1、 PARATUS ENERGY All set for shareholder distributions We believe good earnings visibility on contracted assets and a limited capex need leave Paratus Energy well placed for industry-leading shareholder cash distributions,that,coupled with a flexible capital structure,are set to be key for the equity

2、 story.We calculate a 19%dividend yield from 2025,and initiate coverage with a BUY and NOK80 target price.Attractive asset base.Paratus Energys 50%ownership of Seagems and full ownership of Fontis Energy have allowed it to build broad exposure to national oil companies(NOCs)in countries where offsho

3、re oil production is key,elevating it to market leader in PLSVs in Brazil,supporting Petrobras,and one of the main providers of jackups to Pemex in Mexico.Good backlog visibility and high cash conversion.Seagems six PLSVs recently secured new 3-year contracts at all-time high dayrates,providing earn

4、ings visibility to 20272028,with a limited capex need ahead.Fontis Energys jackups in Mexico are ending current contracts in 20252026,but we believe are well placed for extensions.Paratus Energys asset base is in general capex-light relative to many oil service peers,in our view supporting its conti

5、nued industry-leading cash conversion.Flexible balance sheet.The recent refinancing extended most of its maturities to 2029,and covenants are accommodating for dividends.With largely all debt non-amortising and a 20242025e net debt to EBITDA of 2.21.1x,we see ample scope for payouts.Distributions ce

6、ntral to our valuation.Although it has not announced a dividend policy,we expect management and the board to favour shareholder distributions.We see downside protection to our valuation from our NAV(NOK62/share),and a potential share-price catalyst in generous and stable dividends,showcasing the cas