HOUSTON, TX--(Marketwired - Mar 30, 2016) - 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 December 31, | Twelve Months Ended 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 December 31, | Twelve Months Ended 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, 2015 |
December 31, 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 | |||||