Thursday, May 7th, 2015 - NewsMaker

HOUSTON, TX--(Marketwired - May 7, 2015) - Vantage Drilling Company ("Vantage" or the "Company") (NYSE MKT: VTG) reports net income for the three months ended March 31, 2015 of $21.4 million or $.06 per diluted share as compared to earnings of $24.8 million or $.07 per diluted share for the three months ended March 31, 2014.

The three months ended March 31, 2015 includes an approximately $20.6 million gain on the early retirement of debt. This gain represents the discount to the face value of debt that we purchased in the open market, net of writing off deferred financing costs. While this gain is not taxable, it is still included in our calculation of annual effective tax rate which required us to record an additional adjustment to our tax provision for the three months ended March 31, 2015 of approximately $5.0 million.

The total debt retirement for the first quarter, including scheduled maturities and open market purchase of debt, totaled approximately $82.9 million at face value. Following the end of the quarter, we continued to acquire debt in the open market and have retired approximately $109.2 million of debt year to date with an annualized interest savings of approximately $7.2 million.

Paul Bragg, Chairman and Chief Executive Officer, commented, "During the 1st quarter, we continued our strong operating performance and maintained our focus on strengthening the balance sheet. In the last six quarters, we have now retired over $300 million of outstanding debt and greatly reduced our current debt, improving our 2015 and 2016 liquidity."

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)                 

                                (Unaudited)                                

                                                                           

                                               Three Months Ended March 31,

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

                                                    2015           2014    

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

Revenue                                                                    

  Contract drilling services                   $     207,981  $     214,932

  Management fees                                      1,881          4,582

  Reimbursables                                        7,787         12,951

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

    Total revenue                                    217,649        232,465

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

Operating costs and expenses                                               

  Operating costs                                     96,108        101,722

  General and administrative                           8,865          8,115

  Depreciation                                        31,623         31,625

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

    Total operating costs and expenses               136,596        141,462

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

Income from operations                                81,053         91,003

Other income (expense)                                                      

  Interest income                                          6             13

  Interest expense and other financing charges       (50,554)       (54,487)

  Gain (loss) on debt extinguishment                  20,606           (106)

  Other, net                                            (338)           779

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

    Total other income (expense)                     (30,280)       (53,801)

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

Income before income taxes                            50,773         37,202

Income tax provision                                  29,343         12,378

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

Net income                                     $      21,430  $      24,824

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

                                                                           

Earnings per share                                                         

  Basic                                        $        0.07  $        0.08

  Diluted                                      $        0.06  $        0.07

                                                                            

                                                                           

                          Vantage Drilling Company                         

                        Supplemental Operating Data                        

               (Unaudited, in thousands, except percentages)               

                                                                           

                                              Three Months Ended March 31,  

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

                                                  2015            2014     

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

Operating costs and expenses                                               

Jackups                                      $       24,263  $       23,760

Deepwater                                            56,084          55,810

Operations support                                    9,324          10,759

Reimbursables                                         6,437          11,393

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

                                             $       96,108  $      101,722

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

                                                                           

Utilization                                                                

Jackups                                                96.1%          100.0%

Deepwater                                              93.6%           96.5%

                                                                           

                                                                           

                          Vantage Drilling Company                         

                         Consolidated Balance Sheet                        

                (In thousands, except par value information)               

                                                                           

                                                                           

                                                March 31,     December 31, 

                                                  2015            2014     

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

                                               (Unaudited)                  

                   ASSETS                                                  

Current assets                                                             

  Cash and cash equivalents                  $       78,829  $       82,812

  Trade receivables                                 159,656         153,428

  Inventory                                          68,558          65,892

  Prepaid expenses and other current assets          22,821          28,618

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

    Total current assets                            329,864         330,750

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

Property and equipment                                                      

  Property and equipment                          3,534,527       3,524,566

  Accumulated depreciation                         (437,927)       (406,674)

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

    Property and equipment, net                   3,096,600       3,117,892

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

Other assets                                                               

  Investment in joint venture                         1,132           1,318

  Other assets                                       73,247          79,897

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

    Total other assets                               74,379          81,215

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

Total assets                                 $    3,500,843  $    3,529,857

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

                                                                           

    LIABILITIES AND SHAREHOLDERS' EQUITY                                   

Current liabilities                                                         

  Accounts payable                           $       48,821  $       59,139

  Accrued liabilities                               145,980         101,537

  Current maturities of long-term debt, net                                

   of discount of $650 and $1,181                    90,289          95,378

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

    Total current liabilities                       285,090         256,054

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

Long-term debt, net of discount of $21,862                                 

 and $25,875 and current maturities               2,559,531       2,632,802

Other long-term liabilities                          77,286          85,327

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; 310,932 and                                  

   307,808 shares issued and outstanding                311             308

  Additional paid-in capital                        906,965         905,136

  Accumulated deficit                              (328,340)       (349,770)

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

    Total shareholders' equity                      578,936         555,674

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

Total liabilities and shareholders' equity   $    3,500,843  $    3,529,857

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

                                                                           

                          Vantage Drilling Company                         

                    Consolidated Statement of Cash Flows                   

                               (In thousands)          

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Vantage Drilling Company Reports First Quarter Results 2015

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