EX-99.1

EX-99.1 2 ck0001465872-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

Vantage Drilling International Reports Third Quarter Results for 2021

HOUSTON, November 9, 2021 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $21.7 million or $1.66 per diluted share for the three months ended September 30, 2021, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $169.3 million or $12.91 per diluted share for the three months ended September 30, 2020, which included a non-cash loss on impairment charge of $128.9 million on the carrying amount of the Titanium Explorer.

As of September 30, 2021, Vantage had approximately $120.3 million in cash, including $14.9 million of restricted cash, compared to $154.5 million in cash, including $12.5 million of restricted cash at December 31, 2020. The Company used $44.5 million in cash from operations in 2021 compared to $61.1 million used during the same period of 2020 and used $3.5 million in cash from operations in the third quarter of 2021 compared to $25.6 million used during the second quarter of 2021.

Ihab Toma, CEO, commented: “The underlying fundamentals of our industry continued to improve during the third quarter as reflected in the increased contracting activity and industry-wide utilization. For Vantage, we had all of our five Jackups working throughout the quarter while the Platinum Explorer drillship concluded its previous campaign in August and is expected to start a new two-year contract shortly. We are pleased to report that our collaboration with Aquadrill has resulted in obtaining a drilling contract for their rig, West Capella, which is expected to commence during the first quarter of 2022. This is an important milestone for us and for Aquadrill and proves the viability of Vantage as a management platform marketing and operating rigs on behalf of other owners.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two 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 gas companies. Vantage also markets, operates and provides management services in respect of, 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,
	2021			2020			2021			2020
Revenue
Contract drilling services	$	42,982		$	18,069		$	92,362		$	95,539
Reimbursables and other		9,869			2,142			16,256			12,903
Total revenue		52,851			20,211			108,618			108,442
Operating costs and expenses
Operating costs		45,369			27,231			106,782			113,890
General and administrative		4,593			3,829			15,055			15,715
Depreciation		14,137			18,230			42,423			54,647
Loss on impairment		—			128,876			—			128,876
Total operating costs and expenses		64,099			178,166			164,260			313,128
Loss from operations		(11,248	)		(157,955	)		(55,642	)		(204,686	)
Other (expense) income
Interest income		8			41			118			853
Interest expense and other financing charges		(8,508	)		(8,510	)		(25,529	)		(25,531	)
Other, net		(1,108	)		(46	)		(1,901	)		2,321
Total other expense		(9,608	)		(8,515	)		(27,312	)		(22,357	)
Loss before income taxes		(20,856	)		(166,470	)		(82,954	)		(227,043	)
Income tax provision		881			2,855			3,763			4,752
Net loss		(21,737	)		(169,325	)		(86,717	)		(231,795	)
Net (loss) income attributable to noncontrolling interests		(10	)		2			(41	)		16
Net loss attributable to shareholders	$	(21,727	)	$	(169,327	)	$	(86,676	)	$	(231,811	)
Loss per share
Basic and Diluted	$	(1.66	)	$	(12.91	)	$	(6.61	)	$	(17.68	)
Weighted average ordinary shares outstanding,
Basic and Diluted		13,115			13,115			13,115			13,115

Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2021			2020			2021			2020
Operating costs and expenses
Jackups	$	23,772		$	11,820		$	60,091		$	48,962
Deepwater		11,706			11,958			27,769			50,828
Management		3,701			-			4,458			-
Operations support		2,275			2,177			6,804			7,631
Reimbursables		3,915			1,276			7,660			6,469
Total operating costs and expenses	$	45,369		$	27,231		$	106,782		$	113,890
Utilization
Jackups		98.7	%		40.0	%		56.9	%		62.2	%
Deepwater		28.5	%		28.2	%		42.4	%		45.1	%


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

	September 30, 2021			December 31, 2020

ASSETS
Current assets
Cash and cash equivalents	$	105,468		$	141,945
Restricted cash		5,731			7,996
Trade receivables, net of allowance for doubtful accounts of $5.0 million, respectively		36,168			24,717
Materials and supplies		51,550			49,861
Prepaid expenses and other current assets		18,009			29,151
Total current assets		216,926			253,670
Property and equipment
Property and equipment		794,037			794,944
Accumulated depreciation		(316,916	)		(278,562	)
Property and equipment, net		477,121			516,382
Operating lease ROU assets		2,674			3,997
Other assets		22,088			12,126
Total assets	$	718,809		$	786,175

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	29,776		$	25,466
Other current liabilities		38,126			24,734
Total current liabilities		67,902			50,200
Long–term debt, net of discount and financing costs of $3,552 and $4,781, respectively		346,448			345,219
Other long-term liabilities		15,104			15,011
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		633,817			634,181
Accumulated deficit		(346,331	)		(259,655	)
Controlling interest shareholders' equity		287,499			374,539
Noncontrolling interests		1,856			1,206
Total equity		289,355			375,745
Total liabilities and shareholders' equity	$	718,809		$	786,175


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
	Nine Months Ended September 30,
	2021			2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(86,717	)	$	(231,795	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense		42,423			54,647
Amortization of debt financing costs		1,229			1,229
Share-based compensation expense		366			1,358
Deferred income tax (benefit) expense		357			(36	)
Loss (gain) on disposal of assets		(2,710	)		52
Gain on settlement of restructuring agreement		—			(2,278	)
Loss on impairment		—			128,876
Changes in operating assets and liabilities:
Trade receivables, net		(11,451	)		7,394
Materials and Supplies		(2,084	)		(1,924	)
Prepaid expenses and other current assets		762			483
Other assets		(4,207	)		4,250
Accounts payable		4,310			(20,734	)
Other current liabilities and other long-term liabilities		13,243			(2,598	)
Net cash used in operating activities		(44,479	)		(61,076	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(3,232	)		(2,634	)
Net proceeds from sale of Titanium Explorer		13,557			—
Net cash provided by (used in) investing activities		10,325			(2,634	)
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions from holders of noncontrolling interests		—			—
Debt issuance costs		—			—
Net cash provided by financing activities		—			—
Net decrease in unrestricted and restricted cash and cash equivalents		(34,154	)		(63,710	)
Unrestricted and restricted cash and cash equivalents—beginning of period		154,487			242,944
Unrestricted and restricted cash and cash equivalents—end of period	$	120,333		$	179,234