#Bermuda #Hamilton #Paratus Energy #Borr Drilling #Jack-up operations

Paratus Energy Services Sells Jack-up Business

On March 23, 2026, Paratus Energy Services Ltd. (PLSV), headquartered in Bermuda, made headlines with the announcement of a significant divestiture involving its jack-up drilling operations. Together with its subsidiary, Fontis Finance Ltd., Paratus has entered into agreements with Borr Drilling Limited and Proyectos Globales de Energía y Servicios CME, S.A. de C.V. The transaction marks a pivotal moment in Paratus's evolution, allowing the company to focus on its core operations while enhancing its financial and strategic flexibility.

Transaction Overview

The agreement, structured as two inter-conditional transactions, will see CME acquiring Fontis' operations in Mexico for a cash payment, while Borr Drilling will manage a joint acquisition of Fontis' Singaporean assets through a newly formed venture. The deal is valued at a substantial $400 million, split among immediate cash considerations and deferred payments.

Financial Insights

Since taking ownership of Fontis in 2022, Paratus has successfully distributed approximately $760 million in asset value to stakeholders, signaling robust financial health. The company aims to utilize proceeds from the sale to boost its position as a leading player in the PLSV sector, supported by a fully contracted fleet and strong cash flow visibility.

Strategic Rationale for the Sale

According to Andrew Jensen, CEO of Paratus, this strategic move is designed to enhance operational risk profiles by reducing exposure to uncertainties in Mexico’s drilling contracts and payments. The divestment aligns with Paratus's broader strategy to simplify its business model while ensuring sustained shareholder returns.

The decision to divest came on the heels of Paratus’s earlier divestments, reflecting the management's commitment to streamlining operations. The sale, Jensen noted, not only positions Paratus for improved performance but also creates a pathway for pursuing additional growth opportunities in the energy sector.

Closing and Conditions

The transaction remains subject to customary closing conditions including approval from 2029 bondholders and competition clearance from regulatory bodies in Mexico. Paratus anticipates that, should all conditions be satisfactorily met, the closure of this transaction may occur in the second half of 2026, paving the way for what the company believes to be a materially positive future.

In making this move, Paratus Energy acknowledges the vital contributions made by Fontis and expresses appreciation to its employees, hoping for their continued success under new ownership.

Investor Relations and Future Outlook

An investor update call is scheduled for March 24, 2026, at 15:00 CET, to discuss further details surrounding the transaction. Paratus aims to engage with stakeholders to elucidate how this strategies will facilitate sustainable dividend levels and future growth.

With this transaction, Paratus Energy Services signals not just a shift in ownership but a significant strategic pivot intended to reflect its dedication to operational efficiency and financial strength. As the energy market evolves, Paratus is set to redefine its goals, emphasizing stability while navigating new avenues in the expansive energy landscape.

Conclusion

Ultimately, the sale of Fontis’ jack-up operations represents more than a transaction; it is a calculated step towards cementing Paratus Energy Services Ltd’s role in the competitive energy sector. With leadership focusing on financial health and stakeholder value, the company's future appears primed for sustainable growth and innovation in a rapidly changing market environment.