Paratus Announces Mexico Receivables Monetization Agreement
HAMILTON, Bermuda, Jan. 24, 2025 /PRNewswire/ -- Paratus Energy Services Ltd. (Oslo: PLSV) ("Paratus" or the "Company") announces that its wholly owned subsidiary Fontis Holdings Ltd. (together with its subsidiaries, "Fontis") has entered into an agreement with a leading international bank that will facilitate payment to Fontis of approximately $209 million1 of outstanding overdue invoices with its client in Mexico (the "Receivables Payment"), whereby Fontis will receive the funds from its client before the end of this month. The Receivables Payment is subject to an undisclosed upfront fee that is well below 10% of the gross amount. Confidentiality provisions requested by the counterparty prevent further disclosure of the fee details.
"As previously announced, the Company has been actively exploring opportunities to potentially monetize part of its receivables balance, and following careful consideration and consultation with several counterparties, Paratus has concluded that this agreement presented an attractive opportunity", said Robert Jensen, CEO of Paratus. "The Company will continue to opportunistically evaluate its alternatives to optimize its receivables balance in the future."
Following receipt of the Receivables Payment, Fontis' pro forma receivable balance with the customer stands at approximately $140 million as of December 31, 20242. The Company also notes that in late December 2024, Fontis received a minor payment from its client.
As of December 31, 2024, Paratus Group's cash balance stood at approximately $98 million3. The Receivables Payment will significantly strengthen the cash position of the Company, in addition to Fontis still having approximately $140 million of receivables with its client in Mexico. The Company will continue to take a disciplined approach to capital allocation and may use net proceeds from the Receivables Payment to support operations, optimize the capital structure, and fund shareholder distributions and/or share buybacks.
Paratus previously distributed $0.22 per share to its shareholders in connection with both its second and its third quarter 2024 interim results. The Company reiterates its commitment to a policy of providing shareholders with stable, long-term, and sustainable distributions, subject to allowance under its debt agreements.
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 announcement contains information considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The announcement was published by Baton Haxhimehmedi, CFO of Paratus, on the time and date set out above.
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 (formerly Seabras). 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.
1 Amount includes Mexican standard VAT rate of 16%
2 Preliminary balance sheet figures are unaudited estimates and subject to change
3 Based on management reporting; includes 50% of Seagems cash and restricted cash; Preliminary balance sheet figures are unaudited estimates and subject to change
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