C.A.T. oil AG reveals 2014-2016 investment program

C.A.T. oil AG

C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), a provider of oil and gas field services in Russia and Kazakhstan, will invest €390 million from 2014 to 2016, with €300 million dedicated to bringing onstream new operating capacity and €90 million for maintenance.

The approved investment program suggests that, by the end of 2016, the company’s operating capacities will increase by 33% for fracturing, 55% for sidetracking, and 170% for drilling compared to the end of 2013. 

The company will finance this investment program through a combination of operating cash and long-term debt. Upon C.A.T. oil AG’s request, the company’s majority shareholder, C.A.T. Holding (Cyprus) Ltd., has expressed its consent to enlarge and extend, until November 2018, the existing committed credit line of €100 million on an arm’s-length basis, thus demonstrating its full commitment going forward. Despite significant investments in the next three years, C.A.T. oil reportedly foresees modest leverage, staying below its internal guidelines for the Debt-to-EBITDA ratio of less than 2.0 times.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...