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Vantage Drilling International Reports Fourth Quarter and Full-Year 2019 Results


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Source: Vantage Drilling International

HOUSTON, March 05, 2020 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss attributable to controlling interest of approximately $61.4 million or $8.22 per diluted share for the three months ended December 31, 2019, based on the weighted average shares outstanding after the conversion of our convertible notes, as compared to a net loss attributable to controlling interest of $52.2 million or $10.44 per diluted share for the three months ended December 31, 2018.

For the year ended December 31, 2019, Vantage reported net income attributable to controlling interest of approximately $455.7 million or $80.27 per diluted share, as compared to a net loss attributable to controlling interest of $141.5 million or $28.29 per diluted share for the year ended December 31, 2018.

As of December 31, 2019, Vantage had approximately $242.9 million in cash, including $11.0 million of restricted cash, compared to $239.4 million in cash, including$14.4 million of restricted cash at December 31, 2018. The Company generated $535.6 million in cash from operations, including cash collected in the Petrobras settlement in 2019 compared to $12.8 million generated in 2018. During the three months ended December 31, 2019, the Company made a special cash distribution of $525.0 million to shareholders.

Ihab Toma, CEO, commented, “I am pleased to report that we were able to return value to our shareholders through the issuance of a special cash distribution of approximately $525.0 million during the quarter and with the conversion of our convertible debt to equity in the fourth quarter, we enhanced our industry leading balance sheet while retaining significant debt coverage. Separately, I am pleased to report that we continue to achieve operational excellence, recording approximately 100% revenue efficiency for the quarter. Our continued focus on increased efficiency and maintaining an optimized cost structure position us to benefit from the improved conditions in the jack-up market and the improving conditions in the drillship space.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three 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 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 December 31, Year Ended December 31,
2019 2018 2019 2018
Revenue
Contract drilling services $ 42,996 $ 37,753 $ 144,571 $ 203,565
Contract termination revenue 594,029
Reimbursables and other 6,270 5,314 22,248 22,182
Total revenue 49,266 43,067 760,848 225,747
Operating costs and expenses
Operating costs 42,355 42,099 156,893 171,041
General and administrative 42,534 6,609 128,548 29,544
Depreciation 18,329 17,230 73,820 70,447
Total operating costs and expenses 103,218 65,938 359,261 271,032
Income (loss) from operations (53,952 ) (22,871 ) 401,587 (45,285 )
Other income (expense)
Interest income 2,754 924 116,368 1,898
Interest expense and other financing charges (9,860 ) (20,657 ) (46,575 ) (78,779 )
Loss on debt extinguishment (1,271 ) (1,271 )
Other, net (5 ) (474 ) 216 (1,505 )
Total other expense (7,111 ) (21,478 ) 70,009 (79,657 )
Income (loss) before income taxes (61,063 ) (44,349 ) 471,596 (124,942 )
Income tax provision (731 ) 7,828 15,121 16,526
Net income (loss) (60,332 ) (52,177 ) 456,475 (141,468 )
Net income attributable to noncontrolling interests 1,053 741
Net income (loss) attributable to shareholders $ (61,385 ) $ (52,177 ) $ 455,734 $ (141,468 )
Earnings (loss) per share, Basic and Diluted $ (8.22 ) $ (10.44 ) $ 80.27 $ (28.29 )
Weighted average successor ordinary shares outstanding, Basic and Diluted 7,470 5,000 5,677 5,000
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
Operating costs and expenses
Jackups $ 15,685 $ 16,396 $ 62,448 $ 65,492
Deepwater 19,775 20,217 70,184 79,655
Operations support 4,064 2,274 13,538 12,888
Reimbursables 2,831 3,212 10,723 13,006
$ 42,355 $ 42,099 $ 156,893 $ 171,041
Utilization
Jackups 99.1% 96.6% 97.4% 92.2%
Deepwater 61.1% 35.0% 46.1% 54.5%

 

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
December 31,
2019
December 31,
2018
ASSETS
Current assets
Cash and cash equivalents $ 231,947 $ 224,967
Restricted cash 2,511 10,362
Trade receivables 46,504 28,431
Inventory 48,368 45,195
Prepaid expenses and other current assets 16,507 17,278
Total current assets 345,837 326,233
Property and equipment
Property and equipment 1,002,968 996,139
Accumulated depreciation (281,842 ) (208,836 )
Property and equipment, net 721,126 787,303
Operating lease ROU assets 6,706
Other assets 17,068 16,026
Total assets $ 1,090,737 $ 1,129,562
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 49,599 $ 44,372
Other current liabilities 26,936 17,983
Total current liabilities 76,535 62,355
Long–term debt, net of discount and financing costs of $6,421 and $12.914 343,579 1,109,011
Other long-term liabilities 17,532 22,889
Commitments and contingencies
Shareholders’ equity
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 and 5,000,053 shares issued and outstanding, respectively 13 5
Additional paid-in capital 634,770 373,972
Accumulated earnings (deficit) 17,064 (438,670 )
Controlling interest shareholders’ equity 651,847 (64,693 )
Noncontrolling interests 1,244
Total equity 653,091 (64,693 )
Total liabilities and shareholders’ equity $ 1,090,737 $ 1,129,562
Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Year Ended December 31,
2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 456,475 $ (141,468 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation expense 73,820 70,447
Amortization of debt financing costs 1,627 556
Amortization of debt discount 5,354 49,417
Amortization of contract value 1,643 6,311
PIK interest on the Convertible Notes 7,132 7,648
Share-based compensation expense 957 7,165
Non-cash loss on debt extinguishment 975
Deferred income tax (benefit) expense (51 ) 1,742
(Gain) loss on disposal of assets 155 (1,301 )
Changes in operating assets and liabilities:
Trade receivables (18,073 ) 16,948
Inventory (3,174 ) 1,911
Prepaid expenses and other current assets 771 (6,121 )
Other assets 4,265 2,339
Accounts payable 5,227 4,706
Other current liabilities and other long-term liabilities (489 ) (8,481 )
Net cash provided by operating activities 535,639 12,794
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (7,798 ) (14,316 )
Cash paid for Soehanah acquisition (85,000 )
Net proceeds from sale of Vantage 260 4,703
Net cash used in investing activities (7,798 ) (94,613 )
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt (216,265 )
Proceeds from issuance of 9.25% First Lien Notes 350,000
Contributions from holders of noncontrolling interests 1,197
Distributions to shareholders (524,994 )
Debt issuance costs (487 ) (7,688 )
Debt prepayment costs (296 )
Net cash (used in) provided by financing activities (524,284 ) 125,751
Net increase in unrestricted and restricted cash and cash equivalents 3,557 43,932
Unrestricted and restricted cash and cash equivalents—beginning of period 239,387 195,455
Unrestricted and restricted cash and cash equivalents—end of period $ 242,944 $ 239,387

PDF available: http://ml.globenewswire.com/Resource/Download/6402763a-f677-4d13-a767-a6f22728e60a



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