EX-99.1 2 vdi-ex991_6.htm EX-99.1 vdi-ex991_6.htm

Exhibit 99.1

 

Vantage Drilling International Reports Third Quarter Results for 2020

HOUSTON, November 16, 2020 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $169.3 million or $12.91 per diluted share for the three months ended September 30, 2020, based on the weighted average shares outstanding after the conversion of our convertible notes in December 2019, as compared to a net loss attributable to controlling interest of $25.7 million or $5.14 per diluted share for the three months ended September 30, 2019.

The three months ended September 30, 2020 included a non-cash loss on impairment charge of $128.9 million on the carrying amount of our longer-term warm stacked drillship, the Titanium Explorer.

As of September 30, 2020, Vantage had approximately $179.2 million in cash, including $13.5 million of restricted cash, compared to $188.4 million in cash, including $13.1 million of restricted cash, as of June 30, 2020, and $242.9 million in cash, including $11.0 million of restricted cash at December 31, 2019.

Ihab Toma, CEO, commented. “I continue to be very proud of the Company’s performance during these challenging times.  While the COVID-19 pandemic and the related global economic crisis continue to weigh on activity in the industry, I am pleased that we have been successful in adding backlog, namely on the Emerald Driller and the Soehanah. Our focus remains on operating safely and efficiently, delivering excellence for our esteemed clients, managing costs and conserving cash.”

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract drilling services

 

$

18,069

 

 

$

35,830

 

 

$

95,539

 

 

$

101,575

 

Contract termination revenue

 

 

—

 

 

 

—

 

 

 

—

 

 

 

594,029

 

Reimbursables and other

 

 

2,142

 

 

 

4,814

 

 

 

12,903

 

 

 

15,978

 

Total revenue

 

 

20,211

 

 

 

40,644

 

 

 

108,442

 

 

 

711,582

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating costs

 

 

27,231

 

 

 

37,915

 

 

 

113,890

 

 

 

114,538

 

General and administrative

 

 

3,829

 

 

 

6,644

 

 

 

15,715

 

 

 

86,014

 

Depreciation

 

 

18,230

 

 

 

18,459

 

 

 

54,647

 

 

 

55,491

 

Loss on impairment

 

 

128,876

 

 

 

—

 

 

 

128,876

 

 

 

—

 

Total operating costs and expenses

 

 

178,166

 

 

 

63,018

 

 

 

313,128

 

 

 

256,043

 

(Loss) income from operations

 

 

(157,955

)

 

 

(22,374

)

 

 

(204,686

)

 

 

455,539

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

41

 

 

 

4,245

 

 

 

853

 

 

 

113,614

 

Interest expense and other financing charges

 

 

(8,510

)

 

 

(10,465

)

 

 

(25,531

)

 

 

(36,715

)

Other, net

 

 

(46

)

 

 

97

 

 

 

2,321

 

 

 

221

 

Total other (expense) income

 

 

(8,515

)

 

 

(6,123

)

 

 

(22,357

)

 

 

77,120

 

(Loss) income before income taxes

 

 

(166,470

)

 

 

(28,497

)

 

 

(227,043

)

 

 

532,659

 

Income tax provision (benefit)

 

 

2,855

 

 

 

(2,749

)

 

 

4,752

 

 

 

15,852

 

Net (loss) income

 

 

(169,325

)

 

 

(25,748

)

 

 

(231,795

)

 

 

516,807

 

Net income (loss) attributable to noncontrolling interests

 

 

2

 

 

 

(28

)

 

 

16

 

 

 

(312

)

Net (loss) income attributable to shareholders

 

$

(169,327

)

 

$

(25,720

)

 

$

(231,811

)

 

$

517,119

 

(Loss) earnings per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(12.91

)

 

$

(5.14

)

 

$

(17.68

)

 

$

102.47

 

Diluted

 

$

(12.91

)

 

$

(5.14

)

 

$

(17.68

)

 

$

102.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average ordinary shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

13,115

 

 

 

5,000

 

 

 

13,115

 

 

 

5,047

 

Diluted

 

 

13,115

 

 

 

5,000

 

 

 

13,115

 

 

 

5,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vantage Drilling International

 

Supplemental Operating Data

 

(Unaudited, in thousands, except percentages)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jackups

 

$

11,820

 

 

$

14,910

 

 

$

48,962

 

 

$

46,763

 

Deepwater

 

 

11,958

 

 

 

18,103

 

 

 

50,828

 

 

 

50,409

 

Operations support

 

 

2,177

 

 

 

3,014

 

 

 

7,631

 

 

 

9,474

 

Reimbursables

 

 

1,276

 

 

 

1,888

 

 

 

6,469

 

 

 

7,892

 

 

 

$

27,231

 

 

$

37,915

 

 

$

113,890

 

 

$

114,538

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Utilization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jackups

 

 

40.0

%

 

 

98.4

%

 

 

62.2

%

 

 

96.8

%

Deepwater

 

 

28.2

%

 

 

41.3

%

 

 

45.1

%

 

 

41.0

%

 

 

 

Vantage Drilling International

 

Consolidated Balance Sheet

 

(In thousands, except share and par value information)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

165,736

 

 

$

231,947

 

Restricted cash

 

 

8,952

 

 

 

2,511

 

Trade receivables, net

 

 

39,110

 

 

 

46,504

 

Inventory

 

 

51,311

 

 

 

48,368

 

Prepaid expenses and other current assets

 

 

15,491

 

 

 

16,507

 

Total current assets

 

 

280,600

 

 

 

345,837

 

Property and equipment

 

 

 

 

 

 

 

 

Property and equipment

 

 

803,405

 

 

 

1,002,968

 

Accumulated depreciation

 

 

(264,240

)

 

 

(281,842

)

Property and equipment, net

 

 

539,165

 

 

 

721,126

 

Operating lease ROU assets

 

 

4,463

 

 

 

6,706

 

Other assets

 

 

11,161

 

 

 

17,068

 

Total assets

 

$

835,389

 

 

$

1,090,737

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

26,587

 

 

$

49,599

 

Other current liabilities

 

 

28,324

 

 

 

26,936

 

Total current liabilities

 

 

54,911

 

 

 

76,535

 

Long–term debt, net of discount and financing costs of $5,191 and $6,421, respectively

 

 

344,809

 

 

 

343,579

 

Other long-term liabilities

 

 

15,219

 

 

 

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

 

 

633,924

 

 

 

634,770

 

Accumulated (deficit) earnings

 

 

(214,747

)

 

 

17,064

 

Controlling interest shareholders' equity

 

 

419,190

 

 

 

651,847

 

Noncontrolling interests

 

 

1,260

 

 

 

1,244

 

Total equity

 

 

420,450

 

 

 

653,091

 

Total liabilities and shareholders' equity

 

$

835,389

 

 

$

1,090,737

 

 

 

 

 

Vantage Drilling International

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

 

 

Nine Months Ended September 30,

 

 

 

 

2020

 

 

2019

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

(231,795

)

 

$

516,807

 

 

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

 

 

 

 

 

 

 

 

 

Depreciation expense

 

 

54,647

 

 

 

55,491

 

 

Amortization of debt financing costs

 

 

1,229

 

 

 

1,217

 

 

Amortization of debt discount

 

 

—

 

 

 

5,354

 

 

Amortization of contract value

 

 

—

 

 

 

1,643

 

 

PIK interest on the Convertible Notes

 

 

—

 

 

 

5,779

 

 

Share-based compensation expense

 

 

1,358

 

 

 

1,053

 

 

Deferred income tax (benefit) expense

 

 

(36

)

 

 

59

 

 

Loss on disposal of assets

 

 

52

 

 

 

109

 

 

Gain on settlement of restructuring agreement

 

 

(2,278

)

 

 

—

 

 

Loss on impairment

 

 

128,876

 

 

 

—

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

Trade receivables, net

 

 

7,394

 

 

 

(8,036

)

 

Inventory

 

 

(1,924

)

 

 

(1,688

)

 

Prepaid expenses and other current assets

 

 

483

 

 

 

(2,046

)

 

Other assets

 

 

4,250

 

 

 

3,214

 

 

Accounts payable

 

 

(20,734

)

 

 

2,320

 

 

Other current liabilities and other long-term liabilities

 

 

(2,598

)

 

 

11,011

 

 

Net cash (used in) provided by operating activities

 

 

(61,076

)

 

 

592,287

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

Additions to property and equipment

 

 

(2,634

)

 

 

(7,229

)

 

Net cash used in investing activities

 

 

(2,634

)

 

 

(7,229

)

 

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

 

 

(63,710

)

 

 

585,752

 

 

Unrestricted and restricted cash and cash equivalents—beginning of period

 

 

242,944

 

 

 

239,387

 

 

Unrestricted and restricted cash and cash equivalents—end of period

 

$

179,234

 

 

$

825,139