Vantage Drilling International Reports Third Quarter Results for 2017

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| Source: Vantage Drilling International

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