Paratus Energy Services Enhances 2024 Earnings Forecast and Highlights Mexican Operations

Paratus Energy Services Ltd., listed on the Oslo Stock Exchange under the ticker PLSV, has made a significant announcement regarding its financial outlook and operational activities. On November 26, 2024, the company revealed an increase in its earnings guidance for the 2024 fiscal year, specifically for its EBITDA, raising the forecast to a range of $250 to $260 million. This represents a noteworthy adjustment of $25 million above the previous projection of $220 to $240 million.

This upward revision underscores the company's robust operational performance through the current year, indicating that Paratus has effectively executed its strategies, particularly in its rig operations in Mexico. The announcement comes ahead of the scheduled quarterly earnings call on November 29, 2024, where further insights and detailed explanations are expected.

In addition to the earnings guidance, Paratus addressed recent developments concerning potential temporary adjustments to its rig activities in Mexico. The company's operations in this region are managed through its wholly-owned subsidiary, Fontis Holdings Ltd., which has been instrumental in offering flexibility to its clients amidst varying operational dynamics.

Specifically, reports indicated that the Courageous rig would temporarily halt operations for a 45-day period due to delays experienced by a client in preparatory activities for the next operational phase. Paratus noted that under the contracts established with Fontis' clients, it is permissible to pause activities without generating revenue for these 45 days. However, any deferred operational days are set to extend the contract duration correspondingly.

The expected financial impact of this brief suspension is projected to result in an EBITDA reduction of around $3 million by the end of the defined contract period. Recognizing the context of this development, Paratus has strategically structured its contracts to accommodate such circumstances, enhancing efficiency for its clients while maintaining a focus on fostering long-lasting relationships.

Moreover, the company has taken note of public statements made by clients regarding their future operational plans and their commitments to suppliers, reflecting a collaborative approach in managing expectations and delivering service.

As a responsible player in the energy sector, Paratus remains committed to adapting to the demands of its operations while providing seamless support to its partners. The revisions made to the 2024 earnings forecast exhibit a strong alignment with the company's mission to enhance value for stakeholders and uphold its market position.

This announcement includes information classified as inside information under the EU Market Abuse Regulation and complies with disclosure requirements under Section 5-12 of the Norwegian Securities Trading Act. The statement was made public by Baton Haxhimehmedi, CFO of Paratus, who is available for further inquiries.

In conclusion, Paratus Energy Services Ltd. is poised for a promising year ahead, driven by strategic enhancements and a proactive approach to operational adjustments in the dynamic energy landscape. Stakeholders are encouraged to stay tuned for upcoming communications, particularly during the quarterly earnings call that will offer deeper insights into the company’s performance and future trajectory.