EX-99.1 2 vdi-ex991_7.htm EX-99.1 vdi-ex991_7.htm

 

Exhibit 99.1

 

 

Vantage Drilling International Reports Second Quarter Results for 2018

HOUSTON, August 8, 2018 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss of approximately $31.1 million or $6.22 per share for the three months ended June 30, 2018 as compared to a net loss of $36.6 million or $7.32 per share for the three months ended June 30, 2017.

As of June 30, 2018, Vantage had approximately $186.9 million of cash, including $5 million of restricted cash, compared to $195.5 million at December 31, 2017. Uses of cash during the quarter included, among other things, funding of a $15.0 million downpayment to acquire a modern jackup.  

Ihab Toma, CEO, commented, “I am pleased to report another positive quarter, with industry leading rig utilization and successful repositioning and deployment of the Topaz Driller in Cameroon. Revenues are up 14% from the comparable quarter in the prior year and operationally we delivered an outstanding 97% uptime during the quarter.”

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)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling services

 

$

55,183

 

 

$

47,785

 

 

$

106,778

 

 

$

85,841

 

 

Management fees

 

 

304

 

 

 

405

 

 

 

605

 

 

 

806

 

 

Reimbursables

 

 

4,974

 

 

 

5,073

 

 

 

10,741

 

 

 

8,665

 

 

Total revenue

 

 

60,461

 

 

 

53,263

 

 

 

118,124

 

 

 

95,312

 

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs

 

 

44,650

 

 

 

40,363

 

 

 

85,635

 

 

 

69,361

 

 

General and administrative

 

 

6,278

 

 

 

11,501

 

 

 

13,632

 

 

 

22,980

 

 

Depreciation

 

 

17,711

 

 

 

18,554

 

 

 

35,579

 

 

 

36,993

 

 

Total operating costs and expenses

 

 

68,639

 

 

 

70,418

 

 

 

134,846

 

 

 

129,334

 

 

Loss from operations

 

 

(8,178

)

 

 

(17,155

)

 

 

(16,722

)

 

 

(34,022

)

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

220

 

 

 

215

 

 

 

441

 

 

 

356

 

 

Interest expense and other financing charges

 

 

(19,412

)

 

 

(19,023

)

 

 

(38,683

)

 

 

(37,922

)

 

Other, net

 

 

(514

)

 

 

842

 

 

 

(1,084

)

 

 

1,394

 

 

Bargain purchase gain

 

 

 

 

 

1,910

 

 

 

 

 

 

1,910

 

 

Total other expense

 

 

(19,706

)

 

 

(16,056

)

 

 

(39,326

)

 

 

(34,262

)

 

Loss before income taxes

 

 

(27,884

)

 

 

(33,211

)

 

 

(56,048

)

 

 

(68,284

)

 

Income tax provision

 

 

3,210

 

 

 

3,381

 

 

 

7,183

 

 

 

4,807

 

 

Net loss

 

$

(31,094

)

 

$

(36,592

)

 

$

(63,231

)

 

$

(73,091

)

 

Net loss per share, basic and diluted

 

$

(6.22

)

 

$

(7.32

)

 

$

(12.65

)

 

$

(14.62

)

 

Weighted average ordinary shares outstanding, basic and diluted

 

 

5,000

 

 

 

5,000

 

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vantage Drilling International

 

 

Supplemental Operating Data

 

 

(Unaudited, in thousands, except percentages)

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jackups

 

$

16,523

 

 

$

20,029

 

 

$

30,985

 

 

$

32,891

 

 

Deepwater

 

 

21,699

 

 

 

13,908

 

 

 

41,511

 

 

 

24,964

 

 

Operations support

 

 

3,367

 

 

 

3,498

 

 

 

6,494

 

 

 

6,467

 

 

Reimbursables

 

 

3,061

 

 

 

2,928

 

 

 

6,645

 

 

 

5,039

 

 

 

 

$

44,650

 

 

$

40,363

 

 

$

85,635

 

 

$

69,361

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Utilization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jackups

 

 

88.5

%

 

 

80.4

%

 

 

87.3

%

 

 

66.9

%

 

Deepwater

 

 

63.2

%

 

 

32.8

%

 

 

58.7

%

 

 

33.1

%

 

 

 


 

 


 


 

 

Vantage Drilling International

 

Consolidated Balance Sheet

 

(In thousands, except share and par value information)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

2018

 

 

December 31,

2017

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

181,860

 

 

$

195,455

 

Restricted cash

 

 

5,000

 

 

 

-

 

Trade receivables

 

 

41,090

 

 

 

45,379

 

Inventory

 

 

43,892

 

 

 

43,955

 

Prepaid expenses and other current assets

 

 

14,990

 

 

 

13,207

 

Total current assets

 

 

286,832

 

 

 

297,996

 

Property and equipment

 

 

 

 

 

 

 

 

Property and equipment

 

 

919,473

 

 

 

904,584

 

Accumulated depreciation

 

 

(176,431

)

 

 

(141,393

)

Property and equipment, net

 

 

743,042

 

 

 

763,191

 

Other assets

 

 

17,583

 

 

 

21,935

 

Total assets

 

$

1,047,457

 

 

$

1,083,122

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

43,032

 

 

$

39,666

 

Accrued liabilities

 

 

22,171

 

 

 

25,117

 

Current maturities of long-term debt

 

 

 

 

 

4,430

 

Total current liabilities

 

 

65,203

 

 

 

69,213

 

Long–term debt, net of discount and financing costs of $31,294 and $56,174

 

 

947,258

 

 

 

919,939

 

Other long-term liabilities

 

 

21,452

 

 

 

17,195

 

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

 

 

(360,433

)

 

 

(297,202

)

Total shareholders' equity

 

 

13,544

 

 

 

76,775

 

Total liabilities and shareholders’ equity

 

$

1,047,457

 

 

$

1,083,122

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

Vantage Drilling International

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

 

 

Six Months Ended June 30,

 

 

 

 

2018

 

 

2017

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net loss

 

$

(63,231

)

 

$

(73,091

)

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

35,579

 

 

 

36,993

 

 

Amortization of debt financing costs

 

 

234

 

 

 

234

 

 

Amortization of debt discount

 

 

24,647

 

 

 

24,401

 

 

Amortization of contract value

 

 

3,130

 

 

 

1,504

 

 

PIK interest on the Convertible Notes

 

 

3,823

 

 

 

3,780

 

 

Share-based compensation expense

 

 

3,772

 

 

 

1,727

 

 

Bargain purchase gain

 

 

 

 

 

(1,910

)

 

Deferred income tax benefit (expense)

 

 

592

 

 

 

(3,315

)

 

(Gain) loss on disposal of assets

 

 

(2,524

)

 

 

191

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Trade receivables

 

 

4,289

 

 

 

(12,614

)

 

Inventory

 

 

63

 

 

 

815

 

 

Prepaid expenses and other current assets

 

 

(3,833

)

 

 

(422

)

 

Other assets

 

 

865

 

 

 

5,471

 

 

Accounts payable

 

 

3,366

 

 

 

4,135

 

 

Accrued liabilities and other long-term liabilities

 

 

(2,441

)

 

 

(3,768

)

 

Net cash provided by (used in) operating activities

 

 

8,331

 

 

 

(15,869

)

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Additions to property and equipment

 

 

(771

)

 

 

(1,203

)

 

Down payment on rig purchase

 

 

(15,000

)

 

 

 

 

Cash paid for Vantage 260 acquisition

 

 

 

 

 

(13,000

)

 

Net proceeds from sale of Vantage 260

 

 

4,660

 

 

 

 

 

Net cash used in investing activities

 

 

(11,111

)

 

 

(14,203

)

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

Repayment of long-term debt

 

 

(5,815

)

 

 

(715

)

 

Net cash used in financing activities

 

 

(5,815

)

 

 

(715

)

 

Net decrease in cash and cash equivalents

 

 

(8,595

)

 

 

(30,787

)

 

Unrestricted and restricted cash and cash equivalents—beginning of period

 

 

195,455

 

 

 

231,727

 

 

Unrestricted and restricted cash and cash equivalents—end of period

 

$

186,860

 

 

$

200,940