HOUSTON, Nov. 02, 2018 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss of approximately $26.1 million or $5.21 per share for the three months ended September 30, 2018 as compared to a net loss of $40.1 million or $8.01 per share for the three months ended September 30, 2017.
As of September 30, 2018, Vantage had approximately $183.5 million in cash, including $5 million of restricted cash, compared to $195.5 million at December 31, 2017. The Company generated $12.5 million in cash from operations year-to-date compared to net cash used in operations of $17.4 million for the comparable nine months in 2017. During the current year, cash outlays included, among other things, a $15 million down payment to acquire a jack-up rig and $6.6 million in progress payments for a managed pressure drilling (MPD) system to increase drillship marketability.
Ihab Toma, CEO, commented, “I am pleased to report another quarter of excellent operational results. Six of our seven assets worked during the quarter and produced a revenue efficiency of 99% and operational rig uptime of 97%. With contract drilling revenue increases of 14% and operating cost decreases of 13% from the comparable quarter, we continue to deliver on our commitment of superior performance, cost management and preserving our strong balance sheet.”
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Revenue | ||||||||||||||||
| Contract drilling services | $ | 59,034 | $ | 51,831 | $ | 165,813 | $ | 137,672 | ||||||||
| Management fees | 307 | 342 | 912 | 1,148 | ||||||||||||
| Reimbursables | 5,215 | 5,523 | 15,956 | 14,188 | ||||||||||||
| Total revenue | 64,556 | 57,696 | 182,681 | 153,008 | ||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Operating costs | 43,307 | 49,883 | 128,943 | 119,244 | ||||||||||||
| General and administrative | 9,303 | 6,949 | 22,935 | 29,929 | ||||||||||||
| Depreciation | 17,638 | 18,538 | 53,217 | 55,531 | ||||||||||||
| Total operating costs and expenses | 70,248 | 75,370 | 205,095 | 204,704 | ||||||||||||
| Loss from operations | (5,692 | ) | (17,674 | ) | (22,414 | ) | (51,696 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 533 | 231 | 974 | 587 | ||||||||||||
| Interest expense and other financing charges | (19,439 | ) | (19,258 | ) | (58,122 | ) | (57,180 | ) | ||||||||
| Other, net | 53 | 893 | (1,031 | ) | 2,287 | |||||||||||
| Bargain purchase gain | — | — | — | 1,910 | ||||||||||||
| Total other expense | (18,853 | ) | (18,134 | ) | (58,179 | ) | (52,396 | ) | ||||||||
| Loss before income taxes | (24,545 | ) | (35,808 | ) | (80,593 | ) | (104,092 | ) | ||||||||
| Income tax provision | 1,515 | 4,260 | 8,698 | 9,067 | ||||||||||||
| Net loss | $ | (26,060 | ) | $ | (40,068 | ) | $ | (89,291 | ) | $ | (113,159 | ) | ||||
| Net loss per share, basic and diluted | $ | (5.21 | ) | $ | (8.01 | ) | $ | (17.86 | ) | $ | (22.63 | ) | ||||
| 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Jackups | $ | 18,112 | $ | 19,764 | $ | 49,097 | $ | 52,655 | ||||||||
| Deepwater | 17,927 | 23,789 | 59,438 | 48,754 | ||||||||||||
| Operations support | 4,119 | 3,158 | 10,614 | 9,625 | ||||||||||||
| Reimbursables | 3,149 | 3,172 | 9,794 | 8,210 | ||||||||||||
| $ | 43,307 | $ | 49,883 | $ | 128,943 | $ | 119,244 | |||||||||
| Utilization | ||||||||||||||||
| Jackups | 98.5 | % | 93.8 | % | 90.9 | % | 76.4 | % | ||||||||
| Deepwater | 65.7 | % | 33.3 | % | 61.1 | % | 33.2 | % | ||||||||
| Vantage Drilling International | ||||||||
| Consolidated Balance Sheet | ||||||||
| (In thousands, except share and par value information) | ||||||||
| (Unaudited) | ||||||||
| September 30, 2018 |
December 31, 2017 |
|||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 178,549 | $ | 195,455 | ||||
| Restricted cash | 5,000 | – | ||||||
| Trade receivables | 39,089 | 45,379 | ||||||
| Inventory | 43,411 | 43,955 | ||||||
| Prepaid expenses and other current assets | 16,748 | 13,207 | ||||||
| Total current assets | 282,797 | 297,996 | ||||||
| Property and equipment | ||||||||
| Property and equipment | 927,745 | 904,584 | ||||||
| Accumulated depreciation | (191,737 | ) | (141,393 | ) | ||||
| Property and equipment, net | 736,008 | 763,191 | ||||||
| Other assets | 14,471 | 21,935 | ||||||
| Total assets | $ | 1,033,276 | $ | 1,083,122 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 40,774 | $ | 39,666 | ||||
| Accrued liabilities | 20,032 | 25,117 | ||||||
| Current maturities of long-term debt | — | 4,430 | ||||||
| Total current liabilities | 60,806 | 69,213 | ||||||
| Long–term debt, net of discount and financing costs of $18,802 and $56,174 | 959,750 | 919,939 | ||||||
| Other long-term liabilities | 25,236 | 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 | (386,493 | ) | (297,202 | ) | ||||
| Total shareholders’ equity | (12,516 | ) | 76,775 | |||||
| Total liabilities and shareholders’ equity | $ | 1,033,276 | $ | 1,083,122 | ||||
| Vantage Drilling International | ||||||||
| Consolidated Statement of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended September 30, | ||||||||
| 2018 | 2017 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (89,291 | ) | $ | (113,159 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation expense | 53,217 | 55,531 | ||||||
| Amortization of debt financing costs | 351 | 351 | ||||||
| Amortization of debt discount | 37,021 | 36,653 | ||||||
| Amortization of contract value | 4,721 | 3,095 | ||||||
| PIK interest on the Convertible Notes | 5,735 | 5,692 | ||||||
| Share-based compensation expense | 7,777 | 2,882 | ||||||
| Bargain purchase gain | — | (1,910 | ) | |||||
| Deferred income tax benefit (expense) | 1,874 | (3,489 | ) | |||||
| (Gain) loss on disposal of assets | (1,313 | ) | 191 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables | 6,290 | (15,253 | ) | |||||
| Inventory | 544 | 1,531 | ||||||
| Prepaid expenses and other current assets | (5,591 | ) | (1,685 | ) | ||||
| Other assets | 1,230 | 5,947 | ||||||
| Accounts payable | (3,245 | ) | 10,899 | |||||
| Accrued liabilities and other long-term liabilities | (6,839 | ) | (4,688 | ) | ||||
| Net cash provided by (used in) operating activities | 12,481 | (17,412 | ) | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Additions to property and equipment | (8,275 | ) | (1,606 | ) | ||||
| Down payment on rig purchase | (15,000 | ) | — | |||||
| Cash paid for Vantage 260 acquisition | — | (13,000 | ) | |||||
| Net proceeds from sale of Vantage 260 | 4,703 | — | ||||||
| Net cash used in investing activities | (18,572 | ) | (14,606 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Repayment of long-term debt | (5,815 | ) | (1,072 | ) | ||||
| Net cash used in financing activities | (5,815 | ) | (1,072 | ) | ||||
| Net decrease in cash and cash equivalents | (11,906 | ) | (33,090 | ) | ||||
| Unrestricted and restricted cash and cash equivalents—beginning of period | 195,455 | 231,727 | ||||||
| Unrestricted and restricted cash and cash equivalents—end of period | $ | 183,549 | $ | 198,637 | ||||