HOUSTON, TX--(Marketwired - Aug 1, 2017) -  Vantage Drilling International ("Vantage" or the "Company") reported a net loss of approximately $36.6 million or $7.32 per share for the three months ended June 30, 2017 as compared to a net loss of $35.7 million or $7.15 per share for the three months ended June 30, 2016.

Vantage continued to deliver solid operating results with rig uptime of 98% and revenue efficiency of 99%. We added the recently acquired Vantage 260 to our fleet during the quarter and the related drilling service contract was amended to provide that the Sapphire Driller is subject to the contract. Both rigs operated concurrently during the quarter and plan to operate until the removal of the Vantage 260 later this year.

As of June 30, 2017, Vantage had approximately $200.9 million of available cash. Uses of cash during the quarter included, among other things, the funding of the aforementioned acquisition, debt service costs, and the re-activation of two rigs. The startup of operations for new customers and the corresponding higher level of receivables impacted the quarter end cash balance. Vantage had $12.5 million available for issuance of letters of credit under its revolving letter of credit facility at the end of the quarter.

Ihab Toma, CEO, commented. "We are happy to report another impressive operational quarter maximizing uptime for our customers. During the second quarter we completed the acquisition of the Vantage 260, and successfully reactivated and deployed both the Sapphire Driller and the Topaz Driller on time and under budget. Additionally, with the recently announced letter of award for the Platinum Explorer and a new six month contract for the Topaz Driller, we continue to build backlog and put our fleet to work."

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.

Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
				Successor																Predecessor
				Three Months Ended June 30,								Six Months Ended June 30, 2017				Period from February 10, 2016 to June 30, 2016				Period from January 1, 2016 to February 10, 2016
				2017				2016
Revenue
	Contract drilling services			$	47,785			$	40,901			$	85,841			$	64,960			$	20,891
	Management fees				405				1,712				806				2,671				752
	Reimbursables				5,073				5,898				8,665				10,666				1,897
		Total revenue			53,263				48,511				95,312				78,297				23,540
Operating costs and expenses
	Operating costs				40,184				34,965				69,182				62,404				25,213
	General and administrative				11,501				8,695				22,980				17,863				2,558
	Depreciation				18,554				18,381				36,993				30,457				10,696
		Total operating costs and expenses			70,239				62,041				129,155				110,724				38,467
Loss from operations					(16,976	)			(13,530	)			(33,843	)			(32,427	)			(14,927	)
Other income (expense)
	Interest income				215				9				356				15				3
	Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016)				(19,023	)			(18,772	)			(37,922	)			(29,422	)			(1,728	)
	Other, net				663				(1,516	)			1,215				318				(69	)
	Reorganization items				-				(487	)			-				(641	)			(452,919	)
	Bargain purchase gain				1,910				-				1,910				-				-
		Total other expense			(16,235	)			(20,766	)			(34,441	)			(29,730	)			(454,713	)
Loss before income taxes					(33,211	)			(34,296	)			(68,284	)			(62,157	)			(469,640	)
Income tax provision					3,381				1,438				4,807				2,605				2,371
Net loss					(36,592	)			(35,734	)			(73,091	)			(64,762	)			(472,011	)
Net loss attributable to noncontrolling interests					-				-				-				-				(969	)
Net loss attributable to VDI				$	(36,592	)		$	(35,734	)		$	(73,091	)		$	(64,762	)		$	(471,042	)
	Net loss per share, basic and diluted			$	(7.32	)		$	(7.15	)		$	(14.62	)		$	(12.95	)			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 June 30,								Six Months Ended June 30, 2017				Period from February 10, 2016 to June 30, 2016				Period from January 1, 2016 to February 10, 2016
				2017				2016
Operating costs and expenses
Jackups				$	20,034			$	12,441			$	32,896			$	20,719			$	5,975
Deepwater					13,908				15,372				24,964				28,518				15,550
Operations support					3,314				2,596				6,283				4,811				2,219
Reimbursables					2,928				4,556				5,039				8,356				1,469
				$	40,184			$	34,965			$	69,182			$	62,404			$	25,213
Utilization
Jackups					80.4%				52.2%				66.9%				55.0%				53.6%
Deepwater					32.8%				33.3%				33.1%				33.3%				33.3%

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
				June 30, 2017				December 31, 2016
ASSETS
Current assets
	Cash and cash equivalents			$	200,940			$	231,727
	Trade receivables				33,464				20,850
	Inventory				44,391				45,206
	Prepaid expenses and other current assets				14,895				12,423
		Total current assets			293,690				310,206
Property and equipment
	Property and equipment				903,924				902,241
	Accumulated depreciation				(104,677	)			(67,713	)
		Property and equipment, net			799,247				834,528
Other assets					24,325				15,694
Total assets				$	1,117,262			$	1,160,428
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Accounts payable			$	39,418			$	35,283
	Accrued liabilities				19,277				18,448
	Current maturities of long-term debt				4,430				1,430
		Total current liabilities			63,125				55,161
Long-term debt, net of discount and financing costs of $80,932 and $105,568					892,073				867,372
Other long-term liabilities					8,595				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				(220,508	)			(147,417	)
		Total shareholders' equity			153,469				226,560
Total liabilities and shareholders' equity				$	1,117,262			$	1,160,428

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
				Successor								Predecessor
				Six Months Ended June 30, 2017				Period from February 10, 2016 to June 30, 2016				Period from January 1, 2016 to February 10, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss				$	(73,091	)		$	(64,762	)		$	(472,011	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
	Depreciation expense				36,993				30,457				10,696
	Amortization of debt financing costs				234				193				-
	Amortization of debt discount				24,401				18,945				-
	Amortization of contract value				1,504				-				-
	PIK interest on the Convertible Notes				3,780				2,932				-
	Reorganization items				-				-				430,210
	Share-based compensation expense				1,727				-				-
	Gain on bargain purchase				(1,910	)			-				-
	Deferred income tax benefit				(3,315	)			(1,741	)			-
	Loss on disposal of assets				191				624				-
Changes in operating assets and liabilities:
	Restricted cash				-				-				(1,000	)
	Trade receivables				(12,614	)			46,147				(3,575	)
	Inventory				815				(2,129	)			223
	Prepaid expenses and other current assets				(422	)			(1,914	)			6,893
	Other assets				5,471				569				941
	Accounts payable				4,135				92				(14,890	)
	Accrued liabilities and other long-term liabilities				(3,768	)			(29,209	)			21,148
		Net cash (used in) provided by operating activities			(15,869	)			204				(21,365	)
CASH FLOWS FROM INVESTING ACTIVITIES
	Additions to property and equipment				(1,203	)			(7,982	)			116
	Cash paid for Vantage 260 acquisition				(13,000	)			-				-
		Net cash (used in) provided by investing activities			(14,203	)			(7,982	)			116
CASH FLOWS FROM FINANCING ACTIVITIES
	Repayment of long-term debt				(715	)			(715	)			(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			(715	)			(766	)			66,875
		Net (decrease) increase in cash and cash equivalents			(30,787	)			(8,544	)			45,626
	Cash and cash equivalents - beginning of period				231,727				249,046				203,420
	Cash and cash equivalents - end of period			$	200,940			$	240,502			$	249,046