vdi-ex991

vdi-ex991_6.htm

Exhibit 99.1

Vantage Drilling International Reports Second Quarter Results for 2020

HOUSTON, August 6, 2020 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $31.9 million or $2.43 per diluted share for the three months ended June 30, 2020, based on the weighted average shares outstanding after the conversion of our convertible notes in December 2019, as compared to a net income attributable to controlling interest of $590.7 million or $116.86 per diluted share for the three months ended June 30, 2019.

Net income for the three months ended June 30, 2019, included payments by Petrobras Venezuela Investments & Services, BV, a subsidiary of Petroleo Brasileiro S.A. (“Petrobras”), of approximately $690.8 million to Vantage Deepwater Company, one of our subsidiaries, and by Petrobras America, Inc., a subsidiary of Petrobras, of approximately $10.1 million to Vantage Deepwater Drilling, Inc., also one of our subsidiaries. The payments were made pursuant to an agreement between the parties and in satisfaction of the previously rendered arbitration award and related U.S. judgment confirming the award.

As of June 30, 2020, Vantage had approximately $188.4 million in cash, including $13.1 million of restricted cash, compared to $242.9 million in cash, including $11.0 million of restricted cash at December 31, 2019.

Ihab Toma, CEO, commented. “Despite the very challenging conditions for offshore drilling during the COVID-19 pandemic and economic crisis, we successfully completed the first ever well offshore Lebanon with the Tungsten Explorer during the second quarter and were awarded a new contract in Montenegro for the Topaz Driller. I am personally very proud of the quality and motivation of our employees and their focus on our customers, which allowed us to continue to deliver a strong performance across our operating fleet. We remain committed to maintaining this performance while operating safely and managing costs. During the quarter we commenced a plan to reduce costs across the board. We secured material price reductions from vendors, initiated significant headcount and salary reductions both onshore and offshore and implemented other cost reduction measures to reflect the lower levels of operating activity. While the decision to reduce personnel was difficult, we remain committed to seek measures to reduce our spending and to conserve cash while remaining focused on performance, but never at the expense of safety.”

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:

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,
	2020			2019			2020			2019
Revenue
Contract drilling services	$	33,151		$	35,765		$	77,470		$	65,745
Contract termination revenue		—			594,029			—			594,029
Reimbursables and other		3,624			6,589			10,761			11,164
Total revenue		36,775			636,383			88,231			670,938
Operating costs and expenses
Operating costs		38,104			38,081			86,659			76,623
General and administrative		4,716			70,702			11,886			79,370
Depreciation		18,401			18,499			36,417			37,032
Total operating costs and expenses		61,221			127,282			134,962			193,025
(Loss) income from operations		(24,446	)		509,101			(46,731	)		477,913
Other income (expense)
Interest income		111			108,305			812			109,369
Interest expense and other financing charges		(8,601	)		(10,435	)		(17,021	)		(26,250	)
Other, net		12			(58	)		2,367			124
Total other (expense) income		(8,478	)		97,812			(13,842	)		83,243
(Loss) income before income taxes		(32,924	)		606,913			(60,573	)		561,156
Income tax (benefit) provision		(1,024	)		16,454			1,897			18,601
Net (loss) income		(31,900	)		590,459			(62,470	)		542,555
Net income (loss) attributable to noncontrolling interests		12			(270	)		14			(284	)
Net (loss) income attributable to shareholders	$	(31,912	)	$	590,729		$	(62,484	)	$	542,839
(Loss) earnings per share
Basic	$	(2.43	)	$	116.96		$	(4.76	)	$	107.60
Diluted	$	(2.43	)	$	116.86		$	(4.76	)	$	107.38

Weighted average ordinary shares outstanding
Basic		13,115			5,051			13,115			5,045
Diluted		13,115			5,056			13,115			5,055

Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
	Three Months Ended June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Operating costs and expenses
Jackups	$	15,669		$	14,108		$	37,142		$	31,853
Deepwater		18,831			16,492			38,870			32,307
Operations support		2,016			3,361			5,453			6,460
Reimbursables		1,588			4,120			5,194			6,003
	$	38,104		$	38,081		$	86,659		$	76,623

Utilization
Jackups		60.0	%		93.7	%		73.9	%		96.0	%
Deepwater		45.6	%		49.2	%		53.7	%		40.9	%


Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)

	June 30, 2020			December 31, 2019

ASSETS
Current assets
Cash and cash equivalents	$	175,311		$	231,947
Restricted cash		3,667			2,511
Trade receivables		53,706			46,504
Inventory		50,684			48,368
Prepaid expenses and other current assets		13,429			16,507
Total current assets		296,797			345,837
Property and equipment
Property and equipment		1,003,844			1,002,968
Accumulated depreciation		(318,135	)		(281,842	)
Property and equipment, net		685,709			721,126
Operating lease ROU assets		4,805			6,706
Other assets		16,571			17,068
Total assets	$	1,003,882		$	1,090,737

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	32,641		$	49,599
Other current liabilities		21,685			26,936
Total current liabilities		54,326			76,535
Long–term debt, net of discount and financing costs of $5,601 and $6,421, respectively		344,399			343,579
Other long-term liabilities		15,712			17,532
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		633,594			634,770
Accumulated (deficit) earnings		(45,420	)		17,064
Controlling interest shareholders' equity		588,187			651,847
Noncontrolling interests		1,258			1,244
Total equity		589,445			653,091
Total liabilities and shareholders' equity	$	1,003,882		$	1,090,737


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
	Six Months Ended June 30,
	2020			2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income	$	(62,470	)	$	542,555
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Depreciation expense		36,417			37,032
Amortization of debt financing costs		820			807
Amortization of debt discount		—			5,354
Amortization of contract value		—			1,643
PIK interest on the Convertible Notes		—			3,845
Share-based compensation expense		1,028			2,064
Deferred income tax (benefit) expense		(90	)		497
Loss on disposal of assets		—			109
Gain on settlement of restructuring agreement		(2,278	)		—
Changes in operating assets and liabilities:
Trade receivables		(7,202	)		(3,047	)
Inventory		(1,297	)		(266	)
Prepaid expenses and other current assets		2,545			(2,274	)
Other assets		3,410			2,641
Accounts payable		(14,680	)		63,527
Other current liabilities and other long-term liabilities		(8,717	)		8,799
Net cash (used in) provided by operating activities		(52,514	)		663,286
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(2,021	)		(6,606	)
Net cash used in investing activities		(2,021	)		(6,606	)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions from holders of noncontrolling interests		—			1,181
Debt issuance costs		—			(487	)
Net cash provided by financing activities		—			694
Net (decrease) increase in unrestricted and restricted cash and cash equivalents		(54,535	)		657,374
Unrestricted and restricted cash and cash equivalents—beginning of period		242,944			239,387
Unrestricted and restricted cash and cash equivalents—end of period	$	188,409		$	896,761