For the year ended December 31, 2022, Vantage reported a net loss attributable to controlling interest of approximately $3.4 million or $0.26 per diluted share, as compared to a net loss attributable to controlling interest of $110.1 million or $8.40 per diluted share for the year ended December 31, 2021.

As of December 31, 2022, Vantage had approximately $93.3 million in cash, including $19.2 million of restricted cash, compared to $90.6 million in cash, including $17.3 million of restricted cash, at December 31, 2021. The Company used $18.9 million in cash from operations in 2022 compared to $70.4 million used in 2021. At December 31, 2022, Vantage maintained $29.0 million of cash pre-funded by our Managed Services customers to address near-term obligations associated with the operation of their rigs.

Ihab Toma, CEO, commented: “I am very proud of our operational and financial performance in 2022. The Company’s four owned rigs were contracted for most of the year with the Tungsten Explorer concluding its successful campaign in Cyprus in December before beginning to prepare to work in Namibia. The Company’s managed rigs also performed well as the West Capella concluded a strong campaign in Indonesia and prepares to commence a campaign in East Africa in Q2 2023 before returning to Indonesia in Q3 2023. Furthermore, the West Polaris finished its reactivation and successfully went on contract in December 2022 for ONGC. I am very pleased that the Emerald Driller Company supported rigs in Qatar continue to perform well and to the satisfaction of their respective clients.”

Mr. Toma continued: “As I reflect on the year, 2022 represented an important inflection point for the Company and the industry as a whole, as the Company generated positive EBITDA in each of the four quarters. Industry fundamentals are projected to remain strong with day rates and utilization reaching levels not seen since 2015. With strong industry sentiment and the closing of our refinancing earlier this month, the Company is well positioned for the future while our focus remains the same. We are committed to ensuring our employees stay safe and providing our clients with excellent service.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and two 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, third party-owned drilling units. www.vantagedrilling.com.

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.

Non-GAAP Measures

We report our financial results in accordance with generally accepted accounting principles (GAAP) in the United States. However, in our earnings release and during our earnings calls we may reference company information that does not conform to GAAP. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and allows investors to better evaluate the financial results of the Company. However, these measures should not be viewed as an alternative to or substitute for GAAP measures of performance, and these non-GAAP measures may not be consistent with previously published Company reports on Forms 10-K, 10-Q and 8-K. Non-GAAP measures we may reference have been reconciled to the nearest GAAP measure in the tables entitled Reconciliation of GAAP to Non-GAAP Financial Measures below.

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 440
Houston, Texas 77056
(281) 404-4700

Vantage Drilling International
Consolidated Statement of Operations
(Unaudited, in thousands, except per share data)
Three months ended December 31, Twelve months ended December 31,
2022 2021 2022 2021
Revenue
Contract drilling services $ 32,367 $ 39,341 $ 154,116 $ 131,703
Management fees 2,449 1,066 10,834 2,351
Reimbursables and other 41,373 9,395 113,766 24,366
Total revenue 76,189 49,802 278,716 158,420
Operating costs and expenses
Operating costs 65,065 43,886 234,832 150,668
General and administrative 5,264 5,484 23,009 20,539
Depreciation 11,024 13,819 44,428 56,242
Gain on EDC Sale 4 (61,409 )
Total operating costs and expenses 81,357 63,189 240,860 227,449
(Loss) income from operations (5,168 ) (13,387 ) 37,856 (69,029 )
Other (expense) income
Interest income 1,080 6 1,108 124
Interest expense and other financing charges (8,840 ) (8,505 ) (34,351 ) (34,034 )
Other, net (1,519 ) (270 ) (3,668 ) (2,171 )
Total other expense (9,279 ) (8,769 ) (36,911 ) (36,081 )
(Loss) income before income taxes (14,447 ) (22,156 ) 945 (105,110 )
Income tax provision 2,530 1,378 4,313 5,141
Net loss (16,977 ) (23,534 ) (3,368 ) (110,251 )
Net loss attributable to noncontrolling interests (619 ) (73 ) (13 ) (114 )
Net loss attributable to shareholders $ (16,358 ) $ (23,461 ) $ (3,355 ) $ (110,137 )
EBITDA (1) $ 4,956 $ 235 $ 78,629 $ (14,844 )
Loss per share
Basic and Diluted $ (1.25 ) $ (1.79 ) $ (0.26 ) $ (8.40 )
Weighted average ordinary shares outstanding,
Basic and Diluted 13,115 13,115 13,115 13,115
(1) EBITDA represents net income (loss) before (i) interest income (expense), (ii) provision for income taxes and (iii) depreciation and amortization expense. EBITDA is not a financial measure under GAAP as defined under the rules of the SEC, and is intended as a supplemental measure of our performance. We believe this measure is commonly used by analysts and investors to analyze and compare companies on the basis of operating performance.
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Three months ended December 31, Twelve months ended December 31,
2022 2021 2022 2021
Operating costs
Jackups $ 4,317 $ 8,055 $ 36,225 $ 33,824
Deepwater 17,350 14,169 68,567 41,939
Third party Rigs 2,295 4,815 2,289 9,272
Sold rigs/Held for sale 20 11,528 10,722 45,851
Operations support 2,595 2,267 10,975 9,071
Reimbursables 38,488 3,052 106,054 10,711
Total operating costs $ 65,065 $ 43,886 $ 234,832 $ 150,668
Utilization (1)
Jackups 100.0 % 99.6 % 72.7 % 68.9 %
Deepwater 90.1 % 26.8 % 94.2 % 38.4 %
Sold rigs/Held for sale N/A 90.3 % 43.6 % 64.4 %
(1) Excludes rigs under bareboat charter contracts to third parties.

Vantage Drilling International
Consolidated Balance Sheets
(Unaudited, in thousands, except share and par value information)
December 31, 2022 December 31, 2021
ASSETS
Current assets
Cash and cash equivalents $ 74,026 $ 73,343
Restricted cash 16,450 1,621
Trade receivables, net of allowance for credit losses of $5.0 million each year 62,776 37,527
Materials and supplies 41,250 37,580
Assets held for sale 117,117
Prepaid expenses and other current assets 25,621 18,309
Total current assets 220,123 285,497
Property and equipment
Property and equipment 647,909 645,622
Accumulated depreciation (309,453 ) (266,018 )
Property and equipment, net 338,456 379,604
Operating lease ROU assets 1,648 2,450
Other assets 18,334 31,843
Total assets $ 578,561 $ 699,394
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 57,775 $ 31,420
Liabilities held for sale 66,179 31,533
Other current liabilities 6,720
Total current liabilities 123,954 69,673
Long–term debt, net of discount and financing costs of $773 and $3,142 179,227 346,858
Other long-term liabilities 12,881 17,012
Commitments and contingencies
Shareholders’ equity
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding each year 13 13
Additional paid-in capital 633,863 633,847
Accumulated deficit (373,147 ) (369,792 )
Controlling interest shareholders’ equity 260,729 264,068
Noncontrolling interests 1,770 1,783
Total equity 262,499 265,851
Total liabilities and shareholders’ equity $ 578,561 $ 699,394

Vantage Drilling International
Consolidated Statement of Cash Flows
(Unaudited, in thousands)
Year Ended December 31,
2022 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (3,368 ) $ (110,251 )
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense 44,428 56,242
Amortization of debt financing costs 1,639 1,639
Share-based compensation expense 79 395
Loss on debt extinguishment 730
Deferred income tax expense 708 369
Gain on disposal of assets (1,600 ) (2,640 )
Gain on EDC Sale (61,409 )
Changes in operating assets and liabilities:
Trade receivables, net (42,241 ) (20,116 )
Materials and supplies (4,155 ) (1,624 )
Prepaid expenses and other current assets (9,878 ) (3,306 )
Other assets (22,461 ) (12,312 )
Accounts payable 44,469 10,094
Other current liabilities and other long-term liabilities 34,185 11,119
Net cash used in operating activities (18,874 ) (70,391 )
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (10,277 ) (7,045 )
Net proceeds from EDC Sale 198,700
Net proceeds from sale of assets 3,100
Net proceeds from sale of Titanium Explorer 13,557
Net cash provided by investing activities 191,523 6,512
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt (170,000 )
Net cash used in financing activities (170,000 )
Net increase (decrease) in unrestricted and restricted cash and cash equivalents 2,649 (63,879 )
Unrestricted and restricted cash and cash equivalents—beginning of period 90,608 154,487
Unrestricted and restricted cash and cash equivalents—end of period $ 93,257 $ 90,608

Vantage Drilling International
Non-GAAP Measures
(Unaudited, in thousands)
Three months ended December 31, Twelve months ended December 31,
Reconciliation of EBITDA 2022 2021 2022 2021
Net loss attributable to shareholders $ (16,358 ) $ (23,461 ) $ (3,355 ) $ (110,137 )
Depreciation 11,024 13,819 44,428 56,242
Interest income (1,080 ) (6 ) (1,108 ) (124 )
Interest expense and other financing costs 8,840 8,505 34,351 34,034
Income tax provision 2,530 1,378 4,313 5,141
EBITDA $ 4,956 $ 235 $ 78,629 $ (14,844 )