#financial results #Paratus Energy #Norway #Oslo #Q4 2024

Paratus Energy Services Reports Strong Q4 2024 Results

Paratus Energy Services Ltd., listed under Oslo: PLSV, has recently unveiled its financial outcomes for the fourth quarter of 2024, showcasing remarkable performance indicators. This quarter brought in a total revenue of $109 million and an impressive adjusted EBITDA of $63 million. The company's financial health is reflected in its cash reserves, which stand at $99 million, alongside a net debt of $677 million as the year concluded.

The board of directors has declared a quarterly cash distribution of $0.22 per share, reinforcing Paratus’s commitment to delivering long-term value for its shareholders. Additionally, the company has initiated a $20 million share buyback plan, marking the first phase of a broader $100 million repurchase authorization announced prior.

CEO Robert Jensen emphasized 2024’s buoyant year for Paratus, stating, "We believe 2024 was a very strong year for Paratus and we will continue to build on this through 2025." As of now, all 11 assets operated by the company are under contract, with ten of those contracts extending through to 2026 and several even into 2028. The majority of the backlog is situated in the PLSV segment, indicating a robust market environment.

Key Highlights from Q4 and Full Year 2024

1. Transition to Full Independence
Paratus has successfully completed the transition away from Seadrill, establishing itself as an independent operational entity ready for future challenges.

2. Successful Bond Refinancing
The company completed a remarkable $500 million refinancing in the Nordic bond market, initially set at $300 million, signifying strong confidence from investors.

3. IPO and Uplisting
Paratus celebrated a successful IPO that raised $75 million, which was 11 times oversubscribed. Subsequently, it uplisted to the Euronext Oslo Børs in November 2024.

4. Strategic Investments
The company invested $12 million into a private placement of Archer Ltd. This strategic move is designed to enhance long-term cash returns during 2025, following scheduled shareholder distributions.

5. New Contracts Secured
The acquisition of $2.1 billion in new backlog was achieved by securing three-year contracts across all six vessels under the Seagems project, showcasing robust demand.

6. Fleet Utilization
Paratus reported an outstanding fleet utilization of approximately 99%, alongside financial outcomes that exceeded initial guidance for the year while maintaining expenses in check.

Looking back, the revenue and EBITDA increased by 5% and 8%, respectively, for the full year, closing at $452 million and $252 million. The year ended with $99 million cash reserves against $677 million in net debt.

Post-Q4 Developments

In early 2025, Paratus collected $209 million from a client in Mexico under a receivable monetization agreement, enhancing its liquidity. The company also reiterated its commitment to distribute $0.22 per share quarterly, consistent with previous distributions in quarters two and three of 2024. Furthermore, a 78-day contract extension has been signed for the vessel Oberon in Mexico post-Q4 2024.

Fontis and Seagems Joint Ventures

Fontis recorded revenues of $54 million, albeit slightly less than the previous quarter, and managed operating expenses effectively. Adjusted EBITDA stood at $28 million for Q4. Meanwhile, the Seagems joint venture reported $55 million in contract revenues, showcasing a rise in average dayrates driven by improved operational efficiency across its fleet.

Conclusion

The resilience and strategic foresight demonstrated by Paratus Energy Services Ltd. speak volumes about its capabilities to navigate and thrive in the complex energy services market. The company is set on a robust path not only to amplify its shareholder value but also to secure its competitive edge through innovative market strategies and sound financial management practices in the coming years.