Vantage Drilling International Ltd. Reports Second Quarter 2024 Results


DUBAI, United Arab Emirates, Aug. 13, 2024 (GLOBE NEWSWIRE) -- Vantage Drilling International Ltd. ("Vantage" or the “Company”) reported a net loss attributable to shareholders of approximately $14.2 million or $1.07 per diluted share for the three months ended June 30, 2024, based on weighted average shares outstanding, as compared to a net income attributable to shareholders of approximately $1.5 million or $0.11 per diluted share for the three months ended June 30, 2023.

As of June 30, 2024, Vantage had approximately $50.8 million in cash. This total includes $10.5 million of restricted cash and $12.8 million pre-funded by our Managed Services customers for near-term obligations. In comparison, on December 31, 2023, Vantage had $84.0 million in cash, including $10.8 million of restricted cash and $11.6 million pre-funded by our Managed Services customers.

Ihab Toma, CEO, commented: "The Company continued to perform well operationally and financially during the quarter, even with the Topaz Driller and Platinum Explorer undergoing major upgrades. The Topaz Driller continues to prepare for its upcoming contract while the Platinum Explorer enhances its marketability."

Mr. Toma continued, “EBITDA generation of $4.6 million during the quarter reflects the efficiency of our operations and the dedication of our employees 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. www.vantagedrilling.com.

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)
(Unaudited)
         
  Three Months Ended June 30, Six Months Ended June 30,
  2024 2023 2024 2023
Revenue        
Contract drilling services $34,100  $67,673  $94,329  $115,590 
Management fees  5,697   5,569   11,223   7,689 
Reimbursables and other  10,015   34,598   20,408   61,633 
Total revenue  49,812   107,840   125,960   184,912 
Operating costs and expenses        
Operating costs  39,561   74,383   92,284   140,938 
General and administrative  5,225   5,161   12,479   9,992 
Depreciation  11,257   11,045   22,492   22,094 
(Gain) loss on EDC Sale           3 
Total operating costs and expenses  56,043   90,589   127,255   173,027 
Income (loss) from operations  (6,231)  17,251   (1,295)  11,885 
Other (expense) income        
Interest income  200   141   494   190 
Interest expense and other financing charges  (5,656)  (5,346)  (11,000)  (10,904)
Other, net  (383)  (457)  (978)  (135)
Total other expense  (5,839)  (5,662)  (11,484)  (10,849)
Income (loss) before income taxes  (12,070)  11,589   (12,779)  1,036 
Income tax provision  2,141   10,584   4,622   2,606 
Net income (loss)  (14,211)  1,005   (17,401)  (1,570)
Net income (loss) attributable to non-controlling interests  10   (457)  (309)  (746)
Net income (loss) attributable to shareholders $(14,221) $1,462  $(17,092) $(824)
         
EBITDA(1) $4,643  $27,839  $20,219  $33,844 
         
Earnings (loss) per share        
Basic and Diluted $(1.07) $0.11  $(1.29) $(0.06)
Weighted average ordinary shares outstanding,        
Basic  13,295   13,229   13,266   13,204 
         
Diluted  13,295   13,320   13,266   13,204 
         
(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
(in thousands, except percentages)
(Unaudited)
         
  Three Months Ended June 30, Six Months Ended June 30,
  2024 2023 2024 2023
Operating costs and expenses        
Jackups $4,980  $3,736  $16,170  $7,722 
Deepwater  21,547   24,154   46,264   43,118 
Managed Rigs  -   17,319   4,570   34,258 
Operations support  3,171   2,924   6,167   5,575 
Reimbursables  9,863   26,250   19,113   50,265 
Total operating costs and expenses $39,561  $74,383  $92,284  $140,938 
Utilization        
Jackups  50.0%  94.4%  69.9%  97.2%
Deepwater  43.4%  95.2%  55.5%  79.1%
                 


 
Vantage Drilling International Ltd.
Condensed Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
     
  June 30, 2024 December 31, 2023
     
ASSETS    
Current assets    
Cash and cash equivalents $40,290  $73,206 
Restricted cash  2,264   1,828 
Trade receivables, net of allowance for credit losses of $5,805 and $5,434, respectively  56,534   74,113 
Materials and supplies  52,470   46,704 
Prepaid expenses and other current assets  35,501   37,423 
Total current assets  187,059   233,274 
Property and equipment    
Property and equipment  677,304   660,449 
Accumulated depreciation  (374,459)  (352,357)
Property and equipment, net  302,845   308,092 
Operating lease ROU assets  658   1,084 
Other assets  42,313   19,283 
Total assets $532,875  $561,733 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities    
Accounts payable $60,730  $62,245 
Other current liabilities  38,277   51,946 
Total current liabilities  99,007   114,191 
Long–term debt, net of discount and financing costs of $8,706 and $9,893 respectively  191,294   190,107 
Other long-term liabilities  12,725   10,741 
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  634,519   633,963 
Accumulated deficit  (405,615)  (388,523)
Controlling interest shareholders' equity  228,917   245,453 
Noncontrolling interests  932   1,241 
Total equity  229,849   246,694 
Total liabilities and shareholders' equity $532,875  $561,733 
     


 
Vantage Drilling International Ltd.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
  Six Months Ended June 30,
  2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $(17,401) $(1,570)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation expense  22,492   22,094 
Amortization of debt financing costs  1,449   862 
Share-based compensation expense  1,069   25 
Loss on debt extinguishment     703 
Deferred income tax expense  420   733 
Loss on disposal of assets  81    
Loss on EDC Sale     3 
Allowance for credit losses  371    
Changes in operating assets and liabilities:    
Trade receivables, net  17,208   (20,333)
Materials and supplies  (5,766)  (3,509)
Prepaid expenses and other current assets  1,922   (5,379)
Other assets  (22,340)  5,269 
Accounts payable  (1,515)  (2,205)
Other current liabilities and other long-term liabilities  (9,278)  (7,773)
Net cash used in operating activities  (11,288)  (11,080)
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property and equipment  (17,396)  (2,637)
Proceeds from disposal of assets  70    
Net cash used in investing activities  (17,326)  (2,637)
CASH FLOWS FROM FINANCING ACTIVITIES    
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  (837)  (5,645)
Net cash (used in) provided by financing activities  (4,550)  2,831 
Net decrease in unrestricted and restricted cash and cash equivalents  (33,164)  (10,886)
Unrestricted and restricted cash and cash equivalents—beginning of period  83,975   93,257 
Unrestricted and restricted cash and cash equivalents—end of period $50,811  $82,371 
     


 
Vantage Drilling International Ltd.
Non-GAAP Measures
(In thousands)
(Unaudited)
         
  Three Months Ended June 30, Six Months Ended June 30,
Reconciliation of EBITDA 2024 2023 2024 2023
Net income (loss) $(14,211) $1,005  $(17,401) $(1,570)
Depreciation  11,257   11,045   22,492   22,094 
Interest income  (200)  (141)  (494)  (190)
Interest expense and other financing costs  5,656   5,346   11,000   10,904 
Income tax provision  2,141   10,584   4,622   2,606 
EBITDA $4,643  $27,839  $20,219  $33,844 
         

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