Paratus Energy Services: A Strong Q4 2024 Performance and a Promising Outlook

Paratus Energy Services Ltd. (ticker: PLSV) ("Paratus" or the "Company") reported operational and financial results for the fourth quarter of 2024, highlighting a robust performance and a promising outlook for the future. The Company's strong financial position, coupled with its strategic initiatives, has positioned it well to continue generating attractive returns for shareholders.



Financial Highlights

* Revenue: $109 million, largely in-line with Q3 2024 ($110 million)
* Adjusted EBITDA: $63 million, the same level as Q3 2024
* Cash and cash equivalents: $99 million
* Net debt: $677 million

Key Developments

1. Transition from Seadrill: Paratus successfully completed the transition from Seadrill, establishing itself as a fully independent operational organization.
2. Refinancing: The Company successfully completed a $500 million refinancing in the Nordic bond market, upsized from the original size of $300 million.
3. IPO and Equity Raise: Paratus completed an IPO and raised $75 million in equity, followed by an uplisting to Euronext Oslo Børs in November 2024.
4. Investment in Archer: The Company invested $12 million (its pro-rata share) in a private placement of Archer to support a strategic acquisition transaction.
5. New Backlog in Seagems: Paratus added $2.1 billion of new backlog in Seagems by securing new 3-year contracts across all six vessels.
6. Fleet Utilization: The Company achieved fleet utilization of approximately 99%, surpassing initial full-year guidance.
7. Cash Distribution: Paratus declared a quarterly cash distribution of $0.22 per share for Q4 2024, in line with Q2 and Q3 2024.
8. Share Buyback: The Company initiated a $20 million share buyback program, marking the first deployment of the previously announced share repurchase authorization of up to $100 million.
9. Contract Extension: Paratus signed a 78-day contract extension for the Oberon in Mexico.

Outlook and Strategic Initiatives

Paratus' strong financial performance in Q4 2024, coupled with its strategic initiatives, has positioned the Company well for future growth. With all 11 assets on contract, of which 10 are contracted into 2026, and several contracted into 2028, Paratus is well-positioned to continue generating attractive returns for shareholders. The Company's flexible balance sheet and strong liquidity position will enable it to navigate potential market fluctuations and maintain its competitive edge.

In conclusion, Paratus Energy Services Ltd. has reported a strong Q4 2024 performance, demonstrating the Company's financial strength and commitment to creating long-term value for shareholders. With a promising outlook and strategic initiatives in place, Paratus is well-positioned to continue generating attractive returns for investors.