Paratus Energy Services Boosts 2024 EBITDA Guidance Amid Operational Updates in Mexico

In a recent announcement, Paratus Energy Services Ltd., listed on Oslo Stock Exchange under the ticker PLSV, disclosed an upward adjustment to its earnings guidance for the full year 2024. This change reflects the company's strong operational execution thus far and its commitment to providing comprehensive updates on its activities, particularly in Mexico, where it operates through its subsidiary Fontis Holdings Ltd..

Updated Financial Guidance

Paratus has increased its projected EBITDA (earnings before interest, taxes, depreciation, and amortization) for 2024 to a range of $250-260 million, marking a $25 million increase from the previous estimate of $220-240 million. This new forecast indicates the company’s robust performance and optimistic outlook, which will be further elaborated in the upcoming quarterly earnings call scheduled for November 29, 2024.

Operational Insight in Mexico

Moreover, the company provided insight into its rig operations in Mexico. Paratus has recently received communication regarding a potential temporary reduction of rig activities in the region. Specifically, the client has informed Fontis that the Courageous rig will cease operations temporarily for 45 days due to delays related to preparatory activities at its next operational site. Although this pause means no revenue will be recorded during this interval, it is noteworthy that any deferred operational days will extend the contract duration, allowing for continued customer alignment amidst changing operational needs.

The estimated impact on EBITDA from this temporary halt is projected to be around $3 million, a figure that Paratus has already factored into its financial projections. The company emphasizes its proactive approach, having structured its contracts to accommodate flexibility, enabling clients to manage their operations smoothly even in challenging circumstances.

Client Relationship and Future Outlook

Paratus Energy Services has maintained a strong partnership with its client for over ten years, demonstrating a commitment to supporting them through various operational phases. The company's focus remains on fostering this long-term relationship, ensuring not just financial success but also operational efficiency and satisfaction for all stakeholders involved.

As the industry navigates fluctuating market conditions, Paratus is reaffirming its strategy to remain responsive to client needs while ensuring robust operational frameworks and financial stability. This proactive management is expected to sustain the company's positive trajectory in the energy sector.

In conclusion, following the recent adjustments to earnings guidance alongside notable operational updates, Paratus Energy Services is positioned to face upcoming challenges with resilience, ready to adapt and thrive in the evolving marketplace of energy services.

For further inquiries regarding this announcement, Baton Haxhimehmedi, CFO of Paratus, is available for contact via email or phone. This announcement contains material information in accordance with the EU Market Abuse Regulation and is subject to the requirements of the Norwegian Securities Trading Act.