Paratus Energy Services Makes Strategic Move with Share Buyback Announcement

Paratus Energy Services Announces Share Buyback

Paratus Energy Services Ltd. (ticker "PLSV") made a formal announcement about its recent decision to buy back shares in a strategic effort to enhance corporate efficiency and shareholder value. This announcement follows the initial offer disclosed on February 28, 2025, regarding the buyback, which was facilitated by ABG Sundal Collier ASA as the manager of the process.

Key Details of the Buyback Offer

On March 4, 2025, the bookbuilding period for the share buyback closed, with Paratus deciding to purchase a total of 5.4 million shares at a price of NOK 41.5 each. This brings the total purchase price to approximately NOK 224.1 million, which is equivalent to about USD 20 million.

Following the closure of the bookbuilding, shareholders who contributed their shares to the buyback will receive notifications of the share allocation on March 5, 2025. The trade date is also set for the same day, with the settlement expected to occur around March 7, 2025. The settlement will follow a standard delivery-versus-payment (DVP) arrangement, which is a common practice in securities trading to ensure not only the timely transfer of shares but also the corresponding payment.

Implications for Shareholders

An important note for participating shareholders is that those who provide shares during the buyback will not qualify for the announced cash distribution of USD 0.22 per share, designated as a return of capital by Paratus. This distribution was outlined in the announcement made on February 28, prior to the ex-date. Therefore, those engaging with the buyback offering should take the cash distribution into account as it affects their overall returns and opportunities.

Upon the completion of this buyback, which anticipates that the company will finalize ownership of the 5.4 million shares, Paratus aims to not only consolidate its shareholdings but also reinforce its position as a major player in the energy sector. This action corresponds with their overarching goals of maintaining financial agility and strengthening shareholder beliefs in the company's long-term growth strategy.

About Paratus Energy Services

Paratus Energy Services Ltd. is recognized as an investment holding company that boasts a lineup of accomplished subsidiaries in the energy sector. Notably, it includes ownership stakes in Fontis Energy and Seagems. Fontis Energy operates within offshore drilling, commanding a fleet of high-specification jack-up rigs that are currently under contract in various projects in Mexico. On the other hand, Seagems specializes in subsea services, featuring a fleet of six multi-purpose pipe-laying support vessels engaged in important contracts in Brazil. Additionally, Paratus holds significant shares in Archer Ltd., a globally recognized oil services company with a presence on the Euronext Oslo Børs.

This progressive move by Paratus Energy Services reflects their dedication to enhancing shareholder value and their overall strategic growth in the competitive energy market. As stakeholders await further developments, including allocations and settlements, the company's proactive measures signal positive intentions for both present and future operations.

Conclusion

In essence, the announced buyback initiative is a calculated decision aimed at reinforcing the company’s financial health and increasing shareholder confidence.Buyback initiatives such as this are often utilized by firms to signal to the market that they believe their shares are undervalued and provide an excellent opportunity for investment. As the energy sector evolves, Paratus Energy Services is clearly poised to adapt and respond strategically to market dynamics, ensuring their legacy in the industry continues to thrive.

For further inquiries, interested parties can reach out to Robert Jensen, CEO, and Baton Haxhimehmedi, CFO, via their respective contact details provided in the initial announcement. As Paratus Energy Services continues on this trajectory, both investors and market analysts will keep a close watch on their actions, assessing the long-term impact of this buyback strategy on the company’s position in the energy sector.