Tuesday, May 10th, 2011 - Vantage
Vantage Drilling Company ("Vantage") (NYSE Amex: VTG.U) (NYSE Amex: VTG) (NYSE Amex: VTG.WS) reports a net loss of ($18.7) million or ($0.06) per diluted share for the three months ended March 31, 2011 as compared to a net loss of ($13.0) million or ($.05) per diluted share in the fourth quarter of 2010 and net income of $6.0 million or $0.03 per diluted share for the three months ended March 31, 2010.

Revenue for the three months ended March 31, 2011 was $124.6 million as compared to revenue of $84.9 million in the fourth quarter of 2010 and $58.3 million for the three months ended March 31, 2010. Income from operations for the quarter was $24.3 million as compared to $6.7 million in the preceding quarter and $15.6 million in the prior year. The increase in revenue and income from operations for the quarter was driven by the Platinum Explorer which commenced operations on a five year contract in India in December 2010 partially offset by the Sapphire Driller and Aquamarine Driller having days off contract days during the quarter.

As we have previously announced, the Sapphire Driller's contract in the Côte d'Ivoire had a force majeure claim resulting from the civil unrest and the Aquamarine Driller's customer in the Philippines exercised the early termination provisions of the contract in order to reassess their drilling program. The Sapphire Driller and Aquamarine Driller have been mobilized to Cameroon and Malaysia, respectively and began new contracts in early March.

Paul Bragg, Chairman and Chief Executive Officer, commented, "This was a landmark quarter for Vantage as we now have all of our rigs operating. We are extremely pleased with the high-level of productive time across the fleet as the Platinum Explorer achieved over 93% productive time during its first quarter of operations and the jackup fleet achieve over 99% productive time for the quarter while on contract."

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor with four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs operating and an ultra deepwater drillship, the Platinum Explorer. Vantage is also providing management services for four other ultra-deepwater drillships.

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 Balance Sheet

                (In thousands, except par value information)

 

 

 

                                                   March 31,   December 31,

                                                     2011         2010

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

                                                  (Unaudited)

                     ASSETS

Current Assets

  Cash and cash equivalents                         $  51,709   $  120,443

  Restricted cash                                      27,699       29,004

  Trade receivables                                    86,917       50,190

  Inventory                                            21,714       19,760

  Prepaid expenses and other current assets            10,940       11,472

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

    Total current assets                              198,979      230,869

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

 

Property and equipment

  Property and equipment                            1,781,926    1,762,844

  Accumulated depreciation                            (60,824)     (44,712)

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

    Property and equipment, net                     1,721,102    1,718,132

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

Other assets

Other assets                                           51,424       54,193

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

Total other assets                                     51,424       54,193

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

Total assets                                      $ 1,971,505  $ 2,003,194

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

 

       LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

  Accounts payable                                $    41,041  $    32,332

  Accrued liabilities                                  51,748       75,159

  Short-term debt                                       6,002        8,574

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

    Total current liabilities                          98,791      116,065

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

Long-term debt, net of discount of $60,807 and

 $63,654                                            1,107,816    1,103,480

Other long-term liabilities                            12,486       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; 289,761 and 289,713 shares issued

   and outstanding                                        290          290

  Additional paid-in capital                          855,471      854,557

  Accumulated deficit                                (103,349)     (84,696)

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

  Total shareholders' equity                          752,412      770,151

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

  Total liabilities and shareholders' equity      $ 1,971,505  $ 2,003,194

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

 

 

 

 

 

                        Vantage Drilling Company

                  Consolidated Statement of Operations

                (In thousands, except per share amounts)

                             (Unaudited)

 

                                              Three Months Ended March 31,

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

                                                  2011           2010

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

Revenues

  Contract drilling services                 $      86,712  $       39,356

  Management fees                                    3,966           4,437

  Reimbursables                                     33,911          14,457

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

    Total revenues                                 124,589          58,250

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

Operating costs and expenses

  Operating costs                                   77,351          30,659

  General and administrative                         6,847           4,475

  Depreciation                                      16,112           7,477

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

    Total operating expenses                       100,310          42,611

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

Income from operations                              24,279          15,639

Other income (expense)

  Interest income                                       38              12

  Interest expense and financing charges           (41,542)         (7,985)

  Other income                                       1,480             612

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

    Total other expense                            (40,024)         (7,361)

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

Income (loss) before income taxes                  (15,745)          8,278

Income tax provision                                 2,909           2,315

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

Net income (loss)                            $     (18,654) $        5,963

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

Earnings (loss) per share

  Basic                                      $       (0.06) $         0.03

 

  Diluted                                    $       (0.06) $         0.03

 

 

 

 

 

                         Vantage Drilling Company

                   Consolidated Statement of Cash Flows

                             (In thousands)

                               (Unaudited)

 

 

                                              Three Months Ended March 31,

                                                  2011           2010

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)                            $     (18,654) $        5,963

Adjustments to reconcile net income to net

 cash provided by (used in) operating

 activities:

  Depreciation expense                              16,112           7,477

  Amortization of debt financing costs               1,868             976

  Share-based compensation expense                     914           1,526

  Accretion of long-term debt                        1,489           1,217

  Amortization of debt discount                      2,847             293

  Deferred income tax benefit                         (252)              -

Changes in operating assets and liabilities:

  Restricted cash                                    1,305          (9,188)

  Trade receivables                                (36,727)        (22,205)

  Inventory                                         (1,954)         (1,013)

  Prepaid expenses and other current assets            533          (3,304)

  Other assets                                       1,162            (198)

  Accounts payable                                   8,709           1,919

  Accrued liabilities                              (24,422)          7,245

  Short-term debt                                        -             904

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

  Net cash used in operating activities            (47,070)         (8,388)

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

CASH FLOWS FROM INVESTING ACTIVITIES

  Additions to property and equipment              (19,083)        (11,934)

  Investment in joint venture                            -          (1,959)

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

    Net cash used in investing activities          (19,083)        (13,893)

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

 

CASH FLOWS FROM FINANCING ACTIVITIES

  Repayment of long-term debt                            -          (9,649)

  Proceeds from issuance of ordinary shares

   in public offerings, net                              -          47,688

  Repayment of short-term debt                      (2,572)         (1,297)

  Debt issuance costs                                   (9)            (59)

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

    Net cash provided by (used in) financing

     activities                                     (2,581)         36,683

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

    Net increase (decrease) in cash and cash

     equivalents                                   (68,734)         14,402

  Cash and cash equivalents-beginning of

   period                                          120,443          15,992

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

  Cash and cash equivalents-end of period    $      51,709  $       30,394

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

Contact Profile

Vantage


Vantage, a Cayman Islands exempted company, is an offshore drilling contractor with four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs operating and an ultra deepwater drillship, the Platinum Explorer. Vantage is also providing management services for four other ultra-deepwater drillships.
Paul A. Bragg
P: (281) 404-4700
W: www.vantagedrilling.com

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Vantage Drilling Company First Quarter 2011 Results

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