Paratus Energy Services (PLSV) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformative year, finalizing independence from Seadrill, completing a $500M refinancing, and listing on the Oslo Stock Exchange main list after an IPO on Euronext Growth Oslo.

• Achieved 99% fleet utilization, with revenues of $452M (up 5% year-over-year), EBITDA of $252M (up 8%), and net income of $32M, reversing a $23M loss in 2023.

• Initiated a shareholder return program with $0.22/share quarterly dividends, a $20M share buyback, and $74M total distributions in 2024.

• Strategic $12M investment in Archer Limited and successful monetization of $209M in Mexican receivables significantly strengthened liquidity.

• Completed a $75M equity raise (11x oversubscribed) and maintained a flexible capital structure.

Financial highlights

• Q4 2024 revenues were $109M, flat sequentially; adjusted EBITDA was $63M, also flat from Q3.

• Full-year 2024 revenues reached $452M; EBITDA grew to $252M; net income after tax was $32M.

• Operating income increased to $167M from $101M in 2023, driven by higher revenues and JV income.

• Ended 2024 with $99M in cash and $677M in net debt; pro forma for receivables monetization, cash was $294M and net debt $482M.

• Collected $209M in overdue Mexican receivables post-Q4 via monetization agreement.

Outlook and guidance

• 2025 revenue guidance: $420–$450M; EBITDA: $220–$240M; CapEx: $45–$65M, mainly for Seagems upgrades and special projects.

• 10 of 11 assets are contracted into 2025 or beyond; guidance incorporates potential idle time for the Titania rig and scheduled off-hire periods.

• Seagems secured $2.1B in new backlog with 3-year contracts for all vessels, supporting future revenue.

• Optimism for a market rebound in Mexico in H2 2025 and continued strong PLSV market conditions.

• Fontis expects lower average dayrates in 2025 due to a weakening global jack-up market.