Paratus Energy Services reports strong Q3 2024 revenues and shareholder returns
- Paratus Energy Services Ltd. reported $110 million in revenues and $63 million in adjusted EBITDA for Q3 2024.
- The company is committed to returning excess free cash to its shareholders with a distribution of $0.22 per share.
- Despite facing operational challenges, Paratus continues to maintain stability and shareholder satisfaction.
In Bermuda, on November 29, 2024, Paratus Energy Services Ltd. released its financial and operational results for the third quarter of 2024. The company reported total revenues of $110 million, alongside $63 million in adjusted EBITDA, reflecting on its robust financial performance amidst variable revenue fluctuations, especially from Mexico. The release also disclosed an end-of-quarter cash balance of $165 million and net debt totaling $597 million. Notably, the Board of Directors has authorized a cash distribution to shareholders of $0.22 per share, consistent with the previous quarter's distribution, affirming the company’s commitment to returning excess free cash to shareholders, demonstrating stability in operations despite the key challenges faced in the energy market. In the report, Paratus also highlighted its subsidiary Fontis, which earned total revenues of $63 million, a decrease from $72 million in the second quarter of 2024. The decline was largely attributed to a decrease in variable revenue from previously unbilled services, which impacted adjusted EBITDA, bringing it down to $39 million from $47 million in the prior quarter. Furthermore, production downtime for the Courageous vessel, which lasted 58 days due to crane installation, was part of the operational hurdles that affected performance in comparison to earlier results. Additionally, Paratus' joint venture, Seagems, contributed significantly with revenues of $47 million and adjusted EBITDA of $25 million. However, these figures also represented a decline from the previous quarter, primarily driven by lower dayrates contracted for operations compared to the more lucrative spot contracts in earlier results. The cautious approach employed by Paratus reflects a commitment to long-term stability and shareholder satisfaction, amidst volatile oil and energy market conditions. Overall, this third-quarter report underscores Paratus Energy's agile handling of operational challenges while reaffirming their strategy to distribute cash to investors. As they navigate through fluctuating revenues alongside operational hurdles, their continuous focus remains on maintaining adequate cash flows and a sound governance structure to support growth in the competitive energy sector.