Paratus Reports Q2 2024 Results, Initiates Shareholder Distribution Program

Hamilton, Bermuda, 10 September 2024 – Paratus Energy Services Ltd. (ticker “PLSV”) (“Paratus” or the “Company”) today reported operational and financial results for the second quarter of 2024, including management reporting highlighted by $124 million in revenues and $70 million in adjusted EBITDA. Net profit increased to $34 million, up from $10 million from the previous quarter, driven by strong operational performance. At quarter-end, the Group held $246 million in cash deposits and reduced its net debt to $518 million.

Paratus intends to return a majority of its excess free cash flows to shareholders, through stable, long-term and sustainable distributions or share repurchases, subject to allowance under existing debt indentures, applicable securities legislation and Board review. On the back of solid results, a robust balance sheet and outlook, the Board of Directors has on 9 September 2024 authorized a cash distribution to shareholders of $0.22 per share. Additionally, the Board of Directors has approved a share repurchase mandate to acquire shares for an amount of up to $100 million which will provide the Company with flexibility to repurchase shares in the open market. Any share repurchase programs will be announced separately and may be suspended or discontinued at any time.

“Our solid operational performance, and corresponding strong cash flow enables us to take this important step in announcing our first cash distribution” said Robert Jensen, CEO of Paratus. “This step underscores our confidence in the company’s financial strengths and reinforces our commitment to returning capital to our shareholders.”

In the second quarter 2024, the Company strengthened its capital structure through raising a new five-year bond to partially refinance the 2026 notes and raising $75 million of gross proceeds in connection with a successful listing on the Euronext Growth Oslo. Both issuances attracted strong investor demand and were significantly oversubscribed.

Key highlights post-quarter developments

Successfully listed on the Euronext Growth Oslo
Successful placement of 15.3 million new shares, raising gross proceeds of $75 million
Successful placement of a new $500 million five-year bonds, partially refinancing 2026 notes post-Q2 2024 and extending majority of maturities to 2029
Delivered Group revenues of $124 million and adjusted EBITDA of $70 million on strong operational performance
Exited the quarter with a Group cash balance of $246 million and $518 million in net debt
Increased Seagems backlog with an additional ~$1.8bn from three-year contracts for each of the JV’s six vessels and further secured extensions for the Rubi and Esmeralda post-Q2, increasing the backlog by another ~$74 million combined
The Board of Directors authorized a cash distribution to shareholder of $0.22 per share and approved a share repurchase mandate to acquire shares for an amount of up to $100 million

Fontis

The Company’s wholly owned subsidiary, Fontis, generated revenues of $72 million, marking a 30% increase from the previous quarter driven mainly by the recognition of $15 million of revenue from previously unbilled services, and higher dayrates following market indexation in February 2024. Fontis achieved an average contractual rate of $126.7 thousand per day, from $118.1 thousand per day in the previous quarter and an average technical utilization of 99.8% (Q1 2024: 99.6%) and closed the quarter with a contract backlog of $369 million.

During the quarter, Fontis collected $90 million of receivables from its key client in Mexico ($16 million in Q1 2024). The Company notes that the collection from the client may continue to fluctuate going forward.

Seagems JV

The Company’s 50% stake in the Seagems JV contributed $52 million in revenues and $28 million in adjusted EBITDA, remaining steady compared to the previous quarter. The JV achieved an average contractual rate of $200.8 thousand per day and improved its technical utilization to 99.3%, up from 98.7% in Q1 2024.

During first half of 2024, Seagems distributed $34 million to Paratus, pursuant to agreed plan amongst the JV shareholders.

Furthermore, in the second quarter the Company announced new contracts for its entire fleet of six multipurpose pipe-laying support vessels through a competitive Petrobras tender process, adding approximately $1.8 billion to the backlog.

Following end of Q2 2024, Seagems secured extensions for the vessels Rubi and Esmeralda, increasing the JV’s backlog by approximately $74 million. The Rubi will continue operations for Petrobras for an additional 235 days, adding $62 million to the backlog, while the Esmeralda’s new commitment comprise a 60-day extension with Petrobras, adding $12 million in backlog. Both vessels will commence and complete these new commitments prior to starting the new three-year contracts awarded by Petrobras earlier this year.

Note: Numbers above are based on management reporting

Webcast and Q&A Session

Paratus will host a presentation of the Q2 2024 results via an audio webcast today at 15:00 CET. The presentation will be hosted by Robert Jensen, CEO and Baton Haxhimehmedi, CFO.

To join the webcast, please use the following link:

https://channel.royalcast.com/landingpage/paratus-energy/20240910_1/

A Q&A session will follow the presentation, with instructions on how to submit questions provided at the start of the session.

Attachments

Q2 2024 Interim Results Report

Q2 2024 Interim Results Presentation

For further information, please contact:
Robert Jensen, CEO
Robert.Jensen@paratus-energy.com
+47 958 26 729

Baton Haxhimehmedi, CFO
Baton.Haxhimehmedi@paratus-energy.com
+47 406 39 083

This information is subject to the disclosure requirements pursuant to section 5-12 the Norwegian Securities Trading Act.

About Paratus

Paratus Energy Services Ltd. (ticker: PLSV) is an investment holding company of a group of leading energy services companies. The Paratus Group is primarily comprised of its ownership of Fontis and a 50/50 JV interest in Seagems (formerly Seabras). Fontis is an offshore drilling company with a fleet of five high-specification jack-up rigs working under contracts in Mexico. Seagems is a leading subsea services company, with a fleet of six multi-purpose pipe-laying support vessels under contracts in Brazil. In addition, Paratus is the largest shareholder in Archer Ltd, a global oil services company, listed on the Oslo Stock Exchange.

Forward-Looking Statements

This release includes forward-looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company’s and / or the Paratus Group’s (including any member of the Paratus Group) plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. These statements are based on management’s current plans, expectations, assumptions and beliefs concerning future events impacting the Company and / or the Paratus Group and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, management’s reliance on third party professional advisors and operational partners and providers, the Company’s ability (or inability) to control the operations and governance of certain joint ventures and investment vehicles, oil and energy services and solutions market conditions, subsea services market conditions, and offshore drilling market conditions, the cost and timing of capital projects, the performance of operating assets, delay in payment or disputes with customers, the ability to successfully employ operating assets, procure or have access to financing, ability to comply with loan covenants, liquidity and adequacy of cash flow from operations of its subsidiaries and investments, fluctuations in the international price of oil or alternative energy sources, international financial, commodity or currency market conditions, including, in each case, the impact of pandemics and related economic conditions, changes in governmental regulations, including in connection with pandemics, that affect the Paratus Group, increased competition in any of the industries in which the Paratus Group operates, the impact of global economic conditions and global health threats, including in connection with pandemics, our ability to maintain relationships with suppliers, customers, joint venture partners, professional advisors, operational partners and providers, employees and other third parties and our ability to maintain adequate financing to support our business plans, factors related to the offshore drilling, subsea services, and oil and energy services and solutions markets, the impact of global economic conditions, our liquidity and the adequacy of cash flows for our obligations, including the ability of the Company’s subsidiaries and investment vehicles to pay dividends, political and other uncertainties, the concentration of our revenues in certain geographical jurisdictions, limitations on insurance coverage, our ability to attract and retain skilled personnel on commercially reasonable terms, the level of expected capital expenditures, our expected financing of such capital expenditures, and the timing and cost of completion of capital projects, fluctuations in interest rates or exchange rates and currency devaluations relating to foreign or U.S. monetary policy, tax matters, changes in tax laws, treaties and regulations, tax assessments and liabilities for tax issues, legal and regulatory matters, customs and environmental matters, the potential impacts on our business resulting from climate-change or greenhouse gas legislation or regulations, the impact on our business from climate-change related physical changes or changes in weather patterns, and the occurrence of cybersecurity incidents, attacks or other breaches to our information technology systems, including our rig operating systems. Consequently, no forward-looking statement can be guaranteed.

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.