Vantage Drilling International Reports Fourth Quarter and Full-Year 2020 Results

Houston, Texas, UNITED STATES


HOUSTON, March 18, 2021 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $44.9 million or $3.42 per diluted share for the three months ended December 31, 2020, based on the weighted average shares outstanding after the conversion of our convertible notes in December 2019, as compared to a net loss attributable to controlling interest of $61.4 million or $8.22 per diluted share for the three months ended December 31, 2019.

For the year ended December 31, 2020, Vantage reported net loss attributable to controlling interest of approximately $276.7 million or $21.10 per diluted share, as compared to a net income attributable to controlling interest of $455.7 million or $80.27 per diluted share for the year ended December 31, 2019.

As of December 31, 2020, Vantage had approximately $154.5 million in cash, including $12.5 million of restricted cash, compared to $242.9 million in cash, including $11.0 million of restricted cash at December 31, 2019. The Company used $85.3 million in cash from operations in 2020 compared to $535.6 million generated, including cash collected in the Petrobras settlement in 2019.

Ihab Toma, CEO, commented: “2020 was unlike any year that preceded it. The arrival of COVID-19 caused, and its spread continues to cause, widespread illness and significant loss of life, leading governments across the world to impose and maintain severely stringent limitations on movement and human interaction - essentially shutting down economies. In this difficult environment, it was inevitable that our industry would contract just as it appeared that the previous downturn that began in 2014 finally was showing signs of easing. Notwithstanding these challenges, the Company recorded its safest year ever and operated with high levels of efficiency, a true testament of the excellence and commitment of the Vantage team.”

Mr. Toma continued: “As 2021 further unfolds, crude prices have improved and industry sentiment appears more hopeful. Three of our previously stacked rigs, the Topaz Driller, the Sapphire Driller and the Aquamarine Driller, are expected to begin campaigns for clients during the first half of the year. While, as previously announced, the Platinum Explorer has secured a follow-on two-year contract with ONGC that will begin later this year. As has been the case, our focus remains on putting our rigs back to work, operating safely and efficiently, managing costs and conserving cash while continuing to deliver high quality service to our esteemed 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 800
Houston, Texas 77056
(281) 404-4700


Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
 
  Three Months Ended December 31,  Year Ended December 31,
   2020   2019   2020   2019 
Revenue        
Contract drilling services $16,474  $42,996  $112,013  $144,571 
Contract termination revenue           594,029 
Reimbursables and other  1,946   6,270   14,849   22,248 
Total revenue  18,420   49,266   126,862   760,848 
Operating costs and expenses        
Operating costs  35,194   42,355   149,084   156,893 
General and administrative  5,307   42,534   21,022   128,548 
Depreciation  14,569   18,329   69,216   73,820 
Loss on impairment        128,876    
Total operating costs and expenses  55,070   103,218   368,198   359,261 
Income (loss) from operations  (36,650)  (53,952)  (241,336)  401,587 
Other income (expense)        
Interest income  18   2,754   871   116,368 
Interest expense and other financing charges  (8,510)  (9,860)  (34,041)  (46,575)
Other, net  325   (5)  2,646   216 
Total other (expense) income  (8,167)  (7,111)  (30,524)  70,009 
(Loss) income before income taxes  (44,817)  (61,063)  (271,860)  471,596 
Income tax provision (benefit)  145   (731)  4,897   15,121 
Net (loss) income  (44,962)  (60,332)  (276,757)  456,475 
Net (loss) income attributable to noncontrolling interests  (54)  1,053   (38)  741 
Net (loss) income attributable to shareholders $(44,908) $(61,385) $(276,719) $455,734 
(Loss) earnings per share, Basic and Diluted $(3.42) $(8.22) $(21.10) $80.27 
Weighted average ordinary shares outstanding, Basic and Diluted  13,115   7,470   13,115   5,677 
         
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
         
  Three Months Ended December 31,  Year Ended December 31,
   2020   2019   2020   2019 
Operating costs and expenses        
Jackups $13,139  $15,685  $62,101  $62,448 
Deepwater  18,549   19,775   69,377   70,184 
Operations support  2,113   4,064   9,744   13,538 
Reimbursables  1,393   2,831   7,862   10,723 
  $35,194  $42,355  $149,084  $156,893 
         
Utilization        
Jackups  40.0%  99.1%  56.5%  97.4%
Deepwater  20.4%  61.1%  38.9%  46.1%
                 


Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
     
  December 31, 2020 December 31, 2019
     
ASSETS    
Current assets    
Cash and cash equivalents $141,945  $231,947 
Restricted cash  7,996   2,511 
Trade receivables, net of allowance for doubtful accounts of $5.0 million and $0.0 million, respectively  24,717   46,504 
Materials and supplies  49,861   48,368 
Prepaid expenses and other current assets  27,323   16,507 
Total current assets  251,842   345,837 
Property and equipment    
Property and equipment  794,944   1,002,968 
Accumulated depreciation  (278,562)  (281,842)
Property and equipment, net  516,382   721,126 
Operating lease ROU assets  3,997   6,706 
Other assets  12,126   17,068 
Total assets $784,347  $1,090,737 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities    
Accounts payable $23,638  $49,599 
Other current liabilities  24,734   26,936 
Total current liabilities  48,372   76,535 
Long–term debt, net of discount and financing costs of $4,781 and $6,421  345,219   343,579 
Other long-term liabilities  15,011   17,532 
Commitments and contingencies    
Shareholders' equity    
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, respectively  13   13 
Additional paid-in capital  634,181   634,770 
Accumulated (deficit) earnings  (259,655)  17,064 
Controlling interest shareholders' equity  374,539   651,847 
Noncontrolling interests  1,206   1,244 
Total equity  375,745   653,091 
Total liabilities and shareholders’ equity $784,347  $1,090,737 
     


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
     
  Year Ended December 31,
   2020   2019 
CASH FLOWS FROM OPERATING ACTIVITIES    
Net (loss) income $(276,757) $456,475 
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities    
Depreciation expense  69,216   73,820 
Amortization of debt financing costs  1,640   1,627 
Amortization of debt discount     5,354 
Amortization of contract value     1,643 
PIK interest on the Convertible Notes     7,132 
Share-based compensation expense  1,615   957 
Deferred income tax expense (benefit)  221   (51)
Loss on disposal of assets  52   155 
Gain on settlement of restructuring agreement  (2,278)   
Loss on impairment  128,876    
Changes in operating assets and liabilities:    
Trade receivables, net  21,787   (18,073)
Materials and supplies  (1,852)  (3,174)
Prepaid expenses and other current assets  (1,237)  771 
Other assets  3,716   4,265 
Accounts payable  (23,683)  5,227 
Other current liabilities and other long-term liabilities  (6,618)  (489)
Net cash (used in) provided by operating activities  (85,302)  535,639 
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property and equipment  (3,155)  (7,798)
Net cash used in investing activities  (3,155)  (7,798)
CASH FLOWS FROM FINANCING ACTIVITIES    
Contributions from holders of noncontrolling interests     1,197 
Distributions to shareholders     (524,994)
Debt issuance costs     (487)
Net cash used in financing activities     (524,284)
Net (decrease) increase in unrestricted and restricted cash and cash equivalents  (88,457)  3,557 
Unrestricted and restricted cash and cash equivalents—beginning of period  242,944   239,387 
Unrestricted and restricted cash and cash equivalents—end of period $154,487  $242,944 
     

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