#Paratus Energy #Q3 Financials #Norway #Shareholder Returns #Oslo

Paratus Energy Services' Q3 2024 Results

Paratus Energy Services Ltd. (Oslo PLSV) has announced its operational and financial results for the third quarter of 2024, revealing a solid performance underscored by notable revenue growth and a commitment to delivering value to shareholders. The company reported total revenues hitting $110 million, with adjusted EBITDA amounting to $63 million. As of the end of the quarter, Paratus enjoyed a robust cash position with $165 million in cash deposits, balancing this against a net debt of $597 million.

Having initiated a quarterly cash distribution to shareholders beginning in the previous quarter, Paratus has reaffirmed this strategy by announcing an additional $0.22 per share cash distribution for Q3 2024. This decision reflects the board's confidence in the company’s steady financial health and commitment to returning a significant portion of its excess free cash to shareholders.

"Paratus is delivering on our commitment to return a majority of our excess free cash in the form of stable distributions to shareholders," stated Robert Jensen, CEO of Paratus. According to him, including this newly approved distribution, Paratus will have returned over 10% of its current market capitalization to shareholders since early September. This is seen as a strong endorsement of the company's effective operational strategies and disciplined financial management.

Key Highlights from Q3 2024 Results

• - Revenue: The reported revenue of $110 million included $8 million of previously unrecognized variable revenue from operations in Mexico.
• - EBITDA Performance: The company’s adjusted EBITDA totaled $63 million, showing resilience in operational performance and adherence to cost discipline. When adjusted for variable revenue from earlier periods, EBITDA was $54 million, remaining largely in line with the preceding quarter’s figure of $55 million.
• - Net Loss Ceremonies: Although a net loss of $15 million was reported, it was primarily attributed to a one-time, non-cash accounting charge of $35 million linked to the partial redemption of bonds, notably affecting the bottom line. Excluding this item, the company realized a net income of $20 million.
• - Cash and Debt Management: At the closure of the third quarter, Paratus showcased a healthy financial structure with $165 million in cash reserves and $597 million in net debt.

Segment Analysis

Fontis Division: The Fontis segment, which focuses on offshore drilling, reported total revenues of $63 million, a slight decline from $72 million in Q2 2024, impacted by an adjustment in the recognition of variable revenue. Operating expenses decreased to $23 million and adjusted EBITDA was reported at $39 million, down from $47 million in the prior quarter due to reduced variable revenue. Despite challenges, Fontis managed an average dayrate of $135.1 thousand and maintained high technical utilization at 99%.

Seagems Joint Venture: Paratus’ joint venture, Seagems, contributed $47 million in contract revenues, reflecting a decrease from $52 million in Q2 2024, with corresponding adjusted EBITDA reported at $25 million. A decline in average dayrate and technical utilization characterized this quarter for the venture.

Looking Ahead

CEO Robert Jensen will present the Q3 results via an audio webcast, facilitating direct engagement with stakeholders through a subsequent Q&A session. The leadership remains committed to providing transparency and thorough updates on the company's ongoing strategies and performance metrics.

This report highlights Paratus Energy Services' ability to navigate the complexities of the market while upholding a strong foundation for shareholder returns and ongoing operational advancements. With a clear strategy in place, Paratus appears well-positioned for continued growth and resilience amid fluctuating market conditions.