SOURCE: Vantage Drilling Company

November 09, 2009 06:00 ET

Vantage Drilling Company Reports Third Quarter 2009 Results

HOUSTON, TX--(Marketwire - November 9, 2009) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG.U) (NYSE Amex: VTG) (NYSE Amex: VTG.WS) reports net income of $6.8 million or $0.05 per diluted share for the three months ended September 30, 2009 as compared to a net loss of $4.6 million or $(0.06) per diluted share for the three months ended September 30, 2008. Revenues for the third quarter of 2009 were approximately $36.4 million.

For the nine months ended September 30, 2009, Vantage reported net income of approximately $13.1 million or $0.13 per diluted share compared to a net loss of approximately $3.9 million or $(0.07) per share in the prior year. Revenues for the nine months ended September 30, 2009 were approximately $72.9 million.

Paul Bragg, President and Chief Executive Officer, commented, "The third quarter of 2009 was another period of solid achievement for Vantage. Our second rig, the Sapphire Driller, commenced operations in August with outstanding start up performance. We were able to book additions to our contractual backlog for the jackups as we secured follow-on work for the Sapphire Driller and have received a Letter of Intent for the Aquamarine Driller to work in Asia following the completion of its commissioning. Despite this year having been a difficult one for the offshore drilling business, we have created an excellent operating platform and look forward to improving market conditions for 2010 and beyond."

Summarizing several important accomplishments are the following:

--  Emerald Driller operating in Thailand achieved 99% plus productive
    time in the quarter.
--  Sapphire Driller began operations on August 21st in Côte d'Ivoire and
    achieved 98% plus productive time.
--  Aquamarine Driller was delivered from the shipyard on September 3,
    2009.
--  Raised approximately $80.3 million in a public offering of 55.1
    million ordinary shares including underwriters' overallotment.
--  Issued $100.0 million term loan to complete the funding for the
    Aquamarine Driller.
    

Vantage will conduct a call at 11:30 AM Eastern Time on Monday, November 9, 2009 to discuss results and developments for the third quarter 2009. To access the conference call, U.S. callers may dial toll free (888) 471-3828 and international callers may dial (719) 325-2477. The pass code will be 6403005. Please call ten minutes ahead of time to ensure proper connection. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers. The access code for the replay is 6403005.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with two Baker Marine Pacific Class 375 ultra-premium jackup drilling rig operating, one such jackup currently being outfitted, and another such jackup and an ultra deepwater drillship, the Platinum Explorer, currently under development. Vantage is also providing management services to an affiliate for two other ultra-deepwater drillships and to Sea Dragon Offshore Limited for two ultra-deepwater semi-submersibles.

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 Company
                   Consolidated Statement of Operations
                 (In thousands, except per share amounts)
                                (Unaudited)



                                    Three Months Ended   Nine Months Ended
                                       September 30,       September 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
 Revenues

   Contract drilling services       $ 21,644  $      -  $ 46,937  $      -

   Management fees                     5,688         -    15,129         -

   Reimbursables                       9,114         -    10,869         -
                                    --------  --------  --------  --------
     Total revenues                   36,446         -    72,935         -
                                    --------  --------  --------  --------
Operating costs and expenses
  Operating costs                     19,967     1,997    35,550     2,243
  General and administrative           3,650     3,413    11,140     5,863
  Depreciation                         3,165        11     6,923        23
                                    --------  --------  --------  --------
     Total operating expenses         26,782     5,421    53,613     8,129
                                    --------  --------  --------  --------
Income (loss) from operations          9,664    (5,421)   19,322    (8,129)
Other income (expense)
  Interest income                          4       257        13     4,089

  Interest expense                    (1,945)        -    (4,004)        -

  Other income                           143         -       316         -
                                    --------  --------  --------  --------
     Total other income (expense)     (1,798)      257    (3,675)    4,089
                                    --------  --------  --------  --------
Income (loss) before income taxes      7,866    (5,164)   15,647    (4,040)
Income tax provision (benefit)         1,063      (613)    2,534      (130)
                                    --------  --------  --------  --------
Net income (loss)                   $  6,803  $ (4,551) $ 13,113  $ (3,910)
                                    ========  ========  ========  ========

Earnings (loss) per share
     Basic                          $   0.05  $  (0.06) $   0.13  $  (0.07)
     Diluted                        $   0.05  $  (0.06) $   0.13  $  (0.07)




                         Vantage Drilling Company
                        Consolidated Balance Sheet
               (In thousands, except par value information)



                                                 September 30, December 31,
                                                      2009         2008
                                                  -----------  -----------
                                                  (Unaudited)
                      ASSETS
Current assets
  Cash and cash equivalents                       $    40,670  $    16,557
  Restricted cash                                      24,916        1,700
  Trade receivables                                    20,976        3,186
   Inventory                                           12,189            -
  Prepaid expenses and other current assets             2,225        2,077
                                                  -----------  -----------
     Total current assets                             100,976       23,520
                                                  -----------  -----------
Property and Equipment
  Property and equipment                              759,617      631,008
  Accumulated depreciation                             (7,034)        (112)
                                                  -----------  -----------
     Property and equipment, net                      752,583      630,896
                                                  -----------  -----------
Other Assets
  Investment in joint venture                         101,891            -
  Other assets                                         23,730       10,867
                                                  -----------  -----------
     Total other assets                               125,621       10,867
                                                  -----------  -----------
Total assets                                      $   979,180  $   665,283
                                                  ===========  ===========

        LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                                $    13,347  $     3,827
  Accrued liabilities                                  17,784       14,766
  Short-term debt                                      14,152       11,239
  Current maturities of long-term debt                 17,216        6,000
                                                  -----------  -----------
     Total current liabilities                         62,499       35,832
                                                  -----------  -----------
Long-term debt                                        250,373      133,000
Commitments and contingencies                               -            -
Shareholders' equity
  Preferred shares, $0.001 par value, 1,000 shares
   authorized; none issued or outstanding                   -            -
  Ordinary shares, $0.001 par value, 400,000
   shares authorized; 179,565 and 75,708 shares
   issued and outstanding                                 180           76
Additional paid-in capital                            699,605      542,331
Accumulated deficit                                   (32,843)     (45,956)
Accumulated other comprehensive loss                     (634)           -
                                                  -----------  -----------
     Total shareholders' equity                       666,308      496,451
                                                  -----------  -----------
Total liabilities and shareholders' equity        $   979,180  $   665,283
                                                  ===========  ===========




                         Vantage Drilling Company
                   Consolidated Statement of Cash Flows
                              (In thousands)
                                (Unaudited)

                                                      Nine Months Ended
                                                         September 30,
                                                    ----------------------
                                                       2009        2008
                                                    ----------  ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                   $   13,113  $   (3,910)
Adjustments to reconcile net income to net cash
 used in operating activities:
   Depreciation expense                                  6,923          23
   Amortization of debt financing costs                    872         257
   Share-based compensation expense                      3,636       1,286
   Accretion of long-term debt                             373           -
   Deferred income tax benefit                              83      (1,520)
Changes in operating assets and liabilities:
   Restricted cash                                     (23,216)     (1,100)
   Trade receivables, net                              (17,791)          -
   Inventory                                           (12,190)          -
   Prepaid expenses and other current assets              (147)       (710)
   Other assets                                           (412)          -
   Accounts payable                                      9,520       1,964
   Accrued liabilities                                  12,384       1,274
   Short-term debt                                         760           -
                                                    ----------  ----------
      Net cash used in operating activities             (6,092)     (2,436)
                                                    ----------  ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of assets                                        -    (213,397)
Additions to property and equipment                   (200,102)   (108,436)
Investment in joint venture                           (104,001)          -
Deferred acquisition costs                                   -         757
Restricted cash held in trust account                        -     273,109
                                                    ----------  ----------
      Net cash used in investing activities           (304,103)    (47,967)
                                                    ----------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under credit agreements       141,821      79,000
Repayment of long-term debt                            (13,605)          -
Proceeds from issuance of ordinary shares in
 private placement, net                                 24,953           -
Proceeds from issuance of ordinary shares in
 public offering, net                                   80,291           -
Proceeds from warrant exercise in connection with
 joint venture                                         104,100           -
Proceeds from short-term notes
 payable-shareholders                                    4,000           -
Repayment of short-term debt                            (1,848)          -
Debt issuance costs                                     (5,404)     (8,533)
Advances from stockholders of OGIL                           -       3,300
Repayments of advances from stockholders of  OGIL            -      (3,300)
Repayment of deferred underwriters fee                       -      (8,280)
                                                    ----------  ----------
      Net cash provided by financing activities        334,308      62,187
                                                    ----------  ----------
      Net increase in cash and cash equivalents         24,113      11,784
Cash and cash equivalents--beginning of period          16,557       1,263
                                                    ----------  ----------
Cash and cash equivalents--end of period            $   40,670  $   13,047
                                                    ==========  ==========

Contact Information

  • Public & Investor Relations Contact:
    Paul A. Bragg
    Chairman & Chief Executive Officer
    Vantage Drilling Company
    (281) 404-4700