August 8, 2018 - 7:00 AM EDT
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Vantage Drilling International Reports Second Quarter Results for 2018

HOUSTON, Aug. 08, 2018 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss of approximately $31.1 million or $6.22 per share for the three months ended June 30, 2018 as compared to a net loss of $36.6 million or $7.32 per share for the three months ended June 30, 2017.

As of June 30, 2018, Vantage had approximately $186.9 million of cash, including $5 million of restricted cash, compared to $195.5 million at December 31, 2017. Uses of cash during the quarter included, among other things, funding of a $15.0 million downpayment to acquire a modern jackup. 

Ihab Toma, CEO, commented, “I am pleased to report another positive quarter, with industry leading rig utilization and successful repositioning and deployment of the Topaz Driller in Cameroon. Revenues are up 14% from the comparable quarter in the prior year and operationally we delivered an outstanding 97% uptime during the quarter.”

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 June 30, Six Months Ended June 30, 
  2018   2017   2018   2017  
Revenue        
Contract drilling services$  55,183  $  47,785  $  106,778  $  85,841  
Management fees   304     405     605     806  
Reimbursables   4,974     5,073     10,741     8,665  
Total revenue   60,461     53,263     118,124     95,312  
Operating costs and expenses        
Operating costs   44,650     40,363     85,635     69,361  
General and administrative   6,278     11,501     13,632     22,980  
Depreciation   17,711     18,554     35,579     36,993  
Total operating costs and expenses   68,639     70,418     134,846     129,334  
Loss from operations   (8,178)    (17,155)    (16,722)    (34,022) 
Other income (expense)        
Interest income   220     215     441     356  
Interest expense and other financing charges   (19,412)    (19,023)    (38,683)    (37,922) 
Other, net   (514)    842     (1,084)    1,394  
Bargain purchase gain   —     1,910     —     1,910  
Total other expense   (19,706)    (16,056)    (39,326)    (34,262) 
Loss before income taxes   (27,884)    (33,211)    (56,048)    (68,284) 
Income tax provision   3,210     3,381     7,183     4,807  
Net loss$  (31,094) $  (36,592) $  (63,231) $  (73,091) 
Net loss per share, basic and diluted$  (6.22) $  (7.32) $  (12.65) $  (14.62) 
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 June 30, Six Months Ended June 30, 
  2018   2017   2018   2017  
Operating costs and expenses        
Jackups$  16,523  $  20,029  $  30,985  $  32,891  
Deepwater   21,699     13,908     41,511     24,964  
Operations support   3,367     3,498     6,494     6,467  
Reimbursables   3,061     2,928     6,645     5,039  
 $  44,650  $  40,363  $  85,635  $  69,361  
         
Utilization        
Jackups 88.5%  80.4%  87.3%  66.9% 
Deepwater 63.2%  32.8%  58.7%  33.1% 

 

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
    
 June 30,
2018
 December 31,
2017
    
ASSETS   
Current assets   
Cash and cash equivalents$  181,860  $  195,455 
Restricted cash   5,000     - 
Trade receivables   41,090     45,379 
Inventory   43,892     43,955 
Prepaid expenses and other current assets   14,990     13,207 
Total current assets   286,832     297,996 
Property and equipment   
Property and equipment   919,473     904,584 
Accumulated depreciation   (176,431)    (141,393)
Property and equipment, net   743,042     763,191 
Other assets   17,583     21,935 
Total assets$  1,047,457  $  1,083,122 
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
Current liabilities   
Accounts payable$  43,032  $  39,666 
Accrued liabilities   22,171     25,117 
Current maturities of long-term debt   —     4,430 
Total current liabilities   65,203     69,213 
Long–term debt, net of discount and financing costs of $31,294 and $56,174   947,258     919,939 
Other long-term liabilities   21,452     17,195 
Commitments and contingencies   
Shareholders' equity   
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding   5     5 
Additional paid-in capital   373,972     373,972 
Accumulated deficit    (360,433)    (297,202)
Total shareholders' equity   13,544     76,775 
Total liabilities and shareholders’ equity$  1,047,457  $  1,083,122 
    

 

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
  Six Months Ended June 30, 
   2018   2017  
CASH FLOWS FROM OPERATING ACTIVITIES     
Net loss $  (63,231) $  (73,091) 
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:     
Depreciation expense    35,579     36,993  
Amortization of debt financing costs    234     234  
Amortization of debt discount    24,647     24,401  
Amortization of contract value    3,130     1,504  
PIK interest on the Convertible Notes    3,823     3,780  
Share-based compensation expense    3,772     1,727  
Bargain purchase gain    —     (1,910) 
Deferred income tax benefit (expense)     592     (3,315) 
(Gain) loss on disposal of assets    (2,524)    191  
Changes in operating assets and liabilities:     
Trade receivables    4,289     (12,614) 
Inventory    63     815  
Prepaid expenses and other current assets    (3,833)    (422) 
Other assets    865     5,471  
Accounts payable    3,366     4,135  
Accrued liabilities and other long-term liabilities    (2,441)    (3,768) 
Net cash provided by (used in) operating activities    8,331     (15,869) 
CASH FLOWS FROM INVESTING ACTIVITIES     
Additions to property and equipment    (771)    (1,203) 
Down payment on rig purchase    (15,000)    —  
Cash paid for Vantage 260 acquisition    —     (13,000) 
Net proceeds from sale of Vantage 260    4,660     —  
Net cash used in investing activities    (11,111)    (14,203) 
CASH FLOWS FROM FINANCING ACTIVITIES     
Repayment of long-term debt    (5,815)    (715) 
Net cash used in financing activities    (5,815)    (715) 
Net decrease in cash and cash equivalents    (8,595)    (30,787) 
Unrestricted and restricted cash and cash equivalents—beginning of period    195,455     231,727  
Unrestricted and restricted cash and cash equivalents—end of period $  186,860  $  200,940  

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Source: GlobeNewswire (August 8, 2018 - 7:00 AM EDT)

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