Dubai, Nov. 07, 2024 (GLOBE NEWSWIRE) -- DUBAI, November 7, 2024 (GLOBE
NEWSWIRE) -- Vantage Drilling International Ltd. ("Vantage" or the "Company")
reported a net loss attributable to shareholders of approximately $10.6 million
or $0.80 per diluted share for the three months ended September 30, 2024, based
on weighted average shares outstanding, as compared to a near breakeven net
income attributable to shareholders for the three months ended September
30, 2023.
As of September 30, 2024, Vantage had approximately $57.6 million in cash. This
total includes $6.4 million of restricted cash and $12.4 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 third quarter marked important progress for the
company. We successfully placed the Topaz Driller on contract, delivering it on
time and within budget. We also continued the upgrades to the Platinum Explorer
to improve its marketability. Additionally, we announced the sale of both the
Topaz Driller and Soehanah for $190 million, along with three 3-year management
and support agreements, further reinforcing our commitment to the managed
services segment and strengthening the company's balance sheet."
Mr. Toma continued, "The $6.4 million in EBITDA generated this quarter, along
with our key milestones achieved, reflects the efficiency of our operations and
our organization's ability to navigate through 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 September 30, Nine Months Ended September 30,
-------------------------------------- --------------------------------------
2024 2023 2024 2023
----------------- -------------------- ---------------------- ---------------
Revenue
Contract drilling
services $ 35,264 $ 76,190 $ 129,593 $ 191,780
Management fees 2,973 6,086 14,196 13,775
Reimbursables and
other 10,717 21,426 31,125 83,059
----------------- -------------------- ---------------------- ---------------
Total revenue 48,954 103,702 174,914 288,614
----------------- -------------------- ---------------------- ---------------
Operating costs and
expenses
Operating costs 38,012 73,988 130,296 214,926
General and
administrative 5,716 5,561 18,195 15,553
Depreciation 11,247 11,065 33,739 33,159
(Gain) loss on EDC
Sale - - - 3
----------------- -------------------- ---------------------- ---------------
Total operating costs
and expenses 54,975 90,614 182,230 263,641
----------------- -------------------- ---------------------- ---------------
Income (loss) from
operations (6,021) 13,088 (7,316) 24,973
Other (expense)
income
Interest income 212 251 706 441
Interest expense and
other financing
charges (6,358) (5,343) (17,358) (16,247)
Other, net 1,222 115 244 (20)
----------------- -------------------- ---------------------- ---------------
Total other expense (4,924) (4,977) (16,408) (15,826)
----------------- -------------------- ---------------------- ---------------
Income (loss) before
income taxes (10,945) 8,111 (23,724) 9,147
Income tax provision
(benefit) (342) 8,097 4,280 10,703
----------------- -------------------- ---------------------- ---------------
Net income (loss) (10,603) 14 (28,004) (1,556)
----------------- -------------------- ---------------------- ---------------
Net income (loss)
attributable to non-
controlling interests (5) 10 (314) (736)
----------------- -------------------- ---------------------- ---------------
Net income (loss)
attributable to
shareholders $ (10,598) $ 4 $ (27,690) $ (820)
----------------- -------------------- ---------------------- ---------------
EBITDA(1) $ 6,448 $ 24,268 $ 26,667 $ 58,112
Earnings (loss) per
share
Basic and Diluted $ (0.80) $ 0.00 $ (2.09) $ (0.06)
Weighted average
ordinary shares
outstanding,
Basic 13,295 13,229 13,276 13,213
Diluted 13,295 13,323 13,276 13,213
(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 September 30, Nine Months Ended September 30,
-------------------------------------- ---------------------------------------------
2024 2023 2024 2023
----------------- -------------------- ---------------------- ------------
Operating costs and
expenses
Jackups $ 4,958 $ 7,366 $ 21,128 $ 15,088
Deepwater 20,119 26,056 66,383 69,174
Managed Rigs 47 17,825 4,569 52,084
Operations support 2,917 2,764 9,083 8,340
Reimbursables 9,971 19,977 29,133 70,240
----------------- -------------------- ---------------------- ------------
Total operating costs
and expenses $ 38,012 $ 73,988 $ 130,296 $ 214,926
----------------- -------------------- ---------------------- ------------
Utilization
Jackups 50.3% 67.2% 63.3% 83.4%
Deepwater 49.4% 84.9% 53.7% 81.0%
Vantage Drilling International Ltd.
Condensed Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
September 30,
2024 December 31, 2023
----------------- --------------------
ASSETS
Current assets
Cash and cash
equivalents $ 51,169 $ 73,206
Restricted cash 1,071 1,828
Trade receivables,
net of allowance for
credit losses of
$5,799 and $5,434,
respectively 69,831 74,113
Materials and
supplies 56,151 46,704
Prepaid expenses and
other current assets 31,423 37,423
----------------- --------------------
Total current assets 209,645 233,274
----------------- --------------------
Property and
equipment
Property and
equipment 684,190 660,449
Accumulated
depreciation (380,230) (352,357)
----------------- --------------------
Property and
equipment, net 303,960 308,092
Operating lease ROU
assets 518 1,084
Other assets 44,838 19,283
----------------- --------------------
Total assets $ 558,961 $ 561,733
----------------- --------------------
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 50,910 $ 62,245
Debt due within
one year 25,000 -
Other current
liabilities 39,466 51,946
----------------- --------------------
Total current
liabilities 115,376 114,191
----------------- --------------------
Long-term debt, net
of discount and
financing costs of
$8,112 and $9,893
respectively 191,888 190,107
Other long-term
liabilities 32,010 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 634,960 633,963
Accumulated deficit (416,213) (388,523)
----------------- --------------------
Controlling interest
shareholders' equity 218,760 245,453
Noncontrolling
interests 927 1,241
----------------- --------------------
Total equity 219,687 246,694
----------------- --------------------
Total liabilities and
shareholders' equity $ 558,961 $ 561,733
----------------- --------------------
Vantage Drilling International Ltd.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September 30,
--------------------------------------
2024 2023
----------------- --------------------
CASH FLOWS FROM
OPERATING ACTIVITIES
Net loss $ (28,004) $ (1,556)
Adjustments to
reconcile net loss to
net cash used in
operating activities
Depreciation expense 33,739 33,159
Amortization of debt
financing costs 2,518 1,455
Share-based
compensation expense 1,537 45
Loss on debt
extinguishment - 703
Deferred income tax
expense 193 994
Loss on disposal of
assets 79 -
Loss on EDC Sale - 3
Allowance for credit
losses 365 -
Changes in operating
assets and
liabilities:
Trade receivables,
net 3,917 (24,537)
Materials and
supplies (9,447) (6,723)
Prepaid expenses and
other current assets 6,000 (9,377)
Other assets (27,676) 4,810
Accounts payable (11,335) 5,416
Other current
liabilities and other
long-term liabilities 11,964 (15,822)
----------------- --------------------
Net cash used in
operating activities (16,150) (11,430)
----------------- --------------------
CASH FLOWS FROM
INVESTING ACTIVITIES
Additions to property
and equipment (29,766) (6,833)
Proceeds from
disposal of assets 80 -
----------------- --------------------
Net cash used in
investing activities (29,686) (6,833)
----------------- --------------------
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from 9.50%
First Lien Notes - 194,000
Proceeds from
Revolving Credit
Facility 25,000 -
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 (1,833) (5,850)
----------------- --------------------
Net cash (used in)
provided by financing
activities 19,454 2,626
----------------- --------------------
Net decrease in
unrestricted and
restricted cash and
cash equivalents (26,382) (15,637)
Unrestricted and
restricted cash and
cash
equivalents-beginning
of period 83,975 93,257
----------------- --------------------
Unrestricted and
restricted cash and
cash equivalents-end
of period $ 57,593 $ 77,620
----------------- --------------------
Vantage Drilling International Ltd.
Non-GAAP Measures
(In thousands)
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------------- --------------------------------------
Reconciliation of
EBITDA 2024 2023 2024 2023
----------------- -------------------- ---------------------- ---------------
Net income (loss) $ (10,603) $ 14 $ (28,004) $ (1,556)
Depreciation 11,247 11,065 33,739 33,159
Interest income (212) (251) (706) (441)
Interest expense and
other financing costs 6,358 5,343 17,358 16,247
Income tax provision (342) 8,097 4,280 10,703
----------------- -------------------- ---------------------- ---------------
EBITDA $ 6,448 $ 24,268 $ 26,667 $ 58,112
----------------- -------------------- ---------------------- ---------------