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Petro Welt Technologies AG lifts profitability in the first half of 2016:Revenues in Rouble increased due to effective utilization of production capacities and value added services, margins and earnings rise due to reduced costs and strict fin

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Subtitle: • Sales revenues in rouble increased by 2%, in EUR they
declined by 16.4% despite Rouble depreciation of 21.9% yoy on average
year basis • EBITDA margin improved from 24.6% to 28.0% •
Consolidated net result raised by 16.5% to EUR 14.9 million • Equity
base increased by 30.1% – equity ratio at 53.2% • Strong liquidity
position: managerial cash position grew by 66% on the annual basis to
EUR 67.1 million

6-month report/half-year report

In the first six months of 2016 the Petro Welt Technologies AG,
Vienna (formerly C.A.T oil AG, change of name at August 23, 2016)
continued the sound development of its business operations despite
the trouble environment in the industry: The revenues in Russian
Roubles increased by 2% compared to the same period of previous year.
This is attributable to the rise in share of multi-stage fracturing
operations and to the geographical expansion of operations in Siberia
and southern Orenburg.

Management efforts which aimed to optimize cost of sales,
administrative and financial expenses deployed the dynamics of profit
before tax in positive direction in EUR terms which increased by 2.9%
despite the continuing significant Rouble devaluation. Profit before
tax reached EUR 18.7 million in the first half of 2016 after EUR 18.1
million in the same period of 2015. Net profit demonstrated more
considerable growth due to the decrease of effective tax rate from
29% to 20%.

"External factors and the price pressure from major oil companies
were tough, but we managed to maintain our good market position and
started with geographical expansion and diversification. Thanks to
our cost control measures and our endeavour to improve efficiency
wherever we can we increased our EBITDA margin significantly",
comments Yury Semenov, CEO of Petro Welt Technologies AG, the result
of the first half of 2016.

The EBITDA margin improved to 28.0% in the first half of 2016,
compared to 24.6% in the prior-year period. This was also due to the
higher gross profit margin which achieved 19.2% in HY1 2016 compared
to 16.9% in HY1 2015.

The overall change in cash and cash equivalents totalled EUR 37.7
million. The managerial cash position which is calculated as the sum
of cash and cash equivalents and bank deposits increased by 66% from
EUR 40.3 million at the beginning of the reporting period to EUR 67.1
million as at June 30, 2016.

In the first half of 2016, total assets rose by 18.1% to EUR 355.9
million compared to the end of 2015. Equity increased by 30.1% to EUR
189.3 million at the end of the reporting period. As a result the
equity ratio increased and reached a level of 53.2% on the reporting
date of June 30, 2016 compared to 48.3% as at December 31, 2015.

Confident outlook for 2016 Analysts forecast oil prices at a range of
US-Dollar 50.0-60.0 per barrel till the end of 2016, with annual
growth rates of oil and gas production at a level of 2%. However, the
relatively low selling price and its volatility are forcing major oil
companies to limit investment in the development of wells.

For the oil service business, this results in continuing pressure on
its prices. However, one positive factor at the present time is the
consequence of the investment backlog since 2014, which should
stimulate the need for applying different methods to increase oil
production. In this regard, the strong market position of Petro Welt
Technologies AG should positively influence the company's drilling
volumes.

The management anticipates the sales revenue for 2016 to reach around
EUR 293 million and hopes to keep the improved EBIT margin compared
to the previous year at the range of 12-14%. This could permit to
outperform last year's operational result which is expected to reach
EUR 38-40 million in 2016.

The full report on the first six months of 2016 is available for
download on our corporate website at www.catoilag.com.

Further inquiry note:
SCHOLDAN&Comp.
Bernhard Grabmayr
[e-mail]
[phone]

end of announcement euro adhoc
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company: Petro Welt Technologies AG
Kärntner Ring 11-13
A-1010 Wien
phone: [phone] - 0
FAX: [phone] - 20
mail: [e-mail]
WWW: http://www.catoilag.com
sector: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English