#Financial Performance #Hamilton #Paratus Energy #Shareholder Return #Norway

Paratus Energy Services Ltd. Reports Q3 2024 Results

Paratus Energy Services Ltd., trading under the ticker Oslo: PLSV, has released its operational and financial results for the third quarter of 2024. The company reported significant achievements, with revenues reaching $110 million and an adjusted EBITDA of $63 million, showcasing its robust operational performance amidst ongoing market challenges.

As of the end of September 2024, Paratus maintains a strong liquidity position, holding $165 million in cash deposits and a net debt balance of $597 million. This financial strength enables Paratus to continue its commitment to shareholder value. In a significant move, the board of directors has approved a cash distribution of $0.22 per share for the third quarter, signaling confidence in the company’s ongoing profitability and operational efficiency.

Key Financial Highlights
During Q3 2024, the company achieved revenues of $110 million. Notably, this includes $8 million of variable revenue previously unrecognized in Mexico. The EBITDA of $63 million reflects effective cost management strategies implemented throughout the quarter. In contrast, the net loss reported was $15 million, primarily credited to a one-time, non-cash accounting expense related to a partial redemption of outstanding notes. However, excluding this exceptional item, Paratus generated a net income of $20 million, underlining its underlying operational profitability.

The third-quarter results build upon the successful inaugural cash distribution made to shareholders in the prior quarter, establishing a track record of stable distributions. CEO Robert Jensen emphasized, "Paratus is dedicated to returning a majority of our excess free cash to shareholders through reliable distributions. Since early September, we’ve returned over 10% of our current market cap to our shareholders, reinforcing our strong financial foundation and operational prowess this year."

Operational Updates
In terms of performance, the Fontis division recorded total revenues of $63 million, although lower than the $72 million achieved in the prior quarter. This decrease reflects a reduction in recognized variable revenue from previously unbilled services. Cost discipline was evident, with operating expenses declining from $24 million to $23 million. Notably, adjusted EBITDA for Fontis was $39 million, down from $47 million, with the company maintaining a healthy technical utilization rate of 99.0% for the quarter.

Asset Development and Future Outlook
Paratus has also secured an additional $32 million in contract backlog for its joint venture, Seagems, while rates for Esmeralda and Fontis increased by 4% due to market conditions. July saw the successful completion of a $12 million investment in Archer Ltd., supporting a strategic acquisition that is expected to enhance shareholder value further. Furthermore, Paratus proudly announced its successful uplisting to the Euronext Oslo Børs, expanding its visibility and access to new investors.

Webcast and Further Communication
To provide further transparency and insight, Paratus will host a presentation discussing these Q3 2024 results via an audio webcast, scheduled for 1500 CET today, led by CEO Robert Jensen and CFO Baton Haxhimehmedi. Interested stakeholders can join via the provided link, ensuring clear communication regarding the company’s direction and progress.

In summary, Paratus Energy Services has exhibited solid financial results for Q3 2024, with significant revenues and commitments to returning cash to shareholders. Their proactive strategies in cash management, along with operational efficiency, continue to position them as a solid competitor in the energy sector, demonstrating resilience in navigating challenges while pursuing growth opportunities.