Tuesday, March 10th, 2015

HOUSTON, TX--(Marketwired) -- Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports net income for the three months ended December 31, 2014 of $12.6 million or $0.04 per diluted share as compared to earnings of $30.3 million or $.09 per diluted share for the three months ended December 31, 2013. The three months ended December 31, 2014 includes a gain on the early retirement of debt of approximately $4.2 million.

The $4.2 million gain on the early retirement of debt represents the discount to the face value of debt that we purchased in the open market, net of writing off deferred financing costs. The total debt retirement for the quarter, including scheduled maturities and open market purchase of debt, totaled approximately $60.6 million at face value.

For the twelve months ended December 31, 2014, Vantage reports record net income of approximately $38.3 million or $.12 per diluted share, excluding net gains from the early retirement of debt of approximately $3.8 million as compared to net income of approximately $16.5 million or $.05 per diluted share, excluding approximately $98.3 million of charges for the early retirement of debt. Including the gains and losses associated with the early retirement of debt, for the twelve months ended December 31, 2014, Vantage reports net income of $42.0 million or $.14 per diluted as compared to a net loss of $81.8 million or ($.27) per diluted share for the same period in 2013.

During 2014, the total debt retirement, including scheduled maturities, discretionary Term Loan payments and open market purchases, was approximately $199.7 million at face value. In connection with our discretionary Term Loan payments and open market purchases, we recognized a net gain on the early retirement of debt of approximately $3.8 million. 

Paul Bragg, Chairman and Chief Executive Officer, commented, "We are pleased to announce Vantage completed 2014 with record revenues, EBITDA and net income for the year. With strong cash flows, we were able to exceed our targeted debt retirement goal and strengthen the balance sheet." 

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships, the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as an additional ultra-deepwater drillship, the Cobalt Explorer, now under construction, and four Baker Marine Pacific Class 375 ultra-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. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned 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)

 
                         
   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2014

   

2013

   

2014

   

2013

 
   

(Unaudited)

   

(Unaudited)

             

Revenues

                               
 

Contract drilling services

 

$

204,305

   

$

216,775

   

$

807,164

   

$

666,129

 
 

Management fees

   

1,922

     

5,111

     

14,396

     

14,622

 
 

Reimbursables

   

9,633

     

16,651

     

54,001

     

51,309

 
   

Total revenues

   

215,860

     

238,537

     

875,561

     

732,060

 
 

Operating costs and expenses

                               
 

Operating costs

   

110,510

     

99,349

     

421,505

     

335,915

 
 

General and administrative

   

7,645

     

9,240

     

34,106

     

32,612

 
 

Depreciation

   

31,716

     

31,882

     

126,610

     

106,609

 
   

Total operating costs and expenses

   

149,871

     

140,471

     

582,221

     

475,136

 

Income from operations

   

65,989

     

98,066

     

293,340

     

256,924

 

Other income (expense)

                               
 

Interest income

   

7

     

26

     

45

     

221

 
 

Interest expense and other financing charges

   

(51,775

)

   

(55,853

)

   

(213,924

)

   

(214,149

)

 

Gain (loss) on debt extinguishment

   

4,214

     

-

     

3,752

     

(98,327

)

 

Other, net

   

(1,795

)

   

(574

)

   

(1,179

)

   

1,621

 
   

Total other income (expense)

   

(49,349

)

   

(56,401

)

   

(211,306

)

   

(310,634

)

Income (loss) before income taxes

   

16,640

     

41,665

     

82,034

     

(53,710

)

Income tax provision

   

4,020

     

11,349

     

40,028

     

28,115

 

Net income (loss)

 

$

12,620

   

$

30,316

   

$

42,006

   

$

(81,825

)

                                 

Earnings (loss) per share

                               
 

Basic

 

$

0.04

   

$

0.10

   

$

0.14

   

$

(0.27

)

 

Diluted

 

$

0.04

   

$

0.09

   

$

0.14

   

$

(0.27

)

                                 
   
   

Vantage Drilling Company

 

Supplemental Operating Data

 

(Unaudited, in thousands, except percentages)

 
                         
   

Three Months Ended December 31,

   

Year Ended December 31,

 
   

2014

   

2013

   

2014

   

2013

 

Operating costs and expenses

                               
 

Jackups

 

$

24,192

   

$

21,288

   

$

94,754

   

$

89,253

 
 

Deepwater

   

64,887

     

56,092

     

235,343

     

164,775

 
 

Operations support

   

9,464

     

8,108

     

40,502

     

33,267

 
 

Reimbursables

   

11,967

     

13,861

     

50,906

     

48,620

 
   

$

110,510

   

$

99,349

   

$

421,505

   

$

335,915

 
                                 

Utilization

                               
 

Jackups

   

100.0

%

   

89.4

%

   

99.2

%

   

87.1

%

 

Deepwater

   

86.5

%

   

90.3

%

   

85.1

%

   

93.3

%

                                                                     

 

   
   
   

Vantage Drilling Company

 

Consolidated Balance Sheet

 

(In thousands, except par value information)

 
             
   

December 31,

   

December 31,

 
   

2014

   

2013

 

ASSETS

               

Current assets

               
 

Cash and cash equivalents

 

$

82,812

   

$

54,686

 
 

Restricted cash

   

-

     

2,125

 
 

Trade receivables

   

153,428

     

168,654

 
 

Inventory

   

65,892

     

55,804

 
 

Prepaid expenses and other current assets

   

28,618

     

23,717

 
   

Total current assets

   

330,750

     

304,986

 

Property and equipment

               
 

Property and equipment

   

3,524,566

     

3,472,407

 
 

Accumulated depreciation

   

(406,674

)

   

(281,759

)

   

Property and equipment, net

   

3,117,892

     

3,190,648

 

Other assets

               
 

Investment in joint venture

   

1,318

     

32,482

 
 

Other assets

   

79,897

     

100,027

 
   

Total other assets

   

81,215

     

132,509

 

Total assets

 

$

3,529,857

   

$

3,628,143

 
                 

LIABILITIES AND SHAREHOLDERS' EQUITY

               

Current liabilities

               
 

Accounts payable

 

$

59,139

   

$

65,115

 
 

Accrued liabilities

   

101,537

     

96,382

 
 

Current maturities of long-term debt and revolving credit agreement, net of discount of $1,181

   

95,378

     

63,500

 
   

Total current liabilities

   

256,054

     

224,997

 

Long-term debt, net of discount of $25,875 and $39,325

   

2,632,802

     

2,852,050

 

Other long-term liabilities

   

85,327

     

45,640

 

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; 307,808 and 304,101 shares issued and outstanding

   

308

     

304

 
 

Additional paid-in capital

   

905,136

     

896,928

 
 

Accumulated deficit

   

(349,770

)

   

(391,776

)

   

Total shareholders' equity

   

555,674

     

505,456

 

Total liabilities and shareholders' equity

 

$

3,529,857

   

$

3,628,143

 
       

Keywords

Vantage Drilling Company

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