This article first appeared on GuruFocus .
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Revenue:$71 million in Q2 2026, down from $75 million in Q1 2026.
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Adjusted EBITDA:$42 million in Q2 2026, down from $46 million in Q1 2026.
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Net Income (Continuing Operations):$28 million for the first half of 2026, up from $3 million in the same period of 2025.
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First-Half Revenue:$146 million, up 23% year-over-year.
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First-Half EBITDA:$87 million, up from $69 million in the prior-year period.
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Free Cash Flow:$35 million in the first half of 2026, compared with negative $1 million in the same period last year.
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Seagems Revenue:$142 million in Q2 2026, up 14% from $125 million in Q2 2025.
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Seagems EBITDA:$87 million in Q2 2026, representing an EBITDA margin of 64%.
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Segment Cash:$148 million at the end of Q2 2026.
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Net Debt (Pro Forma for Fontis Transaction):$282 million at the end of Q2 2026.
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Dividend:Declared $0.22 per share for Q2 2026.
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Backlog:Approximately $1.1 billion at the end of Q2 2026, down from approximately $1.2 billion at the end of Q1 2026.
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CapEx (Seagems):Approximately $6 million during Q2 2026 and $12 million during the first half of 2026.
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Release Date: August 28, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Successfully completed the strategic sale of Fontis' drilling operations and jack-up fleet for $400 million, significantly reducing net debt to $250 million pro forma and leverage to 1.6 times EBITDA.
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Received approval for Extended Dry-Docking regime up to 20 years for five PLSVs, reducing lifetime CapEx and increasing earnings potential by avoiding off-hire periods.
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Reported strong first half 2026 results with net income of $28 million, up from $3 million year-over-year, driven by higher day rates and fewer off-hire days.
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Maintained a solid liquidity position with pro forma cash of $305 million, supported by stable distributions from Seagems.
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Continued shareholder returns with a quarterly dividend of $0.22 per share, totaling approximately $350 million returned since 2024.
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Seagems delivered a solid Q2 with $142 million revenue and 64% EBITDA margin, and backlog remains strong at $1.1 billion.
Negative Points
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PLSV fleet technical utilization declined to 93% in Q2 from 98% in Q1 due to maintenance and operational incidents involving Esmeralda and Jade.
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Q2 revenues and adjusted EBITDA decreased sequentially to $71 million and $42 million, respectively, from $75 million and $46 million in Q1.
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Seagems' Q2 EBITDA declined quarter-over-quarter due to maintenance activities and operational incidents, impacting earnings.
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The company faces uncertainty regarding the Petrobras PLSV tender, with negotiations ongoing and no concrete outcome or timing disclosed.
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Jade's contract is expected to roll off in August 2027, and while an extension is likely, it is not guaranteed, posing a potential gap in utilization.
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The use of proceeds from the Fontis sale is still under evaluation, with no decision made on whether to repay debt or reinvest, creating uncertainty for investors.
Q & A Highlights
Q: Can you provide more details on the Petrobras tender, specifically regarding the Jade PLSV, which is expected to roll off its contract in August 2027? Is Paratus expecting an extension? A: Baton Haxhimehmedi (Interim CEO and CFO): Our current expectation is that an extension with Petrobras is the most likely outcome, potentially bringing the existing contract through January 2028, when the mobilization date is based on the tender. Our historical technical uptime of approximately 98% demonstrates our ability to operate vessels effectively and deploy them on work both with and outside Petrobras.
Q: How are you thinking about the use of proceeds from the Fontis Transaction? A: Baton Haxhimehmedi (Interim CEO and CFO): Under our bond agreements, the proceeds may either be used to repay debt or be held in escrow for up to 12 months while the company evaluates potential reinvestment opportunities. This provides good optionality. We are currently evaluating our available options and will provide a further update once a decision has been made by the company.
Q: Since the start date of the current PLSV tender is in 2028, are you expecting to see another Petrobras tender for the other five PLSVs? A: Baton Haxhimehmedi (Interim CEO and CFO): The remainder of the fleet rolls off contract from mid-2028, with Onix rolling off in September 2028. Based on historical practice, Petrobras typically tenders one to two years ahead of the required start date. We expect another potential larger tender addressing those 2028 requirements, possibly during 2027. Seagems has secured contracts in every major contracting cycle since 2011, and we view the PLSV market outlook as promising.
Q: How much do you expect in dividends from Seagems for 2026? A: Baton Haxhimehmedi (Interim CEO and CFO): We provided financial guidance in Q1 for revenue, EBITDA, and CapEx, but we haven't guided on distributions from Seagems. However, one should expect not much different from last year.
Q: What is your expectation on day rates from the Petrobras tender? A: Baton Haxhimehmedi (Interim CEO and CFO): I cannot really discuss that. It is an ongoing negotiation with Petrobras, and I will not discuss it in this conference call.
Q: Can you provide more details on the operational incidents involving Esmeralda and Jade and their impact? A: Baton Haxhimehmedi (Interim CEO and CFO): The Esmeralda incident involved an LTI, which required a short stop of operations while completing necessary procedures, while the Jade experienced equipment that needed repair. Safety is the first priority, and operations are paused until resolved in alignment with Petrobras. The impact of these incidents on utilization was already factored into our Q1 communicated financial guidance, which we have reiterated.
Q: How will Jade be kept on work until the potential new contract, and are there other regions in Brazil? A: Baton Haxhimehmedi (Interim CEO and CFO): We are very comfortable that we have always been able to deploy these PLSVs. Since 2011, our average utilization has been about 98%. Our ability to operate vessels effectively and deploy them on work has been efficient, both with and outside of Petrobras if needed. The base case is that Jade will be extended by Petrobras until mobilization for the potential new contract.
Q: When is the negotiation round for this tender expected to finish or get completed with Petrobras? A: Baton Haxhimehmedi (Interim CEO and CFO): I hope to report something in the near future. Discussions and negotiations are ongoing, and this is an active commercial process that is sensitive. I'm not in a position to comment on specific negotiations, timing, or potential outcomes at this stage. We will report to the market whenever we have something concrete to report.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
