Interim report
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Interim Results Paratus Energy Second Quarter 2025 1
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SECOND QUARTER 2025 RESULTS Unless the context indicates otherwise, “Paratus,” the "Company," "we," "us," "our," and similar terms, all refer to Paratus Energy Services Ltd., while “Paratus Group” or the “Group” refers collectively to the Company and its consolidated subsidiaries and its ownership in Joint Ventures (“JV”). All references to "USD" and "$" in this report denote U.S. dollars unless otherwise indicated. Company overview Paratus is a holding company of a group of energy services companies and is comprised of its wholly owned subsidiary Fontis Holdings Ltd. and its subsidiaries ( collectively "Fontis"), 50/50 joint venture interest in Seagems joint venture, comprising of Seabras Sapura Holding GmbH and Seabras Sapura Participacoes SA, ( collectively “Seagems” or the "JV") and its 23.8% ownership in Archer Limited ("Archer"). Paratus is listed on the Euronext Oslo Børs under the ticker “PLSV”. • Fontis is a provider of drilling services, operating a fleet of five high- specification jack-up rigs – Defender, Courageous, Intrepid, Oberon, and Titania FE - currently located in Mexico, out of which four rigs are under the contract with a state- owned company in Mexico. Titania FE is as of the reporting date warm stacked in Mexico. • Seagems is a subsea services company, operating a fleet of six multipurpose pipe-laying support vessels - Diamante, Topazio, Esmeralda, Onix, Jade and Rubi – with capabilities for subsea engineering, installation, and other services, under contract in Brazil. • Archer is a global oil services company which operates in 40 locations providing drilling services, well integrity and intervention, plug and abandonment and decommissioning to its upstream oil and gas clients. Archer is listed on the Euronext Oslo Børs under the ticker “ARCH”. Q2 2025 highlights and post quarter-end developments Key highlights from Q2 2025 and notable post-quarter developments include: • Maintained strong operational performance with fleet technical utilization of approximately 98%. • Generated $107 million1 in combined segment revenues and $57 million1 in adjusted EBITDA. • Repurchas ed own shares for approximately $4.8 million; with approximately $75 million remaining capacity under the current repurchase authorization. • Received first-time dividend from Archer of $1.3 million; an additional $1.3 million has been declared for Q2 2025. • Ended the quar ter with $93 million1 in Group cash and $631 million1 in net debt. • Post Q2, declared a $0.22 per share quarterly dividend for Q2 2025, consistent with previous quarters. • In August, Fontis received first payment from its client in Mexico since Q1 2025. 1 Combined segment results are presented in accordance with management reporting. In this context, Seagems’ financial results are presented using proportional consolidation of accounting. However, in our financial reporting under US GAAP, Seagems’ financial results are reported using the equity method, presented under “Share in results from joint ventures”. 1
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Operational review for the second quarter of 2025 *C ombined segment results are presented in accordance with management reporting. In this context, Seagems’ financial results are presented using proportional consolidation of accounting. However, in our financial reporting under US GAAP, Seagems’ financial results are reported using the equity method, presented under “Share in results from joint ventures". T he following operational review is based on management reporting as defined in the alternative performance measures (“APM”) section of this report. See also Note 3 - Segment information in the financial statements. The Group, including the Company’s share in Seagems, reported revenues of $106.5 million and EBITDA of $56.5 million (Q1 2025: $102.8 million and $57.6 million, respectively). Fontis Fontis recorded $43.8 million in contract revenues, compared to $46.6 million in Q1 2025. The revenue decline primari ly reflected no operations on Titania FE during the quarter, lower average dayrates due to market indexation and UWILD survey on Intrepid, partly offset by the absence of rig suspensions during the quarter. Operating expenses (Opex) totalled $25.6 million (Q1 2025: $18.3 million) and general and administrative expenses (G&A) totalled $0.4 million (Q1 2025: $1 million) . The increase in Opex reflects Titania FE rig relocation costs at the end of its campaign (primarily tugboat and fuel expenses) partially offset by lower overall operational activity. The rig has subsequently been re-imported to Mexico. Additionally, Q1 2025 Opex benefited from favorable changes in accrual estimates. Adjusted EBITDA for Q2 2025 was $17.8 million (Q1 2025: $27.4 million). During Q2 2025, Fontis achieved an average dayrate of $ 116 thousand per day (Q1 2025: $125 thousand per day) and maintained a strong technical utilization of 99.2% ( Q1 2025: 99.7%). Fontis contract backlog at quarter-end was approximately $98 million (Q1 2025: approximately $139 million). The successful collection of $209 million in overdue receivables from Fontis ’ client in Mexico during Q1 2025 marked a significant milestone. This transaction materially improved the Company’s liquidity position and demonstrated that alternative avenues exist for monetizing receivables beyond the traditional collection process. As of the end of Q2 2025, the notional value of accounts receivable increased to $232 million, up from $185 million at the end of Q1 2025. No payments were received during the quarter, in line with broader trends observed among other service providers operating in Mexico with this client . In early August 2025, the Mexican government publicly introduced a comprehensive financial support plan with the aim to make Fontis’ client financially self -sufficient by 2027. Key elements of the plan include the settlement of overdue supplier payments, debt reduction initiatives, and a long-term increase in national oil production from approximately 1.6 to 1.8 million barrels per day. As part of this initiative, approximately $25 billion in new government guaranteed funding has reportedly been secured, including proceeds partially earmarked for capital expenditures and supplier debt settlements. In August, Fontis received a modest payment from its client. The Company also notes that the client has announced intentions to align its payment practices with international standards going forward in or der to reduce processing delays. However, it has been acknowledged that delays may continue to persist in the near to medium term. The Company remains actively engaged with the client to expedite the collection of outstanding receivables and expects to recover the full amount as has been the case in the past, while acknowledging and planning for the possibility of ongoing fluctuations in the timing of collections. Of the Company’s fleet of five jack -up rigs, all are currently contracted through Q1 2026, with the exception of Titania FE. The Company remains confident in the long-term demand for its rigs and anticipates that increased drilling activity in Mexico will be necessary to support its client’s production targets, as recently reaffirmed by the Mexican government. The Company also expects more active contract discussions to take place in the second half of this year for the broader Fontis fleet. While Fontis remains focused on maintaining and strengthening its long- standing relationship with its client, it also continues to monitor broader market developments and is selectively evaluating and engaging tender opportunities both within and outside the region. (In $ millions, unless stated otherw ise) June 30, 2025 March 31, 2025 Selected figures Contract revenues 106.5 102.8 Adjusted EBITDA 56.5 57.6 Net income 5.6 3.2 Cash and cash equivalents 93.1 176.1 Net debt 631.5 551.0 Net Leverage Ratio 2.6 2.2 Technical utilization rate 98.4% 99.0% Contract backlog 907.8 1,004.7 Three months ended Combined Segment figures* 2
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Seagems Paratus’ 50% share in the Seagems JV contributed $62.7 million in contract revenues, compared to $56.2 million in Q1 2025. The revenue increase was primarily driven by higher average dayrates from the newly started contracts with Petrobras partly offset by off-hire days as part of acceptance testing for the new contracts. Reported Opex was $15.4 million for the quarter (Q1 2025: $17.8 million), while G&A was $3.7 million (Q1 2025: $2.9 million). Adjusted EBITDA for the quarter was $40.6 million, up from $32.5 million in Q1 2025. Q2 2025 EBITDA was positively impacted by stronger revenues in the quarter, reimbursement of an insurance claim for Esmeralda and other changes in accounting provisions. The JV achieved an average dayrate of $255 thousand per day (Q1 2025: $212 thousand per day) and maintained a strong technical utilization of 97.8% (Q1 2025: 98.4%). Seagems contract backlog at quarter-end was approximately $1.6 billion2 (Q1 2025: approximately $1.7 billion2). During the first half of 2025, the Seagems JV provided cash distribution of $33.1 million to Paratus (H1 2024: $37.6 million). As previously reported in Q1 2025, distributions from Seagems are expected to increase in the second half of the year, consistent with the JV’s cash flow profile and the scheduled timing of capital expenditures and other payments. Subsequent Q2 2025, the Company received $45 million of total cash distributions from Seagems for July and August 2025. Following Q2 202 5, Seagems secured an aggregate $60 million2 in additional capital expenditures f inancing from local Brazilian banks with amortization scheduled over 3 years starting in 2026. Other The Other segment includes general corporate and financing activities as well as the Company’s 23.8% ownership in Archer which is accounted for as an equity method investment. Liquidity and Capital Management The Company actively manages its capital structure to ensure it maintains sufficient funding to support its strategic business objectives and maximize shareholder value. If required, the Company may adjust its capital structure through various measures, including equity or debt transactions, asset restructurings, or other strategic initiatives. Primary sources of liquidity include existing cash reserves and operating cash flows from its operating entities, including distributions from Seagems. Additionally, the Company relies on debt financing and may , in the future, rely on equity financing. To proactively manage liquidity, the Group prepares, reviews, and updates cash flow projections regularly. These projections incorporate various scenarios, including fluctuations in receivables collections in Mexico, to ensure sufficient liquidity while maintaining appropriate headroom in respect to financial covenant compliance throughout the assessment period. As for the Company’s share in the Seagems JV, the JV budgets and activity plans are reviewed and approved annually. Pursuant to agreement among the JV shareholders, Seagems distributes all excess cash to its shareholders. The Board of Directors and executive management utilize these insights for informed decision-making. The Group closed Q2 2025 with a cash balance of $93.1 million and net debt of $631.5 million, including the Company’s share in Seagems' cash balance and net debt of $22.9 million and $3 6.6 million, respectively. In comparison, the Group closed Q1 2025 with a cash balance of $176.1 million and net debt of $551 million, including the Company’s share in Seagems' cash balance and net debt of $20.2 million and $39.9 million, respectively. The Group’s interest-bearing debt (at notional amounts) totalled $774.9 million, comprising of $715.4 million at Paratus plus $59.5 million at Seagems (Q1 2025: $775.5 million, comprised of $715.4 million and $60.1 million respectively). As of the date of this report, the Company has senior secured notes with an aggregate principal amount of $215 million maturing within the next 12 months (the “2026 Notes”; see Note 11). The Company is actively evaluating a range of strategic options to address this upcoming maturity and has initiated discussions with various financial institutions to explore potential refinancing solutions. While no binding agreements have been executed as of the reporting date, the Company intends to redeem or refinance the 2026 Notes either at Paratus holding company level or through a new debt facility at the operating entity level, prior to maturity. Management remains confident in the Company’s ability to secure the necessary financing to meet its upcoming obligations and to maintain financial flexibility. 2 Figures shown at 100% Seagems Joint Venture level. 3
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Financial summary for the first six months of 2025 T he following financial summary is based on our financial reporting under US GAAP and should be read in conjunction with the financial statements and accompanying notes provided elsewhere in this report. Operating revenues for the first half of (“year-to-date” or “YTD”) 2025 totaled $73.9 million, a decrease from $111.8 million in the same period of 2024. The decline was primarily attributable to $15.2 million of variable revenue recognized in YTD 2024 related to previously unbilled services. Additionally, there were no operations on Titania FE in the quarter, resulting in a net revenue reduction of $11.3 million, after accounting for a demobilization fee and other related revenue items. Revenues were also impacted by lower average dayrates compared to higher dayrates in 2024 following market indexation to the Fontis rig rates (excluding Titania FE) in February and August 2024. Further contributing to the year -over-year decline were balances of rig suspensions in January 2025 and UWILD survey on the Intrepid during the current quarter. Total operating expenses YTD 2025 were $60.7 million, compared to $64.2 million in the same period of 2024. While YTD 2025 operating expenses included demobilization costs related to Titania FE (partially offset by lower operating rig activity), the YTD 2024 operating expenses were higher, mainly due to personnel and other costs largely driven by one-time activities related to the transition from Seadrill, and costs related to the placement of the 2029 Bonds and the Company’s public listing at Paratus. Share in results from Joint Venture YTD 2025 was $52.6 million (YTD 2024: $41.1 million), representing the Company’s 50% share of the Seagems’ net income (net of taxes). The increase was primarily driven by higher revenues resulting from higher dayrates as vessels commenced new contracts at significantly improved rates. Other operating income of $4.9 million is related to an insurance claim refund at Fontis received during YTD 2025. Operating income YTD 2025 was $70.7 million, down from $88.7 million in the same period of 2024 mainly driven by lower operating revenues as described above, partially offset by stronger results in Seagems JV and other income. Net financial expense was $57.1 million, up from $3 6.8 million in the same period of 2024 . The increase in net financial expense was mainly due to the upfront fee paid on receivables monetization agreement, higher net losses in Archer, which were driven by financial expenses related to their bond refinancing activities in the beginning of the year, and foreign currency fluctuations due to stronger MXN compared to USD in 2025. Tax expense was $4.8 million, down from $8.1 million in the same period of 2024, mainly driven by lower estimated corporate tax provision and movement in the provision for the uncertain tax positions (“UTP”) in Mexico (see Note 5). Net income for YTD 2025 was $8.8 million, compared to $43.8 million for the same period in 2024. Consolidated cash and cash equivalents (Paratus and Fontis) as of Q2 2025 was $70.2 million compared to $86.4 million at year-end 2024. Net cash from operating activities was $78.8 million, up from $39.8 million in the same period of 2024. The increase was primarily driven by the $209 million receivables collection in Mexico during Q1 2025, partly offset by higher vendor payments. N et cash from investing activities was $32.6 million, mainly related to cash distributions from Seagems to Paratus of $33.1 million, cash distribution from Archer of $1.3 million, partly offset by additions to drilling units of $1.8 million. In comparison, net cash from investing activities for the same period in 2024 was $35.1 million, consisting of distributions from Seagems to Paratus of $37.6 million, partly offset by additions to drilling units of $2.5 million. June 30, June 30, June 30, June 30, (In $ millions, unless stated otherwise) 2025 2024 2025 2024 Statements of operations summary Operating revenues 35.2 64.2 73.9 111.8 Oper ating income 31.4 53.7 70.7 88.7 Net financial expense (21.9) (15.9) (57.1) (36.8) Income tax expense (3.9) (3.7) (4.8) (8.1) Net income/(loss) 5.6 34.1 8.8 43.8 Earnings per share ($ per share) 0.03 0.22 0.05 0.28 June 30, June 30, Statements of cash flows 2025 2024 Cash and cash equivalents at end of period 70.2 232.2 78.8 39.8 32.6 35.1 (127.8) 41.8 Six months ended US GAAP financial results Net cash used in financing activities Three months ended Net cash provided by operating activities Net cash provided by investing activities 4
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Net cash used in financing activities was $127.8 million, comprised of cash distribution to shareholders of $71.9 million, share buyback of $24.9 million, interest income of $2.4 million and interest payments of $33.4 million. For the same period in 2024, cash provided by financing activities was $41.8 million comprised of cash from issuance of common shares of $72.6 million, interest income on bank deposits of $1.4 million, and payment of interest on borrowings of $32.2 million. Subsequent events Cash distribution to shareholders On August 26, 2025, the Company announced that the Board of Directors has approved a cash distribution of $0.22 per share for Q2 2025, to all shareholders of record as of 3 September 2025. The cash dividend will be paid on 16 September 2025. 5
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Risks and uncertainty T he Group is subject to a range of risks and uncertainties which may affect its business operations and financial condition. The description of key risks and uncertainties in the 2024 Annual report gives a fair description of key risks and uncertainties that may affect the Group in the second half of 202 5, and we are not aware of any significant new risks or uncertainties or significant changes to those risks or uncertainties, except for those described herein. 6
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Responsibility statement We c onfirm, to the best of our knowledge, that the condensed set of financial statements for the period January 1, to June 30, 2025, has been prepared in accordance with Unites States Generally Accepted Accounting Principles, or “US GAAP” and gives a true and fair view of the Group’s assets, liabilities, financial position and profit or loss as a whole, and that the interim management report includes a fair review of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements. We have disclosed all major related parties’ transactions. A detailed description of the principal risks and uncertainties facing the group is provided in our annual report for the year ended December 31, 2024 , as supplemented herein, remains materially unchanged for the remaining six months of the financial year 2025. The Board of Directors of Paratus Energy Services Ltd. 25 August 2025 Mei Mei Chow Chair Robert Jensen Director James Ayers Director Joac him Bale Director Mark Me y Director Dag Sk indlo Director 7
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June 30, June 30, June 30, June 30, (In $ millions, except per share amounts) Note 2025 2024 2025 2024 Total operating revenues 4 35.2 64.2 73.9 111.8 Operating expenses Rig operating expenses (25.6) (24.2) (43.9) (47.7) General and administrative expenses (2.3) (6.3) (5.5) (8.9) Depreciation and amortization (5.5) (4.6) (10.9) (9.3) Expected credit losses 4 (3.9) 2.4 (0.4) 1 .7 Total operating expenses (37.3) (32.7) (60.7) (64.2) Share in results from joint ventures 10 31.5 22.2 52.6 41.1 Other operating income 2.0 - 4.9 - Operating income 31.4 53.7 70.7 88.7 Financial items Share in results from associated companies 10 0.3 0.4 (7.0) ( 2.2) Interest income 1.1 1.2 2.4 1.4 Interest expense 11 (19.1) (21.6) (38.1) (43.1) Other financial items (4.2) 4.1 (14.4) 7.1 Net financial expense (21.9) (15.9) (57.1) (36.8) Income before taxes 9.5 37.8 13.6 51.9 Income tax expense 5 (3.9) (3.7) (4.8) (8.1) Net income 5.6 34.1 8.8 43.8 Income per share: 13 Basic 0.03 0.22 0.05 0.28 Diluted 0.03 0.22 0.05 0.28 See accompanying notes that are an integral part of these Consolidated Financial Statements. Paratus Energy Services Ltd. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS for the quarter ended June 30, 2025 and 2024 Six months ended Three months ended 8
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June 30, June 30, June 30, June 30, (In $ millions) 2025 2024 2025 2024 Net income 5.6 34.1 8.8 43.8 Other comprehensive income/(loss): Share of other comprehensive income/(loss) from equity method investments (0.9) 10.5 (1.6) 11.3 Total other comprehensive income 4.7 44.6 7.2 55.1 See accompanying notes that are an integral part of these Consolidated Financial Statements. Three months ended Six months ended Paratus Energy Services Ltd. CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMREHENSIVE INCOME/(LOSS) for the quarter ended June 30, 2025 and 2024 9
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June 30, December 31, (In $ millions, except par value amounts) Note 2025 2024 ASSETS Current assets Cash and cash equivalents 6 70.2 86.4 Accounts receivables, net 4 224.2 339.6 Amounts due from related parties 3.3 3.3 Favorable contracts - current 4 21.4 28.9 Other current assets 7 28.7 10.0 Total current assets 347.8 468.2 Non-current assets Equity method investments 10 368.1 358.2 Drilling units and equipment, net 255.4 259.0 Favorable contracts - non-current 4 - 9.0 Other non-current assets 0.9 0.3 Total non-current assets 624.4 626.5 Total assets 972.2 1,094.7 LIABILITIES AND EQUITY Current liabilities Trade accounts payable 6.0 16.7 Other current liabilities 5, 8 44.0 65.0 Total current liabilities 50.0 81.7 Non-current liabilities Interest-bearing debt, long-term 11 6 97.2 692.5 Other non-current liabilities 5 55.5 61.4 Deferred tax liabilities 2.2 2.2 Total non-current liabilities 754.9 756.1 Equity Shareholders' equity 167.3 256.9 Total equity 167.3 256.9 Total liabilities and equity 972.2 1,094.7 See accompanying notes that are an integral part of these Consolidated Financial Statements. Paratus Energy Services Ltd. CONDENSED CONSOLIDATED BALANCE SHEETS as at June 30, 2025 and December, 31 2024 10
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June 30, * June 30, (In $ millions) Note 2025 2024 Cash Flows from Operating Activities Net income 8.8 43.8 Adjustments to reconcile net income to net cash provided by Amortization of favorable contracts 4 16.5 15.4 Depreciation 10.9 9.3 Income from equity method investments 10 (45.6) (38.9) Net interest expense and amortization 35.7 41.7 Unrealized foreign exchange (gain)/loss 0.9 (7.1) Expected credit losses 4 0.4 (1.7) Share-based compensation - 0.1 Additions to long-term maintenance (5.4) (2.1) Other (0.3) (0.6) Change in working capital items and other Accounts receivables, net 4 115.0 (40.0) Trade accounts payable (11.0) (3.6) Other assets (19.3) 4.7 Other liabilities (27.8) 18.8 Net cash provided by operating activities 78.8 39.8 Investing Activities Additions to drilling units and equipment (1.8) (2.5) Distribution from equity method investee 10 34.4 37.6 Net cash provided by investing activities 32.6 35.1 Financing Activities Interest on bank deposits 2.4 1.4 Issuance of common shares (net of issue costs) - 72.6 Payment of interest on borrowings 11 (33.4) (32.2) Share buyback (24.9) - Return of capital to shareholders (71.9) - Net cash used in financing activities (127.8) 41.8 Effect of exchange rate changes on cash and cash equivalents 0.2 0.8 Net increase/(decrease) in cash and cash equivalents (16.2) 117.5 Cash and cash equivalents at beginning of period 86.4 114.7 Cash and cash equivalents at end of period 70.2 232.2 *Presentation of comparative information has been updated in conformity with the 2024 year-end presentation. See accompanying notes that are an integral part of these Consolidated Financial Statements. Paratus Energy Services Ltd. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS for the six months ended June 30, 2025 and 2024 Six months ended 11
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(In $ millions) Common shares Additional paid-in capital Accumulated other comprehensive income/(loss) Accumulated deficit Total equity Balances as at January 1, 2024 - 1,290.9 (3.5) ( 1,072. 5) 214.9 Net income - - - 43.8 43.8 Other comprehensive income - - 11.3 - 11.3 Issuance of common shares - 71.9 - - 71.9 Balance as at June 30, 2024 - 1,362.8 7.8 (1, 028. 7) 344.9 Balances as at January 1, 2025 - 1,289.1 8.7 (1, 040. 9) 256.9 Net income - - - 8.8 8.8 Other comprehensive loss - - (1.6) - (1.6) Share buyback - (24.9) - - (24.9) Return of capital - (71.9) - - (71.9) Balance as at June 30, 2025 - 1,192.3 7.1 (1,032.1) 167.3 See accompanying notes that are an integral part of these Consolidated Financial Statements. Paratus Energy Services Ltd. CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended June 30, 2025 and 2024 12
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Note 1 - General information Note 2 - Basis of presentation and accounting policies Unless the context indicates otherwise, “Paratus,” the "Company," "we," "us," "our," and similar terms, all refer to Paratus Energy Services Ltd., while “Paratus Group” or the “Group” refers collectively to the Company and its consolidated subsidiaries and its ownership in Joint Ventures (“JV”). All references to "USD" and "$" in this report denote U.S. dollars unless otherwise indicated. Company details Paratus Energy Services Ltd. is a company incorporated under the laws of Bermuda and in accordance with the Bermuda Companies Act 1981. The Company is listed on the Euronext Oslo Børs under the ticker “PLSV”. Business Paratus is a holding company of a group of energy services companies and is comprised of its wholly owned subsidiary Fontis Holdings Ltd . and its subsidiaries (collectively "Fontis"), 50/50 joint venture interest in Seagems joint venture, comprising of Seabras Sapura Holding GmbH and Seabras Sapura Participacoes SA, (collectively “Seagems” or the "JV") and its 23.8% ownership in Archer Limited ("Archer"). • Fontis Energy is a provider of drilling services, operating a fleet of five high-specification jack-up rigs – Defender, Courageous, Intrepid, Oberon, and Titania FE - currently located in Mexico. As of the reporting date, four of the rigs are under the contract with a state-owned company in Mexico. Titania FE is as of the reporting date warm stacked in Mexico. • Seagems is a subsea services company, operating a fleet of six multipurpose pipe-laying support vessels - Diamante, Topazio, Esmeralda, Onix, Jade and Rubi – with capabilities for subsea engineering, installation, and other services, under contract in Brazil. • Archer is a global oil services company which operates in 40 locations providing drilling services, well integrity and intervention, plug and abandonment and decommissioning to its upstream oil and gas clients. Archer is listed on the Euronext Oslo Børs under the ticker “ARCH”. Basis of presentation These unaudited interim condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The unaudited interim condensed consolidated financial statements do not include all of the disclosures required under U.S. GAAP in the annual consolidated financial statements and should be read in conjunction with our audited annual consolidated financial statements and notes for the year ended December 31,2024. The financial statem ents have been prepared on a going concern basis and in management's opinion, all adjustments necessary for a fair presentation of the financial statements are reflected in the interim periods presented. Significant accounting policies The accounting policies adopted in the preparation of the unaudited consolidated financial statements are consistent with those as described in our annual audited consolidated financial statements for the year ended December 31,2024. Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires that management make estimates and assumptions affecting the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.Actual results could differ from those estimates. Subtotals and totals in some of the tables included in these interim financial statements may not equal the sum of the amounts shown due to rounding. 13
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Note 3 - Segment Information (In $ millions) Seagems (50% share) Fontis Other Total reporting Segments Reconciling Items Consol. Total Contract revenues 62.7 43.8 - 106.5 ( 62.7 ) 43.8 Amortization of favorable contracts - (8.6) - (8.6) - (8.6) Tax on revenues (3.0) - - (3.0) 3.0 - Operating revenues 59.7 35.2 - 94.9 (5 9.7 ) 35.2 Rig / Vessel operating expenses (15.4) (25.6) - (41.0) 15.4 (25.6) General and administrative exp. (3.7) (0.4) (1.9) (6.0) 3.7 (2 .3) Expected credit losses - (3.9) - (3.9) - (3.9) Other operating income - 2.0 - 2.0 - 2.0 Depreciation and amortization (10.7) (5.5) - (16.2) 10.7 (5.5) Share in results from joint ventures - - 4.1 4. 1 27. 4 31. 5 Operating income 29.9 1.8 2.2 33. 9 (2 .5) 31.4 Share in results from associated companies - - 0.3 0. 3 - 0 .3 Interest expense (1.0) - (19.1) (20.1) 1.0 (19.1) Other financial items, net 1.7 (4.3) 1.2 (1.4) (1.7) (3.1) Income tax benefit/(expense) (3.2) (3.9) - (7.1) 3.2 (3.9) Net income/(loss) 27.4 (6.4) (15.4 ) 5.6 - 5 .6 (In $ millions) Seagems (50% share) Fontis Other Total reporting Segments Reconciling Items Consol. Total Contract revenues 52.2 71.8 - 124.0 ( 52.2 ) 71.8 Amortization of favorable contracts - (7.6) - (7.6) - (7.6) Tax on revenues (3.6) - - (3.6) 3.6 - Operating revenues 48.6 64.2 - 112.8 ( 48.6 ) 64.2 Rig / Vessel operating expenses (17.5) (23.9) (0.3) (41.7) 17.5 (24.2) General and administrative exp. (3.0) (1.1) (5.2) (9.3) 3.0 (6.3) Expected credit losses - 2.4 - 2.4 - 2 .4 Other operating expenses (0.2) - - (0.2) 0.2 - Depreciation and amortization (10.4) (4.6) - (15.0) 10.4 (4.6) Share in results from joint ventures - - 2.4 2. 4 19. 8 22. 2 Operating income 17.5 37.0 (3.1) 51.4 2. 3 53. 7 Share in results from associated companies - - 0.4 0. 4 - 0 .4 Interest expense (1.2) - (21.6) (22.8) 1.2 (21.6) Other financial items, net 4.3 5.3 - 9.6 (4.3) 5.3 Income tax benefit/(expense) (0.8) (3.7) - (4.5) 0.8 (3.7) Net income/(loss) 19.8 38.6 (24.3 ) 34.1 - 3 4.1 Three months ended June 30, 2025 Three months ended June, 30 2024 The Company reports its operations under three segments: Fontis, Seagems, and Other. Fontis Holdings Ltd. and its subsidiaries (collectively "Fontis"), a wholly-owned subsidiary of Paratus, is a provider of drilling services, operating a fleet of five high-specification jack-up rigs – Defender, Courageous, Intrepid, Oberon, and Titania FE - currently located in Mexico. As of the reporting date, four of the rigs are under the contract with a state-owned company in Mexico. Titania FE is as of the reporting date warm stacked in Mexico. The Seagems segment represents the Company's 50/50 joint venture interest in Seagems joint venture, comprising of Seabras Sapura Holding GmbH and Seabras Sapura Participacoes SA (collectively “Seagems” or the "JV"). Seagems is a subsea services company, operating a fleet of six multipurpose pipe-laying support vessels - Diamante, Topazio, Esmeralda, Onix, Jade and Rubi – with capabilities for subsea engineering, installation, and other services, under contract in Brazil. Under US GAAP, we report on Seagems' results in our consolidated financial statements using the equity method. Accordingly, the full operating results included below are not included within our consolidated results and are thus adjusted for under "Reconciling items" and fully replaced with our equity in earnings of the equity method. For segment reporting purposes, we present 50% information for Seagems. Figures are presented net of intercompany transactions between Seagems entities . Our segment reporting for Seagems includes information to reconcile from our segment reporting for Seagems to our consolidated financial statements prepared under US GAAP. The Other segment includes our 23.8% ownership in Archer which is accounted for as an equity method investment as well as general corporate and finance activities, and basis difference adjustment to equity method investments. The accounting principles for the segments are the same as for our consolidated financial statements. The following tables provide disclosures of the key metrics used by the chief operating decision maker when assessing the operations of the business. Reconciling items Reconciling items in the tables above represent adjustments made to arrive from 50% of Seagems results (proportional consolidation of accounting) to the equity method income as disclosed under operating activities in the statement of operations. 14
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Note 3 - Segments (continued) (In $ millions) Seagems (50% share) Fontis Other Total reporting Segments Reconciling Items Consol. Total Contract revenues 118.9 90.4 - 209.3 (1 18.9) 9 0.4 Amortization of favorable contracts - (16.5) - (16.5) - (16.5) Tax on revenues (5.9) - - (5.9) 5.9 - Operating revenues 113.0 73.9 - 186.9 (1 13.0) 7 3.9 Rig / Vessel operating expenses (33.2) (43.9) - (77.1) 33.2 (43.9) General and administrative exp. (6.6) (1.3) (4.2) ( 12.1) 6.6 (5. 5) Expected credit losses - (0.4) - (0.4) - (0.4) Other operating income - 4.9 - 4.9 - 4.9 Depreciation and amortization (21.1) (10.9) - (32.0) 21.1 (10.9) Share in results from joint ventures - - 8.1 8.1 44.5 52.6 Operating income 52.1 22.3 3.9 78.3 (7. 6) 7 0.7 Share in results from associated companies - - (7.0) ( 7.0) - (7.0) Interest expense (1.9) - (38.1) (40.0) 1.9 (38 .1) Other financial items, net 0.9 (13.6) 1.6 (11.1) (0.9) (12.0) Income tax benefit/(expense) (6.6) (4.8) - (11.4) 6.6 (4.8) Net income/(loss) 44.5 3.9 (39.6) 8.8 - 8. 8 (In $ millions) Seagems (50% share) Fontis Other Total reporting Segments Reconciling Items Consol. Total Contract revenues 105.3 127.2 - 232.5 (1 05.3) 1 27.2 Amortization of favorable contracts - (15.4) - (15.4) - (15.4) Tax on revenues (6.7) - - (6.7) 6.7 - Operating revenues 98.6 111.8 - 210.4 (9 8.6) 111.8 Rig / Vessel operating expenses (37.0) (47.0) (0.7) (84.7) 37.0 (47.7) General and administrative exp. (6.2) (2.6) (6.3) (15.1) 6.2 (8.9) Expected credit losses - 1.7 - 1.7 - 1. 7 Other operating expenses (0.1) - - (0.1) 0.1 - Depreciation and amortization (20.8) (9.3) - (30.1) 20.8 (9.3) Share in results from joint ventures - - 4.2 4.2 36.9 41.1 Operating income 34.5 54.6 (2.8) 8 6.3 2.4 88.7 Share in results from associated companies - - (2.2) ( 2.2) - (2.2) Interest expense (1.0) - (43.1) (44.1) 1.0 (43.1) Other financial items, net 4.0 8.3 0.2 12.5 (4.0) 8.5 Income tax benefit/(expense) (0.6) (8.1) - (8.7) 0.6 (8.1) Net income/(loss) 36.9 54.8 (47.9) 43.8 - 43. 8 (In $ millions) Seagems (50% share) Fontis Other Total reporting Segments Reconciling Items Consol. Total Cash and cash equivalents 22.9 14.6 55.6 93.1 (22.9) 70.2 Property, plant and equipment 591.3 255.4 - 846.7 (5 91.3) 2 55.4 Capital Expenditures 12.5 7.2 - 19.7 (12 .5) 7.2 Equity method investments - - 41.7 41.7 326.4 368.1 Total assets 677.3 544.7 427.5 1,649.5 (677.3) 972.2 Long-term interest-bearing debt, net 59.5 - 697.2 756.7 (59.5) 697.2 (In $ millions) Seagems (50% share) Fontis Other Total reporting Segments Reconciling Items Consol. Total Cash and cash equivalent 12.4 21.5 64.9 98.8 (12.4) 86.4 Property, plant and equipment 629.5 259.0 - 888.5 (6 29.5) 2 59.0 Capital Expenditures 15.5 16.4 - 31.9 (15 .5) 16.4 Equity method investments - - 45.7 45.7 312.5 358.2 Total assets 674.5 668.4 426.3 1,769.2 (674.5) 1,094.7 Long-term interest-bearing debt, net 60.5 - 692.5 753.0 (60.5) 692.5 June 30, 2025 December 31, 2024 Six months ended June 30, 2024 Six months ended June 30, 2025 15
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Note 4 - Revenue from contracts with customers June 30, June 30, June 30, June 30, (In $ millions) 2025 2024 2025 2024 Contract revenues 43.8 71.8 90.4 127.2 Amortization of favorable contracts (8.6) (7.6) (16.5) (15. 4) Operating revenues 35.2 64.2 73.9 111.8 June 30, December 31, (In $ millions) 2025 2024 Account receivables 231.9 346.9 Less: Allowance for credit losses (7.7) (7.3) Account receivables, net 224.2 339.6 June 30, December 31, (In $ millions) 2025 2024 Favorable contracts 171.1 171.9 Less: Accumulated amortization (149.7) (134.0) Favorable contracts, net 21.4 37.9 Of which: Favorable contracts - current 21.4 28.9 Favorable contracts - non-current - 9.0 Changes in the favorable contract asset during the period are as follows: Balance as of January 1, 2025 37.9 Amortization of favorable contracts (16.5) Balance as of June 30, 2025 21.4 Three months ended Six months ended The following tables provide information about trade receivables: The following tables provide information about favorable contracts related to our contracts with customers: The amortization is recognized in the condensed consolidated statement of operations as an adjustment to revenue of favorable contracts. The average remaining amortization period for the favorable contractsis 6 months. In the three and six months ended June 30, 2025 and 2024 the Company had only one customer with external contract revenues. During the same periods all of our operating drilling units were located in one geographic location, Mexico. Outstanding receivables in Mexico The successful collection of $209 million in overdue receivables from the Company’s client in Mexico during Q1 2025 marked a significant milestone. This transaction materially improved the Company’s liquidity position and demonstrated that alternative avenues exist for monetizing receivables beyond the traditional collection process. The Company believes similar arrangements could potentially be an option should we consider this necessary. As of the end of Q2 2025, the notional value of accounts receivable increased to $232 million, up from $185 million at the end of Q1 2025. No payments were received during the quarter, in line with broader trends observed among other service providers operating in Mexico with this client. In early August 2025, the Mexican government publicly introduced a comprehensive financial support plan with the aim to make Fontis’ client financially self-sufficient by 2027. Key elements of the plan include the settlement of overdue supplier payments, debt reduction initiatives, and a long-term increase in national oil production from approximately 1.6 to 1.8 million barrels per day. As part of this initiative, approximately $25 billion in new government guaranteed funding has reportedly been secured, including proceeds partially earmarked for capital expenditures and supplier debt settlements. In August, Fontis received a modest payment from its client. The Company also notes that the client has announced intentions to align its payment practices with international standards going forward in order to reduce processing delays. However, it has been acknowledged that delays may continue to persist in the near to medium term. The Company remains actively engaged with the client to expedite the collection of outstanding receivables and expects to recover the full amount as has been the case in the past, while acknowledging and planning for the possibility of ongoing fluctuations in the timing of collections. To proactively manage liquidity, the Company prepares, reviews, and updates cash flow projections regularly . These projections incorporate various scenarios, including fluctuations in receivables collections in Mexico. 16
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Note 5 - Taxation and provisions for uncertain tax positions Note 6 - Cash and cash equivalents June 30, December 31, (In $ millions) 2025 2024 Cash and cash equivalents, non-restricted 56.0 75.3 Cash and cash equivalents, restricted 14.2 11.1 Total cash and cash equivalents 70.2 86.4 Note 7 - Other current assets Other current assets consist of the following: June 30, December 31, (In $ millions) 2025 2024 VAT asset 17.8 - Taxes receivable 9.4 8.9 Prepaid expenses 1.5 1.1 Total other current assets 28.7 10.0 Note 8 - Other current liabilities Other current liabilities consist of the following: June 30, December 31, (In $ millions) 2025 2024 VAT liability - 21.2 Taxes payable 20.0 21.5 Employee withheld taxes and social security 2.2 2.7 Other current liabilities 12.7 16.4 Uncertain tax positions (UTP) provision 8.6 2.7 Accrued interest on senior secured notes 0.5 0.5 Total other current liabilities 44.0 65.0 Restricted cash represents cash collateral supporting performance guarantees issued to a large national oil company in Mexico. Income tax expense mainly relates to current tax provision, withholding taxes and movements in provision for uncertain tax positions ("UTP") in Mexico. Uncertain Tax Positions in Mexico ("UTP") As disclosed in the latest annual report, the Group is currently undergoing audits by the Mexican tax authorities ("SAT") in respect of fiscal years 2014, 2018, 2019 and 2020. In Q3 2024, the tax liabilities relating to 2017 tax audit were resolved and settled for approximately $13 million. In Q1 2025, the tax liabilities in relation to 2014 Titania FE rig operating entity were resolved and settled for approximately $3.5 million. The UTP estimate, including for those accounting years that are currently not subject to audit, is based on the information available at the time to the best of management's assessment of all relevant available information including the tax audits that have been finalized. The provision for UTP as of Q2 2025 was $63.6 million (year-end 2024: $ 64 million), of which $8.6 million (year-end 2024: $2.7 million) is presented under "Other-current liabilities" and $55 million (year-end 2024: $61.3 million) in "Other non-current liabilities" on the balance sheet. Included in the provision for UTP is accrued interest and penalties totaling $21.4 million (year-end 2024: $21.1 million). The movement in the UTP provision during the first half of 2025 was mainly driven by fluctuations in foreign currency rates (included in "Other financial items"), settlements made, inflation adjustments and accruals for interest and other (includedin "Income tax expense"). 17
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Note 9 - Fair values of financial instruments (In $ millions) Assets Level Fair value Carrying value Fair value Carrying value Related party loans receivables – Seagems loans receivables 2 3.0 3.3 3.0 3.3 Liabilities 2026 Senior secured notes* 1 214.3 209.9 215.4 203.2 2029 Senior secured notes* 1 494.6 487.3 488.2 489.3 * These instruments are at a fixed interest rate June 30, 2025 December 31, 2024 Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date . The fair value hierarchy prescribed by US GAAP requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1: Quoted prices for identical instruments in active markets Level 2: Quoted market prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant inputs or significant value drivers are unobservable. For the majority of our financial instruments, the carrying value approximates their fair value due to the relatively short maturities . In circumstances where payments are delayed the fair value could differ for time value of money. For other financial instruments, a comparison of fair value and carrying value is as follows: The carrying value of cash and cash equivalents, restricted cash, accounts receivable, related party payables and accounts payable are by their nature short-term. As a result, the carrying values included in the Condensed Consolidated Balance Sheets approximate fair value. These assets and liabilities are categorized as Level 1 on the fair value measurement hierarchy. Related party loans receivables - Seagems loans receivable We estimate the fair value of the related party loans receivable from Seagems to be equal to the carrying value after adjusting for expected credit losses. The debt is not freely tradeable and cannot be recalled by us at prices other than specified in the loan note agreements . The loans were entered into at market rates. The loans are categorized as Level 2 on the fair value hierarchy. $620m of Senior secured notes ("2026 Notes") The fair value of the senior secured notes were derived using market traded value, and as such, we have categorized this at Level 1 on the fair value measurement hierarchy. Refer to Note 11 – Debt for further information. $500m Senior secured bonds ("2029 Bonds") The fair value of the senior secured bonds were derived using market traded value, and as such, we have categorized this at Level 1 on the fair value measurement hierarchy. Refer to Note 11 – Debt for further information. 18
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Note 10 - Equity method investments Our equity method investments as of June 30, 2025 and December 31, 2024 are comprised as follows: June 30, December 31, Ownership percentage 2025 2024 Seagems 50.0 % 50.0 % Archer 23.8 % 23.8 % June 30, June 30, June 30, June 30, (In $ millions, except ownership percentage) 2025 2024 2025 2024 Operating revenues 124.1 121.0 231.1 232.1 Operating income 65.6 40.2 114.1 79.2 Net income/(loss) 55.0 39.5 89.1 73.8 Company's ownership percentage 50.0 % 50.0 % 50.0 % 50.0 % Share of net income/(loss) 27.4 19.8 44.5 36.9 Amortization of basis differences 4.1 2.4 8.1 4.2 Share in results of Seagems 31.5 22.2 52.6 41.1 June 30, June 30, June 30, June 30, (In $ millions, except ownership percentage) 2025 2024 2025 2024 Operating revenues 294.4 309.0 588.6 617.3 Operating income 22.1 15.5 38.4 33.4 Net income / (loss) 0.8 1.0 (28.7) (9.8) PES ownership percentage 23.8 % 24.2 % 23.8 % 24.2 % Share of net income/(loss) 0.2 0.2 (6.8) (2.4) Amortization of basis differences 0.1 0.2 (0.2) 0.2 Share in results of Archer 0.3 0.4 (7.0) (2.2) June 30, December 31, June 30, December 31, (In $ millions, except ownership percentage) 2025 2024 2025 2024 Current assets 234.6 197.6 394.8 404.1 Non-current assets 1,190.8 1,208.4 628.7 596.5 Current liabilities (164.4) (158.3) (332.3) (338.2) Non-current liabilities (107.1) (115.3) (481.9) (437.2) Non-controlling interest - - (16.6) (15.4) Net Assets (gross, 100%) 1,153.9 1,132.4 192.7 2 09.8 Company's ownership percentage 50.0 % 50.0 % 23.8 % 23.8 % Company's share of book equity 577.0 566.2 45.9 50.7 Shareholder loans held as equity 0.9 0.9 - - Basis difference (251.5) (254.6) (4.2) (5.0) Carrying amount equity method investments 326.4 312.5 41.7 45. 7 Seagems* Archer Seagems* Archer Three months ended Six months ended Three months ended Six months ended The summarized balance sheets of our equity method investments and our share of recorded equityin these entities is as follows: The tables below set for the results of these entities, and our share in the results of these equity method investments: *Seagems figures are shown prior to elimination of intercompany transactions and balances between JV entities. 19
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Note 11 - Interest-bearing debt June 30, December 31, (In $ millions) Interest Rate Maturity Date 2025 2024 9.00% 15/07/2026 215.4 215.4 9.50% 27/06/2029 500.0 500.0 715.4 715.4 (18.2) (22.9) 697.2 692.5 - - 697.2 692.5 Interest expense is comprised of the following: June 30, June 30, June 30, June 30, (In $ millions) 2025 2024 2025 2024 Loan interest expense 16.7 16.6 33.4 32.2 Amortization of debt discount 2.4 5.0 4.7 10.9 Interest expense 19.1 21.6 38.1 43.1 Note 12 - Share Capital June 30, December 31, 2025 2024 Class A ordinary shares in issue 169,550,049 169,550,049 Treasury shares (6,815,000) - Total shares outstanding 162,735,049 169,550,049 Note 13 - Earnings per Share (EPS) The following reflects the net income/(loss) and share data used in the earnings per share calculation: June 30, June 30, June 30, June 30, 2025 2024 2025 2024 Net income/(loss) 5.6 34.1 8.8 43.8 163,186,952 154,857,157 165,515,564 154,436,579 163,186,952 154,857,157 165,515,564 154,436,579 Earnings per share: Basic 0.03 0.22 0.05 0.28 Diluted 0.03 0.22 0.05 0.28 (in $ million, except share and per share amounts) Weighted average numbers of shares outs. (basic) Weighted average numbers of shares outs. (diluted) Three months ended Six months ended Less: Current portion, net Long-term interest-bearing debt, net Three months ended Six months ended Carrying Amount 2026 Senior secured notes plus PIK interest 2029 Senior secured bonds Total interest-bearing debt Less: Unamortized discount and debt issuance costs Total interest-bearing debt, net The key terms relating to our debt in the year ended June 30, 2025 and year ended December 31, 2024 are explained below. 2026 Senior secured notes ("2026 Notes") Senior secured notes were issued on January 20, 2022 and are due July 15, 2026. In July 2024, the proceeds from the $500 million bond issue described below (“2029 Bonds”) were used to partially refinance the 2026 Notes. As a result, the remaining principal amount under the 2026 Notes was $215 nillion as at June 30, 2025 (December 31, 2024:$215 million). The carrying amount of the 2026 Notes is presented net of unamortized discount and debt issuance costs. The Company is actively evaluating a range of strategic options to address this upcoming maturity and has initiated discussions with various financial institutions to explore potential refinancing solutions. While no binding agreements have been executed as of the reporting date, the Company intends to redeem or refinance the 2026 Notes either at Paratus holding company level or through a new debt facility at the operating entity level, prior to maturity. Management remains confident in the Company’s ability to secure the necessary financing to meet its upcoming obligations and to maintain financial flexibility. 2029 Senior Secured Bonds ("2029 Notes") Secured bonds were issued on June 27, 2024 and are due June 27, 2029. As at June 30, 2025, the outstanding principal amount is $500 million (December 31, 2024: $ 500 million). The carrying amount of the 2029 Bonds are presented net of unamortized discount and debt issuance costs. As of June 30, 2025 and December 31, 2024 the carrying value of our debt, all long-term, was comprised as follows: Paratus, has issued a total of 169,550,049 Class A common shares at par value of US $0.00002 each at June 30, 2025 and December 31, 2024. The computation of basic income/(loss) per share ("EPS") is based on the weighted average number of shares outstanding during the period. Diluted earnings per share amounts are calculated by dividing the net income/(loss) by the weighted average number of shares outstanding during the period, plus the weighted average number of ordinary shares that would be outstanding if all the dilutive potential ordinary shares were issued. Anti-dilutive options granted to employees totaling 780,000 shares were excluded from the computation of diluted EPS. 20
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Note 14 - Subsequent events Cash distribution to shareholders On August 26, 2025, the Company announced that the Board of Directors has approved a cash distribution of $0.22 per share for Q2 2025, to all shareholders of record as of 3 September 2025. The cash dividend will be paid on 16 September 2025. 21
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Alternative Performance Measures June 30, June 30, June 30, June 30, (In $ millions) 2025 2024 2025 2024 Calculation of adjusted EBITDA Net income/(loss) 5.6 34.1 8.8 43.8 Add back: Income tax expense 3.9 3.7 4.8 8.1 Add back: Net financial expense 21.9 15.9 57.1 36.8 Deduct: Share in results from joint ventures (31.5) (22.2) (52.6) (41.1) Add back: Expected credit losses 3.9 (2.4) 0.4 (1.7) Deduct: Other operating income (2.0) - (4.9) - Add back: Depreciation and amortization 5.5 4.6 10.9 9.3 Add back: Amortization of favorable contracts 8.6 7.6 16.5 15.4 Adjusted EBITDA (consolidated) 15.9 41.3 41.0 70.6 Net income/(loss) - 50% of Seagems 27.4 19.8 44.5 36.9 Add back: Income tax expense 3.2 0.8 6.6 0.6 Add back: Net financial expense (0.7) (3.1) 1.0 (3.0) Add back: Depreciation and amortization 10.7 10.4 21.1 20.8 Add back: Other operating expenses - 0.2 - 0.1 Adjusted EBITDA (50% Seagems) 40.6 28.1 73.2 55.4 Combined Segment EBITDA 56.5 69.4 114.2 1 26.0 June 30, December 31 (In $ millions) 2025 2024 Net debt Interest-bearing debt (notional amount) 715.4 715.4 Paratus 715.4 715.4 Less: Cash and cash equivalents 70.2 86.4 Paratus 55.6 64.9 Fontis 14.6 21.5 Less: Market value Archer shares* 50.3 49.4 Paratus 50.3 49.4 Net debt 594.9 579.6 50% of Seagems interest-bearing debt (notional amount) 59.5 60.5 22.9 12.4 50% of Seagems net debt 36.6 48.1 Net debt (as per management reporting) 631.5 627.7 Net Leverage Ratio Net debt (as per management reporting) 631.5 627.7 Combined Segment EBITDA (LTM)** 240.0 251.6 Net Leverage Ratio 2.6 2.5 * Trading venue: Euronext Oslo Børs (ticker: ARCH). ** Last Twelve Months ("LTM") Less: 50% of Seagems cash and cash equivalents Three months ended Six months ended The Company discloses certain alternative performance measures (“APM”) as a supplement to the consolidated financial statement prepared in accordance with US GAAP. These measures provide additional insight into the Group’s operating performance, financing, and future prospects, often used by analysts, investors, and other stakeholders. Other companies may not calculate the APMs in the same manner, and, as a result, the presentation thereof may not be fully comparable to measures used by other companies under the same or similar titles. Accordingly, undue reliance should not be placed on the APMs contained below and should not be considered as a substitute for revenue or other financial metrics. 22
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Alternative Performance Measures (continued) Definitions and explanations of APMs EBITDA is an abbreviation of "Earnings Before Interest, Income taxes, Depreciation and Amortization" and represents net income/(loss) before net interest expense, income taxes, depreciation and amortization. Adjusted EBITDA, as applied by the Company, represents EBTIDA excluding certain non-cash items such as expected credit gains/(losses), impairment charges, amortization of favorable contracts, and other items that the Company believes are not indicative of ongoing performance of its core operations. The Company presents this APM as it provides useful supplemental information about the financial performance of its business, enables comparison of financial results between periods where certain items may vary independent of business performance, and allows for greater transparency with respect to key metrics used by management in operating our business and measuring our performance . Further, it may provide comparability to similarly titled measures of other companies. Net debt as defined under the bond indenture agreement, is interest-bearing debt (notional) including the Company’s share in Seagems interest-bearing debt (notional) less total cash and cash equivalents including the Company’s share in Seagems cash and cash equivalents, and the market value of marketable securities (the Company's ownership in Archer). The Company presents this APM as it is a useful indicator of the Group's net interest -bearing indebtedness as it indicates the level of borrowings after taking into account cash that could be utilized to pay down outstanding borrowings. Net Leverage Ratio is defined as the ratio of Net debt to adjusted EBITDA. The Company presents this APM as it is a useful indicator of the Group’s financial leverage, as it measures the level of net debt relative to adjusted EBITDA, providing insight into the Company’s ability to service its debt obligations. Management reporting represents the Company’s internal financial and operational performance assessment . In this context, Seagems’ financial results are presented using proportional consolidation of accounting. However, in our financial reporting under US GAAP, Seagems’ financial results are reported using the equity method, presented under “Share in results from joint ventures.” Additionally, in management reporting, operating revenues reflect contract revenues before amortization of favorable contracts for Fontis and exclude revenue taxes for Seagems. Additionally, the Company uses other performance indicators that are not considered to be an APM, but is important for assessing the Group's performance: Contract backlog repres ents the sum of estimated undiscounted revenue related to secured contracts. Contract backlog may be subject to price indexation clauses or other factors that may intervene with and/or result in delays in revenue realization, and it does not include potential growth or value of non-declared options within existing contracts. Technical utilization is based on actual operating days versus actual available days excluding days at yard for periodical maintenance, upgrading, transit or idle time between contracts. 23