UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 9, 2021, Vantage Drilling International (the “Company”) issued a press release announcing operating results and developments for the fiscal quarter ended September 30, 2021. A copy of the press release is furnished as Exhibit 99.1 hereto.
Item 9.01 Financial Statements and Exhibits.
(d) |
Exhibits. |
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Exhibit Number |
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Description of Exhibit |
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Press Release of Vantage Drilling International dated November 9, 2021 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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VANTAGE DRILLING INTERNATIONAL |
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Date: |
November 9, 2021 |
By: |
/s/ DOUGLAS E. STEWART |
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Douglas E. Stewart |
Exhibit 99.1
Vantage Drilling International Reports Third Quarter Results for 2021
HOUSTON, November 9, 2021 (GLOBE NEWSWIRE) -- Vantage Drilling International ("Vantage" or the “Company”) reported a net loss attributable to controlling interest of approximately $21.7 million or $1.66 per diluted share for the three months ended September 30, 2021, based on the weighted average shares outstanding, as compared to a net loss attributable to controlling interest of $169.3 million or $12.91 per diluted share for the three months ended September 30, 2020, which included a non-cash loss on impairment charge of $128.9 million on the carrying amount of the Titanium Explorer.
As of September 30, 2021, Vantage had approximately $120.3 million in cash, including $14.9 million of restricted cash, compared to $154.5 million in cash, including $12.5 million of restricted cash at December 31, 2020. The Company used $44.5 million in cash from operations in 2021 compared to $61.1 million used during the same period of 2020 and used $3.5 million in cash from operations in the third quarter of 2021 compared to $25.6 million used during the second quarter of 2021.
Ihab Toma, CEO, commented: “The underlying fundamentals of our industry continued to improve during the third quarter as reflected in the increased contracting activity and industry-wide utilization. For Vantage, we had all of our five Jackups working throughout the quarter while the Platinum Explorer drillship concluded its previous campaign in August and is expected to start a new two-year contract shortly. We are pleased to report that our collaboration with Aquadrill has resulted in obtaining a drilling contract for their rig, West Capella, which is expected to commence during the first quarter of 2022. This is an important milestone for us and for Aquadrill and proves the viability of Vantage as a management platform marketing and operating rigs on behalf of other owners.”
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of two ultra-deepwater drillships, and five 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 globally for major, national and independent oil and gas companies. Vantage also markets, operates and provides management services in respect of, drilling units owned by others.
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 disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Public & Investor Relations Contact:
Douglas E. Stewart
Chief Financial Officer and General Counsel
Vantage Drilling International
C/O Vantage Energy Services, Inc.
777 Post Oak Blvd., Suite 800
Houston, Texas 77056
(281) 404-4700
Vantage Drilling International |
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Consolidated Statement of Operations |
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(In thousands, except per share data) |
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(Unaudited) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2021 |
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2020 |
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2021 |
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2020 |
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Revenue |
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Contract drilling services |
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$ |
42,982 |
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$ |
18,069 |
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$ |
92,362 |
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$ |
95,539 |
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Reimbursables and other |
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9,869 |
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2,142 |
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16,256 |
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12,903 |
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Total revenue |
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52,851 |
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20,211 |
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108,618 |
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108,442 |
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Operating costs and expenses |
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Operating costs |
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45,369 |
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27,231 |
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106,782 |
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113,890 |
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General and administrative |
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4,593 |
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3,829 |
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15,055 |
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15,715 |
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Depreciation |
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14,137 |
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18,230 |
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42,423 |
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54,647 |
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Loss on impairment |
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— |
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128,876 |
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— |
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128,876 |
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Total operating costs and expenses |
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64,099 |
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178,166 |
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164,260 |
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313,128 |
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Loss from operations |
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(11,248 |
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(157,955 |
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(55,642 |
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(204,686 |
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Other (expense) income |
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Interest income |
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8 |
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41 |
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118 |
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853 |
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Interest expense and other financing charges |
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(8,508 |
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(8,510 |
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(25,529 |
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(25,531 |
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Other, net |
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(1,108 |
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(46 |
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(1,901 |
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2,321 |
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Total other expense |
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(9,608 |
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(8,515 |
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(27,312 |
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(22,357 |
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Loss before income taxes |
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(20,856 |
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(166,470 |
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(82,954 |
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(227,043 |
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Income tax provision |
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881 |
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2,855 |
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3,763 |
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4,752 |
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Net loss |
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(21,737 |
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(169,325 |
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(86,717 |
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(231,795 |
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Net (loss) income attributable to noncontrolling interests |
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(10 |
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2 |
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(41 |
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16 |
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Net loss attributable to shareholders |
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$ |
(21,727 |
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$ |
(169,327 |
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$ |
(86,676 |
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$ |
(231,811 |
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Loss per share |
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Basic and Diluted |
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$ |
(1.66 |
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$ |
(12.91 |
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$ |
(6.61 |
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$ |
(17.68 |
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Weighted average ordinary shares outstanding, |
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Basic and Diluted |
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13,115 |
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13,115 |
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13,115 |
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13,115 |
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Vantage Drilling International |
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Supplemental Operating Data |
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(Unaudited, in thousands, except percentages) |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2021 |
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2020 |
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2021 |
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2020 |
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Operating costs and expenses |
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Jackups |
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$ |
23,772 |
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$ |
11,820 |
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$ |
60,091 |
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$ |
48,962 |
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Deepwater |
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11,706 |
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11,958 |
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27,769 |
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50,828 |
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Management |
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3,701 |
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- |
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4,458 |
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- |
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Operations support |
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2,275 |
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2,177 |
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6,804 |
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7,631 |
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Reimbursables |
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3,915 |
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1,276 |
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7,660 |
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6,469 |
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Total operating costs and expenses |
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$ |
45,369 |
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$ |
27,231 |
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$ |
106,782 |
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$ |
113,890 |
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Utilization |
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Jackups |
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98.7 |
% |
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40.0 |
% |
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56.9 |
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62.2 |
% |
Deepwater |
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28.5 |
% |
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28.2 |
% |
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42.4 |
% |
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45.1 |
% |
Vantage Drilling International |
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Consolidated Balance Sheets |
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(In thousands, except share and par value information) |
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(Unaudited) |
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September 30, 2021 |
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December 31, 2020 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
105,468 |
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$ |
141,945 |
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Restricted cash |
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5,731 |
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7,996 |
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Trade receivables, net of allowance for doubtful accounts of $5.0 million, respectively |
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36,168 |
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24,717 |
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Materials and supplies |
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51,550 |
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49,861 |
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Prepaid expenses and other current assets |
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18,009 |
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29,151 |
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Total current assets |
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216,926 |
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253,670 |
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Property and equipment |
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Property and equipment |
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794,037 |
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794,944 |
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Accumulated depreciation |
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(316,916 |
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(278,562 |
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Property and equipment, net |
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477,121 |
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516,382 |
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Operating lease ROU assets |
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2,674 |
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3,997 |
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Other assets |
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22,088 |
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12,126 |
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Total assets |
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$ |
718,809 |
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$ |
786,175 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
29,776 |
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$ |
25,466 |
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Other current liabilities |
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38,126 |
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24,734 |
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Total current liabilities |
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67,902 |
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50,200 |
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Long–term debt, net of discount and financing costs of $3,552 and $4,781, respectively |
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346,448 |
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345,219 |
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Other long-term liabilities |
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15,104 |
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15,011 |
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Commitments and contingencies |
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Shareholders' equity |
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Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, respectively |
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13 |
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13 |
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Additional paid-in capital |
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633,817 |
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634,181 |
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Accumulated deficit |
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(346,331 |
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(259,655 |
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Controlling interest shareholders' equity |
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287,499 |
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374,539 |
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Noncontrolling interests |
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1,856 |
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1,206 |
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Total equity |
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289,355 |
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375,745 |
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Total liabilities and shareholders' equity |
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$ |
718,809 |
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$ |
786,175 |
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Vantage Drilling International |
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Consolidated Statement of Cash Flows |
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(In thousands) |
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(Unaudited) |
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Nine Months Ended September 30, |
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2021 |
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2020 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net loss |
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$ |
(86,717 |
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$ |
(231,795 |
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Adjustments to reconcile net loss to net cash used in operating activities |
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Depreciation expense |
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42,423 |
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54,647 |
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Amortization of debt financing costs |
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1,229 |
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1,229 |
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Share-based compensation expense |
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366 |
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1,358 |
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Deferred income tax (benefit) expense |
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357 |
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(36 |
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Loss (gain) on disposal of assets |
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(2,710 |
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52 |
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Gain on settlement of restructuring agreement |
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— |
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(2,278 |
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Loss on impairment |
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— |
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128,876 |
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Changes in operating assets and liabilities: |
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Trade receivables, net |
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(11,451 |
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7,394 |
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Materials and Supplies |
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(2,084 |
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(1,924 |
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Prepaid expenses and other current assets |
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762 |
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|
483 |
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Other assets |
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(4,207 |
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4,250 |
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Accounts payable |
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4,310 |
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(20,734 |
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Other current liabilities and other long-term liabilities |
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13,243 |
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(2,598 |
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Net cash used in operating activities |
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(44,479 |
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(61,076 |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Additions to property and equipment |
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(3,232 |
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(2,634 |
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Net proceeds from sale of Titanium Explorer |
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13,557 |
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— |
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Net cash provided by (used in) investing activities |
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10,325 |
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(2,634 |
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Contributions from holders of noncontrolling interests |
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— |
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— |
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Debt issuance costs |
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— |
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— |
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Net cash provided by financing activities |
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— |
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— |
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Net decrease in unrestricted and restricted cash and cash equivalents |
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(34,154 |
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(63,710 |
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Unrestricted and restricted cash and cash equivalents—beginning of period |
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|
154,487 |
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|
242,944 |
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Unrestricted and restricted cash and cash equivalents—end of period |
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$ |
120,333 |
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$ |
179,234 |
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