Vantage Drilling International Reports Fourth Quarter and Full-Year 2021 Results
HOUSTON, March 30, 2022 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss attributable to controlling interest of approximately $23.5 million or $1.79 per diluted share for the three months ended December 31, 2021, as compared to a net loss attributable to controlling interest of $44.9 million or $3.42 per diluted share for the three months ended December 31, 2020.
For the year ended December 31, 2021, Vantage reported net loss attributable to controlling interest of approximately $110.1 million or $8.40 per diluted share, as compared to a net loss attributable to controlling interest of $276.7 million or $21.10 per diluted share for the year ended December 31, 2020.
As of December 31, 2021, Vantage had approximately $90.6 million in cash, including $17.3 million of restricted cash, compared to $154.5 million in cash, including $12.5 million of restricted cash at December 31, 2020. The Company used $70.4 million in cash from operations in 2021 compared to $85.3 million used in 2020.
Ihab Toma, CEO, commented: “After an extremely challenging prior year, 2021 represented a year of recovery and higher utilization for the industry and Vantage. Much like 2019, all of our active rigs returned to work and we entered the new-year on the back of a stronger crude oil and natural gas environment. We seem to have passed an inflection point and rig active supply is reaching a tight balance with demand in both the deepwater and shallow water segments of the market.”
Mr. Toma continued, “The year was book-ended by two important events for the Company. We were awarded in January 2021 additional high specification rigs to manage, reflecting confidence in our efficient management platform. Then in December, we announced the execution of an agreement to sell three of our jack-up rigs to, along with the entry into a global strategic alliance with, members of the ADES Group. The common thread throughout the year connecting these two transactions, however, was the consistently strong performance by our operations team, delivering a very high caliber of service to our clients.”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two 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:
Douglas E. Stewart
Chief Financial Officer and General Counsel
Vantage Drilling International
C/O Vantage Energy Services, Inc.
777 Post Oak Blvd., Suite 440
Houston, Texas 77056
(281) 404-4700
| Vantage Drilling International | ||||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | ||||||||||||||||
| Contract drilling services | $ | 39,341 | $ | 16,474 | $ | 131,703 | $ | 112,013 | ||||||||
| Reimbursables and other | 10,461 | 1,946 | 26,717 | 14,849 | ||||||||||||
| Total revenue | 49,802 | 18,420 | 158,420 | 126,862 | ||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Operating costs | 43,886 | 35,194 | 150,668 | 149,084 | ||||||||||||
| General and administrative | 5,484 | 5,307 | 20,539 | 21,022 | ||||||||||||
| Depreciation | 13,819 | 14,569 | 56,242 | 69,216 | ||||||||||||
| Loss on impairment | — | — | — | 128,876 | ||||||||||||
| Total operating costs and expenses | 63,189 | 55,070 | 227,449 | 368,198 | ||||||||||||
| Loss from operations | (13,387 | ) | (36,650 | ) | (69,029 | ) | (241,336 | ) | ||||||||
| Other (expense) income | ||||||||||||||||
| Interest income | 6 | 18 | 124 | 871 | ||||||||||||
| Interest expense and other financing charges | (8,505 | ) | (8,510 | ) | (34,034 | ) | (34,041 | ) | ||||||||
| Other, net | (270 | ) | 325 | (2,171 | ) | 2,646 | ||||||||||
| Total other expense | (8,769 | ) | (8,167 | ) | (36,081 | ) | (30,524 | ) | ||||||||
| Loss before income taxes | (22,156 | ) | (44,817 | ) | (105,110 | ) | (271,860 | ) | ||||||||
| Income tax provision | 1,378 | 145 | 5,141 | 4,897 | ||||||||||||
| Net loss | (23,534 | ) | (44,962 | ) | (110,251 | ) | (276,757 | ) | ||||||||
| Net loss attributable to noncontrolling interests | (73 | ) | (54 | ) | (114 | ) | (38 | ) | ||||||||
| Net loss attributable to shareholders | $ | (23,461 | ) | $ | (44,908 | ) | $ | (110,137 | ) | $ | (276,719 | ) | ||||
| Loss per share | ||||||||||||||||
| Basic and Diluted | $ | (1.79 | ) | $ | (3.42 | ) | $ | (8.40 | ) | $ | (21.10 | ) | ||||
| Weighted average ordinary shares outstanding, | ||||||||||||||||
| Basic and Diluted | 13,115 | 13,115 | 13,115 | 13,115 | ||||||||||||
| Vantage Drilling International | ||||||||||||||||
| Supplemental Operating Data | ||||||||||||||||
| (Unaudited, in thousands, except percentages) | ||||||||||||||||
| Three months ended December 31, | Twelve months ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating costs | ||||||||||||||||
| Jackups | $ | 8,055 | $ | 13,139 | $ | 33,824 | $ | 62,101 | ||||||||
| Deepwater | 14,169 | 18,549 | 41,939 | 69,377 | ||||||||||||
| Management | 4,815 | — | 9,272 | — | ||||||||||||
| Held for sale | 11,528 | — | 45,851 | — | ||||||||||||
| Operations support | 2,267 | 2,113 | 9,071 | 9,744 | ||||||||||||
| Reimbursables | 3,052 | 1,393 | 10,711 | 7,862 | ||||||||||||
| Total operating costs | $ | 43,886 | $ | 35,194 | $ | 150,668 | $ | 149,084 | ||||||||
| Utilization | ||||||||||||||||
| Jackups | 99.6 | % | 40.0 | % | 68.9 | % | 56.5 | % | ||||||||
| Deepwater | 26.8 | % | 20.4 | % | 38.4 | % | 38.9 | % | ||||||||
| Held for sale | 90.3 | % | N/A | 64.4 | % | N/A | ||||||||||
| Vantage Drilling International | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands, except share and par value information) | ||||||||
| December 31, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 73,343 | $ | 141,945 | ||||
| Restricted cash | 1,621 | 7,996 | ||||||
| Trade receivables, net of allowance for doubtful accounts of $5.0 million each year | 37,527 | 24,717 | ||||||
| Materials and supplies | 37,580 | 49,861 | ||||||
| Assets held for sale | 117,117 | 10,113 | ||||||
| Prepaid expenses and other current assets | 18,309 | 19,038 | ||||||
| Total current assets | 285,497 | 253,670 | ||||||
| Property and equipment | ||||||||
| Property and equipment | 645,622 | 794,944 | ||||||
| Accumulated depreciation | (266,018 | ) | (278,562 | ) | ||||
| Property and equipment, net | 379,604 | 516,382 | ||||||
| Operating lease ROU assets | 2,450 | 3,997 | ||||||
| Other assets | 31,843 | 12,126 | ||||||
| Total assets | $ | 699,394 | $ | 786,175 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 31,420 | $ | 25,466 | ||||
| Liabilities held for sale | 31,533 | 24,734 | ||||||
| Other current liabilities | 6,720 | – | ||||||
| Total current liabilities | 69,673 | 50,200 | ||||||
| Long–term debt, net of discount and financing costs of $3,142 and $4,781 | 346,858 | 345,219 | ||||||
| Other long-term liabilities | 17,012 | 15,011 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding each year | 13 | 13 | ||||||
| Additional paid-in capital | 633,847 | 634,181 | ||||||
| Accumulated deficit | (369,792 | ) | (259,655 | ) | ||||
| Controlling interest shareholders’ equity | 264,068 | 374,539 | ||||||
| Noncontrolling interests | 1,783 | 1,206 | ||||||
| Total equity | 265,851 | 375,745 | ||||||
| Total liabilities and shareholders’ equity | $ | 699,394 | $ | 786,175 | ||||
| Vantage Drilling International | ||||||||
| Consolidated Statement of Cash Flows | ||||||||
| (In thousands) | ||||||||
| Year Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (110,251 | ) | $ | (276,757 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
| Depreciation expense | 56,242 | 69,216 | ||||||
| Amortization of debt financing costs | 1,639 | 1,640 | ||||||
| Amortization of debt discount | — | — | ||||||
| Amortization of contract value | — | — | ||||||
| PIK interest on the Convertible Notes | — | — | ||||||
| Share-based compensation expense | 395 | 1,615 | ||||||
| Deferred income tax expense | 369 | 221 | ||||||
| Loss (gain) on disposal of assets | (2,640 | ) | 52 | |||||
| Gain on settlement of restructuring agreement | — | (2,278 | ) | |||||
| Loss on impairment | — | 128,876 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables, net | (20,116 | ) | 21,787 | |||||
| Materials and supplies | (1,624 | ) | (1,852 | ) | ||||
| Prepaid expenses and other current assets | (3,306 | ) | (1,237 | ) | ||||
| Other assets | (12,312 | ) | 3,716 | |||||
| Accounts payable | 10,094 | (23,683 | ) | |||||
| Other current liabilities and other long-term liabilities | 11,119 | (6,618 | ) | |||||
| Net cash used in operating activities | (70,391 | ) | (85,302 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Additions to property and equipment | (7,045 | ) | (3,155 | ) | ||||
| Net proceeds from sale of Titanium Explorer | 13,557 | — | ||||||
| Net cash provided by (used in) investing activities | 6,512 | (3,155 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Contributions from holders of noncontrolling interests | — | — | ||||||
| Distributions to shareholders | — | — | ||||||
| Debt issuance costs | — | — | ||||||
| Net cash used in financing activities | — | — | ||||||
| Net decrease in unrestricted and restricted cash and cash equivalents | (63,879 | ) | (88,457 | ) | ||||
| Unrestricted and restricted cash and cash equivalents—beginning of period | 154,487 | 242,944 | ||||||
| Unrestricted and restricted cash and cash equivalents—end of period | $ | 90,608 | $ | 154,487 | ||||
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