Paratus Reports Q4 2024 Results

HAMILTON, Bermuda, Feb. 28, 2025 /PRNewswire/ -- Paratus Energy Services Ltd. (Oslo: PLSV) ("Paratus" or the "Company") today reported operational and financial results for the fourth quarter of 2024 (including management reporting), 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. (Oslo: 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.

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