Source: C.A.T. oil AG
C.A.T. oil AG (O2C, ISIN: AT0000A00Y78), one of the leading providers of oil and gas field services in Russia and Kazakhstan, has made further progress in marketing its newly established high-class conventional drilling service. The Company received additional conventional drilling orders worth EUR 17 million by its long-standing customer Gazprom Neft. Thus, at the end of Q1 seven out of the nine new drillings rigs were successfully marketed. Thanks to these additional orders, C.A.T. oil’s 2012 order book, which comprises of orders for fracturing, sidetrack drilling and conventional drilling, has improved to EUR 284 million (based on a rouble-to-euro exchange rate of 40). Compared to the same period last year this represents an increase of 28% and reflects the continuing strong demand for oil field services in Russia and Kazakhstan.
Manfred Kastner, CEO of C.A.T. oil AG, said: “Our decision to make significant investments in organic growth and set up conventional drilling as a third core business line has been clearly rewarded. We see strong demand for these services and have successfully marketed our new rigs for 2012. By the end of March we obtained service orders for 80% of our new rigs. We continue to market our remaining two rigs in full swing and are confident that we win additional orders in the near future.”
The nine new rigs are part of the Company’s 2011-12 EUR 150 million investment program to accelerate organic growth and diversify the service offering. During 2011 C.A.T. oil set up conventional drilling as a third core service line by adding state-of-the-art North American rigs to its operating capacity.
The first rig was put into operations in July 2011 and the remaining ones were successively delivered to Russia and adapted for operations during H2 2011. In Q1 2012, C.A.T. oil had three new rigs in operations. Following the business set up, which led to ramp-up costs in 2011, C.A.T. oil expects to fully pick up pace in the conventional drilling business in the second half of 2012. The new service is expected to make first contributions to earnings to the current financial year.
Conventional drilling operations for the latest Gazprom Neft orders focus on the regions of Orenburg and Yamal-Nenets and are expected to begin in May and June once the rigs have been mobilized to the well sites.
During the 2012 tender campaign C.A.T. oil has also been able to secure first orders for 2013. Thus, orders received for fiscal years 2012 and 2013 in all three service areas amount to a total volume of EUR 323 million.
On April 30, 2012 C.A.T. oil will publish its results for Fiscal Year 2011 and provide an outlook for Fiscal Year 2012.
C.A.T. Oil sees demand for high-class drilling rigs
Source: C.A.T. oil AG