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CST: 18/03/2019 16:59:56   

Vantage Drilling International Reports Fourth Quarter and Full-Year 2018 Results

4 Days ago

HOUSTON, March 14, 2019 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss of approximately $52.2 million or $10.44 per share for the three months ended December 31, 2018 as compared to a net loss of $36.6 million or $7.33 per share for the three months ended December 31, 2017.

For the year ended December 31, 2018, Vantage reported a net loss of approximately $141.5 million or $28.29 per share as compared to a net loss of $149.8 million or $29.96 per share for the year ended December 31, 2017.

As of December 31, 2018, Vantage had approximately $239.4 million in cash, including $14.4 million of restricted cash, compared to $195.5 million in unrestricted cash and no restricted cash at December 31, 2017. The Company generated $12.8 million in cash from operations in 2018 compared to net cash used in operations of $19.9 million in 2017. During the three months ended December 31, 2018, the Company issued $350 million of new senior secured notes using proceeds to repay its first and second lien debt and to acquire the Soehanah jackup for $85.0, including transaction costs.

Ihab Toma, CEO, commented, “I am pleased to report that during another difficult year for the industry we accomplished our principal objectives for 2018. We refinanced two tranches of debt thereby extending maturities to 2023. We also acquired the Soehanah jackup, complementing our fleet of premium jackup rigs and, most importantly, continued to provide operational excellence to our clients while generating positive cash flow from operations.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and five 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 natural gas companies. Vantage also provides construction supervision services and preservation management services for, and will operate and manage, drilling units owned by others.

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.

Public & Investor Relations Contact:

     Thomas J. Cimino
     Chief Financial Officer
     Vantage Drilling International
     (281) 404-4700

 
Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share data)
(Unaudited)
 
    Three Months Ended December 31,     Year Ended December 31,  
      2018       2017       2018       2017  
Revenue                
Contract drilling services   $ 37,753     $ 52,881     $ 203,565     $ 190,553  
Management fees     308       307       1,220       1,456  
Reimbursables     5,006       6,650       20,962       20,837  
Total revenue     43,067       59,838       225,747       212,846  
Operating costs and expenses                
Operating costs     42,099       42,730       171,041       161,974  
General and administrative     6,609       11,719       29,544       41,648  
Depreciation     17,230       18,394       70,447       73,925  
Total operating costs and expenses     65,938       72,843       271,032       277,547  
Loss from operations     (22,871 )     (13,005 )     (45,285 )     (64,701 )
Other income (expense)                
Interest income     924       221       1,898       808  
Interest expense and other financing charges     (20,657 )     (19,261 )     (78,779 )     (76,441 )
Loss on debt extinguishment     (1,271 )           (1,271 )      
Other, net     (474 )     520       (1,505 )     2,807  
Bargain purchase gain                       1,910  
Total other expense     (21,478 )     (18,520 )     (79,657 )     (70,916 )
Loss before income taxes     (44,349 )     (31,525 )     (124,942 )     (135,617 )
Income tax provision     7,828       5,101       16,526       14,168  
Net loss   $ (52,177 )   $ (36,626 )   $ (141,468 )   $ (149,785 )
Net loss per share, basic and diluted   $ (10.44 )   $ (7.33 )   $ (28.29 )   $ (29.96 )
Weighted average successor ordinary shares outstanding, basic and diluted     5,000       5,000       5,000       5,000  
 
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
         
    Three Months Ended December 31,     Year Ended December 31,  
      2018       2017       2018       2017  
Operating costs and expenses                
Jackups   $ 16,396     $ 19,623     $ 65,492     $ 72,279  
Deepwater     20,217       16,248       79,655       65,032  
Operations support     2,274       2,893       12,888       12,334  
Reimbursables     3,212       3,966       13,006       12,329  
    $ 42,099     $ 42,730     $ 171,041     $ 161,974  
                 
Utilization                
Jackups     96.6 %     99.5 %     92.2 %     82.0 %
Deepwater     35.0 %     45.4 %     54.5 %     36.2 %
                                 


 
Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
         
    December 31,
2018
  December 31,
2017
         
ASSETS        
Current assets        
Cash and cash equivalents   $ 224,967     $ 195,455  
Restricted cash     10,362       -  
Trade receivables     28,431       45,379  
Inventory     45,195       43,955  
Prepaid expenses and other current assets     17,278       13,207  
Total current assets     326,233       297,996  
Property and equipment        
Property and equipment     996,139       904,584  
Accumulated depreciation     (208,836 )     (141,393 )
Property and equipment, net     787,303       763,191  
Other assets     16,026       21,935  
Total assets   $ 1,129,562     $ 1,083,122  
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities        
Accounts payable   $ 44,372     $ 39,666  
Accrued liabilities     17,983       25,117  
Current maturities of long-term debt           4,430  
Total current liabilities     62,355       69,213  
Long–term debt, net of discount and financing costs of $12,914 and $56,174     1,109,011       919,939  
Other long-term liabilities     22,889       17,195  
Commitments and contingencies        
Shareholders' equity        
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding     5       5  
Additional paid-in capital     373,972       373,972  
Accumulated deficit     (438,670 )     (297,202 )
Total shareholders' equity     (64,693 )     76,775  
Total liabilities and shareholders’ equity   $ 1,129,562     $ 1,083,122  
         


 
Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
         
    Year Ended December 31,  
      2018       2017  
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss   $ (141,468 )   $ (149,785 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation expense     70,447       73,925  
Amortization of debt financing costs     556       468  
Amortization of debt discount     49,417       48,925  
Amortization of contract value     6,311       4,686  
PIK interest on the Convertible Notes     7,648       7,604  
Share-based compensation expense     7,165       3,997  
Gain on bargain purchase           (1,910 )
Non-cash loss on debt extinguishment     975        
Deferred income tax benefit     1,742       (1,964 )
(Gain) loss on disposal of assets     (1,301 )     335  
Changes in operating assets and liabilities:        
Trade receivables     16,948       (24,529 )
Inventory     1,911       1,251  
Prepaid expenses and other current assets     (6,121 )     1,267  
Other assets     2,339       2,638  
Accounts payable     4,706       4,383  
Accrued liabilities and other long-term liabilities     (8,481 )     8,836  
Net cash provided by (used in) operating activities     12,794       (19,873 )
CASH FLOWS FROM INVESTING ACTIVITIES        
Additions to property and equipment     (14,316 )     (2,224 )
Cash paid for Soehanah acquisition     (85,000 )      
Cash paid for Vantage 260 acquisition           (13,000 )
Net proceeds from sale of Vantage 260     4,703       255  
Net cash used in investing activities     (94,613 )     (14,969 )
CASH FLOWS FROM FINANCING ACTIVITIES        
Repayment of long-term debt     (216,265 )     (1,430 )
Proceeds from issuance of 9.25% First Lien Notes     350,000        
Debt issuance costs     (7,688 )      
Debt prepayment costs     (296 )      
Net cash provided by (used in) financing activities     125,751       (1,430 )
Net increase (decrease) in cash and cash equivalents     43,932       (36,272 )
Unrestricted and restricted cash and cash equivalents—beginning of period     195,455       231,727  
Unrestricted and restricted cash and cash equivalents—end of period   $ 239,387     $ 195,455  
         

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