Vantage Drilling Company Reports Second Quarter 2013

HOUSTON, TX--(Marketwired - Aug 9, 2013) - Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports a net income for the three months ended June 30, 2013 of $4.2 million or $0.01 per diluted share as compared to a net loss of $10.0 million or ($0.03) per diluted share for the three months ended June 30, 2012.

For the six months ended June 30, 2013, Vantage reports a net loss of $20.7 million or ($0.07) per diluted shares excluding approximately $98.3 million of charges for the early retirement of debt as compared to a net loss of $11.2 million or ($0.04) per diluted shares for the six months ended June 30, 2012. Including charges for the early retirement of debt, the Company reported a net loss of $119.0 million or ($.39) per diluted share.

Paul Bragg, Chairman and Chief Executive Officer, commented, "We are very pleased to have had another strong operating quarter from our fleet. We have added additional backlog for the Tungsten Explorer and anticipate a successful commencement of operations in September. Since the quarter end, we have ordered another ultra-deepwater drillship, the Cobalt Explorer. The Cobalt Explorer is scheduled for a 3^rd quarter 2015 delivery."

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 as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, 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 eight 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 Company
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)

			Three Months Ended June 30,						Six Months Ended June 30,
			2013			2012			2013			2012
Revenues
	Contract drilling services		$	155,803		$	99,683		$	290,467		$	204,681
	Management fees			2,410			956			5,608			3,678
	Reimbursables			12,424			4,486			21,563			28,615
		Total revenues		170,637			105,125			317,638			236,974
	Operating costs and expenses
	Operating costs			77,117			50,030			152,434			119,354
	General and administrative			7,054			6,704			14,481			11,964
	Depreciation			24,980			16,372			49,841			32,944
		Total operating costs and expenses		109,151			73,106			216,756			164,262
Income from operations				61,486			32,019			100,882			72,712
Other income (expense)
	Interest income			74			21			170			33
	Interest expense and other financing charges			(51,255	)		(36,172	)		(110,917	)		(72,935	)
	Loss on debt extinguishment			-			-			(98,327	)		-
	Other, net			988			216			1,889			861
		Total other income (expense)		(50,193	)		(35,935	)		(207,185	)		(72,041	)
Income (loss) before income taxes				11,293			(3,916	)		(106,303	)		671
Income tax provision				7,077			6,061			12,682			11,827
Net income (loss)			$	4,216		$	(9,977	)	$	(118,985	)	$	(11,156	)

Earnings (loss) per share
	Basic		$	0.01		$	(0.03	)	$	(0.39	)	$	(0.04	)
	Diluted		$	0.01		$	(0.03	)	$	(0.39	)	$	(0.04	)



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

			June 30,			December 31,
			2013			2012
			(Unaudited)
ASSETS
Current assets
	Cash and cash equivalents		$	440,405		$	502,726
	Restricted cash			3,353			3,515
	Trade receivables			107,876			119,452
	Inventory			45,757			37,944
	Prepaid expenses and other current assets			19,071			25,208
		Total current assets		616,462			688,845
Property and equipment
	Property and equipment			2,945,368			2,893,837
	Accumulated depreciation			(226,134	)		(176,331	)
		Property and equipment, net		2,719,234			2,717,506
Other assets
	Investment in joint venture			32,359			31,320
	Other assets			93,061			92,536
		Total other assets		125,420			123,856
Total assets			$	3,461,116		$	3,530,207

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Accounts payable		$	58,126		$	50,909
	Accrued liabilities			75,065			123,484
	Current maturities of long-term debt			47,250			31,250
		Total current liabilities		180,441			205,643
Long-term debt, net of discount of $33,280 and $11,940				2,784,845			2,710,559
Other long-term liabilities				42,678			45,520
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, 500,000 shares authorized; 302,108 and 299,647 shares issued and outstanding			302			299
	Additional paid-in capital			881,787			878,137
	Accumulated deficit			(428,937	)		(309,951	)
		Total shareholders' equity		453,152			568,485
Total liabilities and shareholders' equity			$	3,461,116		$	3,530,207



Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
			Six Months Ended June 30,
			2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss			$	(118,985	)	$	(11,156	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
	Depreciation expense			49,841			32,944
	Amortization of debt financing costs			6,588			7,438
	Non-cash loss on debt extinguishment			6,070			-
	Equity in loss of joint venture			256			-
	Share-based compensation expense			3,652			4,420
	Amortization of debt discount (premium)			1,835			(762	)
	Deferred income tax expense			764			1,860
	Loss on disposal of assets			14			249
Changes in operating assets and liabilities:
	Restricted cash			162			1,150
	Trade receivables			11,576			(10,977	)
	Inventory			(7,814	)		(9,256	)
	Prepaid expenses and other current assets			5,308			1,476
	Other assets			(4,646	)		1,357
	Accounts payable			7,218			10,481
	Accrued liabilities and other long-term liabilities			(58,946	)		644
		Net cash provided by (used in) operating activities		(97,107	)		29,868
CASH FLOWS FROM INVESTING ACTIVITIES
	Additions to property and equipment			(45,130	)		(816,722	)
	Proceeds from sale of property and equipment			2			-
		Net cash used in investing activities		(45,128	)		(816,722	)
CASH FLOWS FROM FINANCING ACTIVITIES
	Proceeds from issuance of senior secured notes, net			775,000			837,000
	Proceeds from issuance of term loan, net			344,750			-
	Repayment of long-term debt			(1,013,374	)		-
	Debt issuance costs			(26,462	)		(36,468	)
		Net cash provided by financing activities		79,914			800,532
		Net increase (decrease) in cash and cash equivalents		(62,321	)		13,678
	Cash and cash equivalents--beginning of period			502,726			110,031
	Cash and cash equivalents--end of period		$	440,405		$	123,709

Contact Information:

Public & Investor Relations Contact:

Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700

Vantage Drilling Company Reports Second Quarter 2013 Results