Thank you, Alba. Good day, everyone, and welcome to this second quarter and half year 2024 results presentation for Paratus Energy Services Limited.

My name is Baard Hajimohammadi, and I'm the interim CEO and CFO of Paratus. 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 '24 and the period since have been eventful for Paratus. On July 29th, we successfully completed the strategic sale of Fontes' drilling 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 2.5 years structured with interest rate step-up from 10% up to 14%. Separately, we received $20 million as reimbursement of interim funding we provided to support Fontes' operations between signing of the SPA and completion of the transaction.

For information, Paratus' cash following completion increased to over $300 million. We are currently evaluating the available alternatives for the use of proceeds, and we'll provide further update once a decision has been made by the company.

As announced earlier, during the quarter, we also completed the replacement of 200 the placement of $250 million of a 5-year senior secured bonds with a coupon rate of 8.125% and fully redeemed the '26 notes during the quarter in June. As I will return to later, at Seagems, the team achieved an important milestone related to our fleet life extension strategy.

Seagems has received approval to extend the drydocking regime to up to 20 years for its five 550-ton PLSVs, removing one SPS or drydocking over each vessel's life. From this, we expect lower lifetime capex and higher earnings potential as the vessels stay on hire through periods when they would otherwise have been in drydocking.

Turning to the operational and financial performance for the quarter, at high level, the PLSV fleet recorded technical utilization of 93%, which was down from approximately 98% in the last quarter. This was due to some downtime driven by maintenance and operational incidents involving Esmeralda and Jade PLSVs.

The related work on this has been completed, and the financial impact was reflected in our previously announced guidance which we provided in connection with the Q1 release. We reported Q2 revenues of $71 million and adjusted EBITDA of $42 million, compared with $75 and $46 million, respectively, in Q1.

We closed Q2 quarter with $148 million in combined segment cash, while net debt was $282 million pro forma for the Fontes transaction. Finally, the board has declared a dividend of $0.22 per share for Q2, in line with every quarterly dividend since our IPO in 2024.

Including the dividend that we announced today, we will have returned approximately $350 million to shareholders since we started the cash distribution and buybacks 2 years ago. Now let's move over to the quarterly performance of the joint venture, Seagems.

As usual, please note that the figures refer to here are on 100% basis, unless otherwise state by me. Seagems delivered another quarter of solid financial performance.

Revenue was $142 million, and EBITDA was $87 million, representing an EBITDA margin of 64%. The quarter-over-quarter decline in earnings mainly reflects the maintenance activities and operational incidents, as mentioned earlier in the introduction.

Compared with Q2 last year, we see a revenue growth of about 14%, from $125 million last year to $142 million this quarter. This was mainly driven by higher dayrates under the new Petrobras contracts and fewer off-hire days compared to the same quarter last year when the PLSVs underwent acceptance testing in connection with the new contracts.

During Q2, the JV distributed $60 million to its two shareholders, of which half of it is to come to Paratus, compared with $83 million distributed in Q1. At quarter-end, backlog stood at approximately $1.

$1.1 billion, compared to approximately $1.2 billion at the end of Q1. Capex was about $6 million during the quarter and $12 million during the half year '24.

As already publicly available, early in '24, Petrobras launched a PLSV tender which includes five lots with different technical specifications and 4-year contract durations. Seagems submitted bids for the Jade and a third-party vessel to which Seagems has secured exclusive access to in the event of a contract reward.

Negotiations are ongoing, and we will provide an update when there's something concrete to report to the market. As mentioned in the introduction, the JV achieved an important milestone related to our fleet lifetime extension strategy.

Seagems secured approval for the extended drydocking program for up to 20 years for five of its six PLSVs. Consequently, each of these five vessels is expected to have one less drydocking during their lifetime than what would have been required normally, reducing future capital expenditures and, subject to the vessels being contracted for the relevant period, in the projection period, allowing for higher revenue generation during the time the vessels otherwise would have been drydocked.

As has been discussed in the past, and for practical illustration, such a drydocking can typically involve approximately $10 million in capex per vessel and about 30 to 40 days per vessel during which that vessel will be unavailable for revenue regeneration. Seagems continues to seek similar approval for the Esmeralda under the Brazilian flag as well.

Now let's go through the half first half year of '24 financial results compared to the same period last year. Paratus reported net income from continuing operations after tax of $28 million during the first half year 2024, compared to $3 million same period in 2025.

Key drivers were as follows. Revenues were $146 million, up 23% compared to last year, mainly driven by higher dayrates under the new Petrobras contracts and fewer off-hire days, as the prior year prior prior-year period included acceptance testing in connection with the new Petrobras contracts.

EBITDA was $87 million, up from $69 million on back of higher revenues, partly offset by higher operating costs as 2025 reflected reimbursement of an insurance claim for Esmeralda and other changes in accounting provisions. Financial items and other expenses were $35 million, compared with $47 million in the same period last year.

The reduction mainly reflected the absence of the upfront fee related to the Fontes monetization agreement, which was signed and done in Q1 2025, and the Archer-related losses reported last year. We reported it based on equity method.

Free cash flow in first half year '24 was $35 million, compared with a -$1 million last year same period, supported by materially stronger cash flow from Seagems. Overall, the first half year '24 showed a significant improvement in financial performance compared with the same period last year, mainly driven by stronger operations and higher dayrates.

Now let's take a look at the main cash flows here during the quarter. At Paratus, we closed the quarter with a cash balance of $122 million, compared to $130 million at the end of Q1.

The main cash flow movements during the quarter were: cash flow used in continuing operations of about $30 million $3 million, compared to $4 in Q1; we received cash distribution from Seagems of $30 million, compared to $41 in Q1; and we paid net interest of about $26 million, compared with $4 million in Q1. This comprised the quarterly interest payment on the '26 notes and the semi-annual interest payment on the '29 bonds; the net cash inflow of $47 million from new bond issuance, as I mentioned before, after redemption of '26 notes, net of any fees, and a $3 million in financing fees related to the Fontes sale; and finally, consistent with the prior quarters, we paid $36 million in dividends to our shareholders.

After these movements, as I explain here, we ended the quarter with $122 million in Paratus. At closing of the Fontes transaction in July, we received $183 million in cash proceeds from the buyers.

As you can see here, pro forma for the Fontes sale, total cash was $305 million. If including the pro rata share of the Seagems cash, combined segment cash on a pro forma basis would have been approximately $331 million.

Overall, Paratus continues to have a strong liquidity position, supported by stable distribution from Seagems and the completion of the Fontes transaction after the quarter end. Next, please.

Now to our capital structure and the impact of the Fontes transaction. As you can see here, at the end of Q2, the reported net debt was $661 million, which is before the completion of the Fontes transaction.

However, pro forma for the Fontes sale, net debt was reduced to $282 million, which reflects the $400 million transaction consideration. As a result, pro forma leverage was reduced from 2.7 times to around 1.6 times EBITDA.

As mentioned earlier, at transaction completion, we received $163 million in cash and $237 million of 2.5-year seller credit. The seller credit bears interest at 10% during the first 12 months, 12% during months 13 to 18, and 14% thereafter.

Separately, not reflected in the pro forma capitalization graph here, we received another $20 million as reimbursement of interim funding provided for Fontes' operations. As disclosed before, under our bond agreements, the Fontes proceeds may either be used to repay debt, meaning the '29 bonds, or held in escrow for up to 12 months while the company evaluates potential reinvestment opportunities.

We are currently evaluating and will provide a further update once a decision has been made to this. With that, I think we can open up for the Q&A.

Thank you.

There's a question around the Petrobras tender. Not a surprise, of course.

Whether we can talk more about Jade, since it will roll off the contract in September or in August '27. Is Paratus expect an extension?

Let's take that first. Our current expectation is that an extension with Petrobras is the most likely solution or what will happen, potentially bringing the existing contract through January '28 when the mobilization date is based on the tender.

Again, more broadly, the fleet's historical technical uptime of approximately 98% 98% demonstrates our ability to operate the vessels effectively and to deploy them on work both with and outside Petrobras. The other question is about earnings potential on the third-party vessel.

What I can say in general now is that discussions are ongoing, and negotiations are ongoing with Petrobras. However, this remains an active commercial process, as you may appreciate, and due to its commercial sensitivity, we're not in a position to comment any earnings potential yet or regarding economics or expected outcome out of this before we actually, yeah, get to any concrete stage with an award or not.

"Since the start of date of the current PLSV tender is in '28, are you expecting to see another Petrobras tender for the other five PLSVs?" The remainder of the other PLSVs rolls off contract from mid-'28.

One of them rolls off in September '28, Onyx. What I can say is based on historical practice, Petrobras typically tenders 1 to 2 years ahead of the required start date.

We therefore expect another, potentially larger, tender addressing those 2028 requirements, hopefully and possibly during 2027. If you look at the history, Seagems has secured contracts in every major contract cycle since 2011.

Of course, pricing and contract terms can vary between cycles, but fleet utilization has been, historically, remained strong, and we, yeah, as we have said before, we continue to view the PLSV market outlook as promising. "Yeah, how are you thinking about the use of proceeds from the Fontes transaction?"

As we have reported in our Q1 report and as I just talked about, under our bond agreements, the proceeds may either be used to repay debt or it can be held in escrow for up to 12 months while the company evaluates potential reinvestment opportunities. Kind of it provides a good optionality.

As I said in the report, we are currently evaluating our available options and we will provide a further update once a decision has been made by the company. "How much do you expect in dividends from Seagems '26?"

We provide a financial guidance in Q1 for revenue, EBITDA, and capex. We haven't really guided on the distributions from Seagems.

However, I think what I can say is one should expect not much different from last year. I've seen this question before: "What is your expectation on dayrates from the Petrobras tender?"

I cannot really discuss that. It is an ongoing negotiation with Petrobras.

I will not discuss it in this conference call. There's a question about the operational incidents involving Esmeralda and Jade as we have reported in our quarterly report, the impact and so on and more details.

I don't think there's more to say than what we have disclosed in the report. The Esmeralda incident involved an LTI which required a short stop of operations while completing needed procedures, while the Jade experienced needed some equipment repair.

Safety is very strict and is first priority. For the smallest incidents, operations are paused or shut until they are resolved and in alignment, of course, with Petrobras.

In addition, as we have also said in the report, as per the contracts, we have some maintenance cap, and we have some scheduled maintenance that we have performed during the quarter. I would say yeah, the EBITDA you should respect more closer to the financial guidance.

We have reiterated the financial guidance anyway. The impact of these two incidents and of the utilization was already factored into our Q1 communicated financial guidance.

There's not so many questions, but there's another question about Jade and how it will be kept on work until the potential new contract, and if there's any other regions than Brazil. What I can say is that we are very comfortable that and also history shows that we have always been able to deploy these PLSVs.

If you look at since 2011, our average utilization has been about 98% during those years. Our ability to operate the vessels effectively and to deploy them on work has been very efficient both with and outside of Petrobras, if needed, but the base case is that that will be extended by Petrobras until mobilization for the potential new contract.

Yeah. "When is the negotiation round for this tender expected to finish or get completed with Petrobras?"

I hope to report to you something in the near future, but as discussions are and negotiations are ongoing and again, this is an active commercial process, and it's sensitive, I'm not in a position to comment on any specific negotiations or timing, as you asked, or potential outcomes at this stage. We will report to the market whenever we have any concrete to report.

I think with that, there were no further questions. With that, I will wrap up today's call.

Thank you all for joining. Thank you for the questions, and thank you for your continued interest in Paratus.

We look forward to speaking with you again in Q3. Thank you.