HOUSTON, March 28, 2018 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss of approximately $36.6 million or $7.33 per share for the three months ended December 31, 2017 as compared to a net loss of $41.1 million or $8.23 per share for the three months ended December 31, 2016.
For the year ended December 31, 2017, Vantage reported a net loss of approximately $149.8 million or $29.96 per share. For the period from February 10, 2016 to December 31, 2016, Vantage reported a net loss of approximately $147.4 million or $29.48 per share and the Predecessor for the period January 1, 2016 to February 10, 2016 reported a net loss of approximately $471.0 million.
Vantage’s operating results for the fourth quarter reflected rig uptime of 98% and revenue efficiency of 99%.
As of December 31, 2017, Vantage had approximately $195.5 million of available cash. Uses of cash during the quarter included, among other things, debt service costs and the re-activation of the Platinum Explorer.
Ihab Toma, CEO, commented, “I am pleased to report that with the commencement of the Platinum Explorer three year contract for ONGC, in India, during the fourth quarter, we successfully reactivated three of our four previously stacked units during a difficult year for the offshore drilling industry and now have six of our seven premium assets working.”
Upon emergence from the Company’s Chapter 11 restructuring on February 10, 2016, Vantage adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to “Successor” relate to the financial position and results of operations of the reorganized Vantage as of and subsequent to February 10, 2016. References to “Predecessor” refer to the financial position of Vantage as of and prior to February 10, 2016 and the results of operations prior to February 10, 2016. As a result of the application of fresh-start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements on or after February 10, 2016 are not comparable with the financial statements prior to that date.
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) | ||||||||||||||||||||||
| Successor | Predecessor | |||||||||||||||||||||
| Three Months Ended December 31, |
Year Ended December 31, 2017 |
Period from February 10, 2016 to December 31, 2016 |
Period from January 1, 2016 to February 10, 2016 |
|||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||||||
| Revenue | ||||||||||||||||||||||
| Contract drilling services | $ | 52,881 | $ | 34,655 | $ | 190,553 | $ | 134,370 | $ | 20,891 | ||||||||||||
| Management fees | 307 | 410 | 1,456 | 4,074 | 752 | |||||||||||||||||
| Reimbursables | 6,650 | 5,344 | 20,837 | 20,204 | 1,897 | |||||||||||||||||
| Total revenue | 59,838 | 40,409 | 212,846 | 158,648 | 23,540 | |||||||||||||||||
| Operating costs and expenses | ||||||||||||||||||||||
| Operating costs | 42,638 | 29,635 | 161,668 | 123,022 | 25,213 | |||||||||||||||||
| General and administrative | 11,719 | 8,931 | 41,648 | 36,922 | 2,558 | |||||||||||||||||
| Depreciation | 18,394 | 18,486 | 73,925 | 67,920 | 10,696 | |||||||||||||||||
| Total operating costs and expenses | 72,751 | 57,052 | 277,241 | 227,864 | 38,467 | |||||||||||||||||
| Loss from operations | (12,913 | ) | (16,643 | ) | (64,395 | ) | (69,216 | ) | (14,927 | ) | ||||||||||||
| Other income (expense) | ||||||||||||||||||||||
| Interest income | 221 | (8 | ) | 808 | 18 | 3 | ||||||||||||||||
| Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016) |
(19,261 | ) | (18,879 | ) | (76,441 | ) | (67,023 | ) | (1,728 | ) | ||||||||||||
| Other, net | 428 | 145 | 2,501 | 1,132 | (69 | ) | ||||||||||||||||
| Reorganization items | — | (774 | ) | — | (1,380 | ) | (452,919 | ) | ||||||||||||||
| Bargain purchase gain | — | — | 1,910 | — | — | |||||||||||||||||
| Total other expense | (18,612 | ) | (19,516 | ) | (71,222 | ) | (67,253 | ) | (454,713 | ) | ||||||||||||
| Loss before income taxes | (31,525 | ) | (36,159 | ) | (135,617 | ) | (136,469 | ) | (469,640 | ) | ||||||||||||
| Income tax provision | 5,101 | 4,970 | 14,168 | 10,948 | 2,371 | |||||||||||||||||
| Net loss | (36,626 | ) | (41,129 | ) | (149,785 | ) | (147,417 | ) | (472,011 | ) | ||||||||||||
| Net loss attributable to noncontrolling interests | — | — | — | — | (969 | ) | ||||||||||||||||
| Net loss attributable to VDI | $ | (36,626 | ) | $ | (41,129 | ) | $ | (149,785 | ) | $ | (147,417 | ) | $ | (471,042 | ) | |||||||
| Net loss per share, basic and diluted | $ | (7.33 | ) | $ | (8.23 | ) | $ | (29.96 | ) | $ | (29.48 | ) | N/A | |||||||||
| Weighted average successor ordinary shares outstanding, basic and diluted | 5,000 | 5,000 | 5,000 | 5,000 | N/A | |||||||||||||||||
| Vantage Drilling International | ||||||||||||||||||||||
| Supplemental Operating Data | ||||||||||||||||||||||
| (Unaudited, in thousands, except percentages) | ||||||||||||||||||||||
| Successor | Predecessor | |||||||||||||||||||||
| Three Months Ended December 31, |
Year Ended December 31, 2017 |
Period from February 10, 2016 to December 31, 2016 |
Period from January 1, 2016 to February 10, 2016 |
|||||||||||||||||||
| 2017 | 2016 | |||||||||||||||||||||
| Operating costs and expenses | ||||||||||||||||||||||
| Jackups | $ | 19,623 | $ | 10,014 | $ | 72,283 | $ | 39,569 | $ | 5,975 | ||||||||||||
| Deepwater | 16,104 | 13,270 | 64,823 | 57,833 | 15,550 | |||||||||||||||||
| Operations support | 2,893 | 2,403 | 12,334 | 9,859 | 2,219 | |||||||||||||||||
| Reimbursables | 4,018 | 3,948 | 12,228 | 15,761 | 1,469 | |||||||||||||||||
| $ | 42,638 | $ | 29,635 | $ | 161,668 | $ | 123,022 | $ | 25,213 | |||||||||||||
| Utilization | ||||||||||||||||||||||
| Jackups | 99.5 | % | 39.5 | % | 82.0 | % | 42.3 | % | 53.6 | % | ||||||||||||
| Deepwater | 45.4 | % | 33.3 | % | 36.2 | % | 33.3 | % | 33.3 | % | ||||||||||||
| Vantage Drilling International | |||||||
| Consolidated Balance Sheet | |||||||
| (In thousands, except share and par value information) | |||||||
| (Unaudited) | |||||||
| December 31, 2017 |
December 31, 2016 |
||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 195,455 | $ | 231,727 | |||
| Trade receivables | 45,379 | 20,850 | |||||
| Inventory | 43,955 | 45,206 | |||||
| Prepaid expenses and other current assets | 13,207 | 12,423 | |||||
| Total current assets | 297,996 | 310,206 | |||||
| Property and equipment | |||||||
| Property and equipment | 904,584 | 902,241 | |||||
| Accumulated depreciation | (141,393 | ) | (67,713 | ) | |||
| Property and equipment, net | 763,191 | 834,528 | |||||
| Other assets | 21,935 | 15,694 | |||||
| Total assets | $ | 1,083,122 | $ | 1,160,428 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 39,666 | $ | 35,283 | |||
| Accrued liabilities | 25,117 | 18,448 | |||||
| Current maturities of long-term debt | 4,430 | 1,430 | |||||
| Total current liabilities | 69,213 | 55,161 | |||||
| Long–term debt, net of discount and financing costs of $56,174 and $105,568 | 919,939 | 867,372 | |||||
| Other long-term liabilities | 17,195 | 11,335 | |||||
| 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 | (297,202 | ) | (147,417 | ) | |||
| Total shareholders’ equity | 76,775 | 226,560 | |||||
| Total liabilities and shareholders’ equity | $ | 1,083,122 | $ | 1,160,428 | |||
| Vantage Drilling International | ||||||||||||
| Consolidated Statement of Cash Flows | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Successor | Predecessor | |||||||||||
| Year Ended December 31, 2017 |
Period from February 10, 2016 to December 31, 2016 |
Period from January 1, 2016 to February 10, 2016 |
||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
| Net income (loss) | $ | (149,785 | ) | $ | (147,417 | ) | $ | (472,011 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
| Depreciation expense | 73,925 | 67,920 | 10,696 | |||||||||
| Amortization of debt financing costs | 468 | 427 | — | |||||||||
| Amortization of debt discount | 48,925 | 43,208 | — | |||||||||
| Amortization of contract value | 4,686 | — | — | |||||||||
| PIK interest on the Convertible Notes | 7,604 | 6,712 | — | |||||||||
| Reorganization items | — | — | 430,210 | |||||||||
| Share-based compensation expense | 3,997 | 402 | — | |||||||||
| Gain on bargain purchase | (1,910 | ) | — | — | ||||||||
| Deferred income tax benefit | (1,964 | ) | (3,368 | ) | — | |||||||
| Loss on disposal of assets | 335 | 652 | — | |||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Restricted cash | — | 1,000 | (1,000 | ) | ||||||||
| Trade receivables | (24,529 | ) | 53,447 | (3,575 | ) | |||||||
| Inventory | 1,251 | (964 | ) | 223 | ||||||||
| Prepaid expenses and other current assets | 1,267 | 2,790 | 6,893 | |||||||||
| Other assets | 2,638 | (3,409 | ) | 941 | ||||||||
| Accounts payable | 4,383 | 736 | (14,890 | ) | ||||||||
| Accrued liabilities and other long-term liabilities | 8,836 | (26,010 | ) | 21,148 | ||||||||
| Net cash provided by (used in) operating activities | (19,873 | ) | (3,874 | ) | (21,365 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
| Additions to property and equipment | (2,224 | ) | (11,964 | ) | 116 | |||||||
| Cash paid for Vantage 260 acquisition | (13,000 | ) | — | — | ||||||||
| Cash received for Vantage 260 sale | 255 | — | — | |||||||||
| Net cash provided by (used in) investing activities | (14,969 | ) | (11,964 | ) | 116 | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
| Repayment of long-term debt | (1,430 | ) | (1,430 | ) | (7,000 | ) | ||||||
| Proceeds from issuance of 10% Second Lien Notes | — | — | 75,000 | |||||||||
| Debt issuance costs | — | (51 | ) | (1,125 | ) | |||||||
| Net cash provided by (used in) financing activities | (1,430 | ) | (1,481 | ) | 66,875 | |||||||
| Net increase (decrease) in cash and cash equivalents | (36,272 | ) | (17,319 | ) | 45,626 | |||||||
| Cash and cash equivalents—beginning of period | 231,727 | 249,046 | 203,420 | |||||||||
| Cash and cash equivalents—end of period | $ | 195,455 | $ | 231,727 | $ | 249,046 | ||||||