HOUSTON, TX -- 11/09/09 --
Vantage Drilling Company ("Vantage") (NYSE Amex: VTG.U) (NYSE Amex: VTG) (NYSE Amex: VTG.WS) reports net income of
$6.8 million or $0.05 per diluted share for the three months ended
September 30, 2009 as compared to a net loss of $4.6 million or $(0.06) per
diluted share for the three months ended September 30, 2008. Revenues for
the third quarter of 2009 were approximately $36.4 million.
For the nine months ended September 30, 2009, Vantage reported net income
of approximately $13.1 million or $0.13 per diluted share compared to a net
loss of approximately $3.9 million or $(0.07) per share in the prior year.
Revenues for the nine months ended September 30, 2009 were approximately
$72.9 million.
Paul Bragg, President and Chief Executive Officer, commented, "The third
quarter of 2009 was another period of solid achievement for Vantage. Our
second rig, the Sapphire Driller, commenced operations in August with
outstanding start up performance. We were able to book additions to our
contractual backlog for the jackups as we secured follow-on work for the
Sapphire Driller and have received a Letter of Intent for the Aquamarine
Driller to work in Asia following the completion of its commissioning.
Despite this year having been a difficult one for the offshore drilling
business, we have created an excellent operating platform and look forward
to improving market conditions for 2010 and beyond."
Summarizing several important accomplishments are the following:
-- Emerald Driller operating in Thailand achieved 99% plus productive
time in the quarter.
-- Sapphire Driller began operations on August 21st in Côte d'Ivoire and
achieved 98% plus productive time.
-- Aquamarine Driller was delivered from the shipyard on September 3,
2009.
-- Raised approximately $80.3 million in a public offering of 55.1
million ordinary shares including underwriters' overallotment.
-- Issued $100.0 million term loan to complete the funding for the
Aquamarine Driller.
Vantage will conduct a call at 11:30 AM Eastern Time on Monday, November 9,
2009 to discuss results and developments for the third quarter 2009. To
access the conference call, U.S. callers may dial toll free (888) 471-3828
and international callers may dial (719) 325-2477. The pass code will be
6403005. Please call ten minutes ahead of time to ensure proper
connection. A replay of the conference call will be available for two
weeks following the call and can be accessed by dialing (888) 203-1112 for
U.S. callers and (719) 457-0820 for international callers. The access code
for the replay is 6403005.
Vantage, a Cayman Islands exempted company, is an offshore drilling
contractor, with two Baker Marine Pacific Class 375 ultra-premium jackup
drilling rig operating, one such jackup currently being outfitted, and
another such jackup 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 Offshore Limited 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 Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues
Contract drilling services $ 21,644 $ - $ 46,937 $ -
Management fees 5,688 - 15,129 -
Reimbursables 9,114 - 10,869 -
-------- -------- -------- --------
Total revenues 36,446 - 72,935 -
-------- -------- -------- --------
Operating costs and expenses
Operating costs 19,967 1,997 35,550 2,243
General and administrative 3,650 3,413 11,140 5,863
Depreciation 3,165 11 6,923 23
-------- -------- -------- --------
Total operating expenses 26,782 5,421 53,613 8,129
-------- -------- -------- --------
Income (loss) from operations 9,664 (5,421) 19,322 (8,129)
Other income (expense)
Interest income 4 257 13 4,089
Interest expense (1,945) - (4,004) -
Other income 143 - 316 -
-------- -------- -------- --------
Total other income (expense) (1,798) 257 (3,675) 4,089
-------- -------- -------- --------
Income (loss) before income taxes 7,866 (5,164) 15,647 (4,040)
Income tax provision (benefit) 1,063 (613) 2,534 (130)
-------- -------- -------- --------
Net income (loss) $ 6,803 $ (4,551) $ 13,113 $ (3,910)
======== ======== ======== ========
Earnings (loss) per share
Basic $ 0.05 $ (0.06) $ 0.13 $ (0.07)
Diluted $ 0.05 $ (0.06) $ 0.13 $ (0.07)
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
September 30, December 31,
2009 2008
----------- -----------
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 40,670 $ 16,557
Restricted cash 24,916 1,700
Trade receivables 20,976 3,186
Inventory 12,189 -
Prepaid expenses and other current assets 2,225 2,077
----------- -----------
Total current assets 100,976 23,520
----------- -----------
Property and Equipment
Property and equipment 759,617 631,008
Accumulated depreciation (7,034) (112)
----------- -----------
Property and equipment, net 752,583 630,896
----------- -----------
Other Assets
Investment in joint venture 101,891 -
Other assets 23,730 10,867
----------- -----------
Total other assets 125,621 10,867
----------- -----------
Total assets $ 979,180 $ 665,283
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 13,347 $ 3,827
Accrued liabilities 17,784 14,766
Short-term debt 14,152 11,239
Current maturities of long-term debt 17,216 6,000
----------- -----------
Total current liabilities 62,499 35,832
----------- -----------
Long-term debt 250,373 133,000
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; 179,565 and 75,708 shares
issued and outstanding 180 76
Additional paid-in capital 699,605 542,331
Accumulated deficit (32,843) (45,956)
Accumulated other comprehensive loss (634) -
----------- -----------
Total shareholders' equity 666,308 496,451
----------- -----------
Total liabilities and shareholders' equity $ 979,180 $ 665,283
=========== ===========
Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended
September 30,
----------------------
2009 2008
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 13,113 $ (3,910)
Adjustments to reconcile net income to net cash
used in operating activities:
Depreciation expense 6,923 23
Amortization of debt financing costs 872 257
Share-based compensation expense 3,636 1,286
Accretion of long-term debt 373 -
Deferred income tax benefit 83 (1,520)
Changes in operating assets and liabilities:
Restricted cash (23,216) (1,100)
Trade receivables, net (17,791) -
Inventory (12,190) -
Prepaid expenses and other current assets (147) (710)
Other assets (412) -
Accounts payable 9,520 1,964
Accrued liabilities 12,384 1,274
Short-term debt 760 -
---------- ----------
Net cash used in operating activities (6,092) (2,436)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of assets - (213,397)
Additions to property and equipment (200,102) (108,436)
Investment in joint venture (104,001) -
Deferred acquisition costs - 757
Restricted cash held in trust account - 273,109
---------- ----------
Net cash used in investing activities (304,103) (47,967)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under credit agreements 141,821 79,000
Repayment of long-term debt (13,605) -
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 104,100 -
Proceeds from short-term notes
payable-shareholders 4,000 -
Repayment of short-term debt (1,848) -
Debt issuance costs (5,404) (8,533)
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 334,308 62,187
---------- ----------
Net increase in cash and cash equivalents 24,113 11,784
Cash and cash equivalents--beginning of period 16,557 1,263
---------- ----------
Cash and cash equivalents--end of period $ 40,670 $ 13,047
========== ==========
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
