Saturday, August 6th, 2011 - Vantage

 HOUSTON, TX--(Marketwire) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG) reports a net loss of $14.9 million or ($0.05) per share, excluding $25.2 million ($0.09 per share) of charges associated with refinancing of debt. Including the refinancing charges, the Company reported a net loss of $40.1 million or ($0.14) per diluted share for the three months ended June 30, 2011.This compares to a net loss of $(7.0) million or $(0.03) per diluted share for the three months ended June 30, 2010.

 

For the six months ended June 30, 2011, Vantage reports a net loss of $33.5 million or ($0.11) per share, excluding $25.2 million ($0.09 per share) of charges associated with refinancing of debt. Including the refinancing charges the Company reported a net loss of $58.7 million or ($0.20) per share as compared to a net loss of $(1.0) million or $(0.00) per share for the six months ended June 30, 2010.

 

Paul Bragg, Chairman and Chief Executive Officer, commented, "We had a solid quarter with high productive time across the fleet. The Platinum Explorer achieved over 95% productive time and the jackup fleet achieved over 99% productive time for the quarter. We are also extremely pleased to add to our fleet, the Tungsten Explorer, which is being built at the DSME shipyard."

 

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 drillship, the Platinum Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now under construction. 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       Six Months Ended   

                                    June 30,                June 30,       

                             ----------------------  ----------------------

                                2011        2010        2011        2010   

                             ----------  ----------  ----------  ----------

Revenues                                                                   

  Contract drilling services $   97,808  $   48,702  $  184,520  $   89,060

  Management fees                 3,171       4,437       7,214       8,875

  Reimbursables                  19,946      15,215      53,780      28,669

                             ----------  ----------  ----------  ----------

    Total revenues              120,925      68,354     245,514     126,604

                             ----------  ----------  ----------  ----------

Operating costs and expenses                                               

  Operating costs                65,264      40,705     142,615      71,364

  General and administrative      7,402       4,934      14,249       9,409

  Depreciation                   16,025       8,366      32,137      15,843

                             ----------  ----------  ----------  ----------

    Total operating expenses     88,691      54,005     189,001      96,616

                             ----------  ----------  ----------  ----------

Income (loss) from operations    32,234      14,349      56,513      29,988

Other income (expense)                                                      

  Interest income                    22           3          60          15

  Interest expense and                                                     

   financing charges            (39,350)    (13,331)    (80,892)    (21,316)

  Loss on debt extinguishment   (25,196)          -     (25,196)          -

  Other income                      (22)        338       1,458         950

                             ----------  ----------  ----------  ----------

    Total other income                                                     

     (expense)                  (64,546)    (12,990)   (104,570)    (20,351)

                             ----------  ----------  ----------  ----------

Income (loss) before income                                                 

 taxes                          (32,312)      1,359     (48,057)      9,637

Income tax provision                                                       

 (benefit)                        7,758       8,355      10,667      10,671

                             ----------  ----------  ----------  ----------

Net income (loss)            $  (40,070) $   (6,996) $  (58,724) $   (1,034)

                             ==========  ==========  ==========  ==========

                                                                            

Earnings (loss) per share                                                  

  Basic                      $    (0.14) $    (0.03) $    (0.20) $        -

  Diluted                    $    (0.14) $    (0.03) $    (0.20) $        -

                                                                           

                                                                           



                                                                            

                                                                           

                          Vantage Drilling Company                         

                         Consolidated Balance Sheet                        

                (In thousands, except par value information)               

                                                                           

                                                   June 30,    December 31,

                                                     2011          2010    

                                                 ------------  ------------

                                                  (Unaudited)              

                      ASSETS                                                

Current assets                                                             

  Cash and cash equivalents                      $    114,496  $    120,443

  Restricted cash                                       6,203        29,004

  Trade receivables                                    86,492        50,190

  Inventory                                            22,155        19,760

  Prepaid expenses and other current assets             7,343        11,472

                                                 ------------  ------------

    Total current assets                              236,689       230,869

                                                 ------------  ------------

Property and equipment                                                      

  Property and equipment                            1,880,243     1,762,844

  Accumulated depreciation                            (76,849)      (44,712)

                                                 ------------  ------------

    Property and equipment, net                     1,803,394     1,718,132

                                                 ------------  ------------

Other assets                                                               

  Other assets                                         58,698        54,193

                                                 ------------  ------------

    Total other assets                                 58,698        54,193

                                                 ------------  ------------

Total assets                                     $  2,098,781  $  2,003,194

                                                 ============  ============

                                                                           

       LIABILITIES AND SHAREHOLDERS' EQUITY                                

Current liabilities                                                        

  Accounts payable                               $     41,726  $     32,332

  Accrued liabilities                                  84,871        75,159

  Short-term debt                                       3,430         8,574

                                                 ------------  ------------

    Total current liabilities                         130,027       116,065

                                                 ------------  ------------

Long-term debt, net of discount of $42,489 and                             

 $63,654                                            1,242,511     1,103,480

Other long-term liabilities                            12,401        13,498

                                                                           

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, 400,000                                

   shares authorized; 290,662 and 289,713 shares                           

   issued and outstanding                                 291           290

  Additional paid-in capital                          856,971       854,557

  Accumulated deficit                                (143,420)      (84,696)

                                                 ------------  ------------

    Total shareholders' equity                        713,842       770,151

                                                 ------------  ------------

Total liabilities and shareholders' equity       $  2,098,781  $  2,003,194

                                                 ============  ============

                                                                            



                                                                           

                                                                           

                          Vantage Drilling Company                          

                    Consolidated Statement of Cash Flows                   

                               (In thousands)                              

                                (Unaudited)                                

                                                                            

                                                        Six Months Ended   

                                                            June 30,       

                                                     ----------------------

                                                        2011        2010   

                                                     ----------  ----------

CASH FLOWS FROM OPERATING ACTIVITIES                                        

Net loss                                             $  (58,724) $   (1,034)

Adjustments to reconcile net income to net cash                            

 provided by (used in) operating activities:                               

  Depreciation expense                                   32,137      15,843

  Amortization of debt financing costs                    3,888       1,952

  Non-cash loss on debt extinguishment                    3,532           -

  Share-based compensation expense                        2,415       3,050

  Accretion of long-term debt                             2,582       2,508

  Amortization of debt discount                           5,415         588

  Deferred income tax expense (benefit)                    (128)      1,712

Changes in operating assets and liabilities:                               

  Restricted cash                                        22,801       1,685

  Trade receivables                                     (36,303)    (41,706)

  Inventory                                              (2,396)     (3,566)

  Prepaid expenses and other current assets               4,130       4,145

  Other assets                                              897      (1,490)

  Accounts payable                                        9,394      10,979

  Accrued liabilities                                     8,093       3,857

  Short-term debt                                             -       1,467

                                                     ----------  ----------

    Net cash used in operating activities                (2,267)        (10)

                                                     ----------  ----------

CASH FLOWS FROM INVESTING ACTIVITIES                                       

  Additions to property and equipment                  (116,876)    (16,375)

  Investment in joint venture                                 -      (8,804)

                                                     ----------  ----------

    Net cash used in investing activities              (116,876)    (25,179)

                                                     ----------  ----------

CASH FLOWS FROM FINANCING ACTIVITIES                                       

  Proceeds from issuance of senior secured notes,                           

   net                                                  240,750           -

  Repayment of long-term debt                          (109,716)    (16,968)

  Proceeds from issuance of ordinary shares in                             

   public offerings, net                                      -      47,578

  Repayment of short-term debt                           (5,145)     (2,725)

  Debt issuance costs                                   (12,693)       (273)

                                                     ----------  ----------

    Net cash provided by financing activities           113,196      27,612

                                                     ----------  ----------

    Net increase (decrease) in cash and cash                                

     equivalents                                         (5,947)      2,423

  Cash and cash equivalents - beginning of period       120,443      15,992

                                                     ----------  ----------

  Cash and cash equivalents - end of period          $  114,496  $   18,415

                                                     ==========  ==========


Contact Profile

Paul A. Bragg, Chairman & Chief Executive Officer, Vantage Drilling Company

P: (281) 404-4700
W: www.vantagedrilling.com

Keywords

Vantage Drilling Company ("Vantage") (NYSE Amex: VTG) reports a net loss of $14.9 million or ($0.05) per share, excluding $25.2 million ($0.09 per share) of charges associated with refinancing of debt.

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