Paratus Reports Q2 2024 Results, Initiates Shareholder Distribution Program

10 Sep 2024 07:05 CEST

Hamilton, Bermuda, 10 September 2024 – Paratus Energy Services Ltd. (ticker
“PLSV”) (“Paratus” or the “Company”) today reported operational and financial
results for the second quarter of 2024, including management reporting
highlighted by $124 million in revenues and $70 million in adjusted EBITDA. Net
profit increased to $34 million, up from $10 million from the previous quarter,
driven by strong operational performance. At quarter-end, the Group held $246
million in cash deposits and reduced its net debt to $518 million.

Paratus intends to return a majority of its excess free cash flows to
shareholders, through stable, long-term and sustainable distributions or share
repurchases, subject to allowance under existing debt indentures, applicable
securities legislation and Board review. On the back of solid results, a robust
balance sheet and outlook, the Board of Directors has on 9 September 2024
authorized a cash distribution to shareholders of $0.22 per share. Additionally,
the Board of Directors has approved a share repurchase mandate to acquire shares
for an amount of up to $100 million which will provide the Company with
flexibility to repurchase shares in the open market. Any share repurchase
programs will be announced separately and may be suspended or discontinued at
any time.

“Our solid operational performance, and corresponding strong cash flow enables
us to take this important step in announcing our first cash distribution” said
Robert Jensen, CEO of Paratus. “This step underscores our confidence in the
company’s financial strengths and reinforces our commitment to returning capital
to our shareholders.”

In the second quarter 2024, the Company strengthened its capital structure
through raising a new five-year bond to partially refinance the 2026 notes and
raising $75 million of gross proceeds in connection with a successful listing on
the Euronext Growth Oslo. Both issuances attracted strong investor demand and
were significantly oversubscribed.

Key highlights post-quarter developments
• Successfully listed on the Euronext Growth Oslo
• Successful placement of 15.3 million new shares, raising gross proceeds of $75
million
• Successful placement of a new $500 million five-year bonds, partially
refinancing 2026 notes post-Q2 2024 and extending majority of maturities to 2029
• Delivered Group revenues of $124 million and adjusted EBITDA of $70 million on
strong operational performance
• Exited the quarter with a Group cash balance of $246 million and $518 million
in net debt
• Increased Seagems backlog with an additional ~$1.8bn from three-year contracts
for each of the JV’s six vessels and further secured extensions for the Rubi and
Esmeralda post-Q2, increasing the backlog by another ~$74 million combined
• The Board of Directors authorized a cash distribution to shareholder of $0.22
per share and approved a share repurchase mandate to acquire shares for an
amount of up to $100 million

Fontis
The Company’s wholly owned subsidiary, Fontis, generated revenues of $72
million, marking a 30% increase from the previous quarter driven mainly by the
recognition of $15 million of revenue from previously unbilled services, and
higher dayrates following market indexation in February 2024. Fontis achieved an
average contractual rate of $126.7 thousand per day, from $118.1 thousand per
day in the previous quarter and an average technical utilization of 99.8% (Q1
2024: 99.6%) and closed the quarter with a contract backlog of $369 million.

During the quarter, Fontis collected $90 million of receivables from its key
client in Mexico ($16 million in Q1 2024). The Company notes that the collection
from the client may continue to fluctuate going forward.

Seagems JV
The Company’s 50% stake in the Seagems JV contributed $52 million in revenues
and $28 million in adjusted EBITDA, remaining steady compared to the previous
quarter. The JV achieved an average contractual rate of $200.8 thousand per day
and improved its technical utilization to 99.3%, up from 98.7% in Q1 2024.

During first half of 2024, Seagems distributed $34 million to Paratus, pursuant
to agreed plan amongst the JV shareholders.

Furthermore, in the second quarter the Company announced new contracts for its
entire fleet of six multipurpose pipe-laying support vessels through a
competitive Petrobras tender process, adding approximately $1.8 billion to the
backlog.

Following end of Q2 2024, Seagems secured extensions for the vessels Rubi and
Esmeralda, increasing the JV’s backlog by approximately $74 million. The Rubi
will continue operations for Petrobras for an additional 235 days, adding $62
million to the backlog, while the Esmeralda’s new commitment comprise a 60-day
extension with Petrobras, adding $12 million in backlog. Both vessels will
commence and complete these new commitments prior to starting the new three-year
contracts awarded by Petrobras earlier this year.

Note: Numbers above are based on management reporting

Webcast and Q&A Session
Paratus will host a presentation of the Q2 2024 results via an audio webcast
today at 15:00 CET. The presentation will be hosted by Robert Jensen, CEO and
Baton Haxhimehmedi, CFO.

To join the webcast, please use the following link:
https://channel.royalcast.com/landingpage/paratus-energy/20240910_1/

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 2024 Interim Results Report
• Q2 2024 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
(formerly Seabras). 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 Oslo
Stock Exchange.

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.

More information:
Access the news on Oslo Bors NewsWeb site

627348_Q2 2024 Interim Results Report.pdf
627348_Q2 2024 Interim Results Presentation.pdf