Paratus Energy Services (PLSV) Q2 2024 earnings summary

Executive summary

• Completed successful IPO on Euronext Growth Oslo, raising $75 million in gross proceeds through an oversubscribed share placement, enhancing liquidity and market presence.

• Issued a new $500 million, 5-year bond at 9.5% coupon, partially refinancing 2026 notes and extending most debt maturities to 2029.

• Delivered Q2 2024 revenue of $124 million and adjusted EBITDA of $70 million, reflecting strong operational performance and high technical utilization.

• Added $1.8 billion in new Seagems contract backlog via new three-year contracts, with $74 million in post-quarter extensions.

• Board authorized a $0.22 per share cash distribution and a $100 million share repurchase mandate.

Financial highlights

• Q2 2024 revenues reached $124 million, up from $109 million in Q1 2024.

• Adjusted EBITDA was $70 million, a 20%+ increase from $56 million in Q1.

• Net income for Q2 2024 was $34 million, with EPS of $0.22, up from $0.06 in Q1 2024.

• Ended Q2 with $232 million in cash and $483 million in net debt, both improved from year-end 2023.

• Operating cash flow was $54 million, driven by strong collections, including $90 million from Mexico.

Outlook and guidance

• Full-year 2024 contract revenues expected between $435 million and $475 million.

• Adjusted group EBITDA guidance raised to $220 million–$240 million.

• CapEx guidance lowered to $30 million–$45 million, with most deferral into next year and $20–$25 million for vessel upgrades.

• Intends to return majority of excess free cash flow to shareholders via distributions and buybacks.

• No significant new risks or uncertainties identified for H2 2024 beyond those previously disclosed.