#Paratus Energy #Norway #Oslo #Fontis Energy #jack-up rigs

Paratus Energy Services' Q3 2025 Results

Summary

Paratus Energy Services Ltd. (Oslo: PLSV) has released its operational and financial results for the third quarter of 2025, showcasing a robust financial performance. The company reported combined segment revenues of $127 million for the quarter and an adjusted EBITDA of $78 million, reflecting a solid growth trend. It ended the quarter with $144 million in cash and a net debt of $659 million.

Highlights

The Board of Directors has approved a quarterly cash dividend of $0.22 per share, maintaining consistency with previous quarters. CEO Robert Jensen expressed pride in delivering another strong quarterly performance. He emphasized the successful monetization of the company's stake in Archer and the positive collections from clients in Mexico, indicating a favorable operational environment.

Performance Overview

• - Revenue Growth: Paratus experienced a remarkable 20% increase in revenues compared to the previous quarter, attributed to higher day rates and increased operational days at Seagems.
• - EBITDA Increase: Adjusted EBITDA jumped by 38%, a significant achievement driven by a combination of operational cost efficiencies and revenue recognition.
• - Monetization Strategy: The company has successfully sold its ~24% shareholding in Archer for $48 million, aligning with its strategy to streamline its business operations.
• - Cash Position: Ending the period with $144 million in cash demonstrates a strong liquidity position amidst its $659 million net debt.

Developments Post Q3

In the subsequent months, Fontis successfully collected $96 million from its client in Mexico, further indicating improved cash flow and financial health.

Financial Breakdown

• - Fontis Performance: Contract revenues from Fontis in Q3 2025 were reported at $54.8 million, reflecting a 25% rise quarter-over-quarter. Operating expenses were reduced to $19.5 million, improving overall profitability.
• - Joint Venture Success: The Seagems joint venture generated $72.6 million in contract revenues, an increase driven by higher utilization rates and day rates. The contract backlog remains strong at approximately $1.5 billion.

Market Insights

With early signs of demand recovery in the jack-up market, Paratus has noted increasing activities in key areas like Saudi Arabia and Mexico, bode well for its operational outlook. The Saudi government has indicated a recall of previously suspended rigs, which is a positive indicator for market conditions.

Strategic Initiatives

1. Focus on Collection Strategies: The company actively pursues its accounts receivable, with a strong commitment to recovering outstanding amounts. Recent government support initiatives in Mexico enhance confidence in collections.
2. Investment and Growth Plans: Paratus is assessing strategic alternatives for its jack-up business, looking to capitalize on the returning demand for rig services.
3. Monitoring Operational Efficiency: Achieving an average dayrate of $116 thousand and technical utilization rates close to 99% illustrates the operational efficiency across its fleet.

Conclusion

Paratus Energy Services' Q3 2025 results set a solid precedent for the remainder of the year. Their strategic focus on operational performance, along with strong financial metrics and a sound approach to shareholder value, positions the company for future growth. As the industry rebounds, Paratus remains committed to maximizing value for its stakeholders through prudent financial management and strategic growth initiatives.

Investors and stakeholders can access more details in the audio webcast held by the company, featuring insights from both the CEO and CFO. For continuous updates, follow Paratus as they navigate through changing market conditions and enhance their service offerings.