As of June 30, 2024, Vantage had approximately $50.8 million in cash. This total includes $10.5 million of restricted cash and $12.8 million pre-funded by our Managed Services customers for near-term obligations. In comparison, on December 31, 2023, Vantage had $84.0 million in cash, including $10.8 million of restricted cash and $11.6 million pre-funded by our Managed Services customers.

Ihab Toma, CEO, commented: “The Company continued to perform well operationally and financially during the quarter, even with the Topaz Driller and Platinum Explorer undergoing major upgrades. The Topaz Driller continues to prepare for its upcoming contract while the Platinum Explorer enhances its marketability.”

Mr. Toma continued, “EBITDA generation of $4.6 million during the quarter reflects the efficiency of our operations and the dedication of our employees during this transitional period.”

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

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.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Revenue
Contract drilling services $ 34,100 $ 67,673 $ 94,329 $ 115,590
Management fees 5,697 5,569 11,223 7,689
Reimbursables and other 10,015 34,598 20,408 61,633
Total revenue 49,812 107,840 125,960 184,912
Operating costs and expenses
Operating costs 39,561 74,383 92,284 140,938
General and administrative 5,225 5,161 12,479 9,992
Depreciation 11,257 11,045 22,492 22,094
(Gain) loss on EDC Sale 3
Total operating costs and expenses 56,043 90,589 127,255 173,027
Income (loss) from operations (6,231 ) 17,251 (1,295 ) 11,885
Other (expense) income
Interest income 200 141 494 190
Interest expense and other financing charges (5,656 ) (5,346 ) (11,000 ) (10,904 )
Other, net (383 ) (457 ) (978 ) (135 )
Total other expense (5,839 ) (5,662 ) (11,484 ) (10,849 )
Income (loss) before income taxes (12,070 ) 11,589 (12,779 ) 1,036
Income tax provision 2,141 10,584 4,622 2,606
Net income (loss) (14,211 ) 1,005 (17,401 ) (1,570 )
Net income (loss) attributable to non-controlling interests 10 (457 ) (309 ) (746 )
Net income (loss) attributable to shareholders $ (14,221 ) $ 1,462 $ (17,092 ) $ (824 )
EBITDA(1) $ 4,643 $ 27,839 $ 20,219 $ 33,844
Earnings (loss) per share
Basic and Diluted $ (1.07 ) $ 0.11 $ (1.29 ) $ (0.06 )
Weighted average ordinary shares outstanding,
Basic 13,295 13,229 13,266 13,204
Diluted 13,295 13,320 13,266 13,204
(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
(in thousands, except percentages)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
Operating costs and expenses
Jackups $ 4,980 $ 3,736 $ 16,170 $ 7,722
Deepwater 21,547 24,154 46,264 43,118
Managed Rigs 17,319 4,570 34,258
Operations support 3,171 2,924 6,167 5,575
Reimbursables 9,863 26,250 19,113 50,265
Total operating costs and expenses $ 39,561 $ 74,383 $ 92,284 $ 140,938
Utilization
Jackups 50.0 % 94.4 % 69.9 % 97.2 %
Deepwater 43.4 % 95.2 % 55.5 % 79.1 %

Vantage Drilling International Ltd.
Condensed Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
June 30, 2024 December 31, 2023
ASSETS
Current assets
Cash and cash equivalents $ 40,290 $ 73,206
Restricted cash 2,264 1,828
Trade receivables, net of allowance for credit losses of $5,805 and $5,434, respectively 56,534 74,113
Materials and supplies 52,470 46,704
Prepaid expenses and other current assets 35,501 37,423
Total current assets 187,059 233,274
Property and equipment
Property and equipment 677,304 660,449
Accumulated depreciation (374,459 ) (352,357 )
Property and equipment, net 302,845 308,092
Operating lease ROU assets 658 1,084
Other assets 42,313 19,283
Total assets $ 532,875 $ 561,733
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable $ 60,730 $ 62,245
Other current liabilities 38,277 51,946
Total current liabilities 99,007 114,191
Long–term debt, net of discount and financing costs of $8,706 and $9,893 respectively 191,294 190,107
Other long-term liabilities 12,725 10,741
Shareholders’ equity
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,295,262 and 13,229,280 shares issued and outstanding, each period 13 13
Additional paid-in capital 634,519 633,963
Accumulated deficit (405,615 ) (388,523 )
Controlling interest shareholders’ equity 228,917 245,453
Noncontrolling interests 932 1,241
Total equity 229,849 246,694
Total liabilities and shareholders’ equity $ 532,875 $ 561,733

Vantage Drilling International Ltd.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Six Months Ended June 30,
2024 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (17,401 ) $ (1,570 )
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation expense 22,492 22,094
Amortization of debt financing costs 1,449 862
Share-based compensation expense 1,069 25
Loss on debt extinguishment 703
Deferred income tax expense 420 733
Loss on disposal of assets 81
Loss on EDC Sale 3
Allowance for credit losses 371
Changes in operating assets and liabilities:
Trade receivables, net 17,208 (20,333 )
Materials and supplies (5,766 ) (3,509 )
Prepaid expenses and other current assets 1,922 (5,379 )
Other assets (22,340 ) 5,269
Accounts payable (1,515 ) (2,205 )
Other current liabilities and other long-term liabilities (9,278 ) (7,773 )
Net cash used in operating activities (11,288 ) (11,080 )
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (17,396 ) (2,637 )
Proceeds from disposal of assets 70
Net cash used in investing activities (17,326 ) (2,637 )
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 (441 ) (246 )
Payments of dividend equivalents (3,272 ) (5,278 )
Debt issuance costs (837 ) (5,645 )
Net cash (used in) provided by financing activities (4,550 ) 2,831
Net decrease in unrestricted and restricted cash and cash equivalents (33,164 ) (10,886 )
Unrestricted and restricted cash and cash equivalents—beginning of period 83,975 93,257
Unrestricted and restricted cash and cash equivalents—end of period $ 50,811 $ 82,371

Vantage Drilling International Ltd.
Non-GAAP Measures
(In thousands)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
Reconciliation of EBITDA 2024 2023 2024 2023
Net income (loss) $ (14,211 ) $ 1,005 $ (17,401 ) $ (1,570 )
Depreciation 11,257 11,045 22,492 22,094
Interest income (200 ) (141 ) (494 ) (190 )
Interest expense and other financing costs 5,656 5,346 11,000 10,904
Income tax provision 2,141 10,584 4,622 2,606
EBITDA $ 4,643 $ 27,839 $ 20,219 $ 33,844

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