HOUSTON, March 28, 2018 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss of approximately $36.6 million or $7.33 per share for the three months ended December 31, 2017 as compared to a net loss of $41.1 million or $8.23 per share for the three months ended December 31, 2016.

For the year ended December 31, 2017, Vantage reported a net loss of approximately $149.8 million or $29.96 per share. For the period from February 10, 2016 to December 31, 2016, Vantage reported a net loss of approximately $147.4 million or $29.48 per share and the Predecessor for the period January 1, 2016 to February 10, 2016 reported a net loss of approximately $471.0 million.

Vantage’s operating results for the fourth quarter reflected rig uptime of 98% and revenue efficiency of 99%.

As of December 31, 2017, Vantage had approximately $195.5 million of available cash. Uses of cash during the quarter included, among other things, debt service costs and the re-activation of the Platinum Explorer.  

Ihab Toma, CEO, commented, “I am pleased to report that with the commencement of the Platinum Explorer three year contract for ONGC, in India, during the fourth quarter, we successfully reactivated three of our four previously stacked units during a difficult year for the offshore drilling industry and now have six of our seven premium assets working.”

Upon emergence from the Company’s Chapter 11 restructuring on February 10, 2016, Vantage adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes.  References to “Successor” relate to the financial position and results of operations of the reorganized Vantage as of and subsequent to February 10, 2016. References to “Predecessor” refer to the financial position of Vantage as of and prior to February 10, 2016 and the results of operations prior to February 10, 2016. As a result of the application of fresh-start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements on or after February 10, 2016 are not comparable with the financial statements prior to that date.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and four 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)
		Successor																	Predecessor
		Three Months Ended December 31,								Year Ended December 31, 2017				Period from February 10, 2016 to December 31, 2016					Period from January 1, 2016 to February 10, 2016
		2017				2016
Revenue
Contract drilling services		$	52,881			$	34,655			$	190,553			$	134,370				$	20,891
Management fees			307				410				1,456				4,074					752
Reimbursables			6,650				5,344				20,837				20,204					1,897
Total revenue			59,838				40,409				212,846				158,648					23,540
Operating costs and expenses
Operating costs			42,638				29,635				161,668				123,022					25,213
General and administrative			11,719				8,931				41,648				36,922					2,558
Depreciation			18,394				18,486				73,925				67,920					10,696
Total operating costs and expenses			72,751				57,052				277,241				227,864					38,467
Loss from operations			(12,913	)			(16,643	)			(64,395	)			(69,216	)				(14,927	)
Other income (expense)
Interest income			221				(8	)			808				18					3
Interest expense and other financing charges (contractual interest of  $23,219 for the period from January 1, 2016 to February 10, 2016)			(19,261	)			(18,879	)			(76,441	)			(67,023	)				(1,728	)
Other, net			428				145				2,501				1,132					(69	)
Reorganization items			—				(774	)			—				(1,380	)				(452,919	)
Bargain purchase gain			—				—				1,910				—					—
Total other expense			(18,612	)			(19,516	)			(71,222	)			(67,253	)				(454,713	)
Loss before income taxes			(31,525	)			(36,159	)			(135,617	)			(136,469	)				(469,640	)
Income tax provision			5,101				4,970				14,168				10,948					2,371
Net loss			(36,626	)			(41,129	)			(149,785	)			(147,417	)				(472,011	)
Net loss attributable to noncontrolling interests			—				—				—				—					(969	)
Net loss attributable to VDI		$	(36,626	)		$	(41,129	)		$	(149,785	)		$	(147,417	)			$	(471,042	)
Net loss per share, basic and diluted		$	(7.33	)		$	(8.23	)		$	(29.96	)		$	(29.48	)			N/A
Weighted average successor ordinary shares outstanding, basic and diluted			5,000				5,000				5,000				5,000				N/A
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
		Successor																	Predecessor
		Three Months Ended December 31,								Year Ended December 31, 2017				Period from February 10, 2016 to December 31, 2016					Period from January 1, 2016 to February 10, 2016
		2017				2016
Operating costs and expenses
Jackups		$	19,623			$	10,014			$	72,283			$	39,569				$	5,975
Deepwater			16,104				13,270				64,823				57,833					15,550
Operations support			2,893				2,403				12,334				9,859					2,219
Reimbursables			4,018				3,948				12,228				15,761					1,469
		$	42,638			$	29,635			$	161,668			$	123,022				$	25,213
Utilization
Jackups			99.5	%			39.5	%			82.0	%			42.3	%				53.6	%
Deepwater			45.4	%			33.3	%			36.2	%			33.3	%				33.3	%

 

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
	December 31, 2017				December 31, 2016
ASSETS
Current assets
Cash and cash equivalents	$	195,455			$	231,727
Trade receivables		45,379				20,850
Inventory		43,955				45,206
Prepaid expenses and other current assets		13,207				12,423
Total current assets		297,996				310,206
Property and equipment
Property and equipment		904,584				902,241
Accumulated depreciation		(141,393	)			(67,713	)
Property and equipment, net		763,191				834,528
Other assets		21,935				15,694
Total assets	$	1,083,122			$	1,160,428
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	39,666			$	35,283
Accrued liabilities		25,117				18,448
Current maturities of long-term debt		4,430				1,430
Total current liabilities		69,213				55,161
Long–term debt, net of discount and financing costs of $56,174 and $105,568		919,939				867,372
Other long-term liabilities		17,195				11,335
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		(297,202	)			(147,417	)
Total shareholders’ equity		76,775				226,560
Total liabilities and shareholders’ equity	$	1,083,122			$	1,160,428

 

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
	Successor									Predecessor
	Year Ended December 31, 2017				Period from February 10, 2016 to December 31, 2016					Period from January 1, 2016 to February 10, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(149,785	)		$	(147,417	)			$	(472,011	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense		73,925				67,920					10,696
Amortization of debt financing costs		468				427					—
Amortization of debt discount		48,925				43,208					—
Amortization of contract value		4,686				—					—
PIK interest on the Convertible Notes		7,604				6,712					—
Reorganization items		—				—					430,210
Share-based compensation expense		3,997				402					—
Gain on bargain purchase		(1,910	)			—					—
Deferred income tax benefit		(1,964	)			(3,368	)				—
Loss on disposal of assets		335				652					—
Changes in operating assets and liabilities:
Restricted cash		—				1,000					(1,000	)
Trade receivables		(24,529	)			53,447					(3,575	)
Inventory		1,251				(964	)				223
Prepaid expenses and other current assets		1,267				2,790					6,893
Other assets		2,638				(3,409	)				941
Accounts payable		4,383				736					(14,890	)
Accrued liabilities and other long-term liabilities		8,836				(26,010	)				21,148
Net cash provided by (used in) operating activities		(19,873	)			(3,874	)				(21,365	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(2,224	)			(11,964	)				116
Cash paid for Vantage 260 acquisition		(13,000	)			—					—
Cash received for Vantage 260 sale		255				—					—
Net cash provided by (used in) investing activities		(14,969	)			(11,964	)				116
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		(1,430	)			(1,430	)				(7,000	)
Proceeds from issuance of 10% Second Lien Notes		—				—					75,000
Debt issuance costs		—				(51	)				(1,125	)
Net cash provided by (used in) financing activities		(1,430	)			(1,481	)				66,875
Net increase (decrease) in cash and cash equivalents		(36,272	)			(17,319	)				45,626
Cash and cash equivalents—beginning of period		231,727				249,046					203,420
Cash and cash equivalents—end of period	$	195,455			$	231,727				$	249,046