Saturday, March 17th, 2012 - Vantage Drilling Company

Vantage Drilling Company Reports Fourth Quarter 2011 Results

 

HOUSTON, TX--(Marketwire - March 16, 2012) - Vantage Drilling Company ("Vantage") (NYSE Amex: VTG) reports a net loss of $9.3 million or ($0.03) per diluted share for the three months ended December 31, 2011 as compared to a net loss of $13.0 million or ($0.05) per diluted share for the three months ended December 31, 2010.

 

Net loss for the fiscal year ended December 31, 2011 was $54.8 million or ($0.19) per share excluding approximately $25.2 million of charges for the early retirement of debt as compared to a loss of $19.8 million or ($0.08) per share in the prior year period, excluding approximately $27.8 million of acquisition and refinancing charges. Including the acquisition and refinancing charges, Vantage reported a net loss $80.0 million or ($0.28) per diluted share for the year ended December 31, 2011 as compared to a net loss of $47.6 million or $(0.19) per diluted share for the year ended December 31, 2010.

 

Paul Bragg, Chairman and Chief Executive Officer, commented, "We are very pleased to announce record annual revenues and income from operations. Vantage continues to deliver operational excellence. Our jackup fleet had outstanding productive time for the year in excess of 99% and the Platinum Explorer completed its initial year of operations with productive time in excess of 92%. Market conditions are improving, particularly for new, modern rigs like ours."

 

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 December 31,

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

                                                 2011             2010     

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

Revenues                                                                   

  Contract drilling services                $       91,961   $       45,881

  Management fees                                    3,228            4,717

  Reimbursables                                     26,111           34,294

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

    Total revenues                                 121,300           84,892

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

Operating costs and expenses                                               

  Operating costs, excluding impairment and                                 

   termination costs                                72,175           63,441

  General and administrative                         5,849            6,016

  Depreciation                                      16,352            8,773

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

    Total operating expenses                        94,376           78,230

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

Income from operations                              26,924            6,662

Other income (expense)                                                     

  Interest income                                       29              166

  Interest expense                                 (36,931)         (14,219)

  Other income                                        (589)             (58)

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

    Total other expense                            (37,491)         (14,111)

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

Loss before income taxes                           (10,567)          (7,449)

Income tax provision (benefit)                      (1,221)           5,516

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

Net loss                                    $       (9,346)  $      (12,965)

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

                                                                           

Earnings (loss) per share                                                  

  Basic                                     $        (0.03)  $        (0.05)

  Diluted                                   $        (0.03)  $        (0.05)

                                   

   Vantage Drilling Company                         

                    Consolidated Statement of Operations                   

                  (In thousands, except per share amounts)                 

                                                                            

                                               Year Ended December 31,     

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

                                            2011        2010        2009   

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

Revenues                                                                   

  Contract drilling services             $  366,363  $  178,514  $   69,919

  Management fees                            13,727      18,107      18,830

  Reimbursables                             105,258      81,782      22,744

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

    Total revenues                          485,348     278,403     111,493

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

Operating costs and expenses                                               

  Operating costs                           284,400     176,387      66,228

  General and administrative                 26,317      21,719      15,690

  Depreciation                               64,477      33,384      11,218

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

    Total operating expenses                375,194     231,490      93,136

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

Income from operations                      110,154      46,913      18,357

Other income (expense)                                                      

  Interest income                                96         562          23

  Interest expense and financing charges   (154,897)    (49,827)     (8,178)

  Loss on debt extinguishment               (25,196)    (24,006)          -

  Loss on acquisition of subsidiary               -      (3,780)          -

  Other income                                1,324       1,510         609

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

    Total other expense                    (178,673)    (75,541)     (7,546)

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

Income (loss) before income taxes           (68,519)    (28,628)     10,811

Income tax provision                         11,432      18,951       1,972

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

Net income (loss)                        $  (79,951) $  (47,579) $    8,839

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

                                                                           

Earnings (loss) per share                                                  

  Basic                                  $    (0.28) $    (0.19) $     0.07

  Diluted                                $    (0.28) $    (0.19) $     0.07

                                                                           

 

                                                                           

                          Vantage Drilling Company                         

                         Consolidated Balance Sheet                        

                (In thousands, except par value information)               

                                                                            

                                                      December 31,         

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

                                                  2011            2010      

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

                   ASSETS                                                  

Current assets                                                             

  Cash and cash equivalents                  $      110,031  $      120,443

  Restricted cash                                     7,028          29,004

  Trade receivables                                 100,908          50,190

  Inventory                                          24,376          19,760

  Prepaid expenses and other current assets          16,909          11,472

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

    Total current assets                            259,252         230,869

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

Property and equipment                                                     

  Property and equipment                          1,913,596       1,762,844

  Accumulated depreciation                         (108,521)        (44,712)

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

    Property and equipment, net                   1,805,075       1,718,132

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

Other assets                                                               

  Other assets                                       58,173          54,193

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

    Total other assets                               58,173          54,193

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

Total assets                                 $    2,122,500  $    2,003,194

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

                                                                           

    LIABILITIES AND SHAREHOLDERS' EQUITY                                   

Current liabilities                                                         

  Accounts payable                           $       46,362  $       32,332

  Accrued liabilities                               103,809          83,733

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

    Total current liabilities                       150,171         116,065

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

Long-term debt, net of discount of $38,572                                  

 and $63,654                                      1,246,428       1,103,480

Other long-term liabilities                          29,755          13,498

Commitments and contingencies                             -               -

Contact Profile

Paul A. Bragg Chairman and Chief Executive Officer

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

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