Paratus Energy Svcs Ltd

Welcome to the Paratus Energy Q2 2026 earnings call. There will be a question and answer session after the presentation. And you can submit your questions via the form at the bottom of the player at any time during the presentation. I will now hand over to your host.

Thank you, Elba. Good day everyone and welcome to this second quarter and half year 2026 results presentation for Parautis Energy Svcs Ltd. My name is Baton Hajime Mede and I'm the interim CEO and CFO of Parautis. Before we begin today's presentation I would like to remind all participants that some of the statements on this call may involve forward-looking statements. Forward-looking information involves risks and uncertainties by nature that may cause actual results to differ materially from those projected in such statements. I therefore refer you to our latest public filings. The second quarter of 26 and the period since have been eventful for Paratus. On July 29th, we successfully completed strategic sale of Fontys, Drillings Operations and Jackup Fleet for a total consideration of $400 million. At completion, Paratus received approximately $163 million in cash and a $237 million of seller credit with a term of two and a half years structured with interest rates step up from 10% up to 14%. Separately, we received $20 million as reimbursement of interim funding we provided to support Fontys operations between signing of the SBA and completion of the transaction. For information, ProArtis cash following completion increased to over $300 million. We are currently evaluating the available alternatives for the use of proceeds and will provide a further update once a decision has been made by the company. As announced earlier, during the quarter we also completed the replacement of 250 million dollars of a five-year senior secured bonds with a coupon rate of 8.125% and fully redeemed the 226 notes during the quarter in June. As I will return to later, at Seagym the team achieved an important milestone related to our fleet life extension strategy. TGM has received approval to extend the dry docking regime to up to 20 years for its five 550 tons PLSVs, removing one SPS or dry docking over each vessel's life. From this, we expect lower lifetime COPEX and higher earnings potential as the vessels stay on higher through periods when they would otherwise have been in dry docking. Turn to the operational financial performance for the quarter at high level. The PLSV fleet recorded technical utilization 93%, which was down from approximately 98% in the last quarter.

This was due to some downtime driven by maintenance and operational incidents involving Smeralda and Jade PLSVs.