Vantage Drilling International Reports Second Quarter Results for 2021

Houston, Texas, UNITED STATES


HOUSTON, Aug. 12, 2021 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $29.0 million or $2.21 per diluted share for the three months ended June 30, 2021, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $31.9 million or $2.43 per diluted share for the three months ended June 30, 2020.

As of June 30, 2021, Vantage had approximately $124.4 million in cash, including $13.0 million of restricted cash, compared to $154.5 million in cash, including $12.5 million of restricted cash at December 31, 2020. The Company used $40.9 million in cash from operations in 2021 compared to $52.5 million used during the same period of 2020.

Ihab Toma, CEO, commented: “The second quarter represented more evidence that the industry is back on the way to recovery where we have seen the Aquamarine Driller and Sapphire Driller commencing their new contracts in Malaysia and Equatorial Guinea, respectively. In addition, shortly after the quarter concluded, the Soehanah returned to work in Indonesia, reflecting six of the Company’s seven rigs working. The safe and seamless return to work by those rigs within weeks of each other is a testament to the operations team at Vantage, of whom I am very proud.”

Mr. Toma continued, “In addition to the three rigs returning to service, we are delighted to announce that, the Sapphire Driller and the Aquamarine Driller, were recently awarded three-year contracts to work offshore Qatar, commencing in February and March 2022, respectively. We look forward to these multi-year programs commencing alongside the Emerald Driller’s campaign in Qatar where we have operated since 2016.”  

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 gas companies. Vantage also markets, operates and provides management services in respect of, 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 June 30, Six Months Ended June 30,
   2021   2020   2021   2020 
Revenue        
Contract drilling services $31,655  $33,151  $49,380  $77,470 
Reimbursables and other  3,946   3,624   6,387   10,761 
Total revenue  35,601   36,775   55,767   88,231 
Operating costs and expenses        
Operating costs  36,056   38,104   61,413   86,659 
General and administrative  4,967   4,716   10,462   11,886 
Depreciation  14,161   18,401   28,286   36,417 
Total operating costs and expenses  55,184   61,221   100,161   134,962 
Loss from operations  (19,583)  (24,446)  (44,394)  (46,731)
Other (expense) income        
Interest income  10   111   110   812 
Interest expense and other financing charges  (8,511)  (8,601)  (17,021)  (17,021)
Other, net  (179)  12   (793)  2,367 
Total other expense  (8,680)  (8,478)  (17,704)  (13,842)
Loss before income taxes  (28,263)  (32,924)  (62,098)  (60,573)
Income tax provision (benefit)  720   (1,024)  2,882   1,897 
Net loss  (28,983)  (31,900)  (64,980)  (62,470)
Net (loss) income attributable to noncontrolling interests  (18)  12   (31)  14 
Net loss attributable to shareholders $(28,965) $(31,912) $(64,949) $(62,484)
Loss per share        
Basic and Diluted $(2.21) $(2.43) $(4.95) $(4.76)
Weighted average ordinary shares outstanding,        
Basic and Diluted  13,115   13,115   13,115   13,115 
         
         
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
         
  Three Months Ended June 30, Six Months Ended June 30,
   2021   2020   2021   2020 
Operating costs and expenses        
Jackups $22,170  $15,669  $36,319  $37,142 
Deepwater  8,820   18,831   16,064   38,870 
Management  756   -   756   - 
Operations support  2,317   2,016   4,529   5,453 
Reimbursables  1,993   1,588   3,745   5,194 
Total operating costs and expenses $36,056  $38,104  $61,413  $86,659 
Utilization        
Jackups  39.9%  60.0%  35.3%  73.9%
Deepwater  49.7%  45.6%  49.4%  53.7%
         


Vantage Drilling International
Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
     
  June 30, 2021 December 31, 2020
     
ASSETS    
Current assets    
Cash and cash equivalents $111,424  $141,945 
Restricted cash  7,800   7,996 
Trade receivables, net of allowance for doubtful accounts of $5.0 million, respectively  31,605   24,717 
Materials and supplies  50,946   49,861 
Prepaid expenses and other current assets  20,212   29,151 
Total current assets  221,987   253,670 
Property and equipment    
Property and equipment  797,078   794,944 
Accumulated depreciation  (306,337)  (278,562)
Property and equipment, net  490,741   516,382 
Operating lease ROU assets  3,144   3,997 
Other assets  15,315   12,126 
Total assets $731,187  $786,175 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities    
Accounts payable $28,264  $25,466 
Other current liabilities  32,572   24,734 
Total current liabilities  60,836   50,200 
Long–term debt, net of discount and financing costs of $3,962 and $4,781, respectively  346,038   345,219 
Other long-term liabilities  13,971   15,011 
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  633,758   634,181 
Accumulated deficit  (324,604)  (259,655)
Controlling interest shareholders' equity  309,167   374,539 
Noncontrolling interests  1,175   1,206 
Total equity  310,342   375,745 
Total liabilities and shareholders' equity $731,187  $786,175 
     


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
  Six Months Ended June 30,
   2021   2020 
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $(64,980) $(62,470)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation expense  28,286   36,417 
Amortization of debt financing costs  819   820 
Share-based compensation expense  337   1,028 
Deferred income tax (benefit) expense  236   (90)
Gain on disposal of assets  (2,715)   
Gain on settlement of restructuring agreement     (2,278)
Changes in operating assets and liabilities:    
Trade receivables, net  (6,888)  (7,202)
Materials and Supplies  (1,481)  (1,297)
Prepaid expenses and other current assets  (1,440)  2,545 
Other assets  (1,821)  3,410 
Accounts payable  2,798   (14,680)
Other current liabilities and other long-term liabilities  5,905   (8,717)
Net cash used in operating activities  (40,944)  (52,514)
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property and equipment  (2,711)  (2,021)
Net proceeds from sale of Titanium Explorer  13,557    
Net cash provided by (used in) investing activities  10,846   (2,021)
CASH FLOWS FROM FINANCING ACTIVITIES    
Contributions from holders of noncontrolling interests      
Debt issuance costs      
Net cash provided by financing activities      
Net decrease in unrestricted and restricted cash and cash equivalents  (30,098)  (54,535)
Unrestricted and restricted cash and cash equivalents—beginning of period  154,487   242,944 
Unrestricted and restricted cash and cash equivalents—end of period $124,389  $188,409 
     

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