Vantage Drilling International Reports Fourth Quarter and Full-Year 2021 Results

Houston, Texas, UNITED STATES


HOUSTON, March 30, 2022 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $23.5 million or $1.79 per diluted share for the three months ended December 31, 2021, as compared to a net loss attributable to controlling interest of $44.9 million or $3.42 per diluted share for the three months ended December 31, 2020.

For the year ended December 31, 2021, Vantage reported net loss attributable to controlling interest of approximately $110.1 million or $8.40 per diluted share, as compared to a net loss attributable to controlling interest of $276.7 million or $21.10 per diluted share for the year ended December 31, 2020.

As of December 31, 2021, Vantage had approximately $90.6 million in cash, including $17.3 million of restricted cash, compared to $154.5 million in cash, including $12.5 million of restricted cash at December 31, 2020. The Company used $70.4 million in cash from operations in 2021 compared to $85.3 million used in 2020.

Ihab Toma, CEO, commented: “After an extremely challenging prior year, 2021 represented a year of recovery and higher utilization for the industry and Vantage. Much like 2019, all of our active rigs returned to work and we entered the new-year on the back of a stronger crude oil and natural gas environment. We seem to have passed an inflection point and rig active supply is reaching a tight balance with demand in both the deepwater and shallow water segments of the market.”

Mr. Toma continued, “The year was book-ended by two important events for the Company. We were awarded in January 2021 additional high specification rigs to manage, reflecting confidence in our efficient management platform. Then in December, we announced the execution of an agreement to sell three of our jack-up rigs to, along with the entry into a global strategic alliance with, members of the ADES Group. The common thread throughout the year connecting these two transactions, however, was the consistently strong performance by our operations team, delivering a very high caliber of service to our clients.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two 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 440
Houston, Texas 77056
(281) 404-4700

  
  
Vantage Drilling International 
Consolidated Statement of Operations 
(In thousands, except per share data) 
             
  Three months ended December 31,  Twelve months ended December 31, 
  2021  2020  2021  2020 
Revenue            
Contract drilling services $39,341  $16,474  $131,703  $112,013 
Reimbursables and other  10,461   1,946   26,717   14,849 
Total revenue  49,802   18,420   158,420   126,862 
Operating costs and expenses            
Operating costs  43,886   35,194   150,668   149,084 
General and administrative  5,484   5,307   20,539   21,022 
Depreciation  13,819   14,569   56,242   69,216 
Loss on impairment           128,876 
Total operating costs and expenses  63,189   55,070   227,449   368,198 
Loss from operations  (13,387)  (36,650)  (69,029)  (241,336)
Other (expense) income            
Interest income  6   18   124   871 
Interest expense and other financing charges  (8,505)  (8,510)  (34,034)  (34,041)
Other, net  (270)  325   (2,171)  2,646 
Total other expense  (8,769)  (8,167)  (36,081)  (30,524)
Loss before income taxes  (22,156)  (44,817)  (105,110)  (271,860)
Income tax provision  1,378   145   5,141   4,897 
Net loss  (23,534)  (44,962)  (110,251)  (276,757)
Net loss attributable to noncontrolling interests  (73)  (54)  (114)  (38)
Net loss attributable to shareholders $(23,461) $(44,908) $(110,137) $(276,719)
Loss per share            
Basic and Diluted $(1.79) $(3.42) $(8.40) $(21.10)
Weighted average ordinary shares outstanding,            
Basic and Diluted  13,115   13,115   13,115   13,115 
             
Vantage Drilling International 
Supplemental Operating Data 
(Unaudited, in thousands, except percentages) 
             
  Three months ended December 31,  Twelve months ended December 31, 
  2021  2020  2021  2020 
Operating costs            
Jackups $8,055  $13,139  $33,824  $62,101 
Deepwater  14,169   18,549   41,939   69,377 
Management  4,815      9,272    
Held for sale  11,528      45,851    
Operations support  2,267   2,113   9,071   9,744 
Reimbursables  3,052   1,393   10,711   7,862 
Total operating costs $43,886  $35,194  $150,668  $149,084 
Utilization            
Jackups  99.6%  40.0%  68.9%  56.5%
Deepwater  26.8%  20.4%  38.4%  38.9%
Held for sale  90.3% N/A   64.4% N/A 
               

 

Vantage Drilling International 
Consolidated Balance Sheets 
(In thousands, except share and par value information) 
       
  December 31, 2021  December 31, 2020 
       
ASSETS      
Current assets      
Cash and cash equivalents $73,343  $141,945 
Restricted cash  1,621   7,996 
Trade receivables, net of allowance for doubtful accounts of $5.0 million each year  37,527   24,717 
Materials and supplies  37,580   49,861 
Assets held for sale  117,117   10,113 
Prepaid expenses and other current assets  18,309   19,038 
Total current assets  285,497   253,670 
Property and equipment      
Property and equipment  645,622   794,944 
Accumulated depreciation  (266,018)  (278,562)
Property and equipment, net  379,604   516,382 
Operating lease ROU assets  2,450   3,997 
Other assets  31,843   12,126 
Total assets $699,394  $786,175 
       
LIABILITIES AND SHAREHOLDERS' EQUITY      
Current liabilities      
Accounts payable $31,420  $25,466 
Liabilities held for sale  31,533   24,734 
Other current liabilities  6,720   - 
Total current liabilities  69,673   50,200 
Long–term debt, net of discount and financing costs of $3,142 and $4,781  346,858   345,219 
Other long-term liabilities  17,012   15,011 
Commitments and contingencies      
Shareholders' equity      
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding each year  13   13 
Additional paid-in capital  633,847   634,181 
Accumulated deficit  (369,792)  (259,655)
Controlling interest shareholders' equity  264,068   374,539 
Noncontrolling interests  1,783   1,206 
Total equity  265,851   375,745 
Total liabilities and shareholders' equity $699,394  $786,175 

 

  
Vantage Drilling International 
Consolidated Statement of Cash Flows 
(In thousands) 
       
  Year Ended December 31, 
  2021  2020 
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $(110,251) $(276,757)
Adjustments to reconcile net loss to net cash used in operating activities      
Depreciation expense  56,242   69,216 
Amortization of debt financing costs  1,639   1,640 
Amortization of debt discount      
Amortization of contract value      
PIK interest on the Convertible Notes      
Share-based compensation expense  395   1,615 
Deferred income tax expense  369   221 
Loss (gain) on disposal of assets  (2,640)  52 
Gain on settlement of restructuring agreement     (2,278)
Loss on impairment     128,876 
Changes in operating assets and liabilities:      
Trade receivables, net  (20,116)  21,787 
Materials and supplies  (1,624)  (1,852)
Prepaid expenses and other current assets  (3,306)  (1,237)
Other assets  (12,312)  3,716 
Accounts payable  10,094   (23,683)
Other current liabilities and other long-term liabilities  11,119   (6,618)
Net cash used in operating activities  (70,391)  (85,302)
CASH FLOWS FROM INVESTING ACTIVITIES      
Additions to property and equipment  (7,045)  (3,155)
Net proceeds from sale of Titanium Explorer  13,557    
Net cash provided by (used in) investing activities  6,512   (3,155)
CASH FLOWS FROM FINANCING ACTIVITIES      
Contributions from holders of noncontrolling interests      
Distributions to shareholders      
Debt issuance costs      
Net cash used in financing activities      
Net decrease in unrestricted and restricted cash and cash equivalents  (63,879)  (88,457)
Unrestricted and restricted cash and cash equivalents—beginning of period  154,487   242,944 
Unrestricted and restricted cash and cash equivalents—end of period $90,608  $154,487 

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Attachments

Press Release 2021 Q4 Earnings Release Final.pdf