Vantage Drilling International Ltd. Reports Fourth Quarter and Full-Year 2023 Results

DUBAI, United Arab Emirates, March 27, 2024 (GLOBE NEWSWIRE) -- Vantage Drilling International Ltd. ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $14.6 million, or $1.10 per diluted share, for the three months ended December 31, 2023, as compared to a net loss attributable to controlling interest of $16.4 million, or $1.25 per diluted share, for the three months ended December 31, 2022.

For the year ended December 31, 2023, Vantage reported a net loss attributable to controlling interest of approximately $15.4 million or $1.16 per diluted share, as compared to a net loss attributable to controlling interest of $3.4 million or $0.26 per diluted share for the year ended December 31, 2022.

As of December 31, 2023, Vantage had approximately $84.0 million in cash, including $10.8 million of restricted cash, compared to $93.3 million in cash, including $19.2 million of restricted cash, at December 31, 2022.  At December 31, 2023, Vantage maintained $11.6 million of cash pre-funded by our Managed Services customers to address near-term obligations during the fourth quarter of 2023.  Excluding cash used in connection with our Managed Services customers, the Company generated $13.6 million of cash from operating activities during the fourth quarter of 2023.

Ihab Toma, CEO, commented: “I am pleased with the Company’s financial performance for 2023.  The Company generated cash of $2.2 million for the year, reaching approximately $71.0 million of EBITDA, a level not seen since prior to the Company’s reorganization in 2016.  Vantage continued to serve its clients well across our managed services and owned rigs segments.  It is our operational strength, customer focus and creative business models that led to the ground-breaking announcement with our client, TotalEnergies, regarding our joint venture to own the Tungsten Explorer along with a 10-year management contract to manage the rig.”

Mr. Toma continued, “As for 2024, while in many ways, it is a year of transition for some of our rigs with shipyard stays and preparation time between contracts, I am excited about what the future holds for Vantage. Fundamentally, the market continues to be in a healthy place, and we are in a good position to take advantage of this.”

Vantage, a Bermuda 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 Ltd.
     +971 4 449 34 28


Vantage Drilling International Ltd.
Consolidated Statement of Operations
(Unaudited, in thousands, except per share data)
  Three months ended December 31, Twelve months ended December 31,
   2023   2022   2023   2022 
Contract drilling services $68,831  $32,367  $260,611  $154,116 
Management fees  5,711   2,449   19,486   10,834 
Reimbursables and other  19,980   41,373   103,039   113,766 
Total revenue  94,522   76,189   383,136   278,716 
Operating costs and expenses        
Operating costs  75,199   65,065   290,125   234,832 
General and administrative  6,177   5,264   21,730   23,009 
Depreciation  11,299   11,024   44,458   44,428 
Gain on EDC Sale     4   3   (61,409)
Total operating costs and expenses  92,675   81,357   356,316   240,860 
(Loss) income from operations  1,847   (5,168)  26,820   37,856 
Other (expense) income        
Interest income  309   1,080   750   1,108 
Interest expense and other financing charges  (5,344)  (8,840)  (21,591)  (34,351)
Other, net  (385)  (1,519)  (405)  (3,668)
Total other expense  (5,420)  (9,279)  (21,246)  (36,911)
(Loss) income before income taxes  (3,573)  (14,447)  5,574   945 
Income tax provision  10,776   2,530   21,479   4,313 
Net loss  (14,349)  (16,977)  (15,905)  (3,368)
Net (loss) income attributable to noncontrolling interests  207   (619)  (529)  (13)
Net loss attributable to shareholders $(14,556) $(16,358) $(15,376) $(3,355)
EBITDA (1) $12,761  $4,337  $70,873  $78,616 
Loss per share        
Basic and Diluted $(1.10) $(1.25) $(1.16) $(0.26)
Weighted average ordinary shares outstanding,        
Basic and Diluted  13,229   13,115   13,217   13,115 
(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 Ltd.
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
  Three months ended December 31, Twelve months ended December 31,
   2023   2022   2023   2022 
Operating costs        
Jackups $13,275  $4,317  $28,870  $36,225 
Deepwater  23,040   17,350   92,215   68,567 
Third party Rigs  16,696   2,295   68,779   2,289 
Sold rigs/Held for sale  (18)  20   (525)  10,722 
Operations support  3,105   2,595   11,444   10,975 
Reimbursables  19,101   38,488   89,342   106,054 
Total operating costs $75,199  $65,065  $290,125  $234,832 
Utilization (1)        
Jackups  71.0%  100.0%  79.0%  72.7%
Deepwater  83.9%  90.1%  81.8%  94.2%
Sold rigs/Held for sale N/A N/A N/A  43.6%
(1) Excludes rigs under bareboat charter contracts to third parties.


Vantage Drilling International Ltd.
Consolidated Balance Sheets
(Unaudited, in thousands, except share and par value information)
  December 31, 2023 December 31, 2022
Current assets    
Cash and cash equivalents $73,206  $74,026 
Restricted cash  1,828   16,450 
Trade receivables, net of allowance for credit losses of $5,434 and $4,962, respectively  74,113   62,776 
Materials and supplies  46,704   41,250 
Prepaid expenses and other current assets  37,423   25,621 
Total current assets  233,274   220,123 
Property and equipment    
Property and equipment  660,449   647,909 
Accumulated depreciation  (352,357)  (309,453)
Property and equipment, net  308,092   338,456 
Operating lease ROU assets  1,084   1,648 
Other assets  19,283   18,334 
Total assets $561,733  $578,561 
Current liabilities    
Accounts payable $62,245  $57,775 
Other current liabilities  51,946   66,179 
Total current liabilities  114,191   123,954 
Long–term debt, net of discount and financing costs of $9,893 and $733, respectively  190,107   179,227 
Other long-term liabilities  10,741   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  633,963   633,863 
Accumulated deficit  (388,523)  (373,147)
Controlling interest shareholders' equity  245,453   260,729 
Noncontrolling interests  1,241   1,770 
Total equity  246,694   262,499 
Total liabilities and shareholders' equity $561,733  $578,561 

Vantage Drilling International Ltd.
Consolidated Statement of Cash Flows
(Unaudited, in thousands)
  Year Ended December 31,
   2023   2022 
Net loss $(15,905) $(3,368)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities    
Depreciation expense  44,458   44,428 
Amortization of debt financing costs  2,048   1,639 
Share-based compensation expense  383   79 
Loss on debt extinguishment  703   730 
Deferred income tax expense  624   708 
Loss (gain) on disposal of assets     (1,600)
Gain on EDC Sale  3   (61,409)
Changes in operating assets and liabilities:    
Trade receivables, net  (11,337)  (42,241)
Materials and supplies  (5,453)  (4,155)
Prepaid expenses and other current assets  (11,803)  (9,878)
Other assets  4,421   (22,461)
Accounts payable  4,470   44,469 
Other current liabilities and other long-term liabilities  (10,413)  34,185 
Net cash (used in) provided by operating activities  2,199   (18,874)
Additions to property and equipment  (14,094)  (10,277)
Net proceeds from EDC Sale     198,700 
Net proceeds from sale of assets     3,100 
Net proceeds from sale of Titanium Explorer      
Net cash provided by (used in) investing activities  (14,094)  191,523 
Proceeds from 9.50% First Lien Notes  194,000    
Repayment of long-term debt  (180,000)  (170,000)
Shares repurchased for tax withholdings on settlement of RSUs  (246)   
Payments of dividend equivalents  (5,278)   
Debt issuance costs  (5,863)   
Net cash provided by (used in) financing activities  2,613   (170,000)
Net increase (decrease) in unrestricted and restricted cash and cash equivalents  (9,282)  2,649 
Unrestricted and restricted cash and cash equivalents—beginning of period  93,257   90,608 
Unrestricted and restricted cash and cash equivalents—end of period $83,975  $93,257 


Vantage Drilling International Ltd.
Non-GAAP Measures
(Unaudited, in thousands)
 Three months ended December 31, Twelve months ended December 31,
Reconciliation of EBITDA 2023   2022   2023   2022 
Net loss$(14,349) $(16,977) $(15,905) $(3,368)
Depreciation 11,299   11,024   44,458   44,428 
Interest income (309)  (1,080)  (750)  (1,108)
Interest expense and other financing costs 5,344   8,840   21,591   34,351 
Income tax provision 10,776   2,530   21,479   4,313 
EBITDA$12,761  $4,337  $70,873  $78,616 

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