HOUSTON, TX--(Marketwire - August 10, 2009) - Vantage Drilling Company ("Vantage") (
For the six months ended June 30, 2009, Vantage reports net income of $6.3 million or $0.07 per share as compared to $0.6 million or $.01 per share for the six months ended June 30, 2008.
Paul Bragg, President and Chief Executive Officer, commented, "The second quarter of 2009 was another period of achievement for Vantage as we took delivery of our second jackup rig, the Sapphire Driller. The Sapphire Driller is contracted to work in West Africa for the remainder of 2009 and for a 6 to 12 month period in 2011.
Summarizing several important accomplishments are the following:
-- Emerald Driller operating in Thailand achieved 99% plus productive
time for the second quarter and year to date.
-- Accepted delivery of Sapphire Driller ahead of schedule and on budget.
-- Contracted the Sapphire Driller for work in West Africa and rig is
currently enroute to its first drilling location.
-- Achieved first steel cutting on the Platinum Explorer (45% ownership
drillship) on schedule.
-- Completed a private placement of common stock raising $25.7 million.
Vantage Drilling Company is a Cayman Islands exempted company. Our primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. We also provide construction supervision services for, and will operate and manage, drilling units owned by others. Through our fleet of four ultra-premium jackup rigs and a 45% ownership interest in an ultra-deepwater drillship, and our five managed drilling units, we are a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.
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 Drilling Company
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended
June 30,
---------------------
2009 2008
--------- ---------
Revenues
Contract drilling services $ 15,506 $ -
Management fees 5,300 -
Reimbursables 1,387 -
--------- ---------
Total revenues 22,193 -
--------- ---------
Operating costs and expenses
Operating costs 9,942 -
General and administrative 4,055 1,976
Depreciation 2,102 6
--------- ---------
Total operating costs and expenses 16,099 1,982
--------- ---------
Income (loss) from operations 6,094 (1,982)
Other income (expense)
Interest income - 1,326
Interest expense (1,310) -
Other income 87 -
--------- ---------
Total other income (expense) (1,223) 1,326
--------- ---------
Income (loss) before income taxes 4,871 (656)
Income tax provision (benefit) 919 (125)
--------- ---------
Net income (loss) $ 3,952 $ (531)
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Earnings (loss) per share
Basic $ 0.04 $ (0.01)
Diluted $ 0.04 $ (0.01)
Vantage Drilling Company
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Six Months Ended
June 30,
---------------------
2009 2008
--------- ---------
Revenues
Contract drilling services $ 25,293 $ -
Management fees 9,442 -
Reimbursables 1,754 -
--------- ---------
Total revenues 36,489 -
--------- ---------
Operating costs and expenses
Operating costs 15,582 -
General and administrative 7,491 2,696
Depreciation 3,758 12
--------- ---------
Total operating costs and expenses 26,831 2,708
--------- ---------
Income (loss) from operations 9,658 (2,708)
Other income (expense)
Interest income 8 3,831
Interest expense (2,058) -
Other income 173 -
--------- ---------
Total other income (expense) (1,877) 3,831
--------- ---------
Income before income taxes 7,781 1,123
Income tax provision 1,471 483
--------- ---------
Net income $ 6,310 $ 640
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Earnings per share
Basic $ 0.07 $ 0.01
Diluted $ 0.07 $ 0.01
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
June 30, December 31,
2009 2008
------------ ------------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 4,625 $ 16,557
Restricted cash 15,705 1,700
Trade receivables 15,203 3,186
Inventory 6,934 -
Prepaid expenses and other current assets 4,016 2,077
------------ ------------
Total current assets 46,483 23,520
------------ ------------
Property and equipment
Property and equipment 627,191 631,008
Accumulated depreciation (3,870) (112)
------------ ------------
Property and equipment, net 623,321 630,896
------------ ------------
Other assets
Investment in joint venture 75,619 -
Other assets 18,574 10,867
------------ ------------
Total other assets 94,193 10,867
------------ ------------
Total assets $ 763,997 $ 665,283
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 4,966 $ 3,827
Accrued liabilities 13,808 14,766
Short-term debt 15,070 11,239
Current maturities of long-term debt 19,410 6,000
------------ ------------
Total current liabilities 53,254 35,832
------------ ------------
Long-term debt 158,058 133,000
Commitments and contingencies - -
Shareholders' equity
Preferred shares, $0.001 par value,
1,000 shares authorized; none issued
or outstanding - -
Ordinary shares, $0.001 par value,
400,000 shares authorized; 109,299 and
75,708 shares issued and outstanding 109 76
Additional paid-in capital 592,222 542,331
Retained deficit (39,646) (45,956)
------------ ------------
Total shareholders' equity 552,685 496,451
------------ ------------
Total liabilities and shareholders' equity $ 763,997 $ 665,283
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Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
---------------------------
2009 2008
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 6,310 $ 640
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation expense 3,758 12
Amortization of debt financing costs 464 -
Share-based compensation expense 2,391 184
Deferred income tax benefit - (814)
Changes in operating assets and liabilities:
Restricted cash (14,005) (600)
Trade receivables (12,018) -
Inventory (6,934) -
Prepaid expenses and other current assets (1,939) (606)
Other assets (170) -
Accounts payable 1,139 940
Accrued liabilities 9,042 643
Short-term debt 760 -
------------ ------------
Net cash provided by (used in)
operating activities (11,202) 399
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of assets - (213,397)
Additions to property and equipment (67,248) (2,064)
Investment in joint venture (15,574) -
Deferred acquisition costs - 757
Restricted cash held in trust account - 273,109
------------ ------------
Net cash provided by (used in)
investing activities (82,822) 58,405
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under credit
agreement 41,821 34,000
Repayment of long-term debt (3,353) -
Proceeds from issuance of ordinary shares
in private placement, net 24,954 -
Proceeds from warrant exercise in
connection with joint venture 15,600 -
Proceeds from short-term notes
payable-shareholders 4,000 -
Repayments of short-term debt (930) -
Debt issuance costs - (8,473)
Advances from stockholders of OGIL - 3,300
Repayments of advances from stockholders
of OGIL - (3,300)
Repayment of deferred underwriters fee - (8,280)
------------ ------------
Net cash provided by financing
activities 82,092 17,247
------------ ------------
Net increase (decrease) in cash
and cash equivalents (11,932) 76,051
Cash and cash equivalents -- beginning
of period 16,557 1,263
------------ ------------
Cash and cash equivalents -- end of period $ 4,625 $ 77,314
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Contact Information: Public & Investor Relations Contact: Paul A. Bragg Chairman & Chief Executive Officer Vantage Drilling Company (281) 404-4700