Attached files
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| 8-K - 8-K - VANTAGE DRILLING INTERNATIONAL | vdi-8k_20200305.htm |
Exhibit 99.1
Vantage Drilling International Reports Fourth Quarter and Full-Year 2019 Results
HOUSTON, March 5, 2020 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $61.4 million or $8.22 per diluted share for the three months ended December 31, 2019, based on the weighted average shares outstanding after the conversion of our convertible notes, as compared to a net loss attributable to controlling interest of $52.2 million or $10.44 per diluted share for the three months ended December 31, 2018.
For the year ended December 31, 2019, Vantage reported net income attributable to controlling interest of approximately $455.7 million or $80.27 per diluted share, as compared to a net loss attributable to controlling interest of $141.5 million or $28.29 per diluted share for the year ended December 31, 2018.
As of December 31, 2019, Vantage had approximately $242.9 million in cash, including $11.0 million of restricted cash, compared to $239.4 million in cash, including$14.4 million of restricted cash at December 31, 2018. The Company generated $535.6 million in cash from operations, including cash collected in the Petrobras settlement in 2019 compared to $12.8 million generated in 2018. During the three months ended December 31, 2019, the Company made a special cash distribution of $525.0 million to shareholders.
Ihab Toma, CEO, commented. “I am pleased to report that we were able to return value to our shareholders through the issuance of a special cash distribution of approximately $525.0 million during the quarter and with the conversion of our convertible debt to equity in the fourth quarter, we enhanced our industry leading balance sheet while retaining significant debt coverage. Separately, I am pleased to report that we continue to achieve operational excellence, recording approximately 100% revenue efficiency for the quarter. Our continued focus on increased efficiency and maintaining an optimized cost structure position us to benefit from the improved conditions in the jack-up market and the improving conditions in the drillship space.”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three 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:
Thomas J. Cimino
Chief Financial Officer
Vantage Drilling International
(281) 404-4700
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Vantage Drilling International |
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Consolidated Statement of Operations |
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(In thousands, except per share data) |
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(Unaudited) |
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Three Months Ended December 31, |
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Year Ended December 31, |
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2019 |
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2018 |
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2019 |
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2018 |
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Revenue |
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Contract drilling services |
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$ |
42,996 |
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$ |
37,753 |
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$ |
144,571 |
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$ |
203,565 |
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Contract termination revenue |
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— |
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— |
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594,029 |
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— |
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Reimbursables and other |
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6,270 |
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5,314 |
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22,248 |
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22,182 |
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Total revenue |
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49,266 |
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43,067 |
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760,848 |
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225,747 |
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Operating costs and expenses |
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Operating costs |
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42,355 |
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42,099 |
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156,893 |
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171,041 |
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General and administrative |
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42,534 |
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6,609 |
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128,548 |
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29,544 |
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Depreciation |
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18,329 |
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17,230 |
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73,820 |
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70,447 |
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Total operating costs and expenses |
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103,218 |
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65,938 |
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359,261 |
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271,032 |
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Income (loss) from operations |
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(53,952 |
) |
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(22,871 |
) |
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401,587 |
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(45,285 |
) |
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Other income (expense) |
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Interest income |
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2,754 |
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924 |
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116,368 |
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1,898 |
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Interest expense and other financing charges |
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(9,860 |
) |
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(20,657 |
) |
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(46,575 |
) |
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(78,779 |
) |
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Loss on debt extinguishment |
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— |
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(1,271 |
) |
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— |
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|
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(1,271 |
) |
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Other, net |
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(5 |
) |
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(474 |
) |
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|
216 |
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(1,505 |
) |
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Total other expense |
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(7,111 |
) |
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(21,478 |
) |
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70,009 |
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(79,657 |
) |
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Income (loss) before income taxes |
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(61,063 |
) |
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(44,349 |
) |
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471,596 |
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(124,942 |
) |
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Income tax provision |
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(731 |
) |
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7,828 |
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15,121 |
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16,526 |
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Net income (loss) |
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(60,332 |
) |
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(52,177 |
) |
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|
456,475 |
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(141,468 |
) |
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Net income attributable to noncontrolling interests |
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1,053 |
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|
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— |
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|
741 |
|
|
|
— |
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Net income (loss) attributable to shareholders |
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$ |
(61,385 |
) |
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$ |
(52,177 |
) |
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$ |
455,734 |
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$ |
(141,468 |
) |
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Earnings (loss) per share, Basic and Diluted |
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$ |
(8.22 |
) |
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$ |
(10.44 |
) |
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$ |
80.27 |
|
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$ |
(28.29 |
) |
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Weighted average successor ordinary shares outstanding, Basic and Diluted |
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7,470 |
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5,000 |
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|
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5,677 |
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5,000 |
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Vantage Drilling International |
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Supplemental Operating Data |
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(Unaudited, in thousands, except percentages) |
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Three Months Ended December 31, |
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Year Ended December 31, |
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2019 |
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2018 |
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2019 |
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2018 |
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Operating costs and expenses |
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|
|
|
|
|
|
|
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|
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Jackups |
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$ |
15,685 |
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$ |
16,396 |
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$ |
62,448 |
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$ |
65,492 |
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Deepwater |
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19,775 |
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|
|
20,217 |
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|
|
70,184 |
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|
|
79,655 |
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Operations support |
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|
4,064 |
|
|
|
2,274 |
|
|
|
13,538 |
|
|
|
12,888 |
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Reimbursables |
|
|
2,831 |
|
|
|
3,212 |
|
|
|
10,723 |
|
|
|
13,006 |
|
|
|
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$ |
42,355 |
|
|
$ |
42,099 |
|
|
$ |
156,893 |
|
|
$ |
171,041 |
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Utilization |
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Jackups |
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99.1 |
% |
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96.6 |
% |
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97.4 |
% |
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92.2 |
% |
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Deepwater |
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61.1 |
% |
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35.0 |
% |
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46.1 |
% |
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54.5 |
% |
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Vantage Drilling International |
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Consolidated Balance Sheet |
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(In thousands, except share and par value information) |
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(Unaudited) |
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December 31, 2019 |
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December 31, 2018 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
231,947 |
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$ |
224,967 |
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Restricted cash |
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2,511 |
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10,362 |
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Trade receivables |
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|
46,504 |
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|
|
28,431 |
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Inventory |
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|
48,368 |
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|
|
45,195 |
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Prepaid expenses and other current assets |
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|
16,507 |
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|
|
17,278 |
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Total current assets |
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345,837 |
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|
326,233 |
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Property and equipment |
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|
|
|
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Property and equipment |
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1,002,968 |
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|
996,139 |
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Accumulated depreciation |
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(281,842 |
) |
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(208,836 |
) |
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Property and equipment, net |
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|
721,126 |
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|
787,303 |
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Operating lease ROU assets |
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|
6,706 |
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— |
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Other assets |
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|
17,068 |
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|
|
16,026 |
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Total assets |
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$ |
1,090,737 |
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$ |
1,129,562 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
49,599 |
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$ |
44,372 |
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Other current liabilities |
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26,936 |
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|
17,983 |
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Total current liabilities |
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76,535 |
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|
62,355 |
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Long–term debt, net of discount and financing costs of $6,421 and $12.914 |
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|
343,579 |
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1,109,011 |
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Other long-term liabilities |
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17,532 |
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22,889 |
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Commitments and contingencies |
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Shareholders' equity |
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|
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Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 and 5,000,053 shares issued and outstanding, respectively |
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|
13 |
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|
5 |
|
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Additional paid-in capital |
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|
634,770 |
|
|
|
373,972 |
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Accumulated earnings (deficit) |
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|
17,064 |
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|
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(438,670 |
) |
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Controlling interest shareholders' equity |
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|
651,847 |
|
|
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(64,693 |
) |
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Noncontrolling interests |
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|
1,244 |
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— |
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Total equity |
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|
653,091 |
|
|
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(64,693 |
) |
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Total liabilities and shareholders’ equity |
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$ |
1,090,737 |
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$ |
1,129,562 |
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Vantage Drilling International |
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Consolidated Statement of Cash Flows |
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(In thousands) |
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(Unaudited) |
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Year Ended December 31, |
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2019 |
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2018 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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|
|
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|
|
|
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Net income (loss) |
|
$ |
456,475 |
|
|
$ |
(141,468 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities |
|
|
|
|
|
|
|
|
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Depreciation expense |
|
|
73,820 |
|
|
|
70,447 |
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Amortization of debt financing costs |
|
|
1,627 |
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|
|
556 |
|
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Amortization of debt discount |
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|
5,354 |
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|
|
49,417 |
|
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Amortization of contract value |
|
|
1,643 |
|
|
|
6,311 |
|
|
PIK interest on the Convertible Notes |
|
|
7,132 |
|
|
|
7,648 |
|
|
Share-based compensation expense |
|
|
957 |
|
|
|
7,165 |
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Non-cash loss on debt extinguishment |
|
|
— |
|
|
|
975 |
|
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Deferred income tax (benefit) expense |
|
|
(51 |
) |
|
|
1,742 |
|
|
(Gain) loss on disposal of assets |
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|
155 |
|
|
|
(1,301 |
) |
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Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Trade receivables |
|
|
(18,073 |
) |
|
|
16,948 |
|
|
Inventory |
|
|
(3,174 |
) |
|
|
1,911 |
|
|
Prepaid expenses and other current assets |
|
|
771 |
|
|
|
(6,121 |
) |
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Other assets |
|
|
4,265 |
|
|
|
2,339 |
|
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Accounts payable |
|
|
5,227 |
|
|
|
4,706 |
|
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Other current liabilities and other long-term liabilities |
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|
(489 |
) |
|
|
(8,481 |
) |
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Net cash provided by operating activities |
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|
535,639 |
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|
|
12,794 |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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|
|
|
|
|
|
|
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Additions to property and equipment |
|
|
(7,798 |
) |
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|
(14,316 |
) |
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Cash paid for Soehanah acquisition |
|
|
— |
|
|
|
(85,000 |
) |
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Net proceeds from sale of Vantage 260 |
|
|
— |
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|
|
4,703 |
|
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Net cash used in investing activities |
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|
(7,798 |
) |
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|
(94,613 |
) |
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CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
|
Repayment of long-term debt |
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|
— |
|
|
|
(216,265 |
) |
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Proceeds from issuance of 9.25% First Lien Notes |
|
|
— |
|
|
|
350,000 |
|
|
Contributions from holders of noncontrolling interests |
|
|
1,197 |
|
|
|
— |
|
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Distributions to shareholders |
|
|
(524,994 |
) |
|
|
— |
|
|
Debt issuance costs |
|
|
(487 |
) |
|
|
(7,688 |
) |
|
Debt prepayment costs |
|
|
— |
|
|
|
(296 |
) |
|
Net cash (used in) provided by financing activities |
|
|
(524,284 |
) |
|
|
125,751 |
|
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Net increase in unrestricted and restricted cash and cash equivalents |
|
|
3,557 |
|
|
|
43,932 |
|
|
Unrestricted and restricted cash and cash equivalents—beginning of period |
|
|
239,387 |
|
|
|
195,455 |
|
|
Unrestricted and restricted cash and cash equivalents—end of period |
|
$ |
242,944 |
|
|
$ |
239,387 |
|