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Vantage Drilling International Reports Third Quarter Results for 2017

HOUSTON, Nov. 07, 2017 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss of approximately $40.1 million or $8.01 per share for the three months ended September 30, 2017 as compared to a net loss of $41.5 million or $8.31 per share for the three months ended September 30, 2016.

Vantage continued to deliver solid operating results with rig uptime of 99% and revenue efficiency of 101%. At the end of the quarter, we began the mobilization of the Platinum Explorer to offshore India under a three year contract. The reactivation was ahead of schedule and under budget.

As of September 30, 2017, Vantage had approximately $198.6 million of available cash. Uses of cash during the quarter included, among other things, debt service costs, non-recurring professional fees related to litigation and arbitration matters and the re-activation of the Platinum Explorer.

Ihab Toma, CEO, commented, "I am pleased to report that all our jackups have been deployed and that we have ended the quarter with the Platinum Explorer on its way to a three year contract for ONGC, in India. The re-activation of the Platinum Explorer was an extraordinary achievement, with all of our departments working in sync and with a clear objective. As a result, we have maintained our strong liquidity position, noting that the remaining expenditures associated with the Platinum Explorer deployment should be mostly offset by the collection of the contractual mobilization fee.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships, four premium jackup drilling rigs, and one standard jackup drilling rig. 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 large independent oil and natural gas companies. Vantage also provides construction supervision 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)
Successor Predecessor
Three Months Ended September 30, Nine Months Ended September 30, 2017 Period from February 10, 2016 to September 30, 2016 Period from January 1, 2016 to February 10, 2016
2017 2016
Revenue
Contract drilling services $ 51,831 $ 34,755 $ 137,672 $ 99,715 $ 20,891
Management fees 342 993 1,148 3,664 752
Reimbursables 5,523 4,194 14,188 14,860 1,897
Total revenue 57,696 39,942 153,008 118,239 23,540
Operating costs and expenses
Operating costs 49,848 30,983 119,030 93,387 25,213
General and administrative 6,949 10,128 29,929 27,991 2,558
Depreciation 18,538 18,977 55,531 49,434 10,696
Total operating costs and expenses 75,335 60,088 204,490 170,812 38,467
Loss from operations (17,639) (20,146) (51,482) (52,573) (14,927)
Other income (expense)
Interest income 231 11 587 26 3
Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016) (19,258) (18,722) (57,180) (48,144) (1,728)
Other, net 858 669 2,073 987 (69)
Reorganization items 35 (606) (452,919)
Bargain purchase gain 1,910
Total other expense (18,169) (18,007) (52,610) (47,737) (454,713)
Loss before income taxes (35,808) (38,153) (104,092) (100,310) (469,640)
Income tax provision 4,260 3,373 9,067 5,978 2,371
Net loss (40,068) (41,526) (113,159) (106,288) (472,011)
Net loss attributable to noncontrolling interests (969)
Net loss attributable to VDI $ (40,068) $ (41,526) $ (113,159) $ (106,288) $ (471,042)
Net loss per share, basic and diluted $ (8.01) $ (8.31) $ (22.63) $ (21.26) N/A
Weighted average successor ordinary shares outstanding, basic and diluted 5,000 5,000 5,000 5,000 N/A
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Successor Predecessor
Three Months Ended September 30, Nine Months Ended September 30, 2017 Period from February 10, 2016 to September 30, 2016 Period from January 1, 2016 to February 10, 2016
2017 2016
Operating costs and expenses
Jackups $ 19,764 $ 8,836 $ 52,660 $ 29,555 $ 5,975
Deepwater 23,754 16,045 48,719 44,563 15,550
Operations support 3,158 2,645 9,441 7,456 2,219
Reimbursables 3,172 3,457 8,210 11,813 1,469
$ 49,848 $ 30,983 $ 119,030 $ 93,387 $ 25,213
Utilization
Jackups 93.8% 25.6% 76.4% 43.4% 53.6%
Deepwater 33.3% 33.1% 33.2% 33.2% 33.3%

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
September 30,
2017
December 31,
2016
ASSETS
Current assets
Cash and cash equivalents $ 198,637 $ 231,727
Trade receivables 36,103 20,850
Inventory 43,675 45,206
Prepaid expenses and other current assets 16,158 12,423
Total current assets 294,573 310,206
Property and equipment
Property and equipment 904,327 902,241
Accumulated depreciation (123,215) (67,713)
Property and equipment, net 781,112 834,528
Other assets 22,384 15,694
Total assets $ 1,098,069 $ 1,160,428
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 46,182 $ 35,283
Accrued liabilities 20,073 18,448
Current maturities of long-term debt 4,430 1,430
Total current liabilities 70,685 55,161
Long–term debt, net of discount and financing costs of $68,564 and $105,568 904,084 867,372
Other long-term liabilities 9,899 11,335
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 (260,576) (147,417)
Total shareholders' equity 113,401 226,560
Total liabilities and shareholders’ equity $ 1,098,069 $ 1,160,428

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Successor Predecessor
Nine Months Ended September 30, 2017 Period from February 10, 2016 to September 30, 2016 Period from January 1, 2016 to February 10, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (113,159) $ (106,288) $ (472,011)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense 55,531 49,434 10,696
Amortization of debt financing costs 351 310
Amortization of debt discount 36,653 31,075
Amortization of contract value 3,095
PIK interest on the Convertible Notes 5,692 4,822
Reorganization items 430,210
Share-based compensation expense 2,882 76
Gain on bargain purchase (1,910)
Deferred income tax benefit (3,489) (2,660)
Loss on disposal of assets 191 634
Changes in operating assets and liabilities, net of businesses acquired:
Restricted cash 1,000 (1,000)
Trade receivables (15,253) 53,405 (3,575)
Inventory 1,531 (1,856) 223
Prepaid expenses and other current assets (1,685) (47) 6,893
Other assets 5,947 (1,823) 941
Accounts payable 10,899 2,136 (14,890)
Accrued liabilities and other long-term liabilities (4,688) (26,935) 21,148
Net cash (used in) provided by operating activities (17,412) 3,283 (21,365)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (1,606) (10,107) 116
Cash paid for Vantage 260 acquisition (13,000)
Net cash (used in) provided by investing activities (14,606) (10,107) 116
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt (1,072) (1,072) (7,000)
Proceeds from issuance of 10% Second Lien Notes 75,000
Debt issuance costs (51) (1,125)
Net cash (used in) provided by financing activities (1,072) (1,123) 66,875
Net (decrease) increase in cash and cash equivalents (33,090) (7,947) 45,626
Cash and cash equivalents—beginning of period 231,727 249,046 203,420
Cash and cash equivalents—end of period $ 198,637 $ 241,099 $ 249,046

Source:Vantage Drilling International