Vantage Drilling International Reports First Quarter Results for 2019

5/9, 12:00 PM (Source: GlobeNewswire)

HOUSTON, May 09, 2019 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $47.9 million or $9.58 per share for the three months ended March 31, 2019 as compared to a net loss attributable to controlling interest of $32.1 million or $6.43 per share for the three months ended March 31, 2018.

As of March 31, 2019, Vantage had approximately $226.2 million in cash, including $10.3 million of restricted cash, compared to $239.4 million in cash, including $14.4 million of restricted cash at December 31, 2018.   

Ihab Toma, CEO, commented. “I am pleased to report that with the completion of the Tungsten Explorer’s SPS and five-year maintenance and the award of the Dana Gas contract for this rig, we will have seven rigs on contract once the Tungsten Explorer commences its contract in the very near future.  Even with signs of an improved market, we continue to remain diligent and focused on managing our costs, operating efficiently and preserving our strong balance sheet position.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three 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:

Thomas J. Cimino
Chief Financial Officer
Vantage Drilling International
(281) 404-4700

Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
  Three Months Ended March 31,
   2019   2018 
Revenue    
Contract drilling services $  29,980  $  51,595 
Reimbursables and other    4,575     6,068 
Total revenue    34,555     57,663 
Operating costs and expenses    
Operating costs    38,542     40,985 
General and administrative    8,668     7,354 
Depreciation    18,533     17,868 
Total operating costs and expenses    65,743     66,207 
Loss from operations    (31,188)    (8,544)
Other income (expense)    
Interest income    1,064     221 
Interest expense and other financing charges    (15,815)    (19,271)
Other, net    182     (570)
Total other expense    (14,569)    (19,620)
Loss before income taxes    (45,757)    (28,164)
Income tax provision    2,147     3,973 
Net loss    (47,904)    (32,137)
Net loss attributable to noncontrolling interests    (14)    — 
Net loss attributable to shareholders $  (47,890) $  (32,137)
Net loss per share, basic and diluted $  (9.58) $  (6.43)
Weighted average ordinary shares outstanding, basic and diluted    5,000     5,000 
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
  Three Months Ended March 31,
   2019   2018 
Operating costs and expenses    
Jackups $  17,806  $  14,463 
Deepwater    15,815     19,812 
Operations support    3,099     3,127 
Reimbursables    1,822     3,583 
  $  38,542  $  40,985 
     
Utilization    
Jackups  98.4%  86.2%
Deepwater  32.5%  53.9%

 

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
  March 31, 2019 December 31,
2018
     
ASSETS    
Current assets    
Cash and cash equivalents $  215,856  $  224,967 
Restricted cash    1,862     10,362 
Trade receivables    27,233     28,431 
Inventory    44,910     45,195 
Prepaid expenses and other current assets    16,192     17,278 
Total current assets    306,053     326,233 
Property and equipment    
Property and equipment    1,001,590     996,139 
Accumulated depreciation    (226,980)    (208,836)
Property and equipment, net    774,610     787,303 
Operating lease right-of-use assets    8,269     - 
Other assets    18,920     16,026 
Total assets $  1,107,852  $  1,129,562 
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
Current liabilities    
Accounts payable $  51,086  $  44,372 
Accrued liabilities    26,471     17,983 
Total current liabilities    77,557     62,355 
Long–term debt, net of discount and financing costs of $7,598 and $12,914    1,114,328     1,109,011 
Other long-term liabilities    28,442     22,889 
Commitments and contingencies    
Shareholders' equity    
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding    5     5 
Additional paid-in capital    373,972     373,972 
Accumulated deficit     (486,560)    (438,670)
Controlling interest shareholders' equity    (112,583)    (64,693)
Noncontrolling interests    108     - 
Total equity    (112,475)    (64,693)
Total liabilities and shareholders’ equity $  1,107,852  $  1,129,562 
     

 

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
  Three Months Ended March 31
   2019   2018 
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $  (47,904) $  (32,137)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation expense    18,533     17,868 
Amortization of debt financing costs    400     117 
Amortization of debt discount    5,354     12,313 
Amortization of contract value    1,556     1,556 
PIK interest on the Convertible Notes    1,934     1,912 
Share-based compensation expense    1,029     1,745 
Deferred income tax (benefit) expense    (415)    419 
Loss (gain) on disposal of assets    62     (2,682)
Changes in operating assets and liabilities:    
Trade receivables    1,198     6,498 
Inventory    285     (189)
Prepaid expenses and other current assets    1,086     120 
Other assets    1,252     (383)
Accounts payable    2,995     2,051 
Accrued liabilities and other long-term liabilities    1,951     (6,292)
Net cash (used in) provided by operating activities    (10,684)    2,916 
CASH FLOWS FROM INVESTING ACTIVITIES    
Additions to property and equipment    (2,184)    (19)
Proceeds from sale of Vantage 260    —     4,845 
Net cash (used in) provided by investing activities    (2,184)    4,826 
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of long-term debt    —     (5,458)
Contributions from holders of noncontrolling interest    122     — 
Debt issuance costs    (437)    — 
Net cash used in financing activities    (315)    (5,458)
Net (decrease) increase in cash and cash equivalents    (13,183)    2,284 
Unrestricted and restricted cash and cash equivalents—beginning of period    239,387     195,455 
Unrestricted and restricted cash and cash equivalents—end of period $  226,204  $  197,739 

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