Vantage Drilling International Reports First Quarter Results for 2018

HOUSTON, May 04, 2018 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss of approximately $32.1 million or $6.43 per share for the three months ended March 31, 2018 as compared to a net loss of $36.5 million or $7.30 per share for the three months ended March 31, 2017.

As of March 31, 2018, Vantage had approximately $197.7 million of cash, including $5 million of restricted cash, compared to $195.5 million at December 31, 2017.

Ihab Toma, CEO, commented, “I am pleased to report our improved overall company performance, with revenues up 37% from the comparable quarter in the prior year.  This increase is a direct result of our industry leading utilization with six of our seven high specification assets being contracted during the quarter.  In addition, with the earlier announced follow on contract for the Topaz Driller in Gabon, we have added an additional $16.7 million in backlog.”

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
March 31,
 
     2018     2017   
Revenue          
Contract drilling services   $   51,595     $   38,056    
Management fees       301         401    
Reimbursables       5,767         3,592    
Total revenue       57,663         42,049    
Operating costs and expenses          
Operating costs       40,985         28,998    
General and administrative       7,354         11,479    
Depreciation       17,868         18,439    
Total operating costs and expenses       66,207         58,916    
Loss from operations       (8,544 )       (16,867 )  
Other income (expense)          
Interest income       221         141    
Interest expense and other financing charges       (19,271 )       (18,899 )  
Other, net       (570 )       552    
Total other expense       (19,620 )       (18,206 )  
Loss before income taxes       (28,164 )       (35,073 )  
Income tax provision       3,973         1,426    
Net loss   $   (32,137 )   $   (36,499 )  
Net loss per share, basic and diluted   $   (6.43 )   $   (7.30 )  
Weighted average successor ordinary shares outstanding, basic and diluted       5,000         5,000    
 
 
 
 
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
    Three Months Ended
March 31,
 
     2018     2017   
Operating costs and expenses          
Jackups   $   14,463     $   12,862    
Deepwater       19,812         11,056    
Operations support       3,127         2,969    
Reimbursables       3,583         2,111    
    $   40,985     $   28,998    
           
Utilization          
Jackups     86.2 %     50.0 %  
Deepwater     53.9 %     33.3 %  
                   

 

 
Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
         
    March 31,
2018
  December 31,
2017
         
ASSETS        
Current assets        
Cash and cash equivalents   $   192,739     $   195,455  
Restricted cash       5,000         –  
Trade receivables       38,881         45,379  
Inventory       44,144         43,955  
Prepaid expenses and other current assets       11,036         13,207  
Total current assets       291,800         297,996  
Property and equipment        
Property and equipment       904,111         904,584  
Accumulated depreciation       (158,942 )       (141,393 )
Property and equipment, net       745,169         763,191  
Other assets       20,227         21,935  
Total assets   $   1,057,196     $   1,083,122  
         
LIABILITIES AND SHAREHOLDERS’ EQUITY        
Current liabilities        
Accounts payable   $   41,717     $   39,666  
Accrued liabilities       21,363         25,117  
Current maturities of long-term debt       1,430         4,430  
Total current liabilities       64,510         69,213  
Long–term debt, net of discount and financing costs of $43,744 and $56,174       929,911         919,939  
Other long-term liabilities       18,137         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        (329,339 )       (297,202 )
Total shareholders’ equity       44,638         76,775  
Total liabilities and shareholders’ equity   $   1,057,196     $   1,083,122  
         

 

 
Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
    Three Months Ended March 31,
     2018     2017 
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss   $   (32,137 )   $   (36,499 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation expense       17,868         18,439  
Amortization of debt financing costs       117         117  
Amortization of debt discount       12,313         12,191  
Amortization of contract value       1,556         —  
PIK interest on the Convertible Notes       1,912         1,890  
Share-based compensation expense       1,745         780  
Deferred income tax (expense) benefit       419         (1,789 )
Gain on disposal of assets       (2,682 )       —  
Changes in operating assets and liabilities:        
Trade receivables       6,498         1,207  
Inventory       (189 )       293  
Prepaid expenses and other current assets       120         (951 )
Other assets       (383 )       1,434  
Accounts payable       2,051         1,668  
Accrued liabilities and other long-term liabilities       (6,292 )       (401 )
Net cash provided by (used in) operating activities       2,916         (1,621 )
CASH FLOWS FROM INVESTING ACTIVITIES        
Additions to property and equipment       (19 )       (2,156 )
Proceeds from sale of Vantage 260       4,845         —  
Net cash provided by (used in) investing activities       4,826         (2,156 )
CASH FLOWS FROM FINANCING ACTIVITIES        
Repayment of long-term debt       (5,458 )       (358 )
Net cash used in financing activities       (5,458 )       (358 )
Net (decrease) increase in cash and cash equivalents       2,284         (4,135 )
Cash and cash equivalents—beginning of period       195,455         231,727  
Cash and cash equivalents—end of period   $   197,739     $   227,592