Paratus Energy Services Ltd announces Q4 2022 trading update
21 Mar, 2023
Hamilton, Bermuda, March 21, 2023 - Paratus Energy Services Ltd. (“Paratus” or the “Company”) today announced a trading update for the fourth quarter 2022 and updates on Paratus, its subsidiaries and associated companies (“Paratus Group”).
1. Key Financial Highlights
1.1 Paratus
In the fourth quarter ending December 31, 2022, Paratus generated $52 million in revenue and $24 million in EBITDA[1]. In the third quarter ending September 30, 2022, Paratus generated $50 million in revenue and $21 million in EBITDA[1].
1.2 SeaMex Group
During the fourth quarter period ending December 31, 2022, Paratus’ wholly owned subsidiary SeaMex Holdings, Ltd. (“SeaMex”) and its subsidiaries (collectively with SeaMex, “SeaMex Group”) generated $52 million in revenue and $27 million in EBITDA. Compared to the third quarter, revenue increased 4.0% and EBITDA increased 8.0%. For the fourth quarter ending December 31, 2022, SeaMex Group earned an average contractual rate of $115 thousand per day and ended with $547 million in contract backlog[2].
As previously announced, SeaMex has received a termination notice from PEMEX regarding the West Titania jack-up, with an effective termination date of March 16, 2023. SeaMex remains in dialogue with PEMEX regarding a potential extension of the West Titania contract, as well with third parties regarding other potential market opportunities for the rig.
SeaMex is pleased to announce that the company is currently in the process of moving the offshore drilling operations in-house. Following a transition period which is expected to last up to 6 months, the company intends to manage and operate its wholly owned fleet of jack-up rigs on a standalone basis under its own brand later this year.
1.3 Joint Venture in Seabras Group
Seabras UK Limited (“Seabras”), a wholly owned subsidiary of Paratus, holds a 50% equity interest in Seabras Sapura Holding GmbH, its associated company, Seabras Sapura Participaҫões S.A and their subsidiaries (collectively with Seabras, “Seabras Group”).
During the fourth quarter period ending December 31, 2022, Seabras Group generated $113 million in revenue and $81 million in EBITDA. Compared to the third quarter, revenue and EBITDA increased by 3.7% and 22.7%, respectively. For the fourth quarter, Seabras Group earned an average contractual rate of $204 thousand per day and ended with $707 million in contract backlog.
On December 23, 2022, Seabras completed a full repayment of its secured bank debt facilities which were raised in connection with the construction of the Diamante, Topazio, Onix, Jade, and Rubi vessels (“Bank Facilities”)[3]. Following the Bank Facilities repayment, the only outstanding third-party debt obligation is the Esmeralda vessel financing from the Brazilian Merchant Maritime Fund, which has a maturity of 2032 and is collateralized by the Esmeralda vessel (“Esmeralda Facility”).
2. Other Updates
2.1 Completion of the Share Acquisition Transaction
On September 30, 2022, Hemen Investments Ltd (“Hemen”), an entity ultimately controlled by trusts established by John Fredriksen for the benefit of his immediate family members, funds and accounts managed by Lodbrok Capital LLP (“Lodbrok”), and Melqart Asset Management (UK) Ltd (“Melqart”) (collectively, the “Acquiring Shareholders”) entered into separate agreements with Seadrill Investment Holding Company Limited (“Seadrill”) to acquire all of Seadrill’s ownership interests in Paratus (the “Share Acquisition Transaction”). The Share Acquisition Transaction closed on February 24, 2023, following the satisfaction of customary closing conditions, including the approval of competition authorities in relevant jurisdictions.
Schedule 1. Key Financial Highlights
Notes:
- Represent the results of the Predecessor entity
- Excludes intercompany debt, any amortization of fees and fair value adjustment; represents debt principal only
- Net debt is calculated as gross debt less cash and restricted cash
- Contract backlog takes into account West Titania’s termination date of March 16, 2023
- The figures presented for Paratus do not include financials from Seabras as Seabras is not consolidated in the Paratus financial statements due to Paratus’ 50% equity ownership of Seabras
Schedule 2. Fleet Status Report
SeaMex Group
SeaBras Group
Notes:
- The expiration date of West Titania reflects PEMEX's termination notice
Neither the Company nor any member of the Paratus Group undertakes any obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.
[1] The figures presented for Paratus do not consider revenue and EBTIDA from Seabras Group as Seabras is not consolidated in the Paratus financial statements due to Paratus’ 50% equity ownership of Seabras
[2] SeaMex backlog is calculated at the dayrate floor and is subject to market rate adjustments
[3] The Bank Facilities comprised of two separate loan agreements – one relating to Diamante and Topazio (totaling approximately $537 million at issuance) and another relating to Onix, Jade and Rubi (totaling approximately $769 million at issuance)