Vantage Drilling International Reports Third Quarter Results for 2023

HOUSTON, Nov. 09, 2023 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported near breakeven net income attributable to controlling interest for the three months ended September 30, 2023, as compared to a net loss attributable to controlling interest of $20.2 million, or $1.54 per diluted share, for the three months ended September 30, 2022.

As of September 30, 2023, Vantage had approximately $77.6 million in cash, including $7.6 million of restricted cash, compared to $93.3 million in cash, including $19.2 million of restricted cash, at December 31, 2022. At September 30, 2023, Vantage maintained $13.2 million of cash pre-funded by our Managed Services customers to address near-term obligations during the third quarter of 2023. Excluding cash used in connection with our Managed Services customers, the Company used $0.9 million of cash during the third quarter of 2023.

Ihab Toma, CEO, commented: “I am pleased to report that our financial performance for the quarter ending September 30, 2023, has significantly improved year over year. This improvement is attributed to our reduced debt level, increased fleet utilization, and higher day rates, showcasing our path to growth and profitability”

Mr. Toma continued: “As always, we would not be in this position without the hard work and dedication of our onshore and offshore personnel and the continued support from our clients”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and two 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 gas companies. Vantage also markets, operates and provides management services in respect of, third party-owned drilling units.

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 reports or filings posted to its website or otherwise made available to its investors or creditors. 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.

Non-GAAP Measures

We report our financial results in accordance with generally accepted accounting principles (GAAP) in the United States. However, in our earnings release and during our earnings calls we may reference company information that does not conform to GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results of the Company. However, these measures should not be viewed as an alternative to or substitute for GAAP measures of performance, and these non-GAAP measures may not be consistent with previously published Company reports on Forms 10-K, 10-Q and 8-K. Non-GAAP measures we may reference have been reconciled to the nearest GAAP measure in the tables entitled Reconciliation of GAAP to Non-GAAP Financial Measures below.

Public & Investor Relations Contact:
Rafael Blattner
Chief Financial Officer
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 September 30, Nine Months Ended September 30,
  2023   2022   2023   2022 
Contract drilling services$76,190  $34,092  $191,780  $121,749 
Management fees 6,086   4,442   13,775   8,385 
Reimbursables and other 21,426   32,424   83,059   72,393 
Total revenue 103,702   70,958   288,614   202,527 
Operating costs and expenses       
Operating costs 73,988   66,429   214,926   169,767 
General and administrative 5,561   4,253   15,553   17,745 
Depreciation 11,065   11,022   33,159   33,404 
(Gain) loss on EDC Sale    (632)  3   (61,413)
Total operating costs and expenses 90,614   81,072   263,641   159,503 
Income (loss) from operations 13,088   (10,114)  24,973   43,024 
Other (expense) income       
Interest income 251   17   441   28 
Interest expense and other financing charges (5,343)  (8,504)  (16,247)  (25,511)
Other, net 115   (363)  (20)  (2,149)
Total other expense (4,977)  (8,850)  (15,826)  (27,632)
Income (loss) before income taxes 8,111   (18,964)  9,147   15,392 
Income tax provision 8,097   1,566   10,703   1,783 
Net income (loss) 14   (20,530)  (1,556)  13,609 
Net income (loss) attributable to noncontrolling interests 10   (332)  (736)  606 
Net income (loss) attributable to shareholders$4  $(20,198) $(820) $13,003 
EBITDA(1)$24,258  $877  $58,848  $73,673 
Earnings (loss) per share       
Basic$0.00  $(1.54) $(0.06) $0.99 
Diluted$0.00  $(1.54) $(0.06) $0.98 
Weighted average ordinary shares outstanding,       
Basic 13,229   13,115   13,213   13,115 
Diluted 13,323   13,115   13,213   13,330 
(1) EBITDA represents net income (loss) before (i) interest income (expense), (ii) provision for income taxes and (iii) depreciation and amortization expense. EBITDA is not a financial measure under GAAP as defined under the rules of the SEC, and is intended as a supplemental measure of our performance. We believe this measure is commonly used by analysts and investors to analyze and compare companies on the basis of operating performance.
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
 Three Months Ended September 30, Nine Months Ended September 30,
  2023   2022   2023   2022 
Operating costs and expenses       
Jackups$7,366  $13,223  $15,088  $31,907 
Deepwater 26,056   20,738   69,174   51,216 
Managed Rigs 17,825   (6)  52,084   (5)
Held for Sale(2)          10,703 
Operations support 2,764   2,515   8,340   8,380 
Reimbursables 19,977   29,959   70,240   67,566 
Total operating costs and expenses$73,988  $66,429  $214,926  $169,767 
Jackups 67.2%  51.3%  83.4%  68.1%
Deepwater 84.9%  96.7%  81.0%  95.6%
Held for Sale(2)N/A N/A N/A  43.6%
(2) Included in the sale of Emerald Driller Company, which owns the Emerald Driller, Sapphire Driller and Aquamarine Driller .Each of these rigs were classified as held for sale on our Consolidated Balance Sheets up to the closing date, which was on May 27, 2022.


Vantage Drilling International
Consolidated Balance Sheets
(In thousands, except share and par value information)
 September 30, 2023 December 31, 2022
Current assets   
Cash and cash equivalents$70,000  $74,026 
Restricted cash 639   16,450 
Trade receivables, net of allowance for credit losses of $3,850 and $4,962, respectively 87,313   62,776 
Materials and supplies 47,973   41,250 
Prepaid expenses and other current assets 41,788   25,621 
Total current assets 247,713   220,123 
Property and equipment   
Property and equipment 653,488   647,909 
Accumulated depreciation (341,357)  (309,453)
Property and equipment, net 312,131   338,456 
Operating lease ROU assets 1,300   1,648 
Other assets 16,348   18,334 
Total assets$577,492  $578,561 
Current liabilities   
Accounts payable$63,191  $57,775 
Other current liabilities 56,879   66,179 
Total current liabilities 120,070   123,954 
Long–term debt, net of discount and financing costs of $10,487 and $773, respectively 189,513   179,227 
Other long-term liabilities 7,204   12,881 
Commitments and contingencies   
Shareholders' equity   
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,229,280 and 13,115,026 shares issued and outstanding, each period 13   13 
Additional paid-in capital 633,625   633,863 
Accumulated deficit (373,967)  (373,147)
Controlling interest shareholders' equity 259,671   260,729 
Noncontrolling interests 1,034   1,770 
Total equity 260,705   262,499 
Total liabilities and shareholders' equity$577,492  $578,561 


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
 Nine Months Ended September 30,
  2023   2022 
Net (loss) income$(1,556) $13,609 
Adjustments to reconcile net (loss) income to net cash used in operating activities   
Depreciation expense 33,159   33,404 
Amortization of debt financing costs 1,455   1,229 
Share-based compensation expense 45   61 
Loss on debt extinguishment 703    
Deferred income tax expense 994   301 
Gain on disposal of assets    (1,600)
Loss (gain) on EDC Sale 3   (61,413)
Changes in operating assets and liabilities:   
Trade receivables, net (24,537)  (50,289)
Materials and supplies (6,723)  (2,218)
Prepaid expenses and other current assets (9,377)  2,680 
Other assets 4,810   (23,222)
Accounts payable 5,416   31,873 
Other current liabilities and other long-term liabilities (15,822)  33,624 
Net cash used in operating activities (11,430)  (21,961)
Additions to property and equipment (6,833)  (8,154)
Net proceeds from EDC Sale    198,700 
Net proceeds from sale of assets    3,100 
Net cash (used in) provided by investing activities (6,833)  193,646 
Proceeds from 9.50% First Lien Notes 194,000    
Repayment of long-term debt (180,000)   
Shares repurchased for tax withholdings on settlement of RSUs (246)   
Payments of dividend equivalents (5,278)   
Debt issuance costs (5,850)   
Net cash provided by financing activities 2,626    
Net (decrease) increase in unrestricted and restricted cash and cash equivalents (15,637)  171,685 
Unrestricted and restricted cash and cash equivalents—beginning of period 93,257   90,608 
Unrestricted and restricted cash and cash equivalents—end of period$77,620  $262,293 


Vantage Drilling International
Non-GAAP Measures
(In thousands)
 Three Months Ended September 30, Nine Months Ended September 30,
Reconciliation of EBITDA 2023   2022   2023   2022 
Net income (loss) attributable to shareholders$4  $(20,198) $(820) $13,003 
Depreciation 11,065   11,022   33,159   33,404 
Interest income (251)  (17)  (441)  (28)
Interest expense and other financing costs 5,343   8,504   16,247   25,511 
Income tax provision 8,097   1,566   10,703   1,783 
EBITDA$24,258  $877  $58,848  $73,673 

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