HAMILTON, BERMUDA (By Paratus, 26.Aug.2025, Words: 1,065) — Paratus Energy Services Ltd. reported operational and financial results for the second quarter of 2025, highlighted by $107mn in combined segment revenues and $57mn in adjusted EBITDA. The company and its consolidated subsidiaries and ownership in joint ventures ended the quarter with $93mn in cash and a net debt balance of $631mn.
Paratus is pleased to announce that its Board of Directors has authorized a quarterly cash distribution of $0.22 per share for Q2 2025, consistent with prior quarters. During the quarter, Paratus also repurchased own shares for approximately $4.8mn under its current share repurchase program, with approximately $75mn remaining capacity.
“We are pleased to report another solid quarter highlighted by strong operational performance and consistent shareholder distributions,” said Robert Jensen, CEO of Paratus. “The government support plan introduced in Mexico provides positive signals and strengthen our confidence in the outlook. We look forward to building on this momentum to maximize long-term value for our shareholders.”
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Q2 2025 highlights and post quarter-end developments
- Maintained strong operational performance with fleet technical utilization of approximately 98%.
- Generated $107mn in combined segment revenues and $57mn in adjusted EBITDA.
- Repurchased own shares for approximately $4.8mn; with approximately $75mn remaining capacity under the current repurchase authorization.
- Received first-time dividend from Archer of $1.3mn; an additional $1.3mn has been declared for Q2 2025.
- Ended the quarter with $93mn in Group cash and $631mn in net debt.
- Post Q2, declared a $0.22 per share quarterly dividend for Q2 2025, consistent with previous quarters.
- In Aug., Fontis received first payment from its client in Mexico since Q1 2025.
Fontis
Fontis recorded $43.8mn in contract revenues, compared to $46.6mn in Q1 2025. The revenue decline primarily reflected no operations on Titania FE during the quarter, lower average dayrates due to market indexation and UWILD survey on Intrepid, partly offset by the absence of rig suspensions during the quarter.
Operating expenses (Opex) totalled $25.6mn (Q1 2025: $18.3mn) and general and administrative expenses (G&A) totalled $0.4mn (Q1 2025: $1mn). The increase in Opex reflects Titania FE rig relocation costs at the end of its campaign (primarily tugboat and fuel expenses) partially offset by lower overall operational activity. The rig has subsequently been re-imported to Mexico. Additionally, Q1 2025 Opex benefited from favorable changes in accrual estimates. Adjusted EBITDA for Q2 2025 was $17.8mn (Q1 2025: $27.4mn).
During Q2 2025, Fontis achieved an average dayrate of $116,000 per day (Q1 2025: $125,000 per day) and maintained a strong technical utilization of 99.2% (Q1 2025: 99.7%). Fontis contract backlog at quarter-end was approximately $98mn (Q1 2025: approximately $139mn).
The successful collection of $209mn in overdue receivables from Fontis’ client in Mexico during Q1 2025 marked a significant milestone. This transaction materially improved the company’s liquidity position and demonstrated that alternative avenues exist for monetizing receivables beyond the traditional collection process.
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As of the end of Q2 2025, the notional value of accounts receivable increased to $232mn, up from $185mn at the end of Q1 2025. No payments were received during the quarter, in line with broader trends observed among other service providers operating in Mexico with this client. In early Aug. 2025, the Mexican government publicly introduced a comprehensive financial support plan with the aim to make Fontis’ client financially self-sufficient by 2027. Key elements of the plan include the settlement of overdue supplier payments, debt reduction initiatives, and a long-term increase in national oil production from approximately 1.6 to 1.8 million barrels per day (MMb/d). As part of this initiative, approximately $25bn in new government guaranteed funding has reportedly been secured, including proceeds partially earmarked for capital expenditures and supplier debt settlements. In Aug., Fontis received a modest payment from its client.
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The company also notes that the client has announced intentions to align its payment practices with international standards going forward in order to reduce processing delays. However, it has been acknowledged that delays may continue to persist in the near to medium term. The company remains actively engaged with the client to expedite the collection of outstanding receivables and expects to recover the full amount as has been the case in the past, while acknowledging and planning for the possibility of ongoing fluctuations in the timing of collections.
Of the company’s fleet of five jack-up rigs, all are currently contracted through Q1 2026, with the exception of Titania FE. The company remains confident in the long-term demand for its rigs and anticipates that increased drilling activity in Mexico will be necessary to support its client’s production targets, as recently reaffirmed by the Mexican government. The company also expects more active contract discussions to take place in the second half of this year for the broader Fontis fleet. While Fontis remains focused on maintaining and strengthening its long-standing relationship with its client, it also continues to monitor broader market developments and is selectively evaluating and engaging tender opportunities both within and outside the region.
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Seagems Joint Venture
Paratus’ 50% share in the Seagems JV contributed $62.7mn in contract revenues, compared to $56.2mn in Q1 2025. The revenue increase was primarily driven by higher average dayrates from the newly started contracts with Petrobras partly offset by off-hire days as part of acceptance testing for the new contracts.
Reported Opex was $15.4mn for the quarter (Q1 2025: $17.8mn), while G&A was $3.7mn (Q1 2025: $2.9mn). Adjusted EBITDA for the quarter was $40.6mn, up from $32.5mn in Q1 2025. Q2 2025 EBITDA was positively impacted by stronger revenues in the quarter, reimbursement of an insurance claim for Esmeralda and other changes in accounting provisions.
The JV achieved an average dayrate of $255,000 per day (Q1 2025: $212,000 per day) and maintained a strong technical utilization of 97.8% (Q1 2025: 98.4%). The JV contract backlog at quarter-end was approximately $1.6bn (Q1 2025: approximately $1.7bn).
During the first half of 2025, the JV provided cash distribution of $33.1mn to Paratus (H1 2024: $37.6mn). As previously reported in Q1 2025, distributions from Seagems are expected to increase in the second half of the year, consistent with the JV’s cash flow profile and the scheduled timing of capital expenditures and other payments. Subsequent Q2 2025, the company received $45mn of total cash distributions from Seagems for Jul. and Aug. 2025.
Following Q2 2025, the JV secured an aggregate $60mn in additional capital expenditures financing from local Brazilian banks with amortization scheduled over 3 years starting in 2026.
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