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CST: 13/12/2019 07:58:20   

Vantage Drilling International Reports Third Quarter Results for 2019

36 Days ago

HOUSTON, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $25.7 million or $5.14 per share for the three months ended September 30, 2019 compared to a net loss attributable to controlling interest of $26.1 million or $5.21 per share for the three months ended September 30, 2018.

As of September 30, 2019, Vantage had approximately $825.1 million in cash, including $10.4 million of restricted cash, compared to $239.4 million in cash, including $14.4 million of restricted cash at December 31, 2018.

Ihab Toma, CEO, commented, “I am very pleased to report that we continue to increase our backlog at higher effective day rates while remaining laser focused on delivering superior results to our customers.  This addition to backlog reflects the confidence our customers have in us, and the excellent safety and operational performance our teams are delivering to them.”

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 September 30,   Nine Months Ended September 30,
      2019       2018       2019       2018  
Revenue                
Contract drilling services   $ 35,830     $ 59,034     $ 101,575     $ 165,813  
Contract termination revenue                 594,029        
Reimbursables and other     4,814       5,522       15,978       16,868  
Total revenue     40,644       64,556       711,582       182,681  
Operating costs and expenses                
Operating costs     37,915       43,307       114,538       128,943  
General and administrative     6,644       9,303       86,014       22,935  
Depreciation     18,459       17,638       55,491       53,217  
Total operating costs and expenses     63,018       70,248       256,043       205,095  
Income (loss) from operations     (22,374 )     (5,692 )     455,539       (22,414 )
Other income (expense)                
Interest income     4,245       533       113,614       974  
Interest expense and other financing charges     (10,465 )     (19,439 )     (36,715 )     (58,122 )
Other, net     97       53       221       (1,031 )
Total other income (expense)     (6,123 )     (18,853 )     77,120       (58,179 )
Income (loss) before income taxes     (28,497 )     (24,545 )     532,659       (80,593 )
Income tax (benefit) provision     (2,749 )     1,515       15,852       8,698  
Net income (loss)     (25,748 )     (26,060 )     516,807       (89,291 )
Net loss attributable to noncontrolling interests     (28 )           (312 )      
Net income (loss) attributable to shareholders   $ (25,720 )   $ (26,060 )   $ 517,119     $ (89,291 )
Earnings (loss) per share                
Basic   $ (5.14 )   $ (5.21 )   $ 102.47     $ (17.86 )
Diluted   $ (5.14 )   $ (5.21 )   $ 102.14     $ (17.86 )
 
 
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
 
    Three Months Ended September 30,   Nine Months Ended September 30,
      2019       2018       2019       2018  
Operating costs and expenses                
Jackups   $ 14,910     $ 18,112     $ 46,763     $ 49,097  
Deepwater     18,103       17,927       50,409       59,438  
Operations support     3,014       4,119       9,474       10,614  
Reimbursables     1,888       3,149       7,892       9,794  
    $ 37,915     $ 43,307     $ 114,538     $ 128,943  
                 
Utilization                
Jackups     98.4 %     98.5 %     96.8 %     90.9 %
Deepwater     41.3 %     65.7 %     41.0 %     61.1 %


Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
 
    September 30, 2019   December 31, 2018
         
ASSETS        
Current assets        
Cash and cash equivalents   $ 814,724     $ 224,967  
Restricted cash     5,637       10,362  
Trade receivables     36,467       28,431  
Inventory     46,883       45,195  
Prepaid expenses and other current assets     19,324       17,278  
Total current assets     923,035       326,233  
Property and equipment        
Property and equipment     1,002,709       996,139  
Accumulated depreciation     (263,778 )     (208,836 )
Property and equipment, net     738,931       787,303  
Operating lease right-of-use assets     7,515       -  
Other assets     13,470       16,026  
Total assets   $ 1,682,951     $ 1,129,562  
         
LIABILITIES AND SHAREHOLDERS' EQUITY        
Current liabilities        
Accounts payable   $ 46,692     $ 44,372  
Other current liabilities     39,267       17,983  
Total current liabilities     85,959       62,355  
Long–term debt, net of discount and financing costs of $6,830 and $12,914     1,118,962       1,109,011  
Other long-term liabilities     25,426       22,889  
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 earnings (deficit)     78,449       (438,670 )
Controlling interest shareholders' equity     452,426       (64,693 )
Noncontrolling interests     178       -  
Total equity     452,604       (64,693 )
Total liabilities and shareholders’ equity   $ 1,682,951     $ 1,129,562  


Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
 
    Nine Months Ended September 30,
      2019       2018  
CASH FLOWS FROM OPERATING ACTIVITIES        
Net income (loss)   $ 516,807     $ (89,291 )
Adjustments to reconcile net income (loss) to net cash provided by operating activities:        
Depreciation expense     55,491       53,217  
Amortization of debt financing costs     1,217       351  
Amortization of debt discount     5,354       37,021  
Amortization of contract value     1,643       4,721  
PIK interest on the Convertible Notes     5,779       5,735  
Share-based compensation expense     1,053       7,777  
Deferred income tax expense     59       1,874  
Loss (gain) on disposal of assets     109       (1,313 )
Changes in operating assets and liabilities:        
Trade receivables     (8,036 )     6,290  
Inventory     (1,688 )     544  
Prepaid expenses and other current assets     (2,046 )     (5,591 )
Other assets     3,214       1,230  
Accounts payable     2,320       (3,245 )
Other current liabilities and other long-term liabilities     11,011       (6,839 )
Net cash provided by operating activities     592,287       12,481  
CASH FLOWS FROM INVESTING ACTIVITIES        
Additions to property and equipment     (7,229 )     (8,275 )
Down payment on Soehanah acquisition           (15,000 )
Proceeds from sale of Vantage 260           4,703  
Net cash used in investing activities     (7,229 )     (18,572 )
CASH FLOWS FROM FINANCING ACTIVITIES        
Repayment of long-term debt           (5,815 )
Contributions from holders of noncontrolling interest     1,181        
Debt issuance costs     (487 )      
Net cash provided by (used in) financing activities     694       (5,815 )
Net increase (decrease) in unrestricted and restricted cash and cash equivalents     585,752       (11,906 )
Unrestricted and restricted cash and cash equivalents—beginning of period     239,387       195,455  
Unrestricted and restricted cash and cash equivalents—end of period   $ 825,139     $ 183,549  
         

PDF available: http://ml.globenewswire.com/Resource/Download/a79bfe06-b232-4066-87d6-f642c741e417

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