Paratus Reports Q1 2025 Results

HAMILTON, Bermuda, May 28, 2025 /PRNewswire/ -- Paratus Energy Services Ltd. (ticker "PLSV") ("Paratus" or the "Company") today reported operational and financial results for the first quarter of 2025, highlighted by $103 million in combined segment revenues and $58 million in adjusted EBITDA. The Company and its consolidated subsidiaries and ownership in Joint Ventures (the "Group") ended the quarter with $176 million in cash and a net debt balance of $551 million.

Paratus is pleased to announce that its Board of Directors (the "Board") has authorized a quarterly cash distribution of $0.22 per share for the first quarter of 2025, consistent with prior quarters. This distribution reflects the Company's continued financial strength and commitment to shareholder returns.

In addition to the dividend, Paratus completed a $20 million share buyback via a reverse bookbuilding process during Q1 2025. Post-quarter, the Company initiated an open market share repurchase program of up to $5 million, which remained in effect through May 28, 2025.

"We are pleased with our strong operational performance and disciplined capital management in the first quarter," said Robert Jensen, CEO of Paratus. "With strong fleet utilization, significant backlog, and continued shareholder distributions, we remain well-positioned to deliver long-term value."

Q1 2025 highlights and post quarter-end developments

• Achieved technical utilization of approximately 99% across the fleet.
• Reported $103 million in combined segment revenues and $58 million in adjusted EBITDA.
• Declared a $0.22 per share quarterly cash distribution for Q1 2025.
• Completed $20 million in share buybacks via reverse bookbuilding.
• Post-Q1, initiated open market share repurchases of up to $5 million.
• Collected $209 million in Mexico through a receivable monetization agreement.
• Ended the quarter with $176 million in cash and $551 million in net debt.
• Set to receive $1.3 million in dividends from Archer following its NOK 0.63 per share declaration.
• Signed a 78-day contract extension for the Oberon; received early termination notices for Courageous and Intrepid, both subject to a 365-day notice period.

Fontis
Fontis recorded revenues of $47 million (Q4 2024: $54 million), reflecting lower average dayrates and reduced revenues from Titania as the rig completed operations in February. While the Company maintains that the contractual end date remains in effect through mid-May 2025 and is pursuing the matter with its client in Mexico, revenues were recognized only through February, reflecting a prudent accounting approach. Following the completion of operations, the rig is now available, and the Company is actively pursuing new contract opportunities.

Opex totaled $18 million (Q4 2024: $26 million), while G&A remained steady at $1 million. Adjusted EBITDA came in at $27 million, broadly in line with Q4 2024 ($28 million), though the Q4 2024 profitability was impacted by special items, including year-end bonus accruals and demobilization cost accounting provisions.

During Q1 2025, Fontis achieved an average dayrate of $125 thousand per day (Q4 2024: $134 thousand per day) and maintained a high technical utilization of 99.7% (Q4 2024: 99.8%). Contract backlog stood at $139 million at the end of the quarter. As previously disclosed, from February 2025, all of the Fontis' rigs, except for Titania, which does not have indexed dayrates, operated at their contractual floor dayrates.

A significant milestone in the quarter was the successful collection of $209 million in overdue receivables from its client in Mexico. This was achieved through a receivable monetization agreement with a leading international bank, which included an undisclosed upfront fee well below 10% of the gross receivables amount. The full payment was received on February 5, 2025, significantly improving the Company's liquidity position and reducing accounts receivable to $185 million, down from $347 million at year-end 2024.

Seagems JV
Paratus' 50% share in the Seagems JV contributed $56 million in contract revenues (Q4 2024: $55 million) primarily driven by higher average dayrates and fewer off-hire days across the fleet.

Adjusted EBITDA for the quarter was $33 million (Q4 2024: $40 million). The Q4 2024 EBITDA was positively impacted by a reclassification of certain expenditures from Opex to Capex and an insurance reimbursement related to the Esmeralda. On a normalized basis, EBITDA remained stable quarter-over-quarter.

The JV achieved an average dayrate of $212 thousand per day (Q4 2024: $205 thousand per day) and maintained strong technical utilization of 98.4% (Q4 2024: 97.7%).

The Seagems contract backlog stood at approximately $1.7 billion at the end of Q1 2025 (Q4 2024: $1.9 billion). During the quarter, Paratus received a $17.5 million cash distribution from the JV (Q4 2024: $38 million). Distributions are expected to increase in the second half of 2025, in line with the JV's cash flow profile and timing of capital expenditures and other payments.

Webcast and Q&A Session
Paratus will host a presentation of the Q1 2025 results via an audio webcast today at 15:00 CET. The presentation will be led by CEO Robert Jensen and CFO Baton Haxhimehmedi.

To join the webcast, please use the following link:

https://paratusenergy.engagestream.companywebcast.com/paratus-energy-q1-2025-earnings-call

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

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

Attachments

• Q1 2025 Interim Results Report
• Q1 2025 Interim Results Presentation

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. 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 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 in any forward-looking statement

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