Vantage Drilling International Reports Fourth Quarter and Full-Year 2020 Results
HOUSTON, March 18, 2021 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $44.9 million or $3.42 per diluted share for the three months ended December 31, 2020, based on the weighted average shares outstanding after the conversion of our convertible notes in December 2019, as compared to a net loss attributable to controlling interest of $61.4 million or $8.22 per diluted share for the three months ended December 31, 2019.
For the year ended December 31, 2020, Vantage reported net loss attributable to controlling interest of approximately $276.7 million or $21.10 per diluted share, as compared to a net income attributable to controlling interest of $455.7 million or $80.27 per diluted share for the year ended December 31, 2019.
As of December 31, 2020, Vantage had approximately $154.5 million in cash, including $12.5 million of restricted cash, compared to $242.9 million in cash, including $11.0 million of restricted cash at December 31, 2019. The Company used $85.3 million in cash from operations in 2020 compared to $535.6 million generated, including cash collected in the Petrobras settlement in 2019.
Ihab Toma, CEO, commented: “2020 was unlike any year that preceded it. The arrival of COVID-19 caused, and its spread continues to cause, widespread illness and significant loss of life, leading governments across the world to impose and maintain severely stringent limitations on movement and human interaction - essentially shutting down economies. In this difficult environment, it was inevitable that our industry would contract just as it appeared that the previous downturn that began in 2014 finally was showing signs of easing. Notwithstanding these challenges, the Company recorded its safest year ever and operated with high levels of efficiency, a true testament of the excellence and commitment of the Vantage team.”
Mr. Toma continued: “As 2021 further unfolds, crude prices have improved and industry sentiment appears more hopeful. Three of our previously stacked rigs, the Topaz Driller, the Sapphire Driller and the Aquamarine Driller, are expected to begin campaigns for clients during the first half of the year. While, as previously announced, the Platinum Explorer has secured a follow-on two-year contract with ONGC that will begin later this year. As has been the case, our focus remains on putting our rigs back to work, operating safely and efficiently, managing costs and conserving cash while continuing to deliver high quality service to our esteemed 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 800 Houston, Texas 77056 (281) 404-4700 |
| Vantage Drilling International | ||||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | ||||||||||||||||
| Contract drilling services | $ | 16,474 | $ | 42,996 | $ | 112,013 | $ | 144,571 | ||||||||
| Contract termination revenue | — | — | — | 594,029 | ||||||||||||
| Reimbursables and other | 1,946 | 6,270 | 14,849 | 22,248 | ||||||||||||
| Total revenue | 18,420 | 49,266 | 126,862 | 760,848 | ||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Operating costs | 35,194 | 42,355 | 149,084 | 156,893 | ||||||||||||
| General and administrative | 5,307 | 42,534 | 21,022 | 128,548 | ||||||||||||
| Depreciation | 14,569 | 18,329 | 69,216 | 73,820 | ||||||||||||
| Loss on impairment | — | — | 128,876 | — | ||||||||||||
| Total operating costs and expenses | 55,070 | 103,218 | 368,198 | 359,261 | ||||||||||||
| Income (loss) from operations | (36,650 | ) | (53,952 | ) | (241,336 | ) | 401,587 | |||||||||
| Other income (expense) | ||||||||||||||||
| Interest income | 18 | 2,754 | 871 | 116,368 | ||||||||||||
| Interest expense and other financing charges | (8,510 | ) | (9,860 | ) | (34,041 | ) | (46,575 | ) | ||||||||
| Other, net | 325 | (5 | ) | 2,646 | 216 | |||||||||||
| Total other (expense) income | (8,167 | ) | (7,111 | ) | (30,524 | ) | 70,009 | |||||||||
| (Loss) income before income taxes | (44,817 | ) | (61,063 | ) | (271,860 | ) | 471,596 | |||||||||
| Income tax provision (benefit) | 145 | (731 | ) | 4,897 | 15,121 | |||||||||||
| Net (loss) income | (44,962 | ) | (60,332 | ) | (276,757 | ) | 456,475 | |||||||||
| Net (loss) income attributable to noncontrolling interests | (54 | ) | 1,053 | (38 | ) | 741 | ||||||||||
| Net (loss) income attributable to shareholders | $ | (44,908 | ) | $ | (61,385 | ) | $ | (276,719 | ) | $ | 455,734 | |||||
| (Loss) earnings per share, Basic and Diluted | $ | (3.42 | ) | $ | (8.22 | ) | $ | (21.10 | ) | $ | 80.27 | |||||
| Weighted average ordinary shares outstanding, Basic and Diluted | 13,115 | 7,470 | 13,115 | 5,677 | ||||||||||||
| Vantage Drilling International | ||||||||||||||||
| Supplemental Operating Data | ||||||||||||||||
| (Unaudited, in thousands, except percentages) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Operating costs and expenses | ||||||||||||||||
| Jackups | $ | 13,139 | $ | 15,685 | $ | 62,101 | $ | 62,448 | ||||||||
| Deepwater | 18,549 | 19,775 | 69,377 | 70,184 | ||||||||||||
| Operations support | 2,113 | 4,064 | 9,744 | 13,538 | ||||||||||||
| Reimbursables | 1,393 | 2,831 | 7,862 | 10,723 | ||||||||||||
| $ | 35,194 | $ | 42,355 | $ | 149,084 | $ | 156,893 | |||||||||
| Utilization | ||||||||||||||||
| Jackups | 40.0 | % | 99.1 | % | 56.5 | % | 97.4 | % | ||||||||
| Deepwater | 20.4 | % | 61.1 | % | 38.9 | % | 46.1 | % | ||||||||
| Vantage Drilling International | ||||||||
| Consolidated Balance Sheet | ||||||||
| (In thousands, except share and par value information) | ||||||||
| (Unaudited) | ||||||||
| December 31, 2020 | December 31, 2019 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 141,945 | $ | 231,947 | ||||
| Restricted cash | 7,996 | 2,511 | ||||||
| Trade receivables, net of allowance for doubtful accounts of $5.0 million and $0.0 million, respectively | 24,717 | 46,504 | ||||||
| Materials and supplies | 49,861 | 48,368 | ||||||
| Prepaid expenses and other current assets | 27,323 | 16,507 | ||||||
| Total current assets | 251,842 | 345,837 | ||||||
| Property and equipment | ||||||||
| Property and equipment | 794,944 | 1,002,968 | ||||||
| Accumulated depreciation | (278,562 | ) | (281,842 | ) | ||||
| Property and equipment, net | 516,382 | 721,126 | ||||||
| Operating lease ROU assets | 3,997 | 6,706 | ||||||
| Other assets | 12,126 | 17,068 | ||||||
| Total assets | $ | 784,347 | $ | 1,090,737 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 23,638 | $ | 49,599 | ||||
| Other current liabilities | 24,734 | 26,936 | ||||||
| Total current liabilities | 48,372 | 76,535 | ||||||
| Long–term debt, net of discount and financing costs of $4,781 and $6,421 | 345,219 | 343,579 | ||||||
| Other long-term liabilities | 15,011 | 17,532 | ||||||
| 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 | 634,181 | 634,770 | ||||||
| Accumulated (deficit) earnings | (259,655 | ) | 17,064 | |||||
| Controlling interest shareholders' equity | 374,539 | 651,847 | ||||||
| Noncontrolling interests | 1,206 | 1,244 | ||||||
| Total equity | 375,745 | 653,091 | ||||||
| Total liabilities and shareholders’ equity | $ | 784,347 | $ | 1,090,737 | ||||
| Vantage Drilling International | ||||||||
| Consolidated Statement of Cash Flows | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| Year Ended December 31, | ||||||||
| 2020 | 2019 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net (loss) income | $ | (276,757 | ) | $ | 456,475 | |||
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities | ||||||||
| Depreciation expense | 69,216 | 73,820 | ||||||
| Amortization of debt financing costs | 1,640 | 1,627 | ||||||
| Amortization of debt discount | — | 5,354 | ||||||
| Amortization of contract value | — | 1,643 | ||||||
| PIK interest on the Convertible Notes | — | 7,132 | ||||||
| Share-based compensation expense | 1,615 | 957 | ||||||
| Deferred income tax expense (benefit) | 221 | (51 | ) | |||||
| Loss on disposal of assets | 52 | 155 | ||||||
| Gain on settlement of restructuring agreement | (2,278 | ) | — | |||||
| Loss on impairment | 128,876 | — | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Trade receivables, net | 21,787 | (18,073 | ) | |||||
| Materials and supplies | (1,852 | ) | (3,174 | ) | ||||
| Prepaid expenses and other current assets | (1,237 | ) | 771 | |||||
| Other assets | 3,716 | 4,265 | ||||||
| Accounts payable | (23,683 | ) | 5,227 | |||||
| Other current liabilities and other long-term liabilities | (6,618 | ) | (489 | ) | ||||
| Net cash (used in) provided by operating activities | (85,302 | ) | 535,639 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Additions to property and equipment | (3,155 | ) | (7,798 | ) | ||||
| Net cash used in investing activities | (3,155 | ) | (7,798 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Contributions from holders of noncontrolling interests | — | 1,197 | ||||||
| Distributions to shareholders | — | (524,994 | ) | |||||
| Debt issuance costs | — | (487 | ) | |||||
| Net cash used in financing activities | — | (524,284 | ) | |||||
| Net (decrease) increase in unrestricted and restricted cash and cash equivalents | (88,457 | ) | 3,557 | |||||
| Unrestricted and restricted cash and cash equivalents—beginning of period | 242,944 | 239,387 | ||||||
| Unrestricted and restricted cash and cash equivalents—end of period | $ | 154,487 | $ | 242,944 | ||||
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