Hamilton, Bermuda, August 26, 2025 - Paratus Energy Services Ltd. (ticker
"PLSV") ("Paratus" or the "Company") today reported operational and financial
results for the second quarter of 2025, highlighted by $107 million in combined
segment revenues and $57 million in adjusted EBITDA. The Company and its
consolidated subsidiaries and ownership in Joint Ventures (the "Group") ended
the quarter with $93 million in cash and a net debt balance of $631 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 Q2 2025,
consistent with prior quarters. During the quarter, Paratus also repurchased own
shares for approximately $4.8 million under its current share repurchase
program, with approximately $75 million remaining capacity.
"We are pleased to report another solid quarter highlighted by strong
operational performance and consistent shareholder distributions," said Robert
Jensen, CEO of Paratus. "The government support plan introduced in Mexico
provides positive signals and strengthen our confidence in the outlook. We look
forward to building on this momentum to maximize long-term value for our
shareholders."
Q2 2025 highlights and post quarter-end developments
· Maintained strong operational performance with fleet technical utilization
of approximately 98%.
· Generated $107 million in combined segment revenues and $57 million in
adjusted EBITDA.
· Repurchased own shares for approximately $4.8 million; with approximately
$75 million remaining capacity under the current repurchase authorization.
· Received first-time dividend from Archer of $1.3 million; an additional $1.3
million has been declared for Q2 2025.
· Ended the quarter with $93 million in Group cash and $631 million in net
debt.
· Post Q2, declared a $0.22 per share quarterly dividend for Q2 2025,
consistent with previous quarters.
· In August, Fontis received first payment from its client in Mexico since Q1
2025.
Fontis
Fontis recorded $43.8 million in contract revenues, compared to $46.6 million in
Q1 2025. The revenue decline primarily reflected no operations on Titania FE
during the quarter, lower average dayrates due to market indexation and UWILD
survey on Intrepid, partly offset by the absence of rig suspensions during the
quarter.
Operating expenses (Opex) totalled $25.6 million (Q1 2025: $18.3 million) and
general and administrative expenses (G&A) totalled $0.4 million (Q1 2025: $1
million). The increase in Opex reflects Titania FE rig relocation costs at the
end of its campaign (primarily tugboat and fuel expenses) partially offset by
lower overall operational activity. The rig has subsequently been re-imported to
Mexico. Additionally, Q1 2025 Opex benefited from favorable changes in accrual
estimates. Adjusted EBITDA for Q2 2025 was $17.8 million (Q1 2025: $27.4
million).
During Q2 2025, Fontis achieved an average dayrate of $116 thousand per day (Q1
2025: $125 thousand per day) and maintained a strong technical utilization of
99.2% (Q1 2025: 99.7%). Fontis contract backlog at quarter-end was approximately
$98 million (Q1 2025: approximately $139 million).
The successful collection of $209 million in overdue receivables from Fontis'
client in Mexico during Q1 2025 marked a significant milestone. This transaction
materially improved the Company's liquidity position and demonstrated that
alternative avenues exist for monetizing receivables beyond the traditional
collection process.
As of the end of Q2 2025, the notional value of accounts receivable increased to
$232 million, up from $185 million at the end of Q1 2025. No payments were
received during the quarter, in line with broader trends observed among other
service providers operating in Mexico with this client. In early August 2025,
the Mexican government publicly introduced a comprehensive financial support
plan with the aim to make Fontis' client financially self-sufficient by 2027.
Key elements of the plan include the settlement of overdue supplier payments,
debt reduction initiatives, and a long-term increase in national oil production
from approximately 1.6 to 1.8 million barrels per day. As part of this
initiative, approximately $25 billion in new government guaranteed funding has
reportedly been secured, including proceeds partially earmarked for capital
expenditures and supplier debt settlements. In August, Fontis received a modest
payment from its client.
The Company also notes that the client has announced intentions to align its
payment practices with international standards going forward in order to reduce
processing delays. However, it has been acknowledged that delays may continue to
persist in the near to medium term. The Company remains actively engaged with
the client to expedite the collection of outstanding receivables and expects to
recover the full amount as has been the case in the past, while acknowledging
and planning for the possibility of ongoing fluctuations in the timing of
collections.
Of the Company's fleet of five jack-up rigs, all are currently contracted
through Q1 2026, with the exception of Titania FE. The Company remains confident
in the long-term demand for its rigs and anticipates that increased drilling
activity in Mexico will be necessary to support its client's production targets,
as recently reaffirmed by the Mexican government. The Company also expects more
active contract discussions to take place in the second half of this year for
the broader Fontis fleet. While Fontis remains focused on maintaining and
strengthening its long-standing relationship with its client, it also continues
to monitor broader market developments and is selectively evaluating and
engaging tender opportunities both within and outside the region.
Seagems Joint Venture
Paratus' 50% share in the Seagems JV contributed $62.7 million in contract
revenues, compared to $56.2 million in Q1 2025. The revenue increase was
primarily driven by higher average dayrates from the newly started contracts
with Petrobras partly offset by off-hire days as part of acceptance testing for
the new contracts.
Reported Opex was $15.4 million for the quarter (Q1 2025: $17.8 million), while
G&A was $3.7 million (Q1 2025: $2.9 million). Adjusted EBITDA for the quarter
was $40.6 million, up from $32.5 million in Q1 2025. Q2 2025 EBITDA was
positively impacted by stronger revenues in the quarter, reimbursement of an
insurance claim for Esmeralda and other changes in accounting provisions.
The JV achieved an average dayrate of $255 thousand per day (Q1 2025: $212
thousand per day) and maintained a strong technical utilization of 97.8% (Q1
2025: 98.4%). The JV contract backlog at quarter-end was approximately $1.6
billion (Q1 2025: approximately $1.7 billion).
During the first half of 2025, the JV provided cash distribution of $33.1
million to Paratus (H1 2024: $37.6 million). As previously reported in Q1 2025,
distributions from Seagems are expected to increase in the second half of the
year, consistent with the JV's cash flow profile and the scheduled timing of
capital expenditures and other payments. Subsequent Q2 2025, the Company
received $45 million of total cash distributions from Seagems for July and
August 2025.
Following Q2 2025, the JV secured an aggregate $60 million in additional capital
expenditures financing from local Brazilian banks with amortization scheduled
over 3 years starting in 2026.
Webcast and Q&A Session
Paratus will host a presentation of the Q2 and first half-year 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/q2-2025-earnings
-call (https://paratusenergy.engagestream.companywebcast.com/q2-2025-earnings
-call/register)
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
· Q2 2025 Interim Results Report
· Q2 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 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 in Mexico. Seagems is a leading subsea services
company, with a fleet of six multi-purpose pipe-laying support vessels 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.