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Seabras and Paratus Secure Lucrative Petrobras Contracts, Boosting Backlog to $2.1 Billion

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Lauren Miller

May 10, 2024 - 04:55 am

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Seabras Garners Coveted Petrobras Contracts, Fortifying $2.1 Billion Backlog

In the stunning archipelago of Bermuda, a significant announcement stirred the energy services sector on May 10, 2024. Paratus Energy Services Ltd. (Paratus) joyously disclosed that its jointly owned entities with Seabras Sapura Holding GmbH and Seabras Sapura Participações S.A. (commonly referred to as Seabras or JV) have clinched contracts for their entire ensemble of six versatile pipe-laying support vessels (PLSVs) after a competitive bidding hosted by Petrobras. This triumph promises to augment Seabras' backlog with an impressive $1.8 billion infusion. Post-award, the consolidated backlog surges to an estimated $2.1 billion.

The successful attainment of these contracts signifies a notable elevation in day rates that mirrors the industry's burgeoning momentum and the escalating demand for PLSVs within Brazil. This landmark accomplishment foregrounds the unwavering dedication Seabras maintains towards operational superiority, security, and client contentment. Since debuting in 2014, the vessels have accomplished an outstanding 98% average in technical utilization.

Rogerio Salbego, the Chief Executive Officer of Seabras, expressed his exuberance, "We are delighted to announce this significant milestone. This success demonstrates the strength of our fleet, our robust long-term relationship with Petrobras, and our proven track record of delivering value to our clients."

Each of the newly attained contracts, spanning a three-year duration, is poised to start at various mobilization junctures scattered between May 2024 and June 2025, as delineated by the present contractual calendar for each PLSV. The most extended contract will extend into 2028. These awards will provide elongated revenue transparency and reinforce Seabras' substantial cash flow, thus facilitating the JV to continue allocating capital to its steadfast shareholders.

Robert Jensen, the Executive Director of Paratus, commented on the development, stating, "We are pleased with the outcome of Petrobras' recent tender and are confident that this will pave the way for ongoing success. We remain confident in Seabras' long-term cash flow visibility that will further strengthen the comprehensive financial agility of Paratus and its capacity to dispense cash to its shareholders."

Introducing Seabras and Paratus

Seabras is a trailblazing subsea services entity, boasting a suite of six multi-purpose PLSVs engineered for subsea engineering, installations, and a spectrum of additional services. All Seabras' vessels are currently committed to contracts within the bustling markets of Brazil. With its headquarters strategically positioned in downtown Rio de Janeiro, the company also operates from support offices located in Rio das Ostras and Vienna. Seabras is a 50/50 business venture amalgamating the expertise of Paratus and Sapura Energy Berhad—a global titan in integrated energy services and solutions.

For more details on Seabras and their operations, interested parties can visit www.sapura.com.br/en.

Paratus Energy Services Ltd., conversely, is a prominent investment holding outfit within the energy services domain. The Paratus Group largely comprises its holding in SeaMex—an offshore drilling enterprise wielding a five-strong fleet of high-specification jack-up rigs operational under contracts in Mexico—and possess a 50/50 JV interest in Seabras. Furthermore, Paratus is the dominant shareholder in Archer Ltd, a prestigious global oil services corporation listed on the Oslo Stock Exchange. For further enlightenment on Paratus, you can reach out to their website at www.paratus-energy.com.

Contact and Inquiries

For those seeking more information, contact the esteemed Hawthorn Advisors via email at [email protected] or by phone at +44 (0)203 7454960.

Looking Towards The Future: Forward-Looking Statements by Paratus

Within this press release, forward-looking statements not anchored in historical fact were made, encompassing plans, strategies, and prospective changes and trends concerning the company's and Paratus Group's operations. Management expresses that such statements rely on their current strategies, expectations, and assumptions about future events, implicating numerous risks and uncertainties, leading to potential material deviation in actual outcomes from those illustrated in these statements.

Factors influencing these forward-looking outcomes include, yet are not limited to, management's reliance on a network of professional advisors, operational partners, and providers; the company's ability—or the lack thereof—to wield control over certain joint ventures and investment vehicles; and the broader dynamics of oil and energy services market conditions affecting Paratus Group. Other contributing elements comprise strategies for capital projects, the execution of operational assets, delays or disputes in customer payments, the enterprise's success in deploying operating assets, and procuring financing or maintaining compliant with loan accords, etc.

The list continues with the potential impact of global economic circumstances, fluctuations in international oil prices, or alternate energy sources, changing government regulations, augmented competition across the industries that Paratus Group is involved in, and concerns about maintaining relationships with suppliers, customers, joint venture partners, and other critical third parties.

Moreover, financial sustainability encompassing liquidity, adequacy of cash flow from operations, currency market conditions, interest rate fluctuations, tax and legal regulations, environmental concerns, the possible repercussions of climate-change regulations or greenhouse gas legislation, and cybersecurity threats each pose their distinct challenges to such forward-looking statements.

Thus, no forward-looking statement can be fully assured, and neither the Company nor any member of the Paratus Group is obligated to revise any such statements post the date of their initial release or following unforeseen events. Various new factors may surface over time, and it's not always feasible for the company to anticipate all these elements or ascertain their specific impact on business outcomes.

Note on the Information Provided

This announcement derives from Cision, which readers can access at http://news.cision.com. For inspected information regarding the contracts awarded to Seabras, one can refer to the detailed release from Paratus Energy Services Ltd at https://news.cision.com/paratus-energy-services-ltd/r/seabras-secures-new-contracts-for-6-plsvs--bolstering-backlog-by--1-8-billion,c3976607.

The disclosed information is a representation as of March 31, 2024, and provides a factual breakdown of Seabras' financial and operational prospects post these consequential contract acquisitions.

Source: Paratus Energy Services Ltd, fueling the future of energy services through strategic partnerships, sophisticated fleet operations, and a steadfast focus on shareholder returns and growth.

In summation, the strategic victory of Seabras within the competitive tender process helmed by Petrobras not only fortifies the entity's position within the industry but also exemplifies the synergy between operational efficiency and financial stewardship. The bolstered backlog, improved cash flow, and an extended purview on future revenues reflect an optimistic horizon for Seabras and its parent company, Paratus Energy Services Ltd, as they continue to navigate and capitalize on the driving forces of Brazil's burgeoning subsea services market.

Their recent performance sets a precedent of excellence, prospects, and resilience amidst an ever-evolving industry landscape—one where adaptability and foresight play pivotal roles in sustained success. As Seabras and Paratus Energy Services Ltd continue on this trajectory, stakeholders and industry observers alike will undoubtedly keep a keen eye on these burgeoning entities, particularly as they chart a course through the complex waters of global energy demands, economic flux, and progressive technological advancements.