vdi-ex991

vdi-ex991_6.htm

Exhibit 99.1

Vantage Drilling International Reports Third Quarter Results for 2019

HOUSTON, November 7, 2019 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $25.7 million or $5.14 per share for the three months ended September 30, 2019 compared to a net loss attributable to controlling interest of $26.1 million or $5.21 per share for the three months ended September 30, 2018.

As of September 30, 2019, Vantage had approximately $825.1 million in cash, including $10.4 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 very pleased to report that we continue to increase our backlog at higher effective day rates while remaining laser focused on delivering superior results to our customers. This addition to backlog reflects the confidence our customers have in us, and the excellent safety and operational performance our teams are delivering to them.”

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 September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Revenue
Contract drilling services	$	35,830		$	59,034		$	101,575		$	165,813
Contract termination revenue		—			—			594,029			—
Reimbursables and other		4,814			5,522			15,978			16,868
Total revenue		40,644			64,556			711,582			182,681
Operating costs and expenses
Operating costs		37,915			43,307			114,538			128,943
General and administrative		6,644			9,303			86,014			22,935
Depreciation		18,459			17,638			55,491			53,217
Total operating costs and expenses		63,018			70,248			256,043			205,095
Income (loss) from operations		(22,374	)		(5,692	)		455,539			(22,414	)
Other income (expense)
Interest income		4,245			533			113,614			974
Interest expense and other financing charges		(10,465	)		(19,439	)		(36,715	)		(58,122	)
Other, net		97			53			221			(1,031	)
Total other income (expense)		(6,123	)		(18,853	)		77,120			(58,179	)
Income (loss) before income taxes		(28,497	)		(24,545	)		532,659			(80,593	)
Income tax (benefit) provision		(2,749	)		1,515			15,852			8,698
Net income (loss)		(25,748	)		(26,060	)		516,807			(89,291	)
Net loss attributable to noncontrolling interests		(28	)		—			(312	)		—
Net income (loss) attributable to shareholders	$	(25,720	)	$	(26,060	)	$	517,119		$	(89,291	)
Earnings (loss) per share
Basic	$	(5.14	)	$	(5.21	)	$	102.47		$	(17.86	)
Diluted	$	(5.14	)	$	(5.21	)	$	102.14		$	(17.86	)
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Operating costs and expenses
Jackups	$	14,910		$	18,112		$	46,763		$	49,097
Deepwater		18,103			17,927			50,409			59,438
Operations support		3,014			4,119			9,474			10,614
Reimbursables		1,888			3,149			7,892			9,794
	$	37,915		$	43,307		$	114,538		$	128,943

Utilization
Jackups		98.4	%		98.5	%		96.8	%		90.9	%
Deepwater		41.3	%		65.7	%		41.0	%		61.1	%

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
	September 30, 2019			December 31, 2018

ASSETS
Current assets
Cash and cash equivalents	$	814,724		$	224,967
Restricted cash		5,637			10,362
Trade receivables		36,467			28,431
Inventory		46,883			45,195
Prepaid expenses and other current assets		19,324			17,278
Total current assets		923,035			326,233
Property and equipment
Property and equipment		1,002,709			996,139
Accumulated depreciation		(263,778	)		(208,836	)
Property and equipment, net		738,931			787,303
Operating lease right-of-use assets		7,515			-
Other assets		13,470			16,026
Total assets	$	1,682,951		$	1,129,562

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	46,692		$	44,372
Other current liabilities		39,267			17,983
Total current liabilities		85,959			62,355
Long–term debt, net of discount and financing costs of $6,830 and $12,914		1,118,962			1,109,011
Other long-term liabilities		25,426			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 earnings (deficit)		78,449			(438,670	)
Controlling interest shareholders' equity		452,426			(64,693	)
Noncontrolling interests		178			-
Total equity		452,604			(64,693	)
Total liabilities and shareholders’ equity	$	1,682,951		$	1,129,562

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
	Nine Months Ended September 30,
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	516,807		$	(89,291	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense		55,491			53,217
Amortization of debt financing costs		1,217			351
Amortization of debt discount		5,354			37,021
Amortization of contract value		1,643			4,721
PIK interest on the Convertible Notes		5,779			5,735
Share-based compensation expense		1,053			7,777
Deferred income tax expense		59			1,874
Loss (gain) on disposal of assets		109			(1,313	)
Changes in operating assets and liabilities:
Trade receivables		(8,036	)		6,290
Inventory		(1,688	)		544
Prepaid expenses and other current assets		(2,046	)		(5,591	)
Other assets		3,214			1,230
Accounts payable		2,320			(3,245	)
Other current liabilities and other long-term liabilities		11,011			(6,839	)
Net cash provided by operating activities		592,287			12,481
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(7,229	)		(8,275	)
Down payment on Soehanah acquisition		—			(15,000	)
Proceeds from sale of Vantage 260		—			4,703
Net cash used in investing activities		(7,229	)		(18,572	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		—			(5,815	)
Contributions from holders of noncontrolling interest		1,181			—
Debt issuance costs		(487	)		—
Net cash provided by (used in) financing activities		694			(5,815	)
Net increase (decrease) in unrestricted and restricted cash and cash equivalents		585,752			(11,906	)
Unrestricted and restricted cash and cash equivalents—beginning of period		239,387			195,455
Unrestricted and restricted cash and cash equivalents—end of period	$	825,139		$	183,549