Paratus Energy Services Updates 2024 Earnings and Rig Operations

Paratus Energy Services Boosts 2024 EBITDA Forecast

Paratus Energy Services Ltd. (PLSV) recently made headlines by revising its EBITDA guidance for the year 2024. This exciting update comes amid a strong performance throughout the year, enabling Paratus to raise its projection to an impressive range of $250-260 million. This revision marks a midpoint increase of $25 million from earlier estimates, which stood at $220-240 million.

Operational Updates and Rig Activity in Mexico

In conjunction with enhancing its earnings guidance, Paratus has shared important updates regarding its rig operations in Mexico, managed through its wholly-owned subsidiary, Fontis Holdings Ltd. Given recent operational successes, the company is keen to focus on maintaining efficiency and transparency with its stakeholders.

Temporary Suspension of Rig Operations

Paratus has acknowledged reports of a potential short-term reduction in rig activity in Mexico. This comes as Fontis received notice regarding its Courageous rig, which will temporarily halt operations for 45 days. This pause is attributed to delays experienced in the client’s preparatory activities for the upcoming project. It’s important to note that while the operation is on hold, the rig will remain on standby, preventing any prolonged loss of revenue.

Financial Implications of Rig Activity Adjustments

Despite the temporary suspension, clients can rest assured that Fontis has structured contracts that allow for these adjustments without severe financial penalties. This flexibility ensures that any deferred operational periods will extend the contract duration, thereby preserving client relations and financial stability. The anticipated EBITDA impact from this temporary deferment is approximately $3 million, which is manageable within the broader operational planning.

Commitment to Client Relationships

Throughout these developments, Paratus remains committed to fostering a strong partnership with its client. The company has consistently demonstrated its ability to adapt to the dynamic needs of its operations, ensuring that both parties can execute projects successfully and efficiently. This longstanding relationship spans over a decade, characterized by mutual respect and collaborative growth.

Looking Ahead: Future Operational Strategies

As Paratus sets its sights on the remainder of 2024, the focus will expand beyond just financial results. The company is poised to leverage insights garnered from recent operational experiences in Mexico and apply them to future projects. Anticipating industry shifts and client needs will be pivotal in solidifying Paratus Energy Services' standing as an industry leader.

Contact Information for Inquiries

For any further information related to these updates or to discuss ongoing projects, stakeholders can reach out to Baton Haxhimehmedi, the CFO of Paratus, via email at Baton.Haxhimehmedi@paratus-energy.com or by phone at +47 406 39 083.

Frequently Asked Questions

What is the new EBITDA guidance for Paratus Energy Services in 2024?

Paratus Energy Services has revised its EBITDA guidance to a range of $250-260 million for the year 2024.

Why will the Courageous rig cease operations temporarily?

The Courageous rig will temporarily stop operations for 45 days due to delays in the client’s preparation activities at the upcoming location.

What is the potential financial impact of the rig's temporary halt?

The estimated EBITDA impact from the 45-day deferment is approximately $3 million.

Who can I contact for more information about Paratus Energy Services?

Inquiries can be directed to Baton Haxhimehmedi, CFO, via email or at +47 406 39 083.

How long has Paratus Energy Services been operating with its current client?

Paratus Energy Services has been in a relationship with its client for over a decade, showcasing a strong partnership.

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