Paratus Energy Services Launches $20 Million Share Buyback Program
Paratus Energy Services Ltd. (Oslo: PLSV) has announced its plans to launch a significant share buyback program, aimed at repurchasing shares worth approximately $20 million. This initiative is set to begin on February 28, 2025, and will conclude no later than March 4, 2025. This strategic move follows positive financial developments for Paratus, particularly concerning its subsidiary Fontis Holdings Ltd. The announcement comes after Fontis successfully collected $209 million in overdue payments from its clients in Mexico, greatly enhancing the company's cash reserves.
As of now, Paratus maintains a healthy cash position of $277 million, which represents around 42% of the company's current market capitalization. Additionally, Fontis continues to hold receivables of approximately $155 million from its customer, making up two-thirds of Paratus's overall market cap when combined with the available cash. The company's leadership emphasizes a commitment to maintaining a robust balance sheet, which is vital for supporting operational priorities and providing shareholders with stable and sustainable returns over the long term.
The shareholder buyback process will kick off coinciding with the release of Paratus's Q4 2024 earnings, scheduled for the same day. The company has enlisted the expertise of ABG Sundal Collier ASA to facilitate the buyback process. Shareholders interested in participating will be invited to tender their shares, with the price being set according to each selling shareholder's preference.
Going forward, Paratus has established a mandate allowing for the repurchase of shares up to a total of $100 million over time. This flexibility means additional buyback announcements could follow, though any future repurchases may be paused or canceled at the company's discretion. It is important to note that Paratus's two largest shareholders, Hemen Investments Ltd. and Lodbrok Capital LLP, representing funds they manage, have indicated they will not participate in this share buyback program.
In summary, the initiation of the $20 million share buyback program marks a decisive step for Paratus Energy Services Ltd. in reinforcing its capital management approach. With solid cash dynamics stemming from successful recoveries from clients, the company positions itself not only to strengthen shareholder value but also to maintain operational viability in a competitive energy service market.
For further inquiries or information about the buyback structure, interested parties can reach out to Robert Jensen, the CEO, or Baton Haxhimehmedi, CFO, via the contacts provided in the official announcement. As Paratus continues to navigate the complexities of the energy sector landscape, this buyback initiative serves as a clear signal of its financial health and commitment to returning value to its shareholders.
As of now, Paratus maintains a healthy cash position of $277 million, which represents around 42% of the company's current market capitalization. Additionally, Fontis continues to hold receivables of approximately $155 million from its customer, making up two-thirds of Paratus's overall market cap when combined with the available cash. The company's leadership emphasizes a commitment to maintaining a robust balance sheet, which is vital for supporting operational priorities and providing shareholders with stable and sustainable returns over the long term.
The shareholder buyback process will kick off coinciding with the release of Paratus's Q4 2024 earnings, scheduled for the same day. The company has enlisted the expertise of ABG Sundal Collier ASA to facilitate the buyback process. Shareholders interested in participating will be invited to tender their shares, with the price being set according to each selling shareholder's preference.
Going forward, Paratus has established a mandate allowing for the repurchase of shares up to a total of $100 million over time. This flexibility means additional buyback announcements could follow, though any future repurchases may be paused or canceled at the company's discretion. It is important to note that Paratus's two largest shareholders, Hemen Investments Ltd. and Lodbrok Capital LLP, representing funds they manage, have indicated they will not participate in this share buyback program.
In summary, the initiation of the $20 million share buyback program marks a decisive step for Paratus Energy Services Ltd. in reinforcing its capital management approach. With solid cash dynamics stemming from successful recoveries from clients, the company positions itself not only to strengthen shareholder value but also to maintain operational viability in a competitive energy service market.
For further inquiries or information about the buyback structure, interested parties can reach out to Robert Jensen, the CEO, or Baton Haxhimehmedi, CFO, via the contacts provided in the official announcement. As Paratus continues to navigate the complexities of the energy sector landscape, this buyback initiative serves as a clear signal of its financial health and commitment to returning value to its shareholders.
Topics Financial Services & Investing）
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