Paratus Reports Q3 2024 Results, Reaffirms Commitment to Shareholder Returns

29 Nov 2024 07:05 CET

Hamilton, Bermuda, November 29, 2024 - Paratus Energy Services Ltd. (ticker
"PLSV") ("Paratus" or the "Company") today reported operational and financial
results for the third quarter of 2024, highlighted by $110 million in revenues
and $63 million in adjusted EBITDA. At quarter-end, the Group held $165 million
in cash deposits and had a net debt balance of $597 million.

Building on the momentum established by the inaugural quarterly cash
distribution to shareholders for the second quarter, Paratus is pleased to
announce that the Board of Directors ("Board") has authorized a cash
distribution to shareholders of $0.22 per share for the third quarter of 2024.
This distribution reflects the continued confidence in the Company's financial
strength and commitment to creating long-term value for shareholders.

"Paratus is delivering on our commitment to return a majority of our excess free
cash in the form of stable distributions to shareholders." said Robert Jensen,
CEO of Paratus. "Including this distribution, we will have returned more than
10% of our current market cap to shareholders since early September. This is a
testament to our strong balance sheet and solid operational performance this
year, and highlights Paratus' differentiated capital returns program."

(Note: numbers below are based on management reporting)

Key highlights

· Revenues of $110 million, including $8 million of variable revenue
previously not recognized in Mexico.
· EBITDA of $63 million on the back of solid operational performance and cost
discipline. EBITDA excluding variable revenue in Mexico was $54 million broadly
in line with the previous quarter ($55 million).
· Reported net loss of $15 million was primarily due to a one-time, non-cash
accounting expense of $35 million related to the partial redemption of the 2026
Notes. Excluding this item, the Company generated net income of $20 million.
· Exited the quarter with Group cash balance of $165 million and $597 million
in net debt.
· Seagems secured $32 million additional backlog for Esmeralda and Fontis
dayrates were adjusted up 4% following contractual market indexation, effective
August.
· In October 2024, Paratus invested $12 million (its pro-rata share) in a
private placement of Archer to support a strategic acquisition transaction.
· In November 2024, Paratus successfully uplisted onto the Euronext Oslo Børs
· In November 2024, the Board of Directors authorized a cash distribution to
shareholders of $0.22 per share for the third quarter of 2024, in line with the
previous quarter.

Fontis

Fontis recorded total revenues of $63 million (Q2 2024: $72 million) including
$8 million (Q2 2024: $15 million) in recognition of variable revenue from
previously unbilled services that were agreed with the customer. Operating
expenses (Opex) were $23 million, which was lower than the previous quarter (Q2
2024: $24 million), and general and administrative expenses (G&A) were $1
million, in line with the previous quarter (Q2 2024: $1 million). Adjusted
EBITDA was $39 million compared to $47 million in Q2 2024 primarily due to a
smaller portion of variable revenue from previously unbilled services compared
to Q2 2024. For informational purposes, EBITDA generated during the quarter
excluding variable revenues, was $31 million, which was largely in line with the
previous quarter (Q2 2024: $32 million), despite the planned downtime of the
Courageous for 58 days during the quarter due to the installation of a new
crane.

In Q3 2024, Fontis achieved an average dayrate of $135.1 thousand per day (Q2
2024: $126.7 thousand per day) and an average technical utilization of 99.0% (Q2
2024: 99.8%), closing the quarter with a contract backlog of $317 million.

At the end of Q3 2024, the notional amount of the accounts receivable was $283
million, up from $215 million in Q2 2024. Fontis collected $106 million of
receivables during the first nine months of 2024, including $90 million in Q2
2024. No payments have been received since the start of the third quarter,
consistent with trends amongst other similar service companies in Mexico,
causing receivables to rise with billed and accrued revenues. Additionally, $29
million was invoiced for previously unbilled services, further increasing the
receivables balance. The Company has noted that the Mexican government has
publicly expressed plans to support Fontis' customer, including direct financial
assistance and a tax reform to help the customer address its financial
obligations and achieve operational efficiencies. The Company, leveraging over a
decade-long relationship, has booked revenues of around $825 million and
collected around $850 million since 2021, demonstrating strong collection
resilience despite short-term fluctuations. The Company is actively engaging
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. Consequently, the Company is also actively exploring
alternative opportunities to potentially monetize part of its receivables
balance of $283 million and will update the market accordingly if it enters any
such transactions.

Seagems JV

The Company's 50% share in the JV contributed with $47 million in contract
revenues (Q2 2024: $52 million) and $25 million in adjusted EBITDA (Q2 2024: $28
million). The decrease in revenue was mainly driven by lower average dayrate and
lower average technical utilization. Operating expenses (Opex) were $17 million
and general and administrative expenses (G&A) were $3 million, both largely in
line with the previous quarter (Q2 2024: $17 million and $3 million,
respectively).

The JV achieved an average contractual rate of $185.7 thousand per day (Q2 2024:
$200.8 thousand per day) and an average technical utilization of 97.7% (Q2 2024:
99.3%). The lower average dayrate in Q3 2024 compared to Q2 2024 was mainly due
to Jade and Onix operating under contracts with lower dayrates in the quarter,
compared to spot contracts with higher dayrates in the previous quarter.

As previously announced, pursuant to an agreed plan amongst the JV shareholders,
Seagems distributes all excess cash to its JV shareholders. During Q3 2024, the
JV distributed $22 million to Paratus (Q2 2024: $14 million).

In September, Seagems received the 2024 Petrobras Best Supplier Award as the
best Pipelaying Company. This is the third time in seven editions that the
company receives this award.

(*) Figures reflect period between 2021-Q3 2024. Included in the $850 million
figure is VAT and the nominal value of $196 million unsecured notes issued by
the customer in lieu of cash settlement for an equivalent amount of outstanding
Fontis accounts receivables. During 2022, Fontis sold these notes for $186
million.

Webcast and Q&A Session

Paratus will host a presentation of the Q3 2024 results via an audio webcast
today at 15:00 CET. The presentation will be led by CEO Robert Jensen and CFO
Baton Haxhimehmedi. A Q&A session will follow the presentation, with
instructions on how to submit questions provided at the start of the session.

To join the webcast, please use the following link:
https://channel.royalcast.com/landingpage/paratus-energy/20241129_2/

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

· Q3 2024 Interim Results Report
· Q3 2024 Interim Results Presentation

An updated company presentation is also available at the Company's website
(www.paratus-energy.com).

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 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.

More information:
Access the news on Oslo Bors NewsWeb site

633469_Q3_2024_Interim_Results_Report.pdf
633469_Q3_2024_Interim_Results_Presentation.pdf