Capital/Financing Update • Jan 24, 2025
Capital/Financing Update
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Paratus Announces Mexico Receivables Monetization Agreement
Hamilton, Bermuda, January 24, 2025 - Paratus Energy Services Ltd. (ticker
"PLSV") ("Paratus" or the "Company") announces that its wholly owned subsidiary
Fontis Holdings Ltd. (together with its subsidiaries, "Fontis") has entered into
an agreement with a leading international bank that will facilitate payment to
Fontis of approximately $209 million[1] of outstanding overdue invoices with its
client in Mexico ( the "Receivables Payment"), whereby Fontis will receive the
funds from its client before the end of this month. The Receivables Payment is
subject to an undisclosed upfront fee that is well below 10% of the gross
amount. Confidentiality provisions requested by the counterparty prevent further
disclosure of the fee details.
"As previously announced, the Company has been actively exploring opportunities
to potentially monetize part of its receivables balance, and following careful
consideration and consultation with several counterparties, Paratus has
concluded that this agreement presented an attractive opportunity", said Robert
Jensen, CEO of Paratus. "The Company will continue to opportunistically evaluate
its alternatives to optimize its receivables balance in the future."
Following receipt of the Receivables Payment, Fontis' pro forma receivable
balance with the customer stands at approximately $140 million as of December
31, 2024[2]. The Company also notes that in late December 2024, Fontis received
a minor payment from its client.
As of December 31, 2024, Paratus Group's cash balance stood at approximately $98
million[3]. The Receivables Payment will significantly strengthen the cash
position of the Company, in addition to Fontis still having approximately $140
million of receivables with its client in Mexico. The Company will continue to
take a disciplined approach to capital allocation and may use net proceeds from
the Receivables Payment to support operations, optimize the capital structure,
and fund shareholder distributions and/or share buybacks.
Paratus previously distributed $0.22 per share to its shareholders in connection
with both its second and its third quarter 2024 interim results. The Company
reiterates its commitment to a policy of providing shareholders with stable,
long-term, and sustainable distributions, subject to allowance under its debt
agreements.
For further information, please contact:
Robert Jensen, CEO
+47 958 26 729
Baton Haxhimehmedi, CFO
+47 406 39 083
This announcement contains information considered to be inside information
pursuant to the EU Market Abuse Regulation and is subject to the disclosure
requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. The
announcement was published by Baton Haxhimehmedi, CFO of Paratus, on the time
and date set out above.
About Paratus
Paratus Energy Services Ltd. (ticker: PLSV) is an investment holding company of
a group of leading energy services companies. The Paratus Group is primarily
comprised of its ownership of Fontis Energy and a 50/50 JV interest in Seagems
(formerly Seabras). Fontis Energy is an offshore drilling company with a fleet
of five high-specification jack-up rigs working under contracts in Mexico.
Seagems is a leading subsea services company, with a fleet of six multi-purpose
pipe-laying support vessels under contracts in Brazil. In addition, Paratus is
the largest shareholder in Archer Ltd, a global oil services company, listed on
the Euronext Oslo Børs.
[1 ]Amount includes Mexican standard VAT rate of 16%
[2 ]Preliminary balance sheet figures are unaudited estimates and subject to
change
[3 ]Based on management reporting; includes 50% of Seagems cash and restricted
cash; Preliminary balance sheet figures are unaudited estimates and subject to
change
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