#USA #Hamilton #Paratus Energy Services #Fontis Energy #Seagems

Overview of Q2 2025 Results

Paratus Energy Services Ltd. (Ticker: PLSV) has published its operational and financial outcomes for the second quarter of 2025. The company reported total segment revenues amounting to $107 million alongside an adjusted EBITDA of $57 million. As of the end of the quarter, Paratus held $93 million in cash and carried a net debt of $631 million, illustrating a strong liquidity position.

In a move reflecting stability and commitment to shareholders, the Board of Directors has sanctioned a quarterly cash dividend of $0.22 per share, maintaining consistency with previous distributions. Furthermore, during the quarter, Paratus executed a share buyback program, repurchasing shares worth approximately $4.8 million, with an outstanding capacity of about $75 million.

Operational Highlights

Robert Jensen, the CEO of Paratus, expressed satisfaction with the quarter's performance, highlighting the positive impact of government support initiatives introduced in Mexico. This optimism sets the stage for enhancing long-term value for investors.

Key operational insights from Q2 include:

• - Strong Utilization Rates: The fleet maintained a technical utilization rate of 98%.
• - Revenue Breakdown: The $107 million revenue encompasses performance across all segments.
• - Fontis Performance: Fontis Energy, a subsidiary, recorded $43.8 million in contract revenues, down from $46.6 million in the first quarter. The decrease was attributed to lower average day rates and operational halts.

Financial Performance

Operating expenses for Fontis reached $25.6 million, which indicates an increase compared to $18.3 million in Q1 2025. The general and administrative costs were contained at $0.4 million. In terms of adjusted EBITDA, the number fell to $17.8 million, down from $27.4 million, as operational dynamics shifted amidst a lower activity level.

Moreover, Fontis has successfully collected $209 million in overdue receivables from a Mexican client, bolstering its cash flow framework and ameliorating liquidity concerns.

Strategic Developments

In August, Fontis received its first payment since Q1 2025 from its client in Mexico, supporting ongoing financial stability. The Mexican government has proposed a vast financial support strategy intended to foster future self-sufficiency among energy clients, with initiatives focused on overdue supplier payments, debt reduction, and enhancing crude oil production capacity.

Paratus asserts that as all five of its jack-up rigs remain contracted until Q1 2026, except the Titania FE, the anticipated demand in Mexico's drilling sector aligns with the Mexican government's recent production affirmations. Active contract negotiations are expected to gain pace in the second half of the year.

Seagems Joint Venture Success

In conjunction with its operational portfolio, Paratus's joint venture, Seagems, reported an increase in contract revenue to $62.7 million, bolstered by new contracts with Petrobras, despite some downtime due to testing. The venture's adjusted EBITDA soared to $40.6 million, showcasing improved efficiency.

The cash distributions from Seagems reached $33.1 million during the first half of 2025, slightly lower than the previous year. Notably, subsequent distributions are expected to rise, reflecting the cash flow profile aligned with capital expenditures.

Future Outlook

Looking ahead, Paratus remains focused on nurturing relationships with clients while keeping a vigilant watch on market trends. The strategic goals are set to maximize efficiencies, address operational costs, and actively pursue opportunities both within and beyond the current geographical scope. The Q2 2025 earnings call set for later today will elucidate these elements further, offering stakeholders an opportunity to engage directly with leadership on pressing inquiries.