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Paratus Energy Services Reports Q2 2026 Results

Paratus Energy Services Ltd. has published its operational and financial results for the second quarter of 2026, achieving impressive revenue figures and reinforcing its position in the energy sector. The company reported $71 million in combined segment revenues, with an adjusted EBITDA of $42 million from continuing operations. Paratus ended the quarter with a robust cash balance of $148 million and a net debt of $282 million, reflecting a leverage ratio of 1.6x after considering the recent Fontis transaction.

Highlights of Q2 2026

The company marked several crucial accomplishments in this quarter:

• - Successfully completed the strategic sale of Fontis, which included its drilling operations and jack-up fleet.
• - Secured $250 million in a five-year bond issuance while redeeming the 2026 Notes.
• - Achieved approval for an Extended Dry-Docking program allowing five PLSVs to operate for up to 20 years, potentially reducing future capital expenditures while increasing revenue generation.
• - Recorded combined segment revenue and adjusted EBITDA figures of $71 million and $42 million, respectively.
• - The fleet maintained a technical utilization rate of 93%, despite operational incidents with Esmeralda and Jade, which have now been resolved and accounted for in previous financial guidance.

Financial Performance

During the quarter, the Seagems joint venture, in which Paratus holds a 50% interest, generated $71 million in contract revenues, a slight decrease from $74.9 million in the prior quarter. This reduction is attributed to the maintenance and operational incidents previously mentioned. Operating expenses rose to $20.9 million, compared to $19.5 million in Q1 2026, while general and administrative costs decreased marginally to $3.4 million from $3.9 million.

The adjusted EBITDA from the joint venture stood at $43.5 million, down from $48.1 million in the previous quarter, with technical utilization at 93%, compared to 98.3% recorded in Q1 2026. The backlog for contracts was estimated at approximately $1.1 billion, down from $1.2 billion in Q1 2026.

Significant Transaction and Future Outlook

The completion of the Fontis transaction on July 29, 2026, was a pivotal achievement for Paratus. The company received about $163 million in cash and a $237 million seller credit, which outlines a compelling financial future. The strategy focuses on reinvestment opportunities and debt repayment, showcasing Paratus's commitment to strengthening its financial foundation.

The Extended Dry-Docking program's approval will require fewer dry-docks across the vessels' life spans, leading to increased asset utilization and lower long-term maintenance costs. This initiative positions Paratus to maximize operational efficiency and profitability.

Additionally, earlier in 2026, Petrobras issued a tender for contracts set to commence in 2028, with Seagems actively participating. The vessels of interest are Jade and a third-party vessel which has secured exclusive access for potential contracts.

Conclusion

Moving ahead, Paratus Energy Services is poised for substantial growth, leveraging its strategic sales and strong financials. Currently, the company is evaluating potential uses for the Fontis transaction proceeds, signaling a future focused on expansion and value creation for stakeholders. Investors and industry watchers will be keenly observing how these developments unfold as Paratus strengthens its market position in the subsea services sector.

For a detailed discussion on its Q2 results, Paratus will be hosting an audio webcast led by CFO and Interim CEO Baton Haxhimehmedi. Interested parties can join the presentation using this link, followed by a Q&A session to address inquiries from the audience.