Vantage Drilling International Ltd. Reports Third Quarter 2024 Results

Vantage Drilling International Ltd. Reports Third Quarter 2024 Results 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:...

Dubai, 07/11/2024 (informazione.it - comunicati stampa - economia)

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. www.vantagedrilling.com.

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