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Vantage Drilling International Reports Second Quarter Results for 2020


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Source: Vantage Drilling International

HOUSTON, Aug. 06, 2020 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss attributable to controlling interest of approximately $31.9 million or $2.43 per diluted share for the three months ended June 30, 2020, based on the weighted average shares outstanding after the conversion of our convertible notes in December 2019, as compared to a net income attributable to controlling interest of $590.7 million or $116.86 per diluted share for the three months ended June 30, 2019.

Net income for the three months ended June 30, 2019, included payments by Petrobras Venezuela Investments & Services, BV, a subsidiary of Petroleo Brasileiro S.A. (“Petrobras”), of approximately $690.8 million to Vantage Deepwater Company, one of our subsidiaries, and by Petrobras America, Inc., a subsidiary of Petrobras, of approximately $10.1 million to Vantage Deepwater Drilling, Inc., also one of our subsidiaries.  The payments were made pursuant to an agreement between the parties and in satisfaction of the previously rendered arbitration award and related U.S. judgment confirming the award.

As of June 30, 2020, Vantage had approximately $188.4 million in cash, including $13.1 million of restricted cash, compared to $242.9 million in cash, including $11.0 million of restricted cash at December 31, 2019.

Ihab Toma, CEO, commented. “Despite the very challenging conditions for offshore drilling during the COVID-19 pandemic and economic crisis, we successfully completed the first ever well offshore Lebanon with the Tungsten Explorer during the second quarter and were awarded a new contract in Montenegro for the Topaz Driller. I am personally very proud of the quality and motivation of our employees and their focus on our customers, which allowed us to continue to deliver a strong performance across our operating fleet. We remain committed to maintaining this performance while operating safely and managing costs. During the quarter we commenced a plan to reduce costs across the board. We secured material price reductions from vendors, initiated significant headcount and salary reductions both onshore and offshore and implemented other cost reduction measures to reflect the lower levels of operating activity.  While the decision to reduce personnel was difficult, we remain committed to seek measures to reduce our spending and to conserve cash while remaining focused on performance, but never at the expense of safety.”

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:

Douglas E. Stewart
Chief Financial Officer and General Counsel
Vantage Drilling International
C/O Vantage Energy Services, Inc.
777 Post Oak Blvd., Suite 800
Houston, Texas 77056
(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,
2020 2019 2020 2019
Revenue
Contract drilling services $ 33,151 $ 35,765 $ 77,470 $ 65,745
Contract termination revenue 594,029 594,029
Reimbursables and other 3,624 6,589 10,761 11,164
Total revenue 36,775 636,383 88,231 670,938
Operating costs and expenses
Operating costs 38,104 38,081 86,659 76,623
General and administrative 4,716 70,702 11,886 79,370
Depreciation 18,401 18,499 36,417 37,032
Total operating costs and expenses 61,221 127,282 134,962 193,025
(Loss) income from operations (24,446 ) 509,101 (46,731 ) 477,913
Other income (expense)
Interest income 111 108,305 812 109,369
Interest expense and other financing charges (8,601 ) (10,435 ) (17,021 ) (26,250 )
Other, net 12 (58 ) 2,367 124
Total other (expense) income (8,478 ) 97,812 (13,842 ) 83,243
(Loss) income before income taxes (32,924 ) 606,913 (60,573 ) 561,156
Income tax (benefit) provision (1,024 ) 16,454 1,897 18,601
Net (loss) income (31,900 ) 590,459 (62,470 ) 542,555
Net income (loss) attributable to noncontrolling interests 12 (270 ) 14 (284 )
Net (loss) income attributable to shareholders $ (31,912 ) $ 590,729 $ (62,484 ) $ 542,839
(Loss) earnings per share
Basic $ (2.43 ) $ 116.96 $ (4.76 ) $ 107.60
Diluted $ (2.43 ) $ 116.86 $ (4.76 ) $ 107.38
Weighted average ordinary shares outstanding
Basic 13,115 5,051 13,115 5,045
Diluted 13,115 5,056 13,115 5,055
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Three Months Ended June 30, Six Months Ended June 30,
2020 2019 2020 2019
Operating costs and expenses
Jackups $ 15,669 $ 14,108 $ 37,142 $ 31,853
Deepwater 18,831 16,492 38,870 32,307
Operations support 2,016 3,361 5,453 6,460
Reimbursables 1,588 4,120 5,194 6,003
$ 38,104 $ 38,081 $ 86,659 $ 76,623
Utilization
Jackups 60.0 % 93.7 % 73.9 % 96.0 %
Deepwater 45.6 % 49.2 % 53.7 % 40.9 %
Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
June 30, 2020 December 31, 2019
ASSETS
Current assets
Cash and cash equivalents $ 175,311 $ 231,947
Restricted cash 3,667 2,511
Trade receivables 53,706 46,504
Inventory 50,684 48,368
Prepaid expenses and other current assets 13,429 16,507
Total current assets 296,797 345,837
Property and equipment
Property and equipment 1,003,844 1,002,968
Accumulated depreciation (318,135 ) (281,842 )
Property and equipment, net 685,709 721,126
Operating lease ROU assets 4,805 6,706
Other assets 16,571 17,068
Total assets $ 1,003,882 $ 1,090,737
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 32,641 $ 49,599
Other current liabilities 21,685 26,936
Total current liabilities 54,326 76,535
Long–term debt, net of discount and financing costs of $5,601 and $6,421, respectively 344,399 343,579
Other long-term liabilities 15,712 17,532
Commitments and contingencies
Shareholders’ equity
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, respectively 13 13
Additional paid-in capital 633,594 634,770
Accumulated (deficit) earnings (45,420 ) 17,064
Controlling interest shareholders’ equity 588,187 651,847
Noncontrolling interests 1,258 1,244
Total equity 589,445 653,091
Total liabilities and shareholders’ equity $ 1,003,882 $ 1,090,737

 

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2020 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $ (62,470 ) $ 542,555
Adjustments to reconcile net income to net cash (used in) provided by operating activities
Depreciation expense 36,417 37,032
Amortization of debt financing costs 820 807
Amortization of debt discount 5,354
Amortization of contract value 1,643
PIK interest on the Convertible Notes 3,845
Share-based compensation expense 1,028 2,064
Deferred income tax (benefit) expense (90 ) 497
Loss on disposal of assets 109
Gain on settlement of restructuring agreement (2,278 )
Changes in operating assets and liabilities:
Trade receivables (7,202 ) (3,047 )
Inventory (1,297 ) (266 )
Prepaid expenses and other current assets 2,545 (2,274 )
Other assets 3,410 2,641
Accounts payable (14,680 ) 63,527
Other current liabilities and other long-term liabilities (8,717 ) 8,799
Net cash (used in) provided by operating activities (52,514 ) 663,286
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (2,021 ) (6,606 )
Net cash used in investing activities (2,021 ) (6,606 )
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions from holders of noncontrolling interests 1,181
Debt issuance costs (487 )
Net cash provided by financing activities 694
Net (decrease) increase in unrestricted and restricted cash and cash equivalents (54,535 ) 657,374
Unrestricted and restricted cash and cash equivalents—beginning of period 242,944 239,387
Unrestricted and restricted cash and cash equivalents—end of period $ 188,409 $ 896,761

PDF available: http://ml.globenewswire.com/Resource/Download/10c0fc01-f2df-4f4d-a14e-6f00d12712e7



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