SOURCE: Vantage Drilling Company

August 10, 2009 21:00 ET

Vantage Drilling Company Reports Second Quarter 2009 Results

HOUSTON, TX--(Marketwire - August 10, 2009) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG-U) (NYSE Amex: VTG) (NYSE Amex: VTG-WS) reports net income of $4.0 million or $0.04 per diluted share for the three months ended June 30, 2009 as compared to a loss of $0.5 million or ($0.01) per diluted share for the three months ended June 30, 2008.

For the six months ended June 30, 2009, Vantage reports net income of $6.3 million or $0.07 per share as compared to $0.6 million or $.01 per share for the six months ended June 30, 2008.

Paul Bragg, President and Chief Executive Officer, commented, "The second quarter of 2009 was another period of achievement for Vantage as we took delivery of our second jackup rig, the Sapphire Driller. The Sapphire Driller is contracted to work in West Africa for the remainder of 2009 and for a 6 to 12 month period in 2011.


Summarizing several important accomplishments are the following:

--  Emerald Driller operating in Thailand achieved 99% plus productive
    time for the second quarter and year to date.
--  Accepted delivery of Sapphire Driller ahead of schedule and on budget.
--  Contracted the Sapphire Driller for work in West Africa and rig is
    currently enroute to its first drilling location.
--  Achieved first steel cutting on the Platinum Explorer (45% ownership
    drillship) on schedule.
--  Completed a private placement of common stock raising $25.7 million.
    

Vantage Drilling Company is a Cayman Islands exempted company. Our primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. We also provide construction supervision services for, and will operate and manage, drilling units owned by others. Through our fleet of four ultra-premium jackup rigs and a 45% ownership interest in an ultra-deepwater drillship, and our five managed drilling units, we are 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 Company
                   Consolidated Statement of Operations
                 (In thousands, except per share amounts)
                                (Unaudited)


                                                      Three Months Ended
                                                           June 30,
                                                     ---------------------
                                                        2009        2008
                                                     ---------   ---------

Revenues
  Contract drilling services                         $  15,506   $       -
  Management fees                                        5,300           -
  Reimbursables                                          1,387           -
                                                     ---------   ---------
    Total revenues                                      22,193           -
                                                     ---------   ---------
Operating costs and expenses
  Operating costs                                        9,942           -
  General and administrative                             4,055       1,976
  Depreciation                                           2,102           6
                                                     ---------   ---------
    Total operating costs and expenses                  16,099       1,982
                                                     ---------   ---------
Income (loss) from operations                            6,094      (1,982)
Other income (expense)
  Interest income                                            -       1,326
  Interest expense                                      (1,310)          -
  Other income                                              87           -
                                                     ---------   ---------
    Total other income (expense)                        (1,223)      1,326
                                                     ---------   ---------
Income (loss) before income taxes                        4,871        (656)
Income tax provision (benefit)                             919        (125)
                                                     ---------   ---------
Net income (loss)                                    $   3,952   $    (531)
                                                     =========   =========

Earnings (loss) per share
  Basic                                              $    0.04   $   (0.01)
  Diluted                                            $    0.04   $   (0.01)





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


                                                       Six Months Ended
                                                           June 30,
                                                     ---------------------
                                                        2009        2008
                                                     ---------   ---------

Revenues
  Contract drilling services                         $  25,293   $       -
  Management fees                                        9,442           -
  Reimbursables                                          1,754           -
                                                     ---------   ---------
    Total revenues                                      36,489           -
                                                     ---------   ---------
Operating costs and expenses
  Operating costs                                       15,582           -
  General and administrative                             7,491       2,696
  Depreciation                                           3,758          12
                                                     ---------   ---------
    Total operating costs and expenses                  26,831       2,708
                                                     ---------   ---------
Income (loss) from operations                            9,658      (2,708)
Other income (expense)
  Interest income                                            8       3,831
  Interest expense                                      (2,058)          -
  Other income                                             173           -
                                                     ---------   ---------
    Total other income (expense)                        (1,877)      3,831
                                                     ---------   ---------
Income before income taxes                               7,781       1,123
Income tax provision                                     1,471         483
                                                     ---------   ---------
Net income                                           $   6,310   $     640
                                                     =========   =========

Earnings per share
  Basic                                              $    0.07   $    0.01
  Diluted                                            $    0.07   $    0.01





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


                                                 June 30,     December 31,
                                                   2009           2008
                                               ------------   ------------
                                               (Unaudited)
                   ASSETS
Current assets
  Cash and cash equivalents                    $      4,625   $     16,557
  Restricted cash                                    15,705          1,700
  Trade receivables                                  15,203          3,186
  Inventory                                           6,934              -
  Prepaid expenses and other current assets           4,016          2,077
                                               ------------   ------------
    Total current assets                             46,483         23,520
                                               ------------   ------------
Property and equipment
  Property and equipment                            627,191        631,008
  Accumulated depreciation                           (3,870)          (112)
                                               ------------   ------------
    Property and equipment, net                     623,321        630,896
                                               ------------   ------------
Other assets
  Investment in joint venture                        75,619              -
  Other assets                                       18,574         10,867
                                               ------------   ------------
    Total other assets                               94,193         10,867
                                               ------------   ------------
Total assets                                   $    763,997   $    665,283
                                               ============   ============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                             $      4,966   $      3,827
  Accrued liabilities                                13,808         14,766
  Short-term debt                                    15,070         11,239
  Current maturities of long-term debt               19,410          6,000
                                               ------------   ------------
    Total current liabilities                        53,254         35,832
                                               ------------   ------------
Long-term debt                                      158,058        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; 109,299 and
   75,708 shares issued and outstanding                 109             76
Additional paid-in capital                          592,222        542,331
Retained deficit                                    (39,646)       (45,956)
                                               ------------   ------------
    Total shareholders' equity                      552,685        496,451
                                               ------------   ------------
Total liabilities and shareholders' equity     $    763,997   $    665,283
                                               ============   ============





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


                                                Six Months Ended June 30,
                                               ---------------------------
                                                   2009           2008
                                               ------------   ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                     $      6,310   $        640
Adjustments to reconcile net income
 to net cash provided by (used in)
 operating activities:
   Depreciation expense                               3,758             12
   Amortization of debt financing costs                 464              -
   Share-based compensation expense                   2,391            184
   Deferred income tax benefit                            -           (814)
Changes in operating assets and liabilities:
   Restricted cash                                  (14,005)          (600)
   Trade receivables                                (12,018)             -
   Inventory                                         (6,934)             -
   Prepaid expenses and other current assets         (1,939)          (606)
   Other assets                                        (170)             -
   Accounts payable                                   1,139            940
   Accrued liabilities                                9,042            643
   Short-term debt                                      760              -
                                               ------------   ------------
     Net cash provided by (used in)
      operating activities                          (11,202)           399
                                               ------------   ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of assets                                     -       (213,397)
Additions to property and equipment                 (67,248)        (2,064)
Investment in joint venture                         (15,574)             -
Deferred acquisition costs                                -            757
Restricted cash held in trust account                     -        273,109
                                               ------------   ------------
     Net cash provided by (used in)
      investing activities                          (82,822)        58,405
                                               ------------   ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under credit
 agreement                                           41,821         34,000
Repayment of long-term debt                          (3,353)             -
Proceeds from issuance of ordinary shares
 in private placement, net                           24,954              -
Proceeds from warrant exercise in
 connection with joint venture                       15,600              -
Proceeds from short-term notes
 payable-shareholders                                 4,000              -
Repayments of short-term debt                          (930)             -
Debt issuance costs                                       -         (8,473)
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                                     82,092         17,247
                                               ------------   ------------
     Net increase (decrease) in cash
      and cash equivalents                          (11,932)        76,051
Cash and cash equivalents -- beginning
 of period                                           16,557          1,263
                                               ------------   ------------
Cash and cash equivalents -- end of period     $      4,625   $     77,314
                                               ============   ============

Contact Information

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