 98.4% YoY to EUR 0.2 million in Q (Q3 2008: EUR 14.8 million) and 80.8% YoY to EUR 6.7 million in Q (Q : EUR 34.6 million). C.A.T. oil s cash flow from investing activities was a net inflow of EUR 0.4 million in Q compared to a net outflow of EUR 14.5 million in Q The Company s cash flow from investing activities was a net outflow of EUR 5.8 million in Q compared to a net outflow of EUR 33.9 million in Q As a result, C.A.T. oil generated positive free cash flow of EUR 16.6 million in Q (Q3 2008: EUR 0.2 million) and EUR 32.6 million in Q (Q : free cash outflow of EUR 3.9 million). Strong positive free cash flow generation The Company s cash flow from financing activities was a net outflow of EUR 12.4 million in Q (Q3 2008: a net inflow of EUR 1.0 million) and a net outflow of EUR 28.2 million in Q (Q : a net outflow of EUR 1.6 million), primarily reflecting a deliberate early repayment of long term debt in the amount of EUR 9.0 million in Q and EUR 24.9 million in Q C.A.T. oil s long term debt liabilities arise from a three-year EUR 50 million committed credit line the Company obtained in Q Cash flow from financing activities in Q was also impacted by a EUR 3.3 million reduction in short-term interest-bearing liabilities, which primarily represent rouble-denominated short term loans and overdraft facilities at the subsidiary level. High financial flexibility Cash and cash equivalents were EUR 17.4 million at 30 September 2009, up 21.1% from EUR 14.4 million at 31 December 2008.

22 22 C.A.T. oil AG Third Quarter Report July 1 September 30, 2009 Events after balance sheet date Despite recent signs of green shoots of economic recovery, the global financial and economic crisis lasted effectively unchanged from the balance sheet date to the publishing date of the nine months 2009 results. This negative macroeconomic setting could have a significant adverse effect on the future development of the Group s operating and financial results. Vienna, 30. November 2009 Board of Management Manfred Kastner Ronald Harder Anna Brinkmann Leonid Mirzoyan Disclaimer This document contains certain statements that constitute neither reported results nor other historical information. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond C.A.T. oil AG s ability to control or precisely estimate factors such as future market and economic conditions, the behaviour of other market participants, the ability to successfully integrate acquired businesses and achieve anticipated synergies, and the actions of government authorities. Readers are cautioned not to place undue reliance on these forwardlooking statements, which apply only as of the date of this document. C.A.T. oil AG does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document. This document does not constitute an offer to sell or the solicitation of an offer to subscribe to or to buy any security, nor shall there be any sale, issuance, or transfer of the securities referred to in this document in any jurisdiction in which such act would breach applicable law. Copies of this document are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed, or sent in or into or from Australia, Canada, or Japan or any other jurisdiction where it would be unlawful to do so. This document represents the Company s judgement as of date of this document. Editorial Information Publisher: C.A.T. oil AG, Kaerntner Ring 11 13, A-1010 Vienna. Phone: , Fax: , ir@catoilag.com, Website: Editor: C.A.T. oil AG. Production: Werbeagentur Bauderer. Design: Werbeagentur Bauderer. Photography: Ulrich Lindenthal, Oleg Korolev.

23 C.A.T. oil AG Third Quarter Report July 1 September 30, Report of the Supervisory Board s Audit Committee The interim report January to September 2009 and the statutory auditor s review report, which was compiled as the basis for assessing and appraising the condensed interim financial statement, were submitted to the Supervisory Board s Audit Committee. The documents were explained by the Board of Management and discussed with the statutory auditor. The Audit Committee accepted the condensed interim financial statement. Vienna, November 30, 2009 Dr. Gerhard Strate, Chairman of the Supervisory Board Financial Calendar April 28, 2010 Annual report 2009 May 27, 2010 First quarter interim report June 18, 2010 General Meeting August 30, 2010 Second quarter interim report November 29, 2010 Third quarter interim report IR contact C.A.T. oil AG Kärntner Ring 11 13, 1010 Vienna Austria Phone Fax Website ir@catoilag.com

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