(Paratus Energy, 21.Mar.2023) — Paratus Energy Services Ltd. announced a trading update for the fourth quarter 2022 and updates on Paratus, its subsidiaries and associated companies.
1. Key Financial Highlights
1.1 Paratus
In the fourth quarter ending 31 December 2022, Paratus generated $52mn in revenue and $24mn in EBITDA[1]. In the third quarter ending 30 September 2022, Paratus generated $50mn in revenue and $21 million in EBITDA[2].
1.2 SeaMex Group
During the fourth quarter period ending 31 December 2022, Paratus’ wholly owned subsidiary SeaMex Holdings, Ltd. and its subsidiaries generated $52mn in revenue and $27mn in EBITDA. Compared to the third quarter, revenue increased 4.0% and EBITDA increased 8.0%. For the fourth quarter ending 31 December 2022, SeaMex Group earned an average contractual rate of $115 thousand per day and ended with $547mn in contract backlog[3].
As previously announced, SeaMex has received a termination notice from PEMEX regarding the West Titania jack-up, with an effective termination date of 16 March 2023. SeaMex remains in dialogue with PEMEX regarding a potential extension of the West Titania contract, as well with third parties regarding other potential market opportunities for the rig.
SeaMex is pleased to announce that the company is currently in the process of moving the offshore drilling operations in-house. Following a transition period which is expected to last up to 6 months, the company intends to manage and operate its wholly owned fleet of jack-up rigs on a standalone basis under its own brand later this year.
1.3 Joint Venture in Seabras Group
Seabras UK Limited, a wholly owned subsidiary of Paratus, holds a 50% equity interest in Seabras Sapura Holding GmbH, its associated company, Seabras Sapura Participaҫões S.A and their subsidiaries.
During the fourth quarter period ending 31 December 2022, Seabras Group generated $113mn in revenue and $81mn in EBITDA. Compared to the third quarter, revenue and EBITDA increased by 3.7% and 22.7%, respectively. For the fourth quarter, Seabras Group earned an average contractual rate of $204 thousand per day and ended with $707mn in contract backlog.
On 23 December 2022, Seabras completed a full repayment of its secured bank debt facilities which were raised in connection with the construction of the Diamante, Topazio, Onix, Jade, and Rubi vessels (“Bank Facilities”)[4]. Following the Bank Facilities repayment, the only outstanding third-party debt obligation is the Esmeralda vessel financing from the Brazilian Merchant Maritime Fund, which has a maturity of 2032 and is collateralized by the Esmeralda vessel (“Esmeralda Facility”).
References:
[1] The figures presented for Paratus do not consider revenue and EBTIDA from Seabras Group as Seabras is not consolidated in the Paratus financial statements due to Paratus’ 50% equity ownership of Seabras
[2] The figures presented for Paratus do not consider revenue and EBTIDA from Seabras Group as Seabras is not consolidated in the Paratus financial statements due to Paratus’ 50% equity ownership of Seabras
[3] SeaMex backlog is calculated at the dayrate floor and is subject to market rate adjustments
[4] The Bank Facilities comprised of two separate loan agreements – one relating to Diamante and Topazio (totaling approximately $537mn at issuance) and another relating to Onix, Jade and Rubi (totaling approximately $769mn at issuance)
2. Other Updates
2.1 Completion of the Share Acquisition Transaction
On September 30, 2022, Hemen Investments Ltd (“Hemen”), an entity ultimately controlled by trusts established by John Fredriksen for the benefit of his immediate family members, funds and accounts managed by Lodbrok Capital LLP (“Lodbrok”), and Melqart Asset Management (UK) Ltd (“Melqart”) (collectively, the “Acquiring Shareholders”) entered into separate agreements with Seadrill Investment Holding Company Limited (“Seadrill”) to acquire all of Seadrill’s ownership interests in Paratus (the “Share Acquisition Transaction”). The Share Acquisition Transaction closed on February 24, 2023, following the satisfaction of customary closing conditions, including the approval of competition authorities in relevant jurisdictions.
Schedule 1. Key Financial Highlights
| Unaudited financials | |||
| (US $ in Millions) | Q4 2022 | Q3 2022 | Q4 2021(1) |
| SeaMex Group | |||
| Gross Debt(2) | 46 | 44 | 221 |
| Cash and Restricted Cash | 77 | 46 | 53 |
| Net Debt(3) | (31) | (2) | 168 |
| Revenue | 52 | 50 | 54 |
| EBITDA | 27 | 25 | 31 |
| Contract Backlog(4) | 547 | 600 | 828 |
| Receivables Balance | 114 | 98 | 318 |
| Seabras Group | |||
| Gross Debt(2) | 114 | 313 | 377 |
| Cash and Restricted Cash | 38 | 171 | 111 |
| Net Debt(3) | 76 | 142 | 266 |
| Revenue | 113 | 109 | 97 |
| EBITDA | 81 | 66 | 56 |
| Contract Backlog | 707 | 802 | 938 |
| Paratus Energy Services(5) | |||
| Gross Debt(2) | 727 | 708 | |
| Cash and Restricted Cash | 94 | 68 | |
| Net Debt(3) | 633 | 640 |
Notes:
- Represent the results of the Predecessor entity
- Excludes intercompany debt, any amortization of fees and fair value adjustment; represents debt principal only
- Net debt is calculated as gross debt less cash and restricted cash
- Contract backlog takes into account West Titania’s termination date of 16 March 2023
- The figures presented for Paratus do not include financials from Seabras as Seabras is not consolidated in the Paratus financial statements due to Paratus’ 50% equity ownership of Seabras
Schedule 2. Fleet Status Report
SeaMex Group
| Rig name | Generation / Type | Built | Location | Client | Start | Expire |
| West Defender | BE | 2007 | Mexico | PEMEX | Mar-20 | Jan-26 |
| West Courageous | BE | 2007 | Mexico | PEMEX | Mar-20 | Nov-26 |
| West Intrepid | BE | 2008 | Mexico | PEMEX | Mar-20 | May-26 |
| West Oberon | BE | 2013 | Mexico | PEMEX | Mar-20 | Oct-25 |
| West Titania(1) | BE | 2014 | Mexico | PEMEX | Mar-20 | Mar-23 |
Seabras Group
| Vessel name | Generation / Type | Built | Location | Client | Start | Expire |
| Sapura Diamante | PLSV | 2014 | Brazil | Petrobras | Oct-21 | Apr-25 |
| Sapura Topazio | PLSV | 2014 | Brazil | Petrobras | Mar-22 | Mar-25 |
| Sapura Esmeralda | PLSV | 2016 | Brazil | Petrobras | Apr-16 | Jul-24 |
| Sapura Onix | PLSV | 2015 | Brazil | Petrobras | Sep-15 | Oct-23 |
| Sapura Onix | PLSV | 2015 | Brazil | Enauta | Jan-24 | Sep-24 |
| Sapura Jade | PLSV | 2016 | Brazil | Petrobras | Feb-16 | Apr-24 |
| Sapura Rubi | PLSV | 2016 | Brazil | Petrobras | Aug-16 | Sep-24 |
Notes:
- The expiration date of West Titania reflects PEMEX’s termination notice
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