Paratus Energy Services Ltd. Announces Acquisition of Seadrill’s shares by Existing Shareholders

21 Oct, 2022

Hamilton, Bermuda, October 21, 2022 - Paratus Energy Services Ltd. (“Paratus”) is pleased to announce that 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”) (combined the “Acquiring Shareholders”) have advised Paratus that the Acquiring Shareholders have entered into separate agreements with Seadrill Investment Holding Company Limited (“Seadrill”) to acquire all of Seadrill’s ownership interests in Paratus (the “Transaction”). Upon completion of the Transaction, which Paratus has been advised is subject to regulatory and certain board approvals, Hemen is expected to have economic ownership of Paratus of approximately 32%, Lodbrok of approximately 20% and Melqart of approximately 14%.

“The Acquiring Shareholders have been long-standing investors in Paratus and we are thrilled about them demonstrating their support for the company as it continues to establish itself as a leading independent energy services provider” said James LaChance, Chairman of the Board of Directors of Paratus. “We believe that the Transaction signifies the Acquiring Shareholders’ confidence in our ability to identify opportunities through our unique mix of assets.”

Paratus owns i) five premium jack-ups in SeaMex fully contracted with Pemex, ii) 50% of Seabras with six pipe-laying vessels fully contracted with Petrobras, and iii) certain debt and equity interests in Archer Limited, a global oil services company listed on the Oslo Stock Exchange. The jack-ups and pipe-laying vessels have served their National Oil Company customers for years, which have previously led to historically strong earnings for Paratus.

“In light of the current oil pricing environment and improving market demand, the company is optimistic that the units will maintain a strong market position for years to come,” continued LaChance. “With the strength of our backlog position, maturity runway through 2026, and positive momentum in market dayrates, we believe Paratus is well positioned to benefit from current industry tailwinds.”

The board of directors of Paratus is excited about the market outlook and will continue to pursue all market and strategic opportunities to maximize value for its stakeholders, including but not limited to exploration of refinancings, divestments, bolt-on acquisitions, strategic consolidations and potential public and private offerings.

■ Forward-Looking Statements
This release includes forward-looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company’s and / or the Paratus Group’s (including any member of the Paratus Group) plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. These statements are based on management’s current plans, expectations, assumptions and beliefs concerning future events impacting the Company and / or the Paratus Group and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the timing for and ultimate completion of the Transaction, management’s reliance on third party professional advisors and operational partners and providers, the Company’s ability (or inability) to control the operations and governance of certain joint ventures and investment vehicles, oil and energy services and solutions market conditions, subsea services market conditions, and offshore drilling market conditions, the cost and timing of capital projects, the performance of operating assets, delay in payment or disputes with customers, the ability to successfully employ operating assets, procure or have access to financing, ability to comply with loan covenants, liquidity and adequacy of cash flow from operations of its subsidiaries and investments, fluctuations in the international price of oil or alternative energy sources, international financial, commodity or currency market conditions, including, in each case, the impact of COVID-19 and related economic conditions, changes in governmental regulations, including in connection with COVID-19, that affect the Paratus Group, increased competition in any of the industries in which the Paratus Group operates, the impact of global economic conditions and global health threats, including in connection with COVID-19, our ability to maintain relationships with suppliers, customers, joint venture partners, professional advisors, operational partners and providers, employees and other third parties and our ability to maintain adequate financing to support our business plans, factors related to the offshore drilling, subsea services, and oil and energy services and solutions markets, the impact of global economic conditions, our liquidity and the adequacy of cash flows for our obligations, including the ability of the Company’s subsidiaries and investment vehicles to pay dividends, political and other uncertainties, the concentration of our revenues in certain geographical jurisdictions, limitations on insurance coverage, our ability to attract and retain skilled personnel on commercially reasonable terms, the level of expected capital expenditures, our expected financing of such capital expenditures, and the timing and cost of completion of capital projects, fluctuations in interest rates or exchange rates and currency devaluations relating to foreign or U.S. monetary policy, tax matters, changes in tax laws, treaties and regulations, tax assessments and liabilities for tax issues, legal and regulatory matters, customs and environmental matters, the potential impacts on our business resulting from climate-change or greenhouse gas legislation or regulations, the impact on our business from climate-change related physical changes or changes in weather patterns, and the occurrence of cybersecurity incidents, attacks or other breaches to our information technology systems, including our rig operating systems. Consequently, no forward-looking statement can be guaranteed.

Neither the Company nor any member of the Paratus Group undertakes any obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, we cannot assess the impact of each such factors on our businesses or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement.