Vantage Drilling Company Reports First Quarter 2013 Results

Marketwired

HOUSTON, TX--(Marketwired - May 10, 2013) -  Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports a net loss for the three months ended March 31, 2013 of $24.9 million or ($0.08) per diluted share excluding approximately $98.3 million of charges for the early retirement of debt as compared to a net loss of $1.2 million or ($0.00) per diluted share for the three months ended March 31, 2012. Including the charges for the early retirement of debt, the Company reported a net loss of $123.2 million or ($.41) per diluted share for the three months ended December 31, 2012.

Paul Bragg, Chairman and Chief Executive Officer, commented, "We are pleased with the performance of the fleet for the quarter. While Titanium Explorer operated for much of the quarter at a reduced dayrate, it is fortunate that the ship is now operating again at full rate. The incremental Titanium Explorer contract revenues, coupled with the recent refinancing of our debts, will greatly increase our earnings and cash flows for the remainder of the year, and thereafter. Additionally, we have received this week an additional Letter of Award for Tungsten Explorer, for work in Southeast Asia commencing upon delivery from the shipyard. The contract for this work will be completed upon receipt by our customer of the host-country governmental approval. The new project, and likely one additional project now under discussion, will be performed prior commencing the Moho Nord development project in West Africa the middle of next year."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and the ultra-deepwater drillships, the Platinum Explorer and Titanium Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now undergoing commissioning. 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 seven owned and managed 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 March 31,  
    2013     2012  
Revenues                
  Contract drilling services   $ 134,664     $ 104,998  
  Management fees     3,198       2,722  
  Reimbursables     9,139       24,129  
    Total revenues     147,001       131,849  
Operating costs and expenses                
  Operating costs     75,317       69,324  
  General and administrative     7,427       5,260  
  Depreciation     24,861       16,572  
    Total operating costs and expenses     107,605       91,156  
Income from operations     39,396       40,693  
Other income (expense)                
  Interest income     96       12  
  Interest expense and other financing charges     (59,662 )     (36,763 )
  Loss on debt extinguishment     (98,327 )     -  
  Other, net     901       645  
    Total other income (expense)     (156,992 )     (36,106 )
Income (loss) before income taxes     (117,596 )     4,587  
Income tax provision     5,605       5,766  
Net loss   $ (123,201 )   $ (1,179 )
                 
Loss per share                
  Basic   $ (0.41 )   $ (0.00 )
  Diluted   $ (0.41 )   $ (0.00 )
   
                 
   
   
   
Vantage Drilling Company  
Consolidated Balance Sheet  
(In thousands, except par value information)  
             
    March 31,     December 31,  
    2013     2012  
    (Unaudited)        
ASSETS            
Current assets                
  Cash and cash equivalents   $ 457,000     $ 502,726  
  Restricted cash     3,515       3,515  
  Trade receivables     101,931       119,452  
  Inventory     42,263       37,944  
  Prepaid expenses and other current assets     19,803       25,208  
    Total current assets     624,512       688,845  
Property and equipment                
  Property and equipment     2,912,385       2,893,837  
  Accumulated depreciation     (201,187 )     (176,331 )
    Property and equipment, net     2,711,198       2,717,506  
Other assets                
  Investment in joint venture     31,909       31,320  
  Other assets     87,951       92,536  
    Total other assets     119,860       123,856  
Total assets   $ 3,455,570     $ 3,530,207  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY                
Current liabilities                
  Accounts payable   $ 41,195     $ 50,909  
  Accrued liabilities     86,312       123,484  
  Current maturities of long-term debt     41,000       31,250  
    Total current liabilities     168,507       205,643  
Long-term debt, net of discount of $35,212 and $11,940     2,796,288       2,710,559  
Other long-term liabilities     43,422       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; 301,712 and 299,647 shares issued and outstanding     302       299  
  Additional paid-in capital     880,204       878,137  
  Accumulated deficit     (433,153 )     (309,951 )
    Total shareholders' equity     447,353       568,485  
Total liabilities and shareholders' equity   $ 3,455,570     $ 3,530,207  
   
   
   
Vantage Drilling Company  
Consolidated Statement of Cash Flows  
(In thousands)  
(Unaudited)  
    Three Months Ended March 31,  
    2013     2012  
CASH FLOWS FROM OPERATING ACTIVITIES                
Net loss   $ (123,201 )   $ (1,179 )
Adjustments to reconcile net loss to net cash used in operating activities:                
  Depreciation expense     24,861       16,572  
  Amortization of debt financing costs     3,995       2,374  
  Non-cash loss on debt extinguishment     6,070       -  
  Equity in loss of joint venture     133       -  
  Share-based compensation expense     2,069       2,253  
  Amortization of debt discount (premium)     (97 )     1,937  
  Deferred income tax expense     778       598  
  Loss on disposal of assets     1       3  
Changes in operating assets and liabilities:                
  Restricted cash     -       1,650  
  Trade receivables     17,521       (12,686 )
  Inventory     (4,319 )     (1,276 )
  Prepaid expenses and other current assets     3,963       (1,489 )
  Other assets     290       610  
  Accounts payable     (9,713 )     (4,102 )
  Accrued liabilities and other long-term liabilities     (42,762 )     (55,455 )
    Net cash used in operating activities     (120,411 )     (50,190 )
CASH FLOWS FROM INVESTING ACTIVITIES                
  Additions to property and equipment     (15,135 )     (3,328 )
  Proceeds from sale of property and equipment     2       -  
    Net cash used in investing activities     (15,133 )     (3,328 )
CASH FLOWS FROM FINANCING ACTIVITIES                
  Proceeds from issuance of senior secured notes, net     775,000       -  
  Proceeds from issuance of term loan, net     344,750       -  
  Repayment of long-term debt     (1,006,249 )     -  
  Debt issuance costs     (23,683 )     (39 )
    Net cash provided by (used in) financing activities     89,818       (39 )
    Net decrease in cash and cash equivalents     (45,726 )     (53,557 )
Cash and cash equivalents -- beginning of period     502,726       110,031  
Cash and cash equivalents -- end of period   $ 457,000     $ 56,474  
                 
Contact:
Public & Investor Relations
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
View Comments (0)

Recommended for You