Paratus Energy Services Ltd. Launches $20 Million Share Buyback Program

Paratus Energy Services Ltd. (PLSV) has announced the launch of a $20 million share buyback program, marking the first step in deploying its previously announced share repurchase authorization of up to $100 million. The buyback program is expected to commence on February 28, 2025, and end no later than March 4, 2025, coinciding with the Q4 2024 earnings release.

The share buyback program is part of Paratus' strategy to maintain a strong balance sheet while providing shareholders with stable, long-term, and sustainable distributions. The company has a policy to return a majority of its excess free cash flow to shareholders in the form of distributions. The buyback program is an additional way for the company to return capital to shareholders, as it reduces the number of outstanding shares, which can increase earnings per share and potentially boost the stock price.

Paratus' strong cash position and receivable balance have contributed to the decision to initiate the share buyback program. The company received payments of $209 million in overdue invoices from its customer in Mexico, materially strengthening its cash position. As of February 2025, the Company had $277 million in cash, which equaled approximately 42% of its current market capitalization. Additionally, Fontis, a wholly-owned subsidiary, maintained a receivable balance with the customer of approximately $155 million, further boosting the Company's liquidity.

The two largest shareholders of Paratus, Hemen Investments Ltd. and Lodbrok Capital LLP, have informed the company that they do not intend to participate in the buyback program. This could potentially lead to an increase in the company's ownership by other shareholders, which could have implications for future shareholder voting and decision-making processes.

The company has engaged ABG Sundal Collier ASA to assist in connection with the buyback program. Shareholders who wish to participate will be invited to tender shares at a price level defined by the respective selling shareholder by contacting ABG Sundal Collier ASA. Further details and important information will be available in a separate announcement to be released upon commencement of the buyback.

Any additional future share repurchases, within the previously announced mandate to acquire shares for an amount of up to $100 million, will be announced separately. The buyback may be suspended or discontinued at any time, depending on market conditions and the company's financial situation.



In conclusion, Paratus Energy Services Ltd.'s share buyback program is a strategic move to maintain a strong balance sheet, create shareholder value, and effectively allocate capital. The program aligns with the company's long-term investment strategy and is expected to have a positive impact on its financial health and liquidity in both the short and long term.