AP NEWS
ADVERTISEMENT
Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Vantage Drilling International Reports Third Quarter Results for 2020

November 16, 2020 GMT

HOUSTON, Nov. 16, 2020 (GLOBE NEWSWIRE) -- Vantage Drilling International (“Vantage” or the “Company”) reported a net loss attributable to controlling interest of approximately $169.3 million or $12.91 per diluted share for the three months ended September 30, 2020, based on the weighted average shares outstanding after the conversion of our convertible notes in December 2019, as compared to a net loss attributable to controlling interest of $25.7 million or $5.14 per diluted share for the three months ended September 30, 2019.

The three months ended September 30, 2020 included a non-cash loss on impairment charge of $128.9 million on the carrying amount of our longer-term warm stacked drillship, the Titanium Explorer.

ADVERTISEMENT

As of September 30, 2020, Vantage had approximately $179.2 million in cash, including $13.5 million of restricted cash, compared to $188.4 million in cash, including $13.1 million of restricted cash, as of June 30, 2020, and $242.9 million in cash, including $11.0 million of restricted cash at December 31, 2019.

Ihab Toma, CEO, commented. “I continue to be very proud of the Company’s performance during these challenging times. While the COVID-19 pandemic and the related global economic crisis continue to weigh on activity in the industry, I am pleased that we have been successful in adding backlog, namely on the Emerald Driller and the Soehanah. Our focus remains on operating safely and efficiently, delivering excellence for our esteemed clients, managing costs and conserving cash.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and five 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.

ADVERTISEMENT

Public & Investor Relations Contact:

Douglas E. Stewart
Chief Financial Officer and General Counsel
Vantage Drilling International
C/O Vantage Energy Services, Inc.
777 Post Oak Blvd., Suite 800
Houston, Texas 77056
(281) 404-4700

Vantage Drilling International  
Consolidated Statement of Operations  
(In thousands, except per share data)  
(Unaudited)  
  Three Months Ended September 30,     Nine Months Ended September 30,  
  2020     2019     2020     2019  
Revenue                              
Contract drilling services $ 18,069     $ 35,830     $ 95,539     $ 101,575  
Contract termination revenue                     594,029  
Reimbursables and other   2,142       4,814       12,903       15,978  
Total revenue   20,211       40,644       108,442       711,582  
Operating costs and expenses                              
Operating costs   27,231       37,915       113,890       114,538  
General and administrative   3,829       6,644       15,715       86,014  
Depreciation   18,230       18,459       54,647       55,491  
Loss on impairment   128,876             128,876        
Total operating costs and expenses   178,166       63,018       313,128       256,043  
(Loss) income from operations   (157,955 )     (22,374 )     (204,686 )     455,539  
Other income (expense)                              
Interest income   41       4,245       853       113,614  
Interest expense and other financing charges   (8,510 )     (10,465 )     (25,531 )     (36,715 )
Other, net   (46 )     97       2,321       221  
Total other (expense) income   (8,515 )     (6,123 )     (22,357 )     77,120  
(Loss) income before income taxes   (166,470 )     (28,497 )     (227,043 )     532,659  
Income tax provision (benefit)   2,855       (2,749 )     4,752       15,852  
Net (loss) income   (169,325 )     (25,748 )     (231,795 )     516,807  
Net income (loss) attributable to noncontrolling interests   2       (28 )     16       (312 )
Net (loss) income attributable to shareholders $ (169,327 )   $ (25,720 )   $ (231,811 )   $ 517,119  
(Loss) earnings per share                              
Basic $ (12.91 )   $ (5.14 )   $ (17.68 )   $ 102.47  
Diluted $ (12.91 )   $ (5.14 )   $ (17.68 )   $ 102.14  
                               
Weighted average ordinary shares outstanding                              
Basic   13,115       5,000       13,115       5,047  
Diluted   13,115       5,000       13,115       5,063  
                               
Vantage Drilling International  
Supplemental Operating Data  
(Unaudited, in thousands, except percentages)  
   
  Three Months Ended September 30,     Nine Months Ended September 30,  
  2020     2019     2020     2019  
Operating costs and expenses                              
Jackups $ 11,820     $ 14,910     $ 48,962     $ 46,763  
Deepwater   11,958       18,103       50,828       50,409  
Operations support   2,177       3,014       7,631       9,474  
Reimbursables   1,276       1,888       6,469       7,892  
  $ 27,231     $ 37,915     $ 113,890     $ 114,538  
                               
Utilization                              
Jackups   40.0 %     98.4 %     62.2 %     96.8 %
Deepwater   28.2 %     41.3 %     45.1 %     41.0 %
Vantage Drilling International  
Consolidated Balance Sheet  
(In thousands, except share and par value information)  
(Unaudited)  
               
  September 30, 2020     December 31, 2019  
               
ASSETS              
Current assets              
Cash and cash equivalents $ 165,736     $ 231,947  
Restricted cash   8,952       2,511  
Trade receivables, net   39,110       46,504  
Inventory   51,311       48,368  
Prepaid expenses and other current assets   15,491       16,507  
Total current assets   280,600       345,837  
Property and equipment              
Property and equipment   803,405       1,002,968  
Accumulated depreciation   (264,240 )     (281,842 )
Property and equipment, net   539,165       721,126  
Operating lease ROU assets   4,463       6,706  
Other assets   11,161       17,068  
Total assets $ 835,389     $ 1,090,737  
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
Current liabilities              
Accounts payable $ 26,587     $ 49,599  
Other current liabilities   28,324       26,936  
Total current liabilities   54,911       76,535  
Long–term debt, net of discount and financing costs of $5,191 and $6,421, respectively   344,809       343,579  
Other long-term liabilities   15,219       17,532  
Commitments and contingencies              
Shareholders' equity              
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, respectively   13       13  
Additional paid-in capital   633,924       634,770  
Accumulated (deficit) earnings   (214,747 )     17,064  
Controlling interest shareholders' equity   419,190       651,847  
Noncontrolling interests   1,260       1,244  
Total equity   420,450       653,091  
Total liabilities and shareholders' equity $ 835,389     $ 1,090,737  
Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
  Nine Months Ended September 30,  
  2020     2019  
CASH FLOWS FROM OPERATING ACTIVITIES              
Net (loss) income $ (231,795 )   $ 516,807  
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities              
Depreciation expense   54,647       55,491  
Amortization of debt financing costs   1,229       1,217  
Amortization of debt discount         5,354  
Amortization of contract value         1,643  
PIK interest on the Convertible Notes         5,779  
Share-based compensation expense   1,358       1,053  
Deferred income tax (benefit) expense   (36 )     59  
Loss on disposal of assets   52       109  
Gain on settlement of restructuring agreement   (2,278 )      
Loss on impairment   128,876        
Changes in operating assets and liabilities:              
Trade receivables, net   7,394       (8,036 )
Inventory   (1,924 )     (1,688 )
Prepaid expenses and other current assets   483       (2,046 )
Other assets   4,250       3,214  
Accounts payable   (20,734 )     2,320  
Other current liabilities and other long-term liabilities   (2,598 )     11,011  
Net cash (used in) provided by operating activities   (61,076 )     592,287  
CASH FLOWS FROM INVESTING ACTIVITIES              
Additions to property and equipment   (2,634 )     (7,229 )
Net cash used in investing activities   (2,634 )     (7,229 )
CASH FLOWS FROM FINANCING ACTIVITIES              
Contributions from holders of noncontrolling interests         1,181  
Debt issuance costs         (487 )
Net cash provided by financing activities         694  
Net (decrease) increase in unrestricted and restricted cash and cash equivalents   (63,710 )     585,752  
Unrestricted and restricted cash and cash equivalents—beginning of period   242,944       239,387  
Unrestricted and restricted cash and cash equivalents—end of period $ 179,234     $ 825,139