Vantage Drilling Company Reports First Quarter Results for 2015

HOUSTON, TX--(Marketwired - May 07, 2015) - Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports net income for the three months ended March 31, 2015 of $21.4 million or $.06 per diluted share as compared to earnings of $24.8 million or $.07 per diluted share for the three months ended March 31, 2014.

The three months ended March 31, 2015 includes an approximately $20.6 million gain on the early retirement of debt. This gain represents the discount to the face value of debt that we purchased in the open market, net of writing off deferred financing costs. While this gain is not taxable, it is still included in our calculation of annual effective tax rate which required us to record an additional adjustment to our tax provision for the three months ended March 31, 2015 of approximately $5.0 million.

The total debt retirement for the first quarter, including scheduled maturities and open market purchase of debt, totaled approximately $82.9 million at face value. Following the end of the quarter, we continued to acquire debt in the open market and have retired approximately $109.2 million of debt year to date with an annualized interest savings of approximately $7.2 million.

Paul Bragg, Chairman and Chief Executive Officer, commented, "During the 1st quarter, we continued our strong operating performance and maintained our focus on strengthening the balance sheet. In the last six quarters, we have now retired over $300 million of outstanding debt and greatly reduced our current debt, improving our 2015 and 2016 liquidity."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs. Vantage's primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.

The information above includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These forward-looking statements are subject to certain risks, uncertainties and assumptions identified above or as disclosed from time to time in the company's filings with the Securities and Exchange Commission. As a result of these factors, actual results may differ materially from those indicated or implied by such forward-looking statements.



Vantage Drilling Company
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended March 31,
----------------------------
2015 2014
------------- -------------
Revenue
Contract drilling services $ 207,981 $ 214,932
Management fees 1,881 4,582
Reimbursables 7,787 12,951
------------- -------------
Total revenue 217,649 232,465
------------- -------------
Operating costs and expenses
Operating costs 96,108 101,722
General and administrative 8,865 8,115
Depreciation 31,623 31,625
------------- -------------
Total operating costs and expenses 136,596 141,462
------------- -------------
Income from operations 81,053 91,003
Other income (expense)
Interest income 6 13
Interest expense and other financing charges (50,554) (54,487)
Gain (loss) on debt extinguishment 20,606 (106)
Other, net (338) 779
------------- -------------
Total other income (expense) (30,280) (53,801)
------------- -------------
Income before income taxes 50,773 37,202
Income tax provision 29,343 12,378
------------- -------------
Net income $ 21,430 $ 24,824
============= =============

Earnings per share
Basic $ 0.07 $ 0.08
Diluted $ 0.06 $ 0.07


Vantage Drilling Company
Supplemental Operating Data
(Unaudited, in thousands, except percentages)

Three Months Ended March 31,
------------------------------
2015 2014
-------------- --------------
Operating costs and expenses
Jackups $ 24,263 $ 23,760
Deepwater 56,084 55,810
Operations support 9,324 10,759
Reimbursables 6,437 11,393
-------------- --------------
$ 96,108 $ 101,722
-------------- --------------

Utilization
Jackups 96.1% 100.0%
Deepwater 93.6% 96.5%


Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)


March 31, December 31,
2015 2014
-------------- --------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 78,829 $ 82,812
Trade receivables 159,656 153,428
Inventory 68,558 65,892
Prepaid expenses and other current assets 22,821 28,618
-------------- --------------
Total current assets 329,864 330,750
-------------- --------------
Property and equipment
Property and equipment 3,534,527 3,524,566
Accumulated depreciation (437,927) (406,674)
-------------- --------------
Property and equipment, net 3,096,600 3,117,892
-------------- --------------
Other assets
Investment in joint venture 1,132 1,318
Other assets 73,247 79,897
-------------- --------------
Total other assets 74,379 81,215
-------------- --------------
Total assets $ 3,500,843 $ 3,529,857
============== ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 48,821 $ 59,139
Accrued liabilities 145,980 101,537
Current maturities of long-term debt, net
of discount of $650 and $1,181 90,289 95,378
-------------- --------------
Total current liabilities 285,090 256,054
-------------- --------------
Long-term debt, net of discount of $21,862
and $25,875 and current maturities 2,559,531 2,632,802
Other long-term liabilities 77,286 85,327
Commitments and contingencies
Shareholders' equity
Preferred shares, $0.001 par value,
10,000 shares authorized; none issued or
outstanding -- --
Ordinary shares, $0.001 par value,
500,000 shares authorized; 310,932 and
307,808 shares issued and outstanding 311 308
Additional paid-in capital 906,965 905,136
Accumulated deficit (328,340) (349,770)
-------------- --------------
Total shareholders' equity 578,936 555,674
-------------- --------------
Total liabilities and shareholders' equity $ 3,500,843 $ 3,529,857
============== ==============



















































































Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)

Three Months Ended March 31,
------------------------------
2015 2014
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 21,430 $ 24,824
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation expense 31,623 31,625
Amortization of debt financing costs 2,694 2,880
Amortization of debt discount 2,957 2,839
Non-cash (gain) loss on debt
extinguishment (20,597) 106
Share-based compensation expense 1,832 2,141
Deferred income tax benefit (525) (57)
Equity in loss of joint venture 186 108
Loss on disposal of assets 20 104
Changes in operating assets and liabilities:
Restricted cash -- 2,125
Trade receivables (6,228) (47,985)
Inventory (2,665) (3,071)
Prepaid expenses and other current assets 6,296 3,318
Other assets 2,904 1,021
Accounts payable (10,318) (3,954)
Accrued liabilities and other long-term
liabilities 34,882 33,296
-------------- --------------
Net cash provided by operating
activities 64,491 49,320
-------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (8,798) (9,371)
-------------- --------------
Net cash used in investing activities (8,798) (9,371)
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt (59,676) (19,374)
Repayment of revolving credit agreement,
net -- (10,000)
-------------- --------------
Net cash used in financing activities (59,676) (29,374)
-------------- --------------
Net increase (decrease) in cash and cash
equivalents (3,983) 10,575
Cash and cash equivalents -- beginning of
period 82,812 54,686
-------------- --------------
Cash and cash equivalents -- end of period $ 78,829 $ 65,261
============== ==============





FOR FURTHER INFORMATION PLEASE CONTACT:
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700