Exhibit 99.1
Vantage Drilling Company Reports Third Quarter 2009 Results
HOUSTON, TX — (MARKET WIRE) — 11/09/2009 — Vantage Drilling Company (“Vantage”) (NYSE Alternext US: VTG-U) (NYSE Alternext US: VTG) (NYSE Alternext US: VTG-WS) reports net income of $6.8 million or $0.05 per diluted share for the three months ended September 30, 2009 as compared to a net loss of $4.6 million or $(0.06) per diluted share for the three months ended September 30, 2008. Revenues for the third quarter of 2009 were approximately $36.4 million.
For the nine months ended September 30, 2009, Vantage reported net income of approximately $13.1 million or $0.13 per diluted share compared to a net loss of approximately $3.9 million or $(0.07) per share in the prior year. Revenues for the nine months ended September 30, 2009 were approximately $72.9 million.
Paul Bragg, President and Chief Executive Officer, commented, “The third quarter of 2009 was another period of solid achievement for Vantage. Our second rig, theSapphire Driller, commenced operations in August with outstanding start up performance. We were able to book additions to our contractual backlog for the jackups as we secured follow-on work for theSapphire Driller and have received a Letter of Intent for theAquamarine Driller to work in Asia following the completion of its commissioning. Despite this year having been a difficult one for the offshore drilling business, we have created an excellent operating platform and look forward to improving market conditions for 2010 and beyond.”
Summarizing several important accomplishments are the following:
—Emerald Driller operating in Thailand achieved 99% plus productive time in the quarter.
—Sapphire Driller began operations on August 21st in Côte d’Ivoire and achieved 98% plus productive time.
—Aquamarine Driller was delivered from the shipyard on September 3, 2009.
— Raised approximately $80.3 million in a public offering of 55.1 million ordinary shares including underwriters’ overallotment.
— Issued $100.0 million term loan to complete the funding for theAquamarine Driller.
Vantage will conduct a call at 11:30 AM Eastern Time on Monday, November 9, 2009 to discuss results and developments for the third quarter 2009. To access the conference call, U.S. callers may dial toll free (888) 471-3828 and international callers may dial (719) 325-2477. The pass code will be 6403005. Please call ten minutes ahead of time to ensure proper connection. A replay of the conference call will be available for two weeks following the call and can be accessed by dialing (888) 203-1112 for U.S. callers and (719) 457-0820 for international callers. The access code for the replay is 6403005.
Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with two Baker Marine Pacific Class 375 ultra-premium jackup drilling rig operating, one such jackup currently being outfitted, and another such jackup and an ultra deepwater drillship, thePlatinum Explorer, currently under development. Vantage is also providing management services to an affiliate for two other ultra-deepwater drillships and to Sea Dragon Offshore Limited for two ultra-deepwater semi-submersibles.
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
September 30, | | | Nine Months Ended
September 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Revenues | | | | | | | | | | | | | | | | |
| | | | |
Contract drilling services | | $ | 21,644 | | | $ | — | | | $ | 46,937 | | | $ | — | |
| | | | |
Management fees | | | 5,688 | | | | — | | | | 15,129 | | | | — | |
| | | | |
Reimbursables | | | 9,114 | | | | — | | | | 10,869 | | | | — | |
| | | | | | | | | | | | | | | | |
| | | | |
Total revenues | | | 36,446 | | | | — | | | | 72,935 | | | | — | |
| | | | | | | | | | | | | | | | |
Operating costs and expenses | | | | | | | | | | | | | | | | |
Operating costs | | | 19,967 | | | | 1,997 | | | | 35,550 | | | | 2,243 | |
General and administrative | | | 3,650 | | | | 3,413 | | | | 11,140 | | | | 5,863 | |
Depreciation | | | 3,165 | | | | 11 | | | | 6,923 | | | | 23 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 26,782 | | | | 5,421 | | | | 53,613 | | | | 8,129 | |
| | | | | | | | | | | | | | | | |
Income (loss) from operations | | | 9,664 | | | | (5,421 | ) | | | 19,322 | | | | (8,129 | ) |
Other income (expense) | | | | | | | | | | | | | | | | |
Interest income | | | 4 | | | | 257 | | | | 13 | | | | 4,089 | |
| | | | |
Interest expense | | | (1,945 | ) | | | — | | | | (4,004 | ) | | | — | |
| | | | |
Other income | | | 143 | | | | — | | | | 316 | | | | — | |
| | | | | | | | | | | | | | | | |
Total other income (expense) | | | (1,798 | ) | | | 257 | | | | (3,675 | ) | | | 4,089 | |
| | | | | | | | | | | | | | | | |
Income (loss) before income taxes | | | 7,866 | | | | (5,164 | ) | | | 15,647 | | | | (4,040 | ) |
Income tax provision (benefit) | | | 1,063 | | | | (613 | ) | | | 2,534 | | | | (130 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 6,803 | | | $ | (4,551 | ) | | $ | 13,113 | | | $ | (3,910 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Earnings (loss) per share | | | | | | | | | | | | | | | | |
Basic | | $ | 0.05 | | | $ | (0.06 | ) | | $ | 0.13 | | | $ | (0.07 | ) |
Diluted | | $ | 0.05 | | | $ | (0.06 | ) | | $ | 0.13 | | | $ | (0.07 | ) |
Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)
| | | | | | | | |
| | | September 30,
2009 | | | December 31,
2008 | |
| | | (Unaudited) | | | | |
| ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 40,670 | | | $ | 16,557 | |
Restricted cash | | | 24,916 | | | | 1,700 | |
Trade receivables | | | 20,976 | | | | 3,186 | |
Inventory | | | 12,189 | | | | — | |
Prepaid expenses and other current assets | | | 2,225 | | | | 2,077 | |
| | | | | | | | |
Total current assets | | | 100,976 | | | | 23,520 | |
| | | | | | | | |
Property and Equipment | | | | | | | | |
Property and equipment | | | 759,617 | | | | 631,008 | |
Accumulated depreciation | | | (7,034 | ) | | | (112 | ) |
| | | | | | | | |
Property and equipment, net | | | 752,583 | | | | 630,896 | |
| | | | | | | | |
Other Assets | | | | | | | | |
Investment in joint venture | | | 101,891 | | | | — | |
Other assets | | | 23,730 | | | | 10,867 | |
| | | | | | | | |
Total other assets | | | 125,621 | | | | 10,867 | |
| | | | | | | | |
Total assets | | $ | 979,180 | | | $ | 665,283 | |
| | | | | | | | |
| | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
Current liabilities | | | | | | | | |
Accounts payable | | $ | 13,347 | | | $ | 3,827 | |
Accrued liabilities | | | 17,784 | | | | 14,766 | |
Short-term debt | | | 14,152 | | | | 11,239 | |
Current maturities of long-term debt | | | 17,216 | | | | 6,000 | |
| | | | | | | | |
Total current liabilities | | | 62,499 | | | | 35,832 | |
| | | | | | | | |
Long–term debt | | | 250,373 | | | | 133,000 | |
Commitments and contingencies | | | — | | | | — | |
Shareholders’ equity | | | | | | | | |
Preferred shares, $0.001 par value, 1,000 shares authorized; none issued or outstanding | | | — | | | | — | |
Ordinary shares, $0.001 par value, 400,000 shares authorized; 179,565 and 75,708 shares issued and outstanding | | | 180 | | | | 76 | |
Additional paid-in capital | | | 699,605 | | | | 542,331 | |
Accumulated deficit | | | (32,843 | ) | | | (45,956 | ) |
Accumulated other comprehensive loss | | | (634 | ) | | | — | |
| | | | | | | | |
Total shareholders’ equity | | | 666,308 | | | | 496,451 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 979,180 | | | $ | 665,283 | |
| | | | | | | | |
Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
| | | | | | | | |
| | | Nine Months Ended
September 30, | |
| | | 2009 | | | 2008 | |
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | |
Net income (loss) | | $ | 13,113 | | | $ | (3,910 | ) |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | |
Depreciation expense | | | 6,923 | | | | 23 | |
Amortization of debt financing costs | | | 872 | | | | 257 | |
Share-based compensation expense | | | 3,636 | | | | 1,286 | |
Accretion of long-term debt | | | 373 | | | | — | |
Deferred income tax benefit | | | 83 | | | | (1,520 | ) |
Changes in operating assets and liabilities: | | | | | | | | |
Restricted cash | | | (23,216 | ) | | | (1,100 | ) |
Trade receivables, net | | | (17,791 | ) | | | — | |
Inventory | | | (12,190 | ) | | | — | |
Prepaid expenses and other current assets | | | (147 | ) | | | (710 | ) |
Other assets | | | (412 | ) | | | — | |
Accounts payable | | | 9,520 | | | | 1,964 | |
Accrued liabilities | | | 12,384 | | | | 1,274 | |
Short-term debt | | | 760 | | | | — | |
| | | | | | | | |
Net cash used in operating activities | | | (6,092 | ) | | | (2,436 | ) |
| | | | | | | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | |
Acquisition of assets | | | — | | | | (213,397 | ) |
Additions to property and equipment | | | (200,102 | ) | | | (108,436 | ) |
Investment in joint venture | | | (104,001 | ) | | | — | |
Deferred acquisition costs | | | — | | | | 757 | |
Restricted cash held in trust account | | | — | | | | 273,109 | |
| | | | | | | | |
Net cash used in investing activities | | | (304,103 | ) | | | (47,967 | ) |
| | | | | | | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | |
Proceeds from borrowings under credit agreements | | | 141,821 | | | | 79,000 | |
Repayment of long-term debt | | | (13,605 | ) | | | — | |
Proceeds from issuance of ordinary shares in private placement, net | | | 24,953 | | | | — | |
Proceeds from issuance of ordinary shares in public offering, net | | | 80,291 | | | | — | |
Proceeds from warrant exercise in connection with joint venture | | | 104,100 | | | | — | |
Proceeds from short-term notes payable-shareholders | | | 4,000 | | | | — | |
Repayment of short-term debt | | | (1,848 | ) | | | — | |
Debt issuance costs | | | (5,404 | ) | | | (8,533 | ) |
Advances from stockholders of OGIL | | | — | | | | 3,300 | |
Repayments of advances from stockholders of OGIL | | | — | | | | (3,300 | ) |
Repayment of deferred underwriters fee | | | — | | | | (8,280 | ) |
| | | | | | | | |
Net cash provided by financing activities | | | 334,308 | | | | 62,187 | |
| | | | | | | | |
Net increase in cash and cash equivalents | | | 24,113 | | | | 11,784 | |
Cash and cash equivalents—beginning of period | | | 16,557 | | | | 1,263 | |
| | | | | | | | |
Cash and cash equivalents—end of period | | $ | 40,670 | | | $ | 13,047 | |
| | | | | | | | |
Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700
