Vantage Drilling International Reports 4th Quarter and Annual Results for 2015
/EINPresswire.com/ -- HOUSTON, TX -- (Marketwired) -- 03/30/16 -- Vantage Drilling International ("Vantage" or the "Company") reports net loss attributable to shareholder for the three months ended December 31, 2015 of $8.8 million as compared to earnings of $27.6 million for the three months ended December 31, 2014. The three months ended December 31, 2015 included charges totaling $39.4 million of reorganization items.
For the year ended December 31, 2015, Vantage reported net income attributable to shareholder of $17.2 million as compared to earnings of $92.9 million for the year ended December 31, 2014. The year ended December 31, 2015 includes gains on the early retirement of debt of approximately $10.8 million and approximately of $39.4 million of reorganization items as compared to the year ended December 31, 2014 which included approximately $4.4 million of gains from the early retirement of debt.
Vantage filed a Joint Prepackaged Chapter 11 Plan of Reorganization on December 3, 2015 and emerged from those proceedings on February 10, 2016. In connection with the reorganization, Vantage recognized charges totaling approximately $39.4 million consisting primarily of the write-off of deferred financing costs and unamortized original issued debt discounts, and professional fees.
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer and four Baker Marine Pacific Class 375 ultra-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. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is a provider of offshore contract drilling services globally to major, national and large independent oil and natural gas companies.
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 Drilling International
(Debtor-In-Possession)
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2015 2014 2015 2014
----------- ----------- ----------- -----------
Revenue
Contract drilling
services $ 118,714 $ 204,304 726,717 807,164
Management fees 1,795 1,923 7,501 21,258
Reimbursables 7,893 13,207 38,047 54,482
----------- ----------- ----------- -----------
Total revenue 128,402 219,434 772,265 882,904
----------- ----------- ----------- -----------
Operating costs and
expenses
Operating costs 75,601 106,853 359,610 405,697
General and
administrative 7,572 5,609 25,322 25,390
Depreciation 32,191 31,715 127,359 126,610
----------- ----------- ----------- -----------
Total operating costs
and expenses 115,364 144,177 512,291 557,697
----------- ----------- ----------- -----------
Income from operations 13,038 75,257 259,974 325,207
Other income (expense)
Interest income 30 13 84 70
Interest expense and
other financing
charges (35,424) (47,690) (173,634) (196,159)
Gain on debt
extinguishment - 4,870 10,823 4,408
Other, net 1,945 (1,507) 4,231 (596)
Reorganization items (39,354) - (39,354) -
----------- ----------- ----------- -----------
Total other income
(expense) (72,803) (44,314) (197,850) (192,277)
----------- ----------- ----------- -----------
Income (loss) before
income taxes (59,765) 30,943 62,124 132,930
Income tax provision
(benefit) (55,701) 4,116 39,870 39,817
----------- ----------- ----------- -----------
Net income (loss) (4,064) 26,827 22,254 93,113
Net income (loss)
attributable to
noncontrolling interests 4,689 (743) 5,036 257
----------- ----------- ----------- -----------
Net income (loss)
attributable to VDI $ (8,753) $ 27,570 $ 17,218 $ 92,856
=========== =========== =========== ===========
Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------ ------------------------
2015 2014 2015 2014
----------- ----------- ----------- -----------
Operating costs and
expenses
Jackups $ 15,008 $ 24,191 $ 80,009 $ 94,748
Deepwater 47,491 64,834 224,516 235,083
Operations support 7,092 8,879 28,785 37,942
Reimbursables 6,010 8,949 26,300 37,924
----------- ----------- ----------- -----------
$ 75,601 $ 106,853 $ 359,610 $ 405,697
----------- ----------- ----------- -----------
Utilization
Jackups 64.0% 100.0% 76.7% 99.2%
Deepwater 53.4% 86.5% 83.0% 85.1%
Vantage Drilling International
(Debtor-In-Possession)
Consolidated Balance Sheet
(In thousands, except share information)
(Unaudited)
December 31, December 31,
2015 2014
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 203,420 $ 75,801
Trade receivables 70,722 151,625
Inventory 64,495 65,893
Prepaid expenses and other current assets 22,404 28,019
------------- -------------
Total current assets 361,041 321,338
------------- -------------
Property and equipment
Property and equipment 3,481,006 3,439,242
Accumulated depreciation (532,619) (406,674)
------------- -------------
Property and equipment, net 2,948,387 3,032,568
------------- -------------
Other assets
Other assets 22,904 71,226
------------- -------------
Total other assets 22,904 71,226
------------- -------------
Total assets $ 3,332,332 $ 3,425,132
============= =============
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Accounts payable $ 49,437 $ 214,685
Accrued liabilities 21,702 73,195
Current maturities of long-term debt and
revolving credit agreement - 53,500
Note payable to parent 61,477 -
------------- -------------
Total current liabilities 132,616 341,380
------------- -------------
Long-term debt, net of discount of $0 and
$8,074 - 2,497,103
Other long-term liabilities 33,249 85,243
Liabilities subject to compromise 2,694,456 -
Commitments and contingencies
Shareholders' equity
Ordinary shares, $0.001 par value, 50 million
shares authorized; 1,000 shares issued and
outstanding - -
Additional paid-in capital 595,119 646,270
Accumulated deficit (138,363) (155,581)
------------- -------------
Total VDI shareholder's equity 456,756 490,689
------------- -------------
Noncontolling interests 15,255 10,717
------------- -------------
Total equity 472,011 501,406
------------- -------------
Total liabilities and equity $ 3,332,332 $ 3,425,132
============= =============
Vantage Drilling International
(Debtor-In-Possession)
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Year Ended December 31,
----------------------------
2015 2014
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 22,254 $ 93,113
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation expense 127,359 126,610
Amortization of debt financing costs 7,800 10,022
Amortization of debt discount 2,242 2,997
Reorganization items; debt discount and
issuance costs write-off 37,129 -
Non-cash gain on debt extinguishment (10,814) (4,409)
Accelerated deferred mobilization income (21,508) -
Deferred income tax expense (benefit) 2,122 (305)
Loss on disposal of assets 1,108 3,008
Changes in operating assets and liabilities:
Restricted cash - 2,125
Trade receivables 80,903 12,399
Inventory 1,397 (10,088)
Prepaid expenses and other current assets 5,991 (4,660)
Other assets 8,549 5,275
Accounts payable (154,922) (40,580)
Accrued liabilities and other long-term
liabilities (17,023) 44,217
------------- -------------
Net cash provided by operating activities 92,587 239,724
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (46,490) (35,693)
------------- -------------
Net cash used in investing activities (46,490) (35,693)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt (67,980) (167,561)
Distributions to parent (498) (995)
Proceeds from (repayment of) revolving credit
agreement, net 150,000 (10,000)
------------- -------------
Net cash provided by (used in) financing
activities 81,522 (178,556)
------------- -------------
Net increase in cash and cash equivalents 127,619 25,475
Cash and cash equivalents-beginning of year 75,801 50,326
------------- -------------
Cash and cash equivalents-end of year $ 203,420 $ 75,801
============= =============
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