Paratus Energy Services (PLSV) Q2 2026 earnings summary

Executive summary

• Completed strategic sale of Fontis' drilling operations and jackup fleet for $400 million, receiving $163 million in cash and $237 million in seller credit, transforming into a pure-play PLSV company and enhancing financial flexibility.

• Issued $250 million in five-year senior secured bonds at 8.125% coupon, redeeming 2026 Notes and improving maturity profile.

• Declared Q2 2026 dividend of $0.22 per share, maintaining consistent quarterly payouts since IPO.

Financial highlights

• Q2 2026 revenue was $71 million and adjusted EBITDA was $41.5 million, both down sequentially due to maintenance, but H1 2026 revenue rose 23% year-over-year to $146 million with EBITDA at $87 million.

• Net income from continuing operations for H1 2026 was $28 million, up from $3 million in H1 2025.

• Free cash flow for H1 2026 was $35 million, compared to -$1 million in H1 2025.

• Q2 ended with $148 million in cash and pro forma net debt of $282 million post-Fontis transaction.

Outlook and guidance

• Expectation of contract extension for Jade PLSV with Petrobras, and new tenders for PLSVs likely during 2027 for contracts rolling off in 2028.

• Guidance for Seagems distributions in 2026 expected to be similar to last year; financial guidance for revenue, EBITDA, and CapEx reiterated.

• Enhanced economics for five PLSVs through EDD approval up to 20 years, reducing future capex and supporting higher revenue generation.