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Vantage Drilling International Reports Second Quarter Results for 2018

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HOUSTON, Aug. 08, 2018 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the "Company") reported a net loss of approximately $31.1 million or $6.22 per share for the three months ended June 30, 2018 as compared to a net loss of $36.6 million or $7.32 per share for the three months ended June 30, 2017.

As of June 30, 2018, Vantage had approximately $186.9 million of cash, including $5 million of restricted cash, compared to $195.5 million at December 31, 2017. Uses of cash during the quarter included, among other things, funding of a $15.0 million downpayment to acquire a modern jackup. 

Ihab Toma, CEO, commented, "I am pleased to report another positive quarter, with industry leading rig utilization and successful repositioning and deployment of the Topaz Driller in Cameroon. Revenues are up 14% from the comparable quarter in the prior year and operationally we delivered an outstanding 97% uptime during the quarter."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and four 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 globally for major, national and independent oil and natural gas companies. Vantage also provides construction supervision services and preservation management services for, and will operate and manage, drilling units owned by others.

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 disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Public & Investor Relations Contact:

Thomas J. Cimino
Chief Financial Officer
Vantage Drilling International
(281) 404-4700

Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
  Three Months Ended June 30,   Six Months Ended June 30,  
    2018       2017       2018       2017    
Revenue                
Contract drilling services $   55,183     $   47,785     $   106,778     $   85,841    
Management fees     304         405         605         806    
Reimbursables     4,974         5,073         10,741         8,665    
Total revenue     60,461         53,263         118,124         95,312    
Operating costs and expenses                
Operating costs     44,650         40,363         85,635         69,361    
General and administrative     6,278         11,501         13,632         22,980    
Depreciation     17,711         18,554         35,579         36,993    
Total operating costs and expenses     68,639         70,418         134,846         129,334    
Loss from operations     (8,178 )       (17,155 )       (16,722 )       (34,022 )  
Other income (expense)                
Interest income     220         215         441         356    
Interest expense and other financing charges     (19,412 )       (19,023 )       (38,683 )       (37,922 )  
Other, net     (514 )       842         (1,084 )       1,394    
Bargain purchase gain     —         1,910         —         1,910    
Total other expense     (19,706 )       (16,056 )       (39,326 )       (34,262 )  
Loss before income taxes     (27,884 )       (33,211 )       (56,048 )       (68,284 )  
Income tax provision     3,210         3,381         7,183         4,807    
Net loss $   (31,094 )   $   (36,592 )   $   (63,231 )   $   (73,091 )  
Net loss per share, basic and diluted $   (6.22 )   $   (7.32 )   $   (12.65 )   $   (14.62 )  
Weighted average ordinary shares outstanding, basic and diluted     5,000         5,000         5,000         5,000    
 
Vantage Drilling International  
Supplemental Operating Data  
(Unaudited, in thousands, except percentages)  
  Three Months Ended June 30,   Six Months Ended June 30,  
    2018       2017       2018       2017    
Operating costs and expenses                
Jackups $   16,523     $   20,029     $   30,985     $   32,891    
Deepwater     21,699         13,908         41,511         24,964    
Operations support     3,367         3,498         6,494         6,467    
Reimbursables     3,061         2,928         6,645         5,039    
  $   44,650     $   40,363     $   85,635     $   69,361    
                 
Utilization                
Jackups   88.5 %     80.4 %     87.3 %     66.9 %  
Deepwater   63.2 %     32.8 %     58.7 %     33.1 %  

 

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
       
  June 30,
2018
  December 31,
2017
       
ASSETS      
Current assets      
Cash and cash equivalents $   181,860     $   195,455  
Restricted cash     5,000         -  
Trade receivables     41,090         45,379  
Inventory     43,892         43,955  
Prepaid expenses and other current assets     14,990         13,207  
Total current assets     286,832         297,996  
Property and equipment      
Property and equipment     919,473         904,584  
Accumulated depreciation     (176,431 )       (141,393 )
Property and equipment, net     743,042         763,191  
Other assets     17,583         21,935  
Total assets $   1,047,457     $   1,083,122  
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current liabilities      
Accounts payable $   43,032     $   39,666  
Accrued liabilities     22,171         25,117  
Current maturities of long-term debt     —         4,430  
Total current liabilities     65,203         69,213  
Long–term debt, net of discount and financing costs of $31,294 and $56,174     947,258         919,939  
Other long-term liabilities     21,452         17,195  
Commitments and contingencies      
Shareholders' equity      
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding     5         5  
Additional paid-in capital     373,972         373,972  
Accumulated deficit      (360,433 )       (297,202 )
Total shareholders' equity     13,544         76,775  
Total liabilities and shareholders' equity $   1,047,457     $   1,083,122  
       

 

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
    Six Months Ended June 30,  
      2018       2017    
CASH FLOWS FROM OPERATING ACTIVITIES          
Net loss   $   (63,231 )   $   (73,091 )  
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Depreciation expense       35,579         36,993    
Amortization of debt financing costs       234         234    
Amortization of debt discount       24,647         24,401    
Amortization of contract value       3,130         1,504    
PIK interest on the Convertible Notes       3,823         3,780    
Share-based compensation expense       3,772         1,727    
Bargain purchase gain       —         (1,910 )  
Deferred income tax benefit (expense)        592         (3,315 )  
(Gain) loss on disposal of assets       (2,524 )       191    
Changes in operating assets and liabilities:          
Trade receivables       4,289         (12,614 )  
Inventory       63         815    
Prepaid expenses and other current assets       (3,833 )       (422 )  
Other assets       865         5,471    
Accounts payable       3,366         4,135    
Accrued liabilities and other long-term liabilities       (2,441 )       (3,768 )  
Net cash provided by (used in) operating activities       8,331         (15,869 )  
CASH FLOWS FROM INVESTING ACTIVITIES          
Additions to property and equipment       (771 )       (1,203 )  
Down payment on rig purchase       (15,000 )       —    
Cash paid for Vantage 260 acquisition       —         (13,000 )  
Net proceeds from sale of Vantage 260       4,660         —    
Net cash used in investing activities       (11,111 )       (14,203 )  
CASH FLOWS FROM FINANCING ACTIVITIES          
Repayment of long-term debt       (5,815 )       (715 )  
Net cash used in financing activities       (5,815 )       (715 )  
Net decrease in cash and cash equivalents       (8,595 )       (30,787 )  
Unrestricted and restricted cash and cash equivalents—beginning of period       195,455         231,727    
Unrestricted and restricted cash and cash equivalents—end of period   $   186,860     $   200,940    

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