EX-99

EX-99 2 ck0001465872-ex99_1.htm EX-99.1 EX-99

Exhibit 99.1

Vantage Drilling International Reports Fourth Quarter and Full-Year 2022 Results

HOUSTON, March 23, 2023 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $16.4 million, or $1.25 per diluted share, for the three months ended December 31, 2022, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $23.5 million, or $1.79 per diluted share, for the three months ended December 31, 2021.

For the year ended December 31, 2022, Vantage reported a net loss attributable to controlling interest of approximately $3.4 million or $0.26 per diluted share, as compared to a net loss attributable to controlling interest of $110.1 million or $8.40 per diluted share for the year ended December 31, 2021.

As of December 31, 2022, Vantage had approximately $93.3 million in cash, including $19.2 million of restricted cash, compared to $90.6 million in cash, including $17.3 million of restricted cash, at December 31, 2021. The Company used $18.9 million in cash from operations in 2022 compared to $70.4 million used in 2021. At December 31, 2022, Vantage maintained $29.0 million of cash pre-funded by our Managed Services customers to address near-term obligations associated with the operation of their rigs.

Ihab Toma, CEO, commented: “I am very proud of our operational and financial performance in 2022. The Company’s four owned rigs were contracted for most of the year with the Tungsten Explorer concluding its successful campaign in Cyprus in December before beginning to prepare to work in Namibia. The Company’s managed rigs also performed well as the West Capella concluded a strong campaign in Indonesia and prepares to commence a campaign in East Africa in Q2 2023 before returning to Indonesia in Q3 2023. Furthermore, the West Polaris finished its reactivation and successfully went on contract in December 2022 for ONGC. I am very pleased that the Emerald Driller Company supported rigs in Qatar continue to perform well and to the satisfaction of their respective clients.”

Mr. Toma continued: “As I reflect on the year, 2022 represented an important inflection point for the Company and the industry as a whole, as the Company generated positive EBITDA in each of the four quarters. Industry fundamentals are projected to remain strong with day rates and utilization reaching levels not seen since 2015. With strong industry sentiment and the closing of our refinancing earlier this month, the Company is well positioned for the future while our focus remains the same. We are committed to ensuring our employees stay safe and providing our clients with excellent service.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and two 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, third party-owned drilling units. www.vantagedrilling.com.

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.

Non-GAAP Measures

We report our financial results in accordance with generally accepted accounting principles (GAAP) in the United States. However, in our earnings release and during our earnings calls we may reference company information that does not conform to GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results of the Company. However, these measures should not be viewed as an alternative to or substitute for GAAP measures of performance, and these non-GAAP measures may not be consistent with previously published Company reports on Forms 10-K, 10-Q and 8-K. Non-GAAP measures we may reference have been reconciled to the nearest GAAP measure in the tables entitled Reconciliation of GAAP to Non-GAAP Financial Measures below.

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 440

Houston, Texas 77056

(281) 404-4700


Vantage Drilling International
Consolidated Statement of Operations
(Unaudited, in thousands, except per share data)

	Three months ended December 31,						Twelve months ended December 31,
	2022			2021			2022			2021
Revenue
Contract drilling services	$	32,367		$	39,341		$	154,116		$	131,703
Management fees		2,449			1,066			10,834			2,351
Reimbursables and other		41,373			9,395			113,766			24,366
Total revenue		76,189			49,802			278,716			158,420
Operating costs and expenses
Operating costs		65,065			43,886			234,832			150,668
General and administrative		5,264			5,484			23,009			20,539
Depreciation		11,024			13,819			44,428			56,242
Gain on EDC Sale		4			—			(61,409	)		—
Total operating costs and expenses		81,357			63,189			240,860			227,449
(Loss) income from operations		(5,168	)		(13,387	)		37,856			(69,029	)
Other (expense) income
Interest income		1,080			6			1,108			124
Interest expense and other financing charges		(8,840	)		(8,505	)		(34,351	)		(34,034	)
Other, net		(1,519	)		(270	)		(3,668	)		(2,171	)
Total other expense		(9,279	)		(8,769	)		(36,911	)		(36,081	)
(Loss) income before income taxes		(14,447	)		(22,156	)		945			(105,110	)
Income tax provision		2,530			1,378			4,313			5,141
Net loss		(16,977	)		(23,534	)		(3,368	)		(110,251	)
Net loss attributable to noncontrolling interests		(619	)		(73	)		(13	)		(114	)
Net loss attributable to shareholders	$	(16,358	)	$	(23,461	)	$	(3,355	)	$	(110,137	)

EBITDA (1)	$	4,956		$	235		$	78,629		$	(14,844	)

Loss per share
Basic and Diluted	$	(1.25	)	$	(1.79	)	$	(0.26	)	$	(8.40	)
Weighted average ordinary shares outstanding,
Basic and Diluted		13,115			13,115			13,115			13,115
(1) EBITDA represents net income (loss) before (i) interest income (expense), (ii) provision for income taxes and (iii) depreciation and amortization expense. EBITDA is not a financial measure under GAAP as defined under the rules of the SEC, and is intended as a supplemental measure of our performance. We believe this measure is commonly used by analysts and investors to analyze and compare companies on the basis of operating performance.


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

	Three months ended December 31,						Twelve months ended December 31,
	2022			2021			2022			2021
Operating costs
Jackups	$	4,317		$	8,055		$	36,225		$	33,824
Deepwater		17,350			14,169			68,567			41,939
Third party Rigs		2,295			4,815			2,289			9,272
Sold rigs/Held for sale		20			11,528			10,722			45,851
Operations support		2,595			2,267			10,975			9,071
Reimbursables		38,488			3,052			106,054			10,711
Total operating costs	$	65,065		$	43,886		$	234,832		$	150,668
Utilization (1)
Jackups		100.0	%		99.6	%		72.7	%		68.9	%
Deepwater		90.1	%		26.8	%		94.2	%		38.4	%


Sold rigs/Held for sale	N/A	90.3	%	43.6	%	64.4	%
(1) Excludes rigs under bareboat charter contracts to third parties.


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

	December 31, 2022			December 31, 2021

ASSETS
Current assets
Cash and cash equivalents	$	74,026		$	73,343
Restricted cash		16,450			1,621
Trade receivables, net of allowance for credit losses of $5.0 million each year		62,776			37,527
Materials and supplies		41,250			37,580
Assets held for sale		—			117,117
Prepaid expenses and other current assets		25,621			18,309
Total current assets		220,123			285,497
Property and equipment
Property and equipment		647,909			645,622
Accumulated depreciation		(309,453	)		(266,018	)
Property and equipment, net		338,456			379,604
Operating lease ROU assets		1,648			2,450
Other assets		18,334			31,843
Total assets	$	578,561		$	699,394

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	57,775		$	31,420
Liabilities held for sale		66,179			31,533
Other current liabilities		—			6,720
Total current liabilities		123,954			69,673
Long–term debt, net of discount and financing costs of $773 and $3,142		179,227			346,858
Other long-term liabilities		12,881			17,012
Commitments and contingencies
Shareholders' equity
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding each year		13			13
Additional paid-in capital		633,863			633,847
Accumulated deficit		(373,147	)		(369,792	)
Controlling interest shareholders' equity		260,729			264,068
Noncontrolling interests		1,770			1,783
Total equity		262,499			265,851
Total liabilities and shareholders' equity	$	578,561		$	699,394


Vantage Drilling International
Consolidated Statement of Cash Flows
(Unaudited, in thousands)

	Year Ended December 31,
	2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(3,368	)	$	(110,251	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense		44,428			56,242
Amortization of debt financing costs		1,639			1,639
Share-based compensation expense		79			395
Loss on debt extinguishment		730			—
Deferred income tax expense		708			369
Gain on disposal of assets		(1,600	)		(2,640	)
Gain on EDC Sale		(61,409	)		—
Changes in operating assets and liabilities:
Trade receivables, net		(42,241	)		(20,116	)
Materials and supplies		(4,155	)		(1,624	)
Prepaid expenses and other current assets		(9,878	)		(3,306	)
Other assets		(22,461	)		(12,312	)
Accounts payable		44,469			10,094
Other current liabilities and other long-term liabilities		34,185			11,119
Net cash used in operating activities		(18,874	)		(70,391	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(10,277	)		(7,045	)
Net proceeds from EDC Sale		198,700			—
Net proceeds from sale of assets		3,100			—
Net proceeds from sale of Titanium Explorer		—			13,557
Net cash provided by investing activities		191,523			6,512
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		(170,000	)		—
Net cash used in financing activities		(170,000	)		—
Net increase (decrease) in unrestricted and restricted cash and cash equivalents		2,649			(63,879	)
Unrestricted and restricted cash and cash equivalents—beginning of period		90,608			154,487
Unrestricted and restricted cash and cash equivalents—end of period	$	93,257		$	90,608


Vantage Drilling International
Non-GAAP Measures
(Unaudited, in thousands)

	Three months ended December 31,						Twelve months ended December 31,
Reconciliation of EBITDA	2022			2021			2022			2021
Net loss attributable to shareholders	$	(16,358	)	$	(23,461	)	$	(3,355	)	$	(110,137	)
Depreciation		11,024			13,819			44,428			56,242
Interest income		(1,080	)		(6	)		(1,108	)		(124	)
Interest expense and other financing costs		8,840			8,505			34,351			34,034
Income tax provision		2,530			1,378			4,313			5,141
EBITDA	$	4,956		$	235		$	78,629		$	(14,844	)