Aug. 12, 2021 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss attributable to controlling interest of approximately $29.0 million or $2.21 per diluted share for the three months ended June 30, 2021, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $31.9 million or $2.43 per diluted share for the three months ended June 30, 2020.

As of June 30, 2021, Vantage had approximately $124.4 million in cash, including $13.0 million of restricted cash, compared to $154.5 million in cash, including $12.5 million of restricted cash at December 31, 2020. The Company used $40.9 million in cash from operations in 2021 compared to $52.5 million used during the same period of 2020.

Ihab Toma, CEO, commented: “The second quarter represented more evidence that the industry is back on the way to recovery where we have seen the Aquamarine Driller and Sapphire Driller commencing their new contracts in Malaysia and Equatorial Guinea, respectively. In addition, shortly after the quarter concluded, the Soehanah returned to work in Indonesia, reflecting six of the Company’s seven rigs working. The safe and seamless return to work by those rigs within weeks of each other is a testament to the operations team at Vantage, of whom I am very proud.”

Mr. Toma continued, “In addition to the three rigs returning to service, we are delighted to announce that, the Sapphire Driller and the Aquamarine Driller, were recently awarded three-year contracts to work offshore Qatar, commencing in February and March 2022, respectively. We look forward to these multi-year programs commencing alongside the Emerald Driller’s campaign in Qatar where we have operated since 2016.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two 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 gas companies. Vantage also markets, operates and provides management services in respect of, 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,
2021 2020 2021 2020
Revenue
Contract drilling services $ 31,655 $ 33,151 $ 49,380 $ 77,470
Reimbursables and other 3,946 3,624 6,387 10,761
Total revenue 35,601 36,775 55,767 88,231
Operating costs and expenses
Operating costs 36,056 38,104 61,413 86,659
General and administrative 4,967 4,716 10,462 11,886
Depreciation 14,161 18,401 28,286 36,417
Total operating costs and expenses 55,184 61,221 100,161 134,962
Loss from operations (19,583 ) (24,446 ) (44,394 ) (46,731 )
Other (expense) income
Interest income 10 111 110 812
Interest expense and other financing charges (8,511 ) (8,601 ) (17,021 ) (17,021 )
Other, net (179 ) 12 (793 ) 2,367
Total other expense (8,680 ) (8,478 ) (17,704 ) (13,842 )
Loss before income taxes (28,263 ) (32,924 ) (62,098 ) (60,573 )
Income tax provision (benefit) 720 (1,024 ) 2,882 1,897
Net loss (28,983 ) (31,900 ) (64,980 ) (62,470 )
Net (loss) income attributable to noncontrolling interests (18 ) 12 (31 ) 14
Net loss attributable to shareholders $ (28,965 ) $ (31,912 ) $ (64,949 ) $ (62,484 )
Loss per share
Basic and Diluted $ (2.21 ) $ (2.43 ) $ (4.95 ) $ (4.76 )
Weighted average ordinary shares outstanding,
Basic and Diluted 13,115 13,115 13,115 13,115
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Operating costs and expenses
Jackups $ 22,170 $ 15,669 $ 36,319 $ 37,142
Deepwater 8,820 18,831 16,064 38,870
Management 756 – 756 –
Operations support 2,317 2,016 4,529 5,453
Reimbursables 1,993 1,588 3,745 5,194
Total operating costs and expenses $ 36,056 $ 38,104 $ 61,413 $ 86,659
Utilization
Jackups 39.9 % 60.0 % 35.3 % 73.9 %
Deepwater 49.7 % 45.6 % 49.4 % 53.7 %
Vantage Drilling International
Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
June 30, 2021 December 31, 2020
ASSETS
Current assets
Cash and cash equivalents $ 111,424 $ 141,945
Restricted cash 7,800 7,996
Trade receivables, net of allowance for doubtful accounts of $5.0 million, respectively 31,605 24,717
Materials and supplies 50,946 49,861
Prepaid expenses and other current assets 20,212 29,151
Total current assets 221,987 253,670
Property and equipment
Property and equipment 797,078 794,944
Accumulated depreciation (306,337 ) (278,562 )
Property and equipment, net 490,741 516,382
Operating lease ROU assets 3,144 3,997
Other assets 15,315 12,126
Total assets $ 731,187 $ 786,175
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 28,264 $ 25,466
Other current liabilities 32,572 24,734
Total current liabilities 60,836 50,200
Long–term debt, net of discount and financing costs of $3,962 and $4,781, respectively 346,038 345,219
Other long-term liabilities 13,971 15,011
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 633,758 634,181
Accumulated deficit (324,604 ) (259,655 )
Controlling interest shareholders’ equity 309,167 374,539
Noncontrolling interests 1,175 1,206
Total equity 310,342 375,745
Total liabilities and shareholders’ equity $ 731,187 $ 786,175
Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (64,980 ) $ (62,470 )
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense 28,286 36,417
Amortization of debt financing costs 819 820
Share-based compensation expense 337 1,028
Deferred income tax (benefit) expense 236 (90 )
Gain on disposal of assets (2,715 ) —
Gain on settlement of restructuring agreement — (2,278 )
Changes in operating assets and liabilities:
Trade receivables, net (6,888 ) (7,202 )
Materials and Supplies (1,481 ) (1,297 )
Prepaid expenses and other current assets (1,440 ) 2,545
Other assets (1,821 ) 3,410
Accounts payable 2,798 (14,680 )
Other current liabilities and other long-term liabilities 5,905 (8,717 )
Net cash used in operating activities (40,944 ) (52,514 )
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (2,711 ) (2,021 )
Net proceeds from sale of Titanium Explorer 13,557 —
Net cash provided by (used in) investing activities 10,846 (2,021 )
CASH FLOWS FROM FINANCING ACTIVITIES
Contributions from holders of noncontrolling interests — —
Debt issuance costs — —
Net cash provided by financing activities — —
Net decrease in unrestricted and restricted cash and cash equivalents (30,098 ) (54,535 )
Unrestricted and restricted cash and cash equivalents—beginning of period 154,487 242,944
Unrestricted and restricted cash and cash equivalents—end of period $ 124,389 $ 188,409

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