HOUSTON, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $25.7 million or $5.14 per share for the three months ended September 30, 2019 compared to a net loss attributable to controlling interest of $26.1 million or $5.21 per share for the three months ended September 30, 2018.

As of September 30, 2019, Vantage had approximately $825.1 million in cash, including $10.4 million of restricted cash, compared to $239.4 million in cash, including $14.4 million of restricted cash at December 31, 2018.

Ihab Toma, CEO, commented, “I am very pleased to report that we continue to increase our backlog at higher effective day rates while remaining laser focused on delivering superior results to our customers.  This addition to backlog reflects the confidence our customers have in us, and the excellent safety and operational performance our teams are delivering to them.”

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.

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 September 30, Nine Months Ended September 30,
   2019   2018   2019   2018 
Revenue        
Contract drilling services $35,830  $59,034  $101,575  $165,813 
Contract termination revenue        594,029    
Reimbursables and other  4,814   5,522   15,978   16,868 
Total revenue  40,644   64,556   711,582   182,681 
Operating costs and expenses        
Operating costs  37,915   43,307   114,538   128,943 
General and administrative  6,644   9,303   86,014   22,935 
Depreciation  18,459   17,638   55,491   53,217 
Total operating costs and expenses  63,018   70,248   256,043   205,095 
Income (loss) from operations  (22,374)  (5,692)  455,539   (22,414)
Other income (expense)        
Interest income  4,245   533   113,614   974 
Interest expense and other financing charges  (10,465)  (19,439)  (36,715)  (58,122)
Other, net  97   53   221   (1,031)
Total other income (expense)  (6,123)  (18,853)  77,120   (58,179)
Income (loss) before income taxes  (28,497)  (24,545)  532,659   (80,593)
Income tax (benefit) provision  (2,749)  1,515   15,852   8,698 
Net income (loss)  (25,748)  (26,060)  516,807   (89,291)
Net loss attributable to noncontrolling interests  (28)     (312)   
Net income (loss) attributable to shareholders $(25,720) $(26,060) $517,119  $(89,291)
Earnings (loss) per share        
Basic $(5.14) $(5.21) $102.47  $(17.86)
Diluted $(5.14) $(5.21) $102.14  $(17.86)
 
 
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
 
  Three Months Ended September 30, Nine Months Ended September 30,
   2019   2018   2019   2018 
Operating costs and expenses        
Jackups $14,910  $18,112  $46,763  $49,097 
Deepwater  18,103   17,927   50,409   59,438 
Operations support  3,014   4,119   9,474   10,614 
Reimbursables  1,888   3,149   7,892   9,794 
  $37,915  $43,307  $114,538  $128,943 
         
Utilization        
Jackups  98.4%  98.5%  96.8%  90.9%
Deepwater  41.3%  65.7%  41.0%  61.1%


Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
 
  September 30, 2019 December 31, 2018
     
ASSETS    
Current assets    
Cash and cash equivalents $814,724  $224,967 
Restricted cash  5,637   10,362 
Trade receivables  36,467   28,431 
Inventory  46,883   45,195 
Prepaid expenses and other current assets  19,324   17,278 
Total current assets  923,035   326,233 
Property and equipment    
Property and equipment  1,002,709   996,139 
Accumulated depreciation  (263,778)  (208,836)
Property and equipment, net  738,931   787,303 
Operating lease right-of-use assets  7,515   - 
Other assets  13,470   16,026 
Total assets $1,682,951  $1,129,562 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities    
Accounts payable $46,692  $44,372 
Other current liabilities  39,267   17,983 
Total current liabilities  85,959   62,355 
Long–term debt, net of discount and financing costs of $6,830 and $12,914  1,118,962   1,109,011 
Other long-term liabilities  25,426   22,889 
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 earnings (deficit)  78,449   (438,670)
Controlling interest shareholders' equity  452,426   (64,693)
Noncontrolling interests  178   - 
Total equity  452,604   (64,693)
Total liabilities and shareholders’ equity $1,682,951  $1,129,562 


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
 
  Nine Months Ended September 30,
   2019   2018 
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income (loss) $516,807  $(89,291)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation expense  55,491   53,217 
Amortization of debt financing costs  1,217   351 
Amortization of debt discount  5,354   37,021 
Amortization of contract value  1,643   4,721 
PIK interest on the Convertible Notes  5,779   5,735 
Share-based compensation expense  1,053   7,777 
Deferred income tax expense  59   1,874 
Loss (gain) on disposal of assets  109   (1,313)
Changes in operating assets and liabilities:    
Trade receivables  (8,036)  6,290 
Inventory  (1,688)  544 
Prepaid expenses and other current assets  (2,046)  (5,591)
Other assets  3,214   1,230 
Accounts payable  2,320   (3,245)
Other current liabilities and other long-term liabilities  11,011   (6,839)
Net cash provided by operating activities  592,287   12,481 
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property and equipment  (7,229)  (8,275)
Down payment on Soehanah acquisition     (15,000)
Proceeds from sale of Vantage 260     4,703 
Net cash used in investing activities  (7,229)  (18,572)
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of long-term debt     (5,815)
Contributions from holders of noncontrolling interest  1,181    
Debt issuance costs  (487)   
Net cash provided by (used in) financing activities  694   (5,815)
Net increase (decrease) in unrestricted and restricted cash and cash equivalents  585,752   (11,906)
Unrestricted and restricted cash and cash equivalents—beginning of period  239,387   195,455 
Unrestricted and restricted cash and cash equivalents—end of period $825,139  $183,549 
     

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