Vantage Drilling International Ltd. Reports First Quarter 2024 Results

DUBAI, United Arab Emirates, May 09, 2024 (GLOBE NEWSWIRE) -- Vantage Drilling International Ltd. ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $2.9 million or $0.22 per diluted share for the three months ended March 31, 2024, as compared to a net loss attributable to controlling interest of $2.3 million or $0.17 per diluted share for the three months ended March 31, 2023.

As of March 31, 2024, Vantage had approximately $67.0 million in cash, including $10.8 million of restricted cash, compared to $84.0 million in cash, including $10.8 million of restricted cash, at December 31, 2023. At March 31, 2024, Vantage maintained $11.1 million of cash pre-funded by our Managed Services customers to address near-term obligations. Excluding cash used in connection with our Managed Services customers, the Company used $8.6 million of cash in operating activities during the first quarter of 2024.

Ihab Toma, CEO, commented: "The first quarter embodies our unwavering commitment to achieving improved operational performance. We are currently undertaking significant upgrade projects on the Topaz Driller and the Platinum Explorer that will facilitate the transition of our rigs to contracts with higher day rates and enhance their long-term appeal and marketability."

Mr. Toma continued, “The Company delivered solid performance in the first quarter of 2024 achieving approximately $15.6 million of EBITDA. These results are indicative of the ongoing dedication and hard work of our organization during this transitional period.”

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.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
 Three Months Ended March 31,
 2024 2023
Contract drilling services$60,229  $47,917 
Management fees 5,526   2,120 
Reimbursables and other 10,393   27,035 
Total revenue 76,148   77,072 
Operating costs and expenses   
Operating costs 52,723   66,555 
General and administrative 7,254   4,831 
Depreciation 11,235   11,049 
(Gain) loss on EDC Sale    3 
Total operating costs and expenses 71,212   82,438 
Income (loss) from operations 4,936   (5,366)
Other (expense) income   
Interest income 294   49 
Interest expense and other financing charges (5,344)  (5,558)
Other, net (595)  322 
Total other (expense) income (5,645)  (5,187)
Loss before income taxes (709)  (10,553)
Income tax provision (benefit) 2,481   (7,978)
Net loss (3,190)  (2,575)
Net loss attributable to non-controlling interests (319)  (289)
Net loss attributable to shareholders$(2,871) $(2,286)
EBITDA (1)$15,576  $6,005 
Loss per share   
Basic and Diluted$(0.22) $(0.17)
Weighted average ordinary shares outstanding,   
Basic and Diluted 13,237   13,179 
(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 March 31,
 2024 2023
Operating costs and expenses   
Deepwater 24,717   18,964 
Managed Rigs 4,570   16,940 
Operations support 2,996   2,650 
Reimbursables 9,250   24,016 
Total operating costs and expenses$52,723  $66,555 
Jackups 89.7%  100.0%
Deepwater 67.6%  62.8%

Vantage Drilling International Ltd.
Condensed Consolidated Balance Sheets
(In thousands, except share and par value information)
 March 31, 2024 December 31, 2023
Current assets   
Cash and cash equivalents$56,120  $73,206 
Restricted cash 2,583   1,828 
Trade receivables, net of allowance for credit losses of $5,862 and $5,434, respectively 76,739   74,113 
Materials and supplies 50,883   46,704 
Prepaid expenses and other current assets 27,439   37,423 
Total current assets 213,764   233,274 
Property and equipment   
Property and equipment 664,225   660,449 
Accumulated depreciation (363,592)  (352,357)
Property and equipment, net 300,633   308,092 
Operating lease ROU assets 781   1,084 
Other assets 26,198   19,283 
Total assets$541,376  $561,733 
Current liabilities   
Accounts payable$53,698  $62,245 
Other current liabilities 39,189   51,946 
Total current liabilities 92,887   114,191 
Long–term debt, net of discount and financing costs of $9,299 and $9,893 respectively 190,701   190,107 
Other long-term liabilities 14,226   10,741 
Commitments and contingencies (See Note 8)   
Shareholders' equity   
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,295,262 and 13,229,280 shares issued and outstanding, each period 13   13 
Additional paid-in capital 634,021   633,963 
Accumulated deficit (391,394)  (388,523)
Controlling interest shareholders' equity 242,640   245,453 
Noncontrolling interests 922   1,241 
Total equity 243,562   246,694 
Total liabilities and shareholders' equity$541,376  $561,733 

Vantage Drilling International Ltd.
Condensed Consolidated Statements of Cash Flows
(In thousands)
 Three Months Ended March 31,
 2024 2023
Net loss$(3,190) $(2,575)
Adjustments to reconcile net loss to net cash used in operating activities   
Depreciation expense 11,235   11,049 
Amortization of debt financing costs 594   266 
Share-based compensation expense 535   11 
Loss on debt extinguishment    703 
Deferred income tax expense 306   711 
Loss on EDC Sale    3 
Changes in operating assets and liabilities:   
Trade receivables, net (2,626)  (32,692)
Materials and supplies (4,179)  (1,131)
Prepaid expenses and other current assets 9,984   (12,566)
Other assets (7,602)  5,631 
Accounts payable (8,547)  12,101 
Other current liabilities and other long-term liabilities (6,028)  347 
Net cash used in operating activities (9,518)  (18,142)
Additions to property and equipment (3,775)  (843)
Net cash used in investing activities (3,775)  (843)
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 (441)  (246)
Payments of dividend equivalents (3,272)  (5,278)
Debt issuance costs (9)  (3,935)
Net cash (used in) provided by financing activities (3,722)  4,541 
Net decrease in unrestricted and restricted cash and cash equivalents (17,015)  (14,444)
Unrestricted and restricted cash and cash equivalents—beginning of period 83,975   93,257 
Unrestricted and restricted cash and cash equivalents—end of period$66,960  $78,813 

Vantage Drilling International Ltd.
Non-GAAP Measures
(In thousands)
 Three Months Ended March 31,
Reconciliation of EBITDA2024 2023
Net loss$(3,190) $(2,575)
Depreciation 11,235   11,049 
Interest income (294)  (49)
Interest expense and other financing costs 5,344   5,558 
Income tax provision (benefit) 2,481   (7,978)
EBITDA$15,576  $6,005 

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