Vantage Drilling International Reports Second Quarter Results for 2021
HOUSTON, Aug. 12, 2021 (GLOBE NEWSWIRE) — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss attributable to controlling interest of approximately $29.0 million or $2.21 per diluted share for the three months ended June 30, 2021, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $31.9 million or $2.43 per diluted share for the three months ended June 30, 2020.
As of June 30, 2021, Vantage had approximately $124.4 million in cash, including $13.0 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 $40.9 million in cash from operations in 2021 compared to $52.5 million used during the same period of 2020.
Ihab Toma, CEO, commented: “The second quarter represented more evidence that the industry is back on the way to recovery where we have seen the Aquamarine Driller and Sapphire Driller commencing their new contracts in Malaysia and Equatorial Guinea, respectively. In addition, shortly after the quarter concluded, the Soehanah returned to work in Indonesia, reflecting six of the Company’s seven rigs working. The safe and seamless return to work by those rigs within weeks of each other is a testament to the operations team at Vantage, of whom I am very proud.”
Mr. Toma continued, “In addition to the three rigs returning to service, we are delighted to announce that, the Sapphire Driller and the Aquamarine Driller, were recently awarded three-year contracts to work offshore Qatar, commencing in February and March 2022, respectively. We look forward to these multi-year programs commencing alongside the Emerald Driller’s campaign in Qatar where we have operated since 2016.”
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 gas companies. Vantage also markets, operates and provides management services in respect of, 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 800
Houston, Texas 77056
(281) 404-4700
| Vantage Drilling International | ||||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | ||||||||||||||||
| Contract drilling services | $ | 31,655 | $ | 33,151 | $ | 49,380 | $ | 77,470 | ||||||||
| Reimbursables and other | 3,946 | 3,624 | 6,387 | 10,761 | ||||||||||||
| Total revenue | 35,601 | 36,775 | 55,767 | 88,231 | ||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Operating costs | 36,056 | 38,104 | 61,413 | 86,659 | ||||||||||||
| General and administrative | 4,967 | 4,716 | 10,462 | 11,886 | ||||||||||||
| Depreciation | 14,161 | 18,401 | 28,286 | 36,417 | ||||||||||||
| Total operating costs and expenses | 55,184 | 61,221 | 100,161 | 134,962 | ||||||||||||
| Loss from operations | (19,583 | ) | (24,446 | ) | (44,394 | ) | (46,731 | ) | ||||||||
| Other (expense) income | ||||||||||||||||
| Interest income | 10 | 111 | 110 | 812 | ||||||||||||
| Interest expense and other financing charges | (8,511 | ) | (8,601 | ) | (17,021 | ) | (17,021 | ) | ||||||||
| Other, net | (179 | ) | 12 | (793 | ) | 2,367 | ||||||||||
| Total other expense | (8,680 | ) | (8,478 | ) | (17,704 | ) | (13,842 | ) | ||||||||
| Loss before income taxes | (28,263 | ) | (32,924 | ) | (62,098 | ) | (60,573 | ) | ||||||||
| Income tax provision (benefit) | 720 | (1,024 | ) | 2,882 | 1,897 | |||||||||||
| Net loss | (28,983 | ) | (31,900 | ) | (64,980 | ) | (62,470 | ) | ||||||||
| Net (loss) income attributable to noncontrolling interests | (18 | ) | 12 | (31 | ) | 14 | ||||||||||
| Net loss attributable to shareholders | $ | (28,965 | ) | $ | (31,912 | ) | $ | (64,949 | ) | $ | (62,484 | ) | ||||
| Loss per share | ||||||||||||||||
| Basic and Diluted | $ | (2.21 | ) | $ | (2.43 | ) | $ | (4.95 | ) | $ | (4.76 | ) | ||||
| 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 June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Jackups | $ | 22,170 | $ | 15,669 | $ | 36,319 | $ | 37,142 | ||||||||
| Deepwater | 8,820 | 18,831 | 16,064 | 38,870 | ||||||||||||
| Management | 756 | – | 756 | – | ||||||||||||
| Operations support | 2,317 | 2,016 | 4,529 | 5,453 | ||||||||||||
| Reimbursables | 1,993 | 1,588 | 3,745 | 5,194 | ||||||||||||
| Total operating costs and expenses | $ | 36,056 | $ | 38,104 | $ | 61,413 | $ | 86,659 | ||||||||
| Utilization | ||||||||||||||||
| Jackups | 39.9 | % | 60.0 | % | 35.3 | % | 73.9 | % | ||||||||
| Deepwater | 49.7 | % | 45.6 | % | 49.4 | % | 53.7 | % | ||||||||
| Vantage Drilling International | ||||||||
| Consolidated Balance Sheets | ||||||||
| (In thousands, except share and par value information) | ||||||||
| (Unaudited) | ||||||||
| June 30, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 111,424 | $ | 141,945 | ||||
| Restricted cash | 7,800 | 7,996 | ||||||
| Trade receivables, net of allowance for doubtful accounts of $5.0 million, respectively | 31,605 | 24,717 | ||||||
| Materials and supplies | 50,946 | 49,861 | ||||||
| Prepaid expenses and other current assets | 20,212 | 29,151 | ||||||
| Total current assets | 221,987 | 253,670 | ||||||
| Property and equipment | ||||||||
| Property and equipment | 797,078 | 794,944 | ||||||
| Accumulated depreciation | (306,337 | ) | (278,562 | ) | ||||
| Property and equipment, net | 490,741 | 516,382 | ||||||
| Operating lease ROU assets | 3,144 | 3,997 | ||||||
| Other assets | 15,315 | 12,126 | ||||||
| Total assets | $ | 731,187 | $ | 786,175 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 28,264 | $ | 25,466 | ||||
| Other current liabilities | 32,572 | 24,734 | ||||||
| Total current liabilities | 60,836 | 50,200 | ||||||
| Long–term debt, net of discount and financing costs of $3,962 and $4,781, respectively | 346,038 | 345,219 | ||||||
| Other long-term liabilities | 13,971 | 15,011 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, respectively | 13 | 13 | ||||||
| Additional paid-in capital | 633,758 | 634,181 | ||||||
| Accumulated deficit | (324,604 | ) | (259,655 | ) | ||||
| Controlling interest shareholders’ equity | 309,167 | 374,539 | ||||||
| Noncontrolling interests | 1,175 | 1,206 | ||||||
| Total equity | 310,342 | 375,745 | ||||||
| Total liabilities and shareholders’ equity | $ | 731,187 | $ | 786,175 | ||||
| Vantage Drilling International | ||||||||
| Consolidated Statement of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2021 | 2020 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net loss | $ | (64,980 | ) | $ | (62,470 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
| Depreciation expense | 28,286 | 36,417 | ||||||
| Amortization of debt financing costs | 819 | 820 | ||||||
| Share-based compensation expense | 337 | 1,028 | ||||||
| Deferred income tax (benefit) expense | 236 | (90 | ) | |||||
| Gain on disposal of assets | (2,715 | ) | — | |||||
| Gain on settlement of restructuring agreement | — | (2,278 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables, net | (6,888 | ) | (7,202 | ) | ||||
| Materials and Supplies | (1,481 | ) | (1,297 | ) | ||||
| Prepaid expenses and other current assets | (1,440 | ) | 2,545 | |||||
| Other assets | (1,821 | ) | 3,410 | |||||
| Accounts payable | 2,798 | (14,680 | ) | |||||
| Other current liabilities and other long-term liabilities | 5,905 | (8,717 | ) | |||||
| Net cash used in operating activities | (40,944 | ) | (52,514 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Additions to property and equipment | (2,711 | ) | (2,021 | ) | ||||
| Net proceeds from sale of Titanium Explorer | 13,557 | — | ||||||
| Net cash provided by (used in) investing activities | 10,846 | (2,021 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Contributions from holders of noncontrolling interests | — | — | ||||||
| Debt issuance costs | — | — | ||||||
| Net cash provided by financing activities | — | — | ||||||
| Net decrease in unrestricted and restricted cash and cash equivalents | (30,098 | ) | (54,535 | ) | ||||
| Unrestricted and restricted cash and cash equivalents—beginning of period | 154,487 | 242,944 | ||||||
| Unrestricted and restricted cash and cash equivalents—end of period | $ | 124,389 | $ | 188,409 | ||||
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