Hamilton, Bermuda, February 28, 2025 - Paratus Energy Services Ltd. (ticker
“PLSV”) (“Paratus” or the “Company”) today reported operational and financial
results for the fourth quarter of 2024 (including management reporting),
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highlighted by $109 million[(1)] in revenues and $63 million[(1)] in adjusted
EBITDA. At year-end, the Group held $99 million[(1)] in cash deposits and had a
net debt balance of $677 million[(1)].
Paratus is pleased to announce that the board of directors (the “Board”) has
authorized a quarterly cash distribution of $0.22 per share for the fourth
quarter of 2024. This distribution underscores the Company’s financial strength
and ongoing commitment to creating long-term value for shareholders.
In addition to the regular quarterly dividend, Paratus has initiated a $20
million share buyback, effective today, 28 February 2025, and ending no later
than March 4, 2025. This repurchase marks the Company’s first deployment of the
previously announced share repurchase authorization of up to $100 million.
“We believe 2024 was a very strong year for Paratus and we will continue to
build on this through 2025”, said Robert Jensen, CEO of Paratus. “We currently
have all our 11 assets on contract, of which 10 are contracted into 2026, and
with several contracted into 2028. The vast majority of our backlog sits in the
PLSV segment, which we think continues to exhibit very healthy market
conditions. Combined with our flexible balance sheet and strong liquidity
position, we are well-positioned to continue generating attractive returns for
our shareholders”.
Key highlights from Q4 and full-year 2024 and notable post-Q4 developments
include:
· Finalized the transition from Seadrill and established Paratus as a fully
independent operational organization.
· Successfully completed a $500 million refinancing in the Nordic bond market
(upsized from original size of $300 million).
· Successfully completed the IPO and $75 million equity raise (11x
oversubscribed), followed by an uplisting to Euronext Oslo Børs in November
2024.
· Invested $12 million (its pro-rata share) in a private placement of Archer
to support a strategic acquisition transaction, which is expected to yield cash
returns during 2025 following announcement of shareholder distribution.
· Added $2.1 billion of new backlog in Seagems by securing new 3-year
contracts across all six vessels.
· Achieved fleet utilization of approximately 99%, with financial results
surpassing initial full-year guidance.
· Reported Q4 2024 revenue of $109 million[(1)], largely in-line with Q3 2024
($110 million)[(1)], which included $8 million of variable revenue in Mexico.
Adjusted Q4 2024 EBITDA came in at $63 million[(1)], the same level as Q3 2024.
· For the full-year 2024, revenue and EBITDA grew 5% and 8% year-over-year,
reaching $452 million[(1)] and $252 million[(1)], respectively.
· Ended 2024 with $99 million[(1)] in cash and $677 million[(1)] in net debt.
· In early 2025, the Company collected $209 million from its client in Mexico
through the execution of a receivable monetization agreement.
· Initiated and maintained consistent quarterly distributions to shareholders
of $0.22 per share.
· Declared a quarterly cash distribution of $0.22 per share for Q4 2024, in
line with Q2 and Q3 2024.
· Post Q4 2024, the Company initiated share buyback of $20 million, under the
previously announced share repurchase authorisation of up to $100 million.
· Post Q4 2024, signed a 78-day contract extension for the Oberon in Mexico.
Fontis
Fontis recorded total revenues of $54 million (Q3 2024: $63 million). The Q3
2024 revenues included $8 million in recognition of variable revenue from
previously unbilled services agreed with the customer. Operating expenses (Opex)
were $26 million (Q3 2024: $23 million), while general and administrative
expenses (G&A) remained at $1 million. Adjusted EBITDA was $28 million compared
to $39 million in Q3, primarily due to the $8 million variable revenue
recognized in Q3 and offhire following a 45-day temporarily cessation of
operations for both Courageous and the Intrepid in December 2024. The Courageous
resumed its contract in mid-January 2025, while the Intrepid resumed late
January 2025. As of today, all of Fontis rigs are on contract with its client.
In Q4 2024, Fontis achieved an average dayrate of $133.8 thousand per day (Q3
2024: $135.1 thousand per day) and an average technical utilization of 99.8% (Q3
2024: 98.9%), closing the quarter with a contract backlog of $234 million.
Looking ahead, the Company expects lower average contractual dayrates in 2025
due to a general weakening of the global jack-up market, which will impact the
market index mechanism for existing contracts. In 2024, Fontis’ dayrates
increased 15% from the contractual floor rates, driven by a strengthening of the
general jack-up market; however, this increase is expected to be fully reversed
from February 2025…
At the end of Q4 2024, the notional amount of the accounts receivable was $347
million, up from $283 million in Q3 2024. In early 2025, Fontis entered into an
agreement with a leading international bank to facilitate payment to Fontis of
$209 million of outstanding overdue invoices with its client in Mexico (the
“Receivables Payment”). The Receivables Payment was subject to an undisclosed
upfront fee, which was well below 10% of the gross receivables amount. On
February 5, 2025, Fontis successfully received the full $209 million payment
under this arrangement. In late December 2024, Fontis also received a minor
payment from its client.
Seagems JV
The Company’s 50% share in the JV contributed with $55 million in contract
revenues (Q3 2024: $47 million) and $40 million in adjusted EBITDA (Q3 2024: $25
million). The revenue increase was primarily driven by higher average dayrates
and fewer off-hire days during the quarter. Reported Opex decreased to $9
million from $17 million in Q3, mainly due to reclassification of certain
expenditures, from opex to capitalised expenditures (capex) and reimbursement of
an insurance claim for Esmeralda. Reported G&A remained stable at $3 million, in
line with the previous quarter.
The JV achieved an average dayrate of $205.6 thousand per day (Q3 2024: $185.7
thousand per day) and an average technical utilization of 97.7% (Q3 2024:
97.6%). The higher average dayrate in the quarter compared to Q3 2024 was mainly
driven by Esmeralda operating at an average dayrate of ~$349 thousand per day
during the quarter (Q3 2024: ~$181 thousand per day). Additionally, the Jade
remained fully contracted throughout the quarter, compared to Q3 2024 when the
vessel experienced 19 days off-hire due to an unscheduled maintenance stop and
acceptance testing ahead of a new contract commencement with Petrobras.
As previously announced, pursuant to an agreed plan amongst the JV shareholders,
Seagems distributes all excess cash to its JV shareholders. During Q4 2024, the
JV distributed $38 million to Paratus (Q3 2024: $22 million).
During Q4 2024, Seagems secured a $30 million capex funding from a local
Brazilian bank to be paid over 3 years.
Notes: (1) Based on management reporting which represents the Company’s internal
financial and operational performance assessment. In this context, Seagems’
financial results are presented using proportional consolidation of accounting.
However, in our financial reporting under US GAAP, Seagems’ financial results
are reported using the equity method. Additionally, operating revenues include
contract revenues before amortization of favorable contracts for Fontis and
exclude revenue taxes for Seagems.
Webcast and Q&A Session
In connection with the earnings release, an audio webcast will be held today at
15:00 (CEST) on the same day. The presentation will be led by CEO Robert Jensen
and CFO Baton Haxhimehmedi.
The link to the webcast is available in the Company’s website www.paratus
-energy.com under “Investors” section. A Q&A session will follow the
presentation, with instructions on how to submit questions provided at the start
of the session.
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
Attachments
· Q4 2024 Interim Results Report
· Q4 2024 Interim Results Presentation
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 Energy and a 50/50 JV interest in Seagems.
Fontis Energy 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 Euronext
Oslo Børs.
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
Kilde
