Paratus Reports Q2 2025 Results

USA - English

• USA - English

HAMILTON, Bermuda, Aug. 26, 2025 /PRNewswire/ -- Paratus Energy Services Ltd. (ticker "PLSV") ("Paratus" or the "Company") today reported operational and financial results for the second quarter of 2025, highlighted by $107 million in combined segment revenues and $57 million in adjusted EBITDA. The Company and its consolidated subsidiaries and ownership in Joint Ventures (the "Group") ended the quarter with $93 million in cash and a net debt balance of $631 million.

Paratus is pleased to announce that its Board of Directors (the "Board") has authorized a quarterly cash distribution of $0.22 per share for Q2 2025, consistent with prior quarters. During the quarter, Paratus also repurchased own shares for approximately $4.8 million under its current share repurchase program, with approximately $75 million remaining capacity.

"We are pleased to report another solid quarter highlighted by strong operational performance and consistent shareholder distributions," said Robert Jensen, CEO of Paratus. "The government support plan introduced in Mexico provides positive signals and strengthen our confidence in the outlook. We look forward to building on this momentum to maximize long-term value for our shareholders."

Q2 2025 highlights and post quarter-end developments

• Maintained strong operational performance with fleet technical utilization of approximately 98%.
• Generated $107 million in combined segment revenues and $57 million in adjusted EBITDA.
• Repurchased own shares for approximately $4.8 million; with approximately $75 million remaining capacity under the current repurchase authorization.
• Received first-time dividend from Archer of $1.3 million; an additional $1.3 million has been declared for Q2 2025.
• Ended the quarter with $93 million in Group cash and $631 million in net debt.
• Post Q2, declared a $0.22 per share quarterly dividend for Q2 2025, consistent with previous quarters.
• In August, Fontis received first payment from its client in Mexico since Q1 2025.

Fontis
Fontis recorded $43.8 million in contract revenues, compared to $46.6 million in Q1 2025. The revenue decline primarily reflected no operations on Titania FE during the quarter, lower average dayrates due to market indexation and UWILD survey on Intrepid, partly offset by the absence of rig suspensions during the quarter.

Operating expenses (Opex) totalled $25.6 million (Q1 2025: $18.3 million) and general and administrative expenses (G&A) totalled $0.4 million (Q1 2025: $1 million). The increase in Opex reflects Titania FE rig relocation costs at the end of its campaign (primarily tugboat and fuel expenses) partially offset by lower overall operational activity. The rig has subsequently been re-imported to Mexico. Additionally, Q1 2025 Opex benefited from favorable changes in accrual estimates. Adjusted EBITDA for Q2 2025 was $17.8 million (Q1 2025: $27.4 million).

During Q2 2025, Fontis achieved an average dayrate of $116 thousand per day (Q1 2025: $125 thousand per day) and maintained a strong technical utilization of 99.2% (Q1 2025: 99.7%). Fontis contract backlog at quarter-end was approximately $98 million (Q1 2025: approximately $139 million).

The successful collection of $209 million in overdue receivables from Fontis' client in Mexico during Q1 2025 marked a significant milestone. This transaction materially improved the Company's liquidity position and demonstrated that alternative avenues exist for monetizing receivables beyond the traditional collection process.

As of the end of Q2 2025, the notional value of accounts receivable increased to $232 million, up from $185 million at the end of Q1 2025. No payments were received during the quarter, in line with broader trends observed among other service providers operating in Mexico with this client. In early August 2025, the Mexican government publicly introduced a comprehensive financial support plan with the aim to make Fontis' client financially self-sufficient by 2027. Key elements of the plan include the settlement of overdue supplier payments, debt reduction initiatives, and a long-term increase in national oil production from approximately 1.6 to 1.8 million barrels per day. As part of this initiative, approximately $25 billion in new government guaranteed funding has reportedly been secured, including proceeds partially earmarked for capital expenditures and supplier debt settlements. In August, Fontis received a modest payment from its client.

The Company also notes that the client has announced intentions to align its payment practices with international standards going forward in order to reduce processing delays. However, it has been acknowledged that delays may continue to persist in the near to medium term. The Company remains actively engaged 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.

Of the Company's fleet of five jack-up rigs, all are currently contracted through Q1 2026, with the exception of Titania FE. The Company remains confident in the long-term demand for its rigs and anticipates that increased drilling activity in Mexico will be necessary to support its client's production targets, as recently reaffirmed by the Mexican government. The Company also expects more active contract discussions to take place in the second half of this year for the broader Fontis fleet. While Fontis remains focused on maintaining and strengthening its long-standing relationship with its client, it also continues to monitor broader market developments and is selectively evaluating and engaging tender opportunities both within and outside the region.

Seagems Joint Venture
Paratus' 50% share in the Seagems JV contributed $62.7 million in contract revenues, compared to $56.2 million in Q1 2025. The revenue increase was primarily driven by higher average dayrates from the newly started contracts with Petrobras partly offset by off-hire days as part of acceptance testing for the new contracts.

Reported Opex was $15.4 million for the quarter (Q1 2025: $17.8 million), while G&A was $3.7 million (Q1 2025: $2.9 million). Adjusted EBITDA for the quarter was $40.6 million, up from $32.5 million in Q1 2025. Q2 2025 EBITDA was positively impacted by stronger revenues in the quarter, reimbursement of an insurance claim for Esmeralda and other changes in accounting provisions. 

The JV achieved an average dayrate of $255 thousand per day (Q1 2025: $212 thousand per day) and maintained a strong technical utilization of 97.8% (Q1 2025: 98.4%). The JV contract backlog at quarter-end was approximately $1.6 billion (Q1 2025: approximately $1.7 billion).

During the first half of 2025, the JV provided cash distribution of $33.1 million to Paratus (H1 2024: $37.6 million). As previously reported in Q1 2025, distributions from Seagems are expected to increase in the second half of the year, consistent with the JV's cash flow profile and the scheduled timing of capital expenditures and other payments. Subsequent Q2 2025, the Company received $45 million of total cash distributions from Seagems for July and August 2025.

Following Q2 2025, the JV secured an aggregate $60 million in additional capital expenditures financing from local Brazilian banks with amortization scheduled over 3 years starting in 2026.

Webcast and Q&A Session
Paratus will host a presentation of the Q2 and first half-year 2025 results via an audio webcast today at 15:00 CET. The presentation will be led by CEO Robert Jensen and CFO Baton Haxhimehmedi.

To join the webcast, please use the following link:
https://paratusenergy.engagestream.companywebcast.com/q2-2025-earnings-call

A Q&A session will follow the presentation, with instructions on how to submit questions provided at the start of the session.

For further information, please contact:
Robert Jensen, CEO
[email protected] 
+47 958 26 729

Baton Haxhimehmedi, CFO
[email protected] 
+47 406 39 083

This information is subject to the disclosure requirements pursuant to section 5-12 the Norwegian Securities Trading Act.

Attachments

• Q2 2025 Interim Results Report
• Q2 2025 Interim Results Presentation

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. 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.

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