As of June 30, 2023, Vantage had approximately $82.4 million in cash, including $2.7 million of restricted cash, compared to $93.3 million in cash, including $19.2 million of restricted cash, at December 31, 2022. At June 30, 2023, Vantage maintained $16.9 million of cash pre-funded by our Managed Services customers to address near-term obligations during the second quarter of 2023. Excluding cash used in connection with our Managed Services customers, the Company generated $7.5 million in cash during the second quarter of 2023.

Ihab Toma, CEO, commented: “I am very pleased to announce that the Company reported net income for, and generated cash during, the quarter ended June 30, 2023. These solid results reflect continued hard work by our operations team with all of our owned rigs, our two managed rigs and the three supported rigs working during the quarter.”

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:
Rafael Blattner
Chief Financial Officer
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
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2023 2022 2023 2022
Revenue
Contract drilling services $ 67,673 $ 42,744 $ 115,590 $ 87,657
Management fees 5,569 2,840 7,689 3,943
Reimbursables and other 34,598 27,654 61,633 39,969
Total revenue 107,840 73,238 184,912 131,569
Operating costs and expenses
Operating costs 74,383 59,405 140,938 103,338
General and administrative 5,161 6,910 9,992 13,492
Depreciation 11,045 11,087 22,094 22,382
(Gain) loss on EDC Sale (60,781 ) 3 (60,781 )
Total operating costs and expenses 90,589 16,621 173,027 78,431
Income from operations 17,251 56,617 11,885 53,138
Other (expense) income
Interest income 141 7 190 11
Interest expense and other financing charges (5,346 ) (8,503 ) (10,904 ) (17,007 )
Other, net (457 ) (1,011 ) (135 ) (1,786 )
Total other expense (5,662 ) (9,507 ) (10,849 ) (18,782 )
Income before income taxes 11,589 47,110 1,036 34,356
Income tax provision (benefit) 10,584 (1,221 ) 2,606 217
Net income (loss) 1,005 48,331 (1,570 ) 34,139
Net (loss) income attributable to noncontrolling interests (457 ) 232 (746 ) 938
Net income (loss) attributable to shareholders $ 1,462 $ 48,099 $ (824 ) $ 33,201
EBITDA (1) $ 28,296 $ 66,461 $ 34,590 $ 72,796
Earnings (loss) per share
Basic $ 0.11 $ 3.67 $ (0.06 ) $ 2.53
Diluted $ 0.11 $ 3.61 $ (0.06 ) $ 2.49
Weighted average ordinary shares outstanding,
Basic 13,229 13,115 13,204 13,115
Diluted 13,320 13,332 13,204 13,330
(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 June 30, Six Months Ended June 30,
2023 2022 2023 2022
Operating costs and expenses
Jackups $ 3,736 $ 10,249 $ 7,722 $ 18,674
Deepwater 24,154 15,934 43,118 30,477
Managed Rigs 17,319 7 34,258 1
Held for Sale (2) 3,891 10,712
Operations support 2,924 2,930 5,575 5,867
Reimbursables 26,250 26,394 50,265 37,607
Total operating costs and expenses $ 74,383 $ 59,405 $ 140,938 $ 103,338
Utilization
Jackups 94.4 % 98.8 % 97.2 % 79.6 %
Deepwater 95.2 % 99.7 % 79.1 % 99.2 %
Held for Sale (2) N/A 47.0 % N/A 62.3 %
(2) Included in the sale of Emerald Driller Company, which owns the Emerald Driller, Sapphire Driller and Aquamarine Driller. Each of these rigs were classified as held for sale on our Consolidated Balance Sheets up to the closing date, which was on May 27, 2022.

Vantage Drilling International
Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
June 30, 2023 December 31, 2022
ASSETS
Current assets
Cash and cash equivalents $ 79,650 $ 74,026
Restricted cash 455 16,450
Trade receivables, net of allowance for credit losses of $3,850 and $4,962, respectively 83,109 62,776
Materials and supplies 44,759 41,250
Prepaid expenses and other current assets 40,166 25,621
Total current assets 248,139 220,123
Property and equipment
Property and equipment 649,910 647,909
Accumulated depreciation (330,911 ) (309,453 )
Property and equipment, net 318,999 338,456
Operating lease ROU assets 812 1,648
Other assets 12,659 18,334
Total assets $ 580,609 $ 578,561
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 55,570 $ 57,775
Other current liabilities 65,770 66,179
Total current liabilities 121,340 123,954
Long–term debt, net of discount and financing costs of $11,080 and $773, respectively 188,920 179,227
Other long-term liabilities 9,678 12,881
Commitments and contingencies
Shareholders’ equity
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,229,280 and 13,115,026 shares issued and outstanding, each period 13 13
Additional paid-in capital 633,605 633,863
Accumulated deficit (373,971 ) (373,147 )
Controlling interest shareholders’ equity 259,647 260,729
Noncontrolling interests 1,024 1,770
Total equity 260,671 262,499
Total liabilities and shareholders’ equity $ 580,609 $ 578,561

Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $ (1,570 ) $ 34,139
Adjustments to reconcile net (loss) income to net cash used in operating activities
Depreciation expense 22,094 22,382
Amortization of debt financing costs 862 820
Share-based compensation expense 25 44
Loss on debt extinguishment 703
Deferred income tax expense 733 410
Gain on disposal of assets (1,630 )
Loss (gain) on EDC Sale 3 (60,781 )
Changes in operating assets and liabilities:
Trade receivables, net (20,333 ) (58,864 )
Materials and supplies (3,509 ) (1,811 )
Prepaid expenses and other current assets (5,379 ) 3,369
Other assets 5,269 (25,043 )
Accounts payable (2,205 ) 29,564
Other current liabilities and other long-term liabilities (7,773 ) 17,696
Net cash used in operating activities (11,080 ) (39,705 )
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (2,637 ) (7,736 )
Net proceeds from EDC Sale 200,000
Net proceeds from sale of assets 3,100
Net cash (used in) provided by investing activities (2,637 ) 195,364
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from 9.50% First Lien Notes 194,000
Repayment of long-term debt (180,000 )
Shares repurchased for tax withholdings on settlement of RSUs (246 )
Payments of dividend equivalents (5,278 )
Debt issuance costs (5,645 )
Net cash provided by financing activities 2,831
Net (decrease) increase in unrestricted and restricted cash and cash equivalents (10,886 ) 155,659
Unrestricted and restricted cash and cash equivalents—beginning of period 93,257 90,608
Unrestricted and restricted cash and cash equivalents—end of period $ 82,371 $ 246,267

Vantage Drilling International
Non-GAAP Measures
(In thousands)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
Reconciliation of EBITDA 2023 2022 2023 2022
Net income (loss) attributable to shareholders $ 1,462 $ 48,099 $ (824 ) $ 33,201
Depreciation 11,045 11,087 22,094 22,382
Interest income (141 ) (7 ) (190 ) (11 )
Interest expense and other financing costs 5,346 8,503 10,904 17,007
Income tax provision (benefit) 10,584 (1,221 ) 2,606 217
EBITDA $ 28,296 $ 66,461 $ 34,590 $ 72,796