C.A.T. oil AG Jun 11
- ID: 1823629
- June 2011
- Standard & Poors
Low financial leverage. Significant financial flexibility due to low operating leverage. Likely return to positive free operating cash flow in 2012, after current expansion capital spending is completed. Conservative financial policy. Strong niche position in hydrofracturing and sidetracking. The oilfield services industry's cyclicality and dependence on the capital spending of oil and gas companies. Small size in a fragmented and competitive industry with limited barriers to entry. Limited geographic and business diversity. Limited bargaining power with major customers. Risks inherent from operating in Russia. The ratings on C.A.T. oil AG, an Austria-registered oilfield services (OFS) company that conducts all of its operations in Russia and Kazakhstan, reflect the intrinsic cyclicality and competitiveness of the OFS industry, which limit barriers to...
Companies mentioned in this report are: C.A.T. oil AG
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