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Paratus Energy Services Ltd. Reports Stellar Q1 2025 Results

On May 28, 2025, Paratus Energy Services Ltd. (traded under the ticker "PLSV") announced its operational and financial results for the first quarter of 2025, showcasing an impressive financial performance that signals robust growth and a strong commitment to shareholder value.

Key Highlights of Q1 2025

The company's financial metrics highlight a successful quarter:

• - Combined Segment Revenues: $103 million
• - Adjusted EBITDA: $58 million
• - Cash at End of Quarter: $176 million
• - Net Debt Balance: $551 million

Perhaps most notably, the Board of Directors has consistently advocated for shareholder returns, authorizing a quarterly cash distribution of $0.22 per share. This decision highlights Paratus's commitment to maintaining financial strength despite industry uncertainties.

Strong Operational Metrics

Paratus's operational performance in Q1 2025 reflects high efficiency:

• - The fleet achieved an exceptional technical utilization rate of 99%.
• - The company successfully collected $209 million in accounts receivable through a monetization agreement in Mexico, significantly improving liquidity.

In addition to strong cash flow, Paratus returned to the market to complete a $20 million share buyback program during the first quarter, demonstrating a disciplined approach to capital management. The company has also commenced a further $5 million open market share repurchase program.

Paratus CEO, Robert Jensen, stated, “We are pleased with our strong operational performance and disciplined capital management in the first quarter. With robust fleet utilization, a solid backlog, and continued shareholder distributions, we remain well-positioned to deliver long-term value.”

Analysis of Segment Performance

Fontis, a part of the Paratus Group, reported revenues of $47 million, marking a slight decline compared to the previous quarter. This decrease is attributed to reduced average dayrates and the completion of operations for the Titania rig. Despite this, Fontis reported an adjusted EBITDA of $27 million for the quarter, signalling a stable performance.

The average dayrate for Fontis stood at $125,000 per day, slightly down from $134,000 in Q4 2024. The company has maintained a high technical utilization rate of 99.7%.

In the Seagems joint venture, which Paratus holds a 50% stake in, revenues reached $56 million, showcasing a consistent performance driven by higher average dayrates. The current contract backlog is approximately $1.7 billion, indicating steady demand for services.

Strategic Developments and Future Outlook

Post-Q1 developments include a lucrative contract extension for the Oberon, while early termination notices were received for Courageous and Intrepid, both of which are subject to a 365-day notice period.

The company is optimistic about future dividends, expecting to receive $1.3 million from Archer Ltd after its recent dividend declaration of NOK 0.63 per share.

The upcoming webcast scheduled for today at 1500 CET is expected to provide further insights into these developments. Investors and interested parties can attend via the link provided in the press release.

As Paratus continues to navigate the complexities of the energy services sector, its robust financial position, high operational efficiency, and innovative strategies place it in a favorable position to capitalize on upcoming market opportunities.

Conclusion

The Q1 2025 results reflect Paratus Energy Services' unwavering commitment to delivering value to its shareholders while ensuring operational excellence. With a strong cash position and strategic initiatives, the company is poised to continue its upward trajectory in the competitive energy sector.

For more information, investors can contact:
Robert Jensen, CEO at [email protected]
Baton Haxhimehmedi, CFO at [email protected]