Paratus Energy Services Ltd. Announces Sale of its Jack-up Business
HAMILTON, Bermuda, March 23, 2026 /PRNewswire/ -- 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:
- USD 148 million cash payable to Paratus at closing,
- 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
- 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
[email protected]
+47 958 26 729
Baton Haxhimehmedi, CFO
[email protected]
+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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SOURCE Paratus Energy Services Ltd
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