Hamilton, Bermuda, March 3, 2025 - Paratus Energy Services Ltd. (ticker "PLSV")
("Paratus" or the "Company") announces that its wholly owned subsidiary Fontis
Holdings Ltd. (together with its subsidiaries, "Fontis") has received notice
from its client that it has elected to exercise the previously disclosed
contractual options for early termination of the drilling contracts for the
Courageous and the Intrepid. Both rigs are subject to a 365-day notice period,
which limits the reduction in Fontis' backlog to approximately $39 million,
corresponding to 3% of Paratus' overall $1.2bn backlog.
The reasons cited for the early termination includes unfavorable contract terms,
such as limited suspension rights and indexation structure of dayrates (with
floor and cap), and economic considerations. Nothing in the client's
notification suggests that this action was driven by reduced operational need
for drilling rigs in 2026. This action may enable the client to better align
contractual terms across its service providers during 2026, as Fontis' contracts
benefit from certain rights, which have resulted in that all of Fontis' rigs are
on contract, despite the current reduced activity announced by other service
providers in the region.
Following this election, the client has no remaining contractual flexibility to
further shorten the contracts for any of Fontis' rigs.
The drilling contracts for the Courageous and the Intrepid will now expire on
February 28, 2026 as opposed to its original expiration date of November 29,
2026 and May 27, 2026, respectively. As announced last week, Fontis has been
awarded a 78-day contract extension for the Oberon. All Fontis rigs are
currently on contract and, with the exception of the Titania, all rigs are
contracted into 2026. While Fontis believes higher drilling activity will be
required to meet the stated production goals of its client in Mexico, Fontis
will continue to explore opportunities for its fleet both inside and outside of
this region.
Paratus currently has all its 11 assets under contract, with 10 contracted into
next year or beyond, and the majority of contracts extend into 2027 or 2028.
This announcement has no impact on the 2025 financial guidance, nor the ongoing
share buyback program announced on 20 February 2025 ("the Buyback"). As a
reminder, the Buyback remains scheduled to close on March 4, 2025, and while
Paratus' two largest shareholders, Hemen investments Ltd. and Lodbrok Capital
LLP on behalf of funds and accounts managed or advised by it, have informed the
Company that they do not intend to participate in the Buyback, any shareholders
willing to sell shares should contact ABG Sundal Collier ASA at the contact
details included in the announcement of the Buyback on 20 February 2025.
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
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 in any forward-looking statement.