C.A.T. oil AG: 2015 Order Book Takes Massive Ruble Rate Hit

C.A.T. oil AG, the provider of oil and gas field services in Russia and Kazakhstan, informs about the 2015 tendering campaign: despite the difficult macroeconomic environment in its core markets and the weak oil price the Company has successfully placed more than 90% of its fracking capacities, around 75% of its drilling capacities and 50% of its sidetracking capacities with customers.

As of 10 February C.A.T. oil’s 2015 order book stands at EUR 234 million (based on a rouble-to-euro exchange rate of 75) compared to EUR 408 million one year ago (based on a rouble-to-euro exchange rate of 47). The decline of 43% yoy in euro terms is primarily attributable to the strong rouble devaluation against the euro. In rouble terms the 2015 order book declined by 9% which reflects in particular the suspension of sidetracking operations in Western Siberia by a major customer and the more conservative budget planning process of C.A.T. oil’s customers in general.

The Company’s 2015-2017 total order book level stands at EUR 299 million (based on a rouble-to-euro exchange rate of 75) as of 10 February 2015. This represents a decrease of 60% yoy compared to the 2014-2016 order book which amounted to EUR 754 million (based on a rouble-to-euro exchange rate of 47) and represented an all-time high. The development again reflects the negative currency effects, the lower share of sidetracking orders and a reduced share of longer-term service orders. While last year 46% of the total orders exceeded a 12 month period, the current level of orders which exceed a 12 month period amounts to 22%.

C.A.T. oil will continue to market its remaining free capacities with customers over the next weeks and months.