For the year ended December 31, 2023, Vantage reported a net loss attributable to controlling interest of approximately $15.4 million or $1.16 per diluted share, as compared to a net loss attributable to controlling interest of $3.4 million or $0.26 per diluted share for the year ended December 31, 2022.

As of December 31, 2023, Vantage had approximately $84.0 million in cash, including $10.8 million of restricted cash, compared to $93.3 million in cash, including $19.2 million of restricted cash, at December 31, 2022.  At December 31, 2023, Vantage maintained $11.6 million of cash pre-funded by our Managed Services customers to address near-term obligations during the fourth quarter of 2023.  Excluding cash used in connection with our Managed Services customers, the Company generated $13.6 million of cash from operating activities during the fourth quarter of 2023.

Ihab Toma, CEO, commented: “I am pleased with the Company’s financial performance for 2023.  The Company generated cash of $2.2 million for the year, reaching approximately $71.0 million of EBITDA, a level not seen since prior to the Company’s reorganization in 2016.  Vantage continued to serve its clients well across our managed services and owned rigs segments.  It is our operational strength, customer focus and creative business models that led to the ground-breaking announcement with our client, TotalEnergies, regarding our joint venture to own the Tungsten Explorer along with a 10-year management contract to manage the rig.”

Mr. Toma continued, “As for 2024, while in many ways, it is a year of transition for some of our rigs with shipyard stays and preparation time between contracts, I am excited about what the future holds for Vantage. Fundamentally, the market continues to be in a healthy place, and we are in a good position to take advantage of this.”

Vantage, a Bermuda 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 reports or filings posted to its website or otherwise made available to its investors or creditors. 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

ROO.AI Oil and Gas Field Service Software
GLJ

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 Ltd.
+971 4 449 34 28

Vantage Drilling International Ltd.
Consolidated Statement of Operations
(Unaudited, in thousands, except per share data)
Three months ended December 31, Twelve months ended December 31,
2023 2022 2023 2022
Revenue
Contract drilling services $ 68,831 $ 32,367 $ 260,611 $ 154,116
Management fees 5,711 2,449 19,486 10,834
Reimbursables and other 19,980 41,373 103,039 113,766
Total revenue 94,522 76,189 383,136 278,716
Operating costs and expenses
Operating costs 75,199 65,065 290,125 234,832
General and administrative 6,177 5,264 21,730 23,009
Depreciation 11,299 11,024 44,458 44,428
Gain on EDC Sale 4 3 (61,409 )
Total operating costs and expenses 92,675 81,357 356,316 240,860
(Loss) income from operations 1,847 (5,168 ) 26,820 37,856
Other (expense) income
Interest income 309 1,080 750 1,108
Interest expense and other financing charges (5,344 ) (8,840 ) (21,591 ) (34,351 )
Other, net (385 ) (1,519 ) (405 ) (3,668 )
Total other expense (5,420 ) (9,279 ) (21,246 ) (36,911 )
(Loss) income before income taxes (3,573 ) (14,447 ) 5,574 945
Income tax provision 10,776 2,530 21,479 4,313
Net loss (14,349 ) (16,977 ) (15,905 ) (3,368 )
Net (loss) income attributable to noncontrolling interests 207 (619 ) (529 ) (13 )
Net loss attributable to shareholders $ (14,556 ) $ (16,358 ) $ (15,376 ) $ (3,355 )
EBITDA (1) $ 12,761 $ 4,337 $ 70,873 $ 78,616
Loss per share
Basic and Diluted $ (1.10 ) $ (1.25 ) $ (1.16 ) $ (0.26 )
Weighted average ordinary shares outstanding,
Basic and Diluted 13,229 13,115 13,217 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 Ltd.
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Three months ended December 31, Twelve months ended December 31,
2023 2022 2023 2022
Operating costs
Jackups $ 13,275 $ 4,317 $ 28,870 $ 36,225
Deepwater 23,040 17,350 92,215 68,567
Third party Rigs 16,696 2,295 68,779 2,289
Sold rigs/Held for sale (18 ) 20 (525 ) 10,722
Operations support 3,105 2,595 11,444 10,975
Reimbursables 19,101 38,488 89,342 106,054
Total operating costs $ 75,199 $ 65,065 $ 290,125 $ 234,832
Utilization (1)
Jackups 71.0 % 100.0 % 79.0 % 72.7 %
Deepwater 83.9 % 90.1 % 81.8 % 94.2 %
Sold rigs/Held for sale N/A N/A N/A 43.6 %
(1) Excludes rigs under bareboat charter contracts to third parties.

Vantage Drilling International Ltd.
Consolidated Balance Sheets
(Unaudited, in thousands, except share and par value information)
December 31, 2023 December 31, 2022
ASSETS
Current assets
Cash and cash equivalents $ 73,206 $ 74,026
Restricted cash 1,828 16,450
Trade receivables, net of allowance for credit losses of $5,434 and $4,962, respectively 74,113 62,776
Materials and supplies 46,704 41,250
Prepaid expenses and other current assets 37,423 25,621
Total current assets 233,274 220,123
Property and equipment
Property and equipment 660,449 647,909
Accumulated depreciation (352,357 ) (309,453 )
Property and equipment, net 308,092 338,456
Operating lease ROU assets 1,084 1,648
Other assets 19,283 18,334
Total assets $ 561,733 $ 578,561
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 62,245 $ 57,775
Other current liabilities 51,946 66,179
Total current liabilities 114,191 123,954
Long–term debt, net of discount and financing costs of $9,893 and $733, respectively 190,107 179,227
Other long-term liabilities 10,741 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 633,963 633,863
Accumulated deficit (388,523 ) (373,147 )
Controlling interest shareholders’ equity 245,453 260,729
Noncontrolling interests 1,241 1,770
Total equity 246,694 262,499
Total liabilities and shareholders’ equity $ 561,733 $ 578,561
Vantage Drilling International Ltd.
Consolidated Statement of Cash Flows
(Unaudited, in thousands)
Year Ended December 31,
2023 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (15,905 ) $ (3,368 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation expense 44,458 44,428
Amortization of debt financing costs 2,048 1,639
Share-based compensation expense 383 79
Loss on debt extinguishment 703 730
Deferred income tax expense 624 708
Loss (gain) on disposal of assets (1,600 )
Gain on EDC Sale 3 (61,409 )
Changes in operating assets and liabilities:
Trade receivables, net (11,337 ) (42,241 )
Materials and supplies (5,453 ) (4,155 )
Prepaid expenses and other current assets (11,803 ) (9,878 )
Other assets 4,421 (22,461 )
Accounts payable 4,470 44,469
Other current liabilities and other long-term liabilities (10,413 ) 34,185
Net cash (used in) provided by operating activities 2,199 (18,874 )
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (14,094 ) (10,277 )
Net proceeds from EDC Sale 198,700
Net proceeds from sale of assets 3,100
Net proceeds from sale of Titanium Explorer
Net cash provided by (used in) investing activities (14,094 ) 191,523
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from 9.50% First Lien Notes 194,000
Repayment of long-term debt (180,000 ) (170,000 )
Shares repurchased for tax withholdings on settlement of RSUs (246 )
Payments of dividend equivalents (5,278 )
Debt issuance costs (5,863 )
Net cash provided by (used in) financing activities 2,613 (170,000 )
Net increase (decrease) in unrestricted and restricted cash and cash equivalents (9,282 ) 2,649
Unrestricted and restricted cash and cash equivalents—beginning of period 93,257 90,608
Unrestricted and restricted cash and cash equivalents—end of period $ 83,975 $ 93,257

Vantage Drilling International Ltd.
Non-GAAP Measures
(Unaudited, in thousands)
Three months ended December 31, Twelve months ended December 31,
Reconciliation of EBITDA 2023 2022 2023 2022
Net loss $ (14,349 ) $ (16,977 ) $ (15,905 ) $ (3,368 )
Depreciation 11,299 11,024 44,458 44,428
Interest income (309 ) (1,080 ) (750 ) (1,108 )
Interest expense and other financing costs 5,344 8,840 21,591 34,351
Income tax provision 10,776 2,530 21,479 4,313
EBITDA $ 12,761 $ 4,337 $ 70,873 $ 78,616

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