Vantage Drilling International Ltd. Reports Third Quarter 2024 Results

(MENAFN- GlobeNewsWire - Nasdaq) Vantage drilling International Ltd. Reports Third Quarter 2024 Results

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.
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

Attachment

• VDI Q3 2024 Earnings Press Release

CONTACT: Public & Investor Relations Contact: Rafael Blattner Chief Financial Officer Vantage Drilling International Ltd. +971 4 449 34 28

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