vdi-ex991

vdi-ex991_6.htm

Exhibit 99.1

Vantage Drilling International Reports Third Quarter Results for 2018

HOUSTON, November 2, 2018 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss of approximately $26.1 million or $5.21 per share for the three months ended September 30, 2018 as compared to a net loss of $40.1 million or $8.01 per share for the three months ended September 30, 2017.

As of September 30, 2018, Vantage had approximately $183.5 million in cash, including $5 million of restricted cash, compared to $195.5 million at December 31, 2017. The Company generated $12.5 million in cash from operations year-to-date compared to net cash used in operations of $17.4 million for the comparable nine months in 2017. During the current year, cash outlays included, among other things, a $15 million down payment to acquire a jack-up rig and $6.6 million in progress payments for a managed pressure drilling (MPD) system to increase drillship marketability.

Ihab Toma, CEO, commented, “I am pleased to report another quarter of excellent operational results. Six of our seven assets worked during the quarter and produced a revenue efficiency of 99% and operational rig uptime of 97%. With contract drilling revenue increases of 14% and operating cost decreases of 13% from the comparable quarter, we continue to deliver on our commitment of superior performance, cost management and preserving our strong balance sheet.”

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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenue
Contract drilling services	$	59,034		$	51,831		$	165,813		$	137,672
Management fees		307			342			912			1,148
Reimbursables		5,215			5,523			15,956			14,188
Total revenue		64,556			57,696			182,681			153,008
Operating costs and expenses
Operating costs		43,307			49,883			128,943			119,244
General and administrative		9,303			6,949			22,935			29,929
Depreciation		17,638			18,538			53,217			55,531
Total operating costs and expenses		70,248			75,370			205,095			204,704
Loss from operations		(5,692	)		(17,674	)		(22,414	)		(51,696	)
Other income (expense)
Interest income		533			231			974			587
Interest expense and other financing charges		(19,439	)		(19,258	)		(58,122	)		(57,180	)
Other, net		53			893			(1,031	)		2,287
Bargain purchase gain		—			—			—			1,910
Total other expense		(18,853	)		(18,134	)		(58,179	)		(52,396	)
Loss before income taxes		(24,545	)		(35,808	)		(80,593	)		(104,092	)
Income tax provision		1,515			4,260			8,698			9,067
Net loss	$	(26,060	)	$	(40,068	)	$	(89,291	)	$	(113,159	)
Net loss per share, basic and diluted	$	(5.21	)	$	(8.01	)	$	(17.86	)	$	(22.63	)
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 September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Operating costs and expenses
Jackups	$	18,112		$	19,764		$	49,097		$	52,655
Deepwater		17,927			23,789			59,438			48,754
Operations support		4,119			3,158			10,614			9,625
Reimbursables		3,149			3,172			9,794			8,210
	$	43,307		$	49,883		$	128,943		$	119,244

Utilization
Jackups		98.5	%		93.8	%		90.9	%		76.4	%
Deepwater		65.7	%		33.3	%		61.1	%		33.2	%

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

	September 30, 2018			December 31, 2017

ASSETS
Current assets
Cash and cash equivalents	$	178,549		$	195,455
Restricted cash		5,000			-
Trade receivables		39,089			45,379
Inventory		43,411			43,955
Prepaid expenses and other current assets		16,748			13,207
Total current assets		282,797			297,996
Property and equipment
Property and equipment		927,745			904,584
Accumulated depreciation		(191,737	)		(141,393	)
Property and equipment, net		736,008			763,191
Other assets		14,471			21,935
Total assets	$	1,033,276		$	1,083,122

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	40,774		$	39,666
Accrued liabilities		20,032			25,117
Current maturities of long-term debt		—			4,430
Total current liabilities		60,806			69,213
Long–term debt, net of discount and financing costs of $18,802 and $56,174		959,750			919,939
Other long-term liabilities		25,236			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		(386,493	)		(297,202	)
Total shareholders' equity		(12,516	)		76,775
Total liabilities and shareholders’ equity	$	1,033,276		$	1,083,122

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
	Nine Months Ended September 30,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(89,291	)	$	(113,159	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense		53,217			55,531
Amortization of debt financing costs		351			351
Amortization of debt discount		37,021			36,653
Amortization of contract value		4,721			3,095
PIK interest on the Convertible Notes		5,735			5,692
Share-based compensation expense		7,777			2,882
Bargain purchase gain		—			(1,910	)
Deferred income tax benefit (expense)		1,874			(3,489	)
(Gain) loss on disposal of assets		(1,313	)		191
Changes in operating assets and liabilities:
Trade receivables		6,290			(15,253	)
Inventory		544			1,531
Prepaid expenses and other current assets		(5,591	)		(1,685	)
Other assets		1,230			5,947
Accounts payable		(3,245	)		10,899
Accrued liabilities and other long-term liabilities		(6,839	)		(4,688	)
Net cash provided by (used in) operating activities		12,481			(17,412	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(8,275	)		(1,606	)
Down payment on rig purchase		(15,000	)		—
Cash paid for Vantage 260 acquisition		—			(13,000	)
Net proceeds from sale of Vantage 260		4,703			—
Net cash used in investing activities		(18,572	)		(14,606	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		(5,815	)		(1,072	)
Net cash used in financing activities		(5,815	)		(1,072	)
Net decrease in cash and cash equivalents		(11,906	)		(33,090	)
Unrestricted and restricted cash and cash equivalents—beginning of period		195,455			231,727
Unrestricted and restricted cash and cash equivalents—end of period	$	183,549		$	198,637