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.

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.

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