Paratus Energy Services Ltd. Announces Sale of its Jack-up Business

23 Mar 2026 22:48 CET

Hamilton, Bermuda, March 23, 2026 - Paratus Energy Services Ltd. (ticker PLSV)
("Paratus" or the "Company") today announces that it, together with its indirect
subsidiary Fontis Finance Ltd. ("Fontis Finance") has entered into agreements
with Borr Drilling Limited ("Borr") and Proyectos Globales de Energía y
Servicios CME, S.A. de C.V ("CME" and jointly with Borr, the "Purchasers") to
sell Fontis' drilling operations and jack-up fleet (the "Transaction"). The
Transaction is structured through two inter-conditional transactions, whereby
CME will acquire the Fontis Mexican operations for cash consideration, while CME
and Borr through a jointly owned acquisition vehicle will acquire Fontis'
Singaporean rig owning entities for a combination of cash and seller's credit.

The next phase for Fontis

From Paratus becoming the owner of Fontis in 2022, and up until closing of the
Transaction, Paratus will have overseen the distribution of approximately USD
760 million of asset value from Fontis to stakeholders, of which USD 219 million
was distributed to creditors in 2022 and 2023 and approximately USD 541 million
will have been distributed to Paratus (including the consideration to be
received under the Transaction). During its ownership of Fontis, Paratus has
overseen Fontis' separation from Seadrill, organizational build-up, a full
repayment of Fontis' external financial debt and significant progress on
collecting outstanding receivables. Building on this progress, Paratus is of the
view that Fontis' assets from this point would benefit from being part of a
larger platform in the jack-up industry to compete most effectively. Paratus
believes that Borr and CME represent a strong industrial home for Fontis'
assets, with an established presence in Mexico and international access.

Paratus would like to thank Fontis and its employees for their dedication and
contributions and wish them continued success under the ownership of Borr and
CME.

Strategic rationale

The divestment of Fontis represents another step for Paratus towards enhanced
strategic and financial flexibility, in continuation of the Company's divestment
of its holdings in Archer during Q3 2025. The Transaction will significantly
improve the operational risk profile by reducing exposure to payment
irregularities, potential contract suspensions and re-contracting uncertainty in
Mexico. As the world's only pure play PLSV business of scale, the Company will
at closing be backed by a fully contracted fleet which today has multi-year
contracts in a resilient and infrastructure-linked segment, providing enhanced
long-term earnings visibility. Moreover, the Transaction supports the objective
of stable shareholder distributions, and Paratus has confidence in a credible
path to sustaining the current dividend level long term. Finally, the divestment
is expected to result in a substantial reduction in net leverage, further
strengthening the Company's financial flexibility.

Transaction details

After having distributed USD 74 million from Fontis to Paratus since the start
of Q4 2025, the Transaction entails a price for Fontis of USD 400 million. The
purchase price consists of:

a. USD 148 million cash payable to Paratus at closing,
b. USD 15 million in a deferred consideration, payable upon aggregate payments
receipt by Fontis of USD 60 million (excl. VAT) after 1 December 2025 (which is
expected to be paid at closing of the Transaction as approximately USD 45
million (excl. VAT) of this has already been collected), and
c. a 2.5-years USD 237 million non-recourse seller's credit to be issued at
closing (the "Seller's Credit"), which will be secured by a first lien security
over all rigs and carry an interest of 10% (first 12 months), 12% (months 13-18)
and 14% (final 12 months), in a ringfenced structure to protect the value of the
collateral.

Closing conditions

The Transaction is subject to customary closing conditions, including requisite
consent from its 2029 bondholders and competition clearance in Mexico. The
Company intends to seek consent from bondholders in due course, and the
Transaction is considered to represent a materially positive event for the
Company's creditors. Subject to timely satisfaction of the conditions, closing
is expected to be completed during H2 2026. The Transaction is subject to a long
stop date of 6 months from the date of signing, which is extendable by up to 60
days in increments of 30 days subject to certain terms and conditions.

Management commentary

"Today's announcement marks a significant milestone in Paratus' strategic
evolution," said Robert Jensen, CEO of Paratus. "Since 2022, we have
successfully transformed Fontis into a strong, debt-free platform and
crystallized more than USD 760 million for our stakeholders. With this
transaction, we take a decisive step toward becoming a leading pure-play PLSV
company of scale. Supported by a fully contracted fleet, strong cash flow
visibility and a flexible balance sheet, we are well positioned to deliver
sustainable shareholder distributions while actively pursuing attractive growth
opportunities."

"This transaction reflects the continued delivery on the strategic direction set
at the outset of the formation of Paratus in 2022, to create and deliver
positive returns to our shareholders" said Mei Mei Chow, Chairperson of Paratus.
"With two successful divestments completed, the Company has taken important
steps toward becoming a simpler, more focused business with a stronger financial
foundation. The Board is very pleased with the progress achieved and will
continue to steer the company in building and realising value for shareholders."

Investor call and presentation

Further details are included in the presentation attached to this announcement
and available on the Company's website. An investor update call has been
scheduled for 24 March at 15:00 CET. To participate in the call, please use the
following link to register and access the live presentation:

https://paratusenergy.engagestream.euronext.com/2026-03-24-paratus

Advisors

Advokatfirmaet Schjødt AS is acting as legal advisor to Paratus in connection
with the Transaction.

Legal

This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and was published by Baton Haxhimehmedi, CFO of the
Company, on the date and time provided herein.

For additional 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 in Mexico. Seagems is a leading subsea services
company, with a fleet of six multi-purpose pipe-laying support vessels in
Brazil.

Important notice

This announcement is not and does not form a part of any offer to sell, or a
solicitation of an offer to purchase, any securities in the Company. Matters
discussed in this announcement may constitute forward-looking statements.
Forward-looking statements are statements that are not historical facts and may
be identified by words such as "believe", "expect", "anticipate", "strategy",
"intends", "estimate", "will", "may", "continue", "should" and similar
expressions. Any forward-looking statements in this release are based upon
various assumptions, many of which are based, in turn, upon further assumptions.
Such assumptions are inherently subject to significant known and unknown risks,
uncertainties, contingencies and other important factors which are difficult or
impossible to predict. Such risks, uncertainties, contingencies and other
important factors could cause actual events to differ materially from the
expectations expressed or implied in this release by such forward-looking
statements. The Company does not make any guarantee that the assumptions
underlying any forward-looking statements in this announcement are free from
errors nor does it accept any responsibility for the future accuracy of the
opinions expressed in this announcement or any obligation to update or revise
the statements in this announcement to reflect subsequent events. You should not
place undue reliance on any forward-looking statements in this announcement. The
information, opinions and forward-looking statements contained in this
announcement speak only as at its date, and are subject to change without
notice. The Company does not undertake any obligation to review, update,
confirm, or to release publicly any revisions to any forward-looking statements
to reflect events that occur or circumstances that arise in relation to the
content of this announcement. This announcement is for information purposes only
and is not to be relied upon in substitution for the exercise of independent
judgment. It is not intended as investment advice and under no circumstances is
it to be used or considered as an offer to sell, or a solicitation of an offer
to buy any securities or a recommendation to buy or sell any securities of the
Company. The distribution of this announcement and other information may be
restricted by law in certain jurisdictions. Persons into whose possession this
announcement or such other information should come are required to inform
themselves about and to observe any such restrictions.

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669129_Paratus_Energy_Sale_of_Jack_up_Business.pdf