SOURCE: Vantage Drilling Company

March 16, 2010 06:00 ET

Vantage Drilling Company Reports Fourth Quarter 2009 Results

HOUSTON, TX--(Marketwire - March 16, 2010) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG.U) (NYSE Amex: VTG) (NYSE Amex: VTG.WS) reports a net loss of ($4.3) million or ($0.02) per diluted share for the three months ended December 31, 2009 as compared to net loss of ($43.5) million or ($0.57) per diluted share for the three months ended December 31, 2008. Net income for the fiscal year ended December 31, 2009 was $8.8 million or $0.07 per share as compared to a net loss of ($47.4) million or ($0.78) per share for the year ended December 31, 2008.

Paul Bragg, President and Chief Executive Officer, commented, "The Company took giant strides in 2009 and thereafter, as we deployed all four of our new jackup rigs. Our first deepwater rig, Platinum Explorer, is on track for on-time delivery in November 2010."

Early stage risks have been greatly diminished with the completion of jackup construction, financing and contracting. Our operational and safety performance have also been exceptional.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs operating, 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 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
                                                        December 31,
                                                  ------------------------
                                                     2009          2008
                                                  -----------  -----------
Revenues
  Contract drilling services                      $    22,982  $         -
  Management fees                                       3,701          825
  Reimbursables                                        11,875           88
                                                  -----------  -----------
    Total revenues                                     38,558          913
                                                  -----------  -----------
Operating costs and expenses
  Operating costs, excluding impairment and
   termination costs                                   30,678        3,123
  General and administrative                            4,550        3,470
  Depreciation                                          4,295           78
  Impairment and termination costs                          -       38,286
                                                  -----------  -----------
    Total operating expenses                           39,523       44,957
                                                  -----------  -----------
Income (loss) from operations                            (965)     (44,044)
Other income (expense)
  Interest income                                          10            6
  Interest expense                                     (4,174)         (56)
  Other income                                            293           86
                                                  -----------  -----------
    Total other income (expense)                       (3,871)          36
                                                  -----------  -----------
Income (loss) before income taxes                      (4,836)     (44,008)
Income tax provision (benefit)                           (562)        (540)
                                                  -----------  -----------
Net income (loss)                                 $    (4,274) $   (43,468)
                                                  ===========  ===========

Earnings per share
  Basic                                           $     (0.02) $     (0.57)
  Diluted                                         $     (0.02) $     (0.57)



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


                                            Year Ended December 31,
                                     -------------------------------------
                                         2009         2008         2007
                                     -----------  -----------  ----------- 
Revenues
  Contract drilling services         $    69,919  $         -  $         -
  Management fees                         18,830          825            -
  Reimbursables                           22,744           88            -
                                     -----------  -----------  -----------
    Total revenues                       111,493          913            -
                                     -----------  -----------  -----------
Operating costs and expenses
  Operating costs, excluding
   impairment and termination costs       66,228        5,365            -
  General and administrative              15,690        9,334          937
  Depreciation                            11,218          101           10


  Impairment and termination costs             -       38,286            -
                                     -----------  -----------  -----------
    Total operating expenses              93,136       53,086          947
                                     -----------  -----------  -----------
Income (loss) from operations             18,357      (52,173)        (947)
Other income (expense)
  Interest income                             23        4,095        7,699
  Interest expense                        (8,178)         (56)           -
  Other income                               609           86            -
                                     -----------  -----------  -----------
    Total other income (expense)          (7,546)       4,125        7,699
                                     -----------  -----------  -----------
Income (loss) before income taxes         10,811      (48,048)       6,752
Income tax provision (benefit)             1,972         (670)       2,299
                                     -----------  -----------  -----------
Net income (loss)                    $     8,839  $   (47,378) $     4,453
                                     ===========  ===========  ===========

Earnings per share
  Basic                              $      0.07  $     (0.78) $      0.16
  Diluted                            $      0.07  $     (0.78) $      0.14



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

                                                        December 31,
                                                  ------------------------
                                                      2009         2008
                                                  -----------  -----------
               ASSETS
Current assets
  Cash and cash equivalents                       $    15,992  $    16,557
  Restricted cash                                      28,863        1,700
  Trade receivables                                    17,536        3,186
  Inventory                                            10,789            -
  Prepaid expenses and other current assets             8,040        2,077
                                                  -----------  -----------
    Total current assets                               81,220       23,520
                                                  -----------  -----------
Property and Equipment
  Property and equipment                              899,541      631,008
  Accumulated depreciation                            (11,329)        (112)
                                                  -----------  -----------
    Property and equipment, net                       888,212      630,896
                                                  -----------  -----------
Other Assets
  Investment in joint venture                         120,306            -
  Other assets                                         29,441       10,867
                                                  -----------  -----------
    Total other assets                                149,747       10,867
                                                  -----------  -----------
Total assets                                      $ 1,119,179  $   665,283
                                                  ===========  ===========

     LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                                $    15,931  $     3,827
  Accrued liabilities                                  14,285       14,766
  Short-term debt                                      17,827       11,239
  Current maturities of long-term debt                 16,000        6,000
                                                  -----------  -----------
    Total current liabilities                          64,043       35,832
                                                  -----------  -----------
Long-term debt, net of discount of $4,021             378,078      133,000
Commitments and contingencies                               -            -
Shareholders' equity
  Preferred shares, $0.001 par value, 10,000
   shares authorized; none issued or outstanding            -            -
  Ordinary shares, $0.001 par value, 400,000
   shares authorized; 187,277 and 75,708 shares
   issued and outstanding                                 187           76
  Additional paid-in capital                          714,486      542,331
  Accumulated deficit                                 (37,117)     (45,956)
  Accumulated other comprehensive loss                   (498)           -
                                                  -----------  -----------
    Total shareholders' equity                        677,058      496,451
                                                  -----------  -----------
Total liabilities and shareholders' equity        $ 1,119,179  $   665,283
                                                  ===========  ===========



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


                                            Year Ended December 31,
                                     -------------------------------------
                                         2009         2008         2007
                                     -----------  -----------  -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                    $     8,839  $   (47,378) $     4,453
Adjustments to reconcile net income
 to net cash provided by (used in)
 operating activities:
  Depreciation expense                    11,218          101           10
  Amortization of debt financing
   costs                                   1,486          513            -
  Share-based compensation expense         5,030        2,420            -
  Accretion of long-term debt              1,638            -            -
  Amortization of senior notes
   discount                                   29            -            -
  Deferred income tax benefit                746       (2,059)        (311)
  Write-off of asset value, net                -       28,286            -
Changes in operating assets and
 liabilities:
  Restricted cash                        (27,163)      (1,700)           -
  Trade receivables                      (14,350)      (3,277)           -
  Inventory                              (10,789)           -            -
  Prepaid expenses and other current
   assets                                 (5,963)      (1,618)          93
  Other assets                              (406)           -            -
  Accounts payable                        12,104        3,765           62
  Accrued liabilities                      9,021       13,877          889
  Short-term debt                          4,942        1,240            -
                                     -----------  -----------  -----------
    Net cash used in operating
     activities                           (3,618)      (5,830)       5,196
                                     -----------  -----------  -----------
CASH FLOWS FROM INVESTING ACTIVITIES
  Acquisition of assets                        -     (213,397)           -
  Additions to property and
   equipment                            (337,444)    (170,775)        (122)
  Investment in joint venture           (157,404)           -            -
  Deferred acquisition costs                   -            -         (757)
  Restricted cash held in trust
   account                                     -      273,109     (273,109)
                                     -----------  -----------  -----------
    Net cash used in investing
     activities                         (494,848)    (111,063)    (273,988)
                                     -----------  -----------  -----------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from borrowings under
   credit agreements                     141,821      139,000            -
  Proceeds from the issuance of
   senior secured notes, net of
   discount of $4,021                    130,950            -            -
  Repayment of long-term debt            (19,360)           -            -
  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         150,000            -            -
  Proceeds from short-term notes
   payable-shareholders                    4,000            -            -
  Repayment of short-term debt            (2,354)           -            -
  Debt issuance costs                    (12,400)      (8,533)           -
  Advances from stockholders of OGIL           -        3,300            -
  Repayments of advances from
   stockholders of OGIL                        -       (3,300)           -
  Proceeds from issuance of ordinary
   shares and warrants in private
   placement                                   -            -        6,000
  Proceeds from issuance of ordinary
   shares and warrants to public
   stockholders                                -            -      255,930
  Proceeds from deferred
   underwriters fee                            -            -        8,280
  Repayment of deferred underwriters
   fee                                         -       (8,280)           -
  Proceeds from notes
   payable-shareholders                        -       10,000           86
  Repayment of notes
   payable-shareholders                        -            -         (275)
                                     -----------  -----------  -----------
    Net cash provided by financing
     activities                          497,901      132,187      270,021
                                     -----------  -----------  -----------
    Net increase in cash and cash
     equivalents                            (565)      15,294        1,229
  Cash and cash
   equivalents--beginning of period       16,557        1,263           34
                                     -----------  -----------  -----------
  Cash and cash equivalents--end of
   period                            $    15,992  $    16,557  $     1,263
                                     ===========  ===========  ===========

Contact Information

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