Vantage Drilling 8-K Vantage Drilling Company Reports Third Quarter Results for 2015

Exhibit 99.1

Vantage Drilling Company Reports Third Quarter Results for 2015

HOUSTON, TX—(Marketwired – Nov 9, 2015) - Vantage Drilling Company (“Vantage” or the “Company”) (OTC: VTGDF) reports a net loss for the three months ended September 30, 2015 of $52.4 million or ($.17) per diluted share as compared to a net loss of $5.6 million or ($.02) per diluted share for the three months ended September 30, 2014.

Our results for the three months ended September 30, 2015 include several significant items that had a material impact on our financial results. Each of these items and the future outlook for our Company are more fully discussed in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (SEC) and is available on our website and the SEC website. The significant items included in the net loss for the three months ended September 30, 2015 and 2014, include –

Titanium Explorer. Our customer for theTitanium Explorer operating in the United States Gulf of Mexico sent us a notice of termination of the Agreement for the Provision of Services Contract for theTitanium Explorer on August 31, 2015 effective upon completion of operation on the current well. We completed the well in early September and demobilized the rig. We believe the termination of the contract was wrongful and commenced arbitration proceedings on August 31, 2015 to recover damages, including loss of future revenues and expenses, in connection with the wrongful termination of the contract. In connection with the cancellation of the contract, we recognized $21.5 million of deferred mobilization revenue.

Cobalt Explorer. On August 13, 2015, we terminated the contract for the construction of theCobalt Explorer with the shipyard pursuant to the terms of the contract. In connection with the termination of this contract, we expensed approximately $31.2 million of development costs and interest previously capitalized to theCobalt Explorer. During the three months ended September 30, 2015, we capitalized $792,000 of interest prior to the cancellation of the project. During the three months ended September 30, 2014 we capitalized $1.3 million to theCobalt Explorer.

Gain on Retirement of Debt. During the three month periods ended September 30, 2015 and 2014, we recognized gains on the early retirement of debt of approximately $12.7 million and $1.1 million, respectively.

Restructuring Costs. In response to current market conditions, we reduced operating costs and capital expenditures for our rig fleet. During the three months ended September 30, 2015, we recognized a restructuring charge of approximately $2.5 million consisting primarily of severance costs associated with our reduction in support personnel.

Income Tax Provision. Our income taxes are generally dependent upon the results of our operations and when we generate significant revenues in jurisdictions where the income tax liability is based on gross revenues or asset values, there is no correlation to the operating results and the income tax expense. Furthermore, we are required to report our income tax provision based on our estimated annual effective tax rate applied to the year to date period. Any adjustment to our estimated annual effective tax rate will result in a

catch-up adjustment for the earlier reported interim periods. Due to the cancellation of theTitanium Explorer contract, we have significantly reduced our forecasted operating results for the remainder of 2015 which has significantly impacted our estimated annual effective tax rate. This resulted in an adjustment to our income tax provision of approximately $52.4 million recognized during the three months ended September 30, 2015.

We will not be holding a conference call to discuss our results for the three month period ended September 30, 2015.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of three ultra-deepwater drillships; thePlatinum Explorer, theTitanium Explorer and theTungsten Explorer, as well as 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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Revenue
Contract drilling services	$	197,133		$	189,648		$	608,002		$	602,859
Management fees		1,923			1,923			5,706			12,474
Reimbursables		9,435			15,947			24,693			44,368
Total revenue		208,491			207,518			638,401			659,701
Operating costs and expenses
Operating costs		94,420			111,271			285,777			310,995
General and administrative		10,682			9,980			27,613			26,461
Depreciation		31,764			31,639			95,168			94,894
Construction contract cancellation costs		31,189			—			31,189			—
Restructuring costs		2,504			—			2,504			—
Total operating costs and expenses		170,559			152,890			442,251			432,350
Income from operations		37,932			54,628			196,150			227,351
Other income (expense)
Interest income		22			14			33			38
Interest expense and other financing charges		(48,334	)		(53,376	)		(147,529	)		(162,149	)
Gain (loss) on debt extinguishment		12,732			1,051			38,954			(462	)
Other, net		339			376			1,963			616
Total other income (expense)		(35,241	)		(51,935	)		(106,579	)		(161,957	)
Income before income taxes		2,691			2,693			89,571			65,394
Income tax provision		55,139			8,309			95,625			36,008
Net income (loss)	$	(52,448	)	$	(5,616	)	$	(6,054	)	$	29,386
Earnings (loss) per share
Basic	$	(0.17	)	$	(0.02	)	$	(0.02	)	$	0.10
Diluted	$	(0.17	)	$	(0.02	)	$	(0.02	)	$	0.10

Vantage Drilling Company

Supplemental Operating Data

(Unaudited, in thousands, except percentages)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Operating costs and expenses
Jackups	$	19,991		$	24,400		$	65,003		$	70,561
Deepwater		60,229			63,413			177,174			170,456
Operations support		6,418			9,937			23,181			31,039
Reimbursables		7,782			13,521			20,419			38,939
	$	94,420		$	111,271		$	285,777		$	310,995
Utilization
Jackups		72.0	%		99.2	%		81.0	%		98.9	%
Deepwater		86.8	%		75.2	%		92.8	%		84.6	%

Vantage Drilling Company

Consolidated Balance Sheet

(In thousands, except par value information)

	September 30, 2015			December 31, 2014
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$	223,984		$	82,812
Trade receivables		102,057			153,428
Inventory		66,014			65,892
Prepaid expenses and other current assets		23,128			28,618
Total current assets		415,183			330,750
Property and equipment
Property and equipment		3,475,579			3,524,566
Accumulated depreciation		(500,696	)		(406,674	)
Property and equipment, net		2,974,883			3,117,892
Other assets
Investment in joint venture		981			1,318
Other assets		116,325			79,897
Total other assets		117,306			81,215
Total assets	$	3,507,372		$	3,529,857
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	48,148		$	59,139
Accrued liabilities		173,534			101,537
Current maturities of long-term debt, net of discount of $738 and $1,181		77,754			95,378
Total current liabilities		299,436			256,054
Long–term debt, net of discount of $15,104 and $25,875 and current maturities		2,614,126			2,632,802
Other long-term liabilities		40,579			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; 311,837 and 307,808 shares issued and outstanding		312			308
Additional paid-in capital		908,743			905,136
Accumulated deficit		(355,824	)		(349,770	)
Total shareholders’ equity		553,231			555,674
Total liabilities and shareholders’ equity	$	3,507,372		$	3,529,857

Vantage Drilling Company

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

	Nine Months Ended September 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(6,054	)	$	29,386
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation expense		95,168			94,894
Amortization of debt financing costs		7,356			8,713
Construction contract cancellation costs		31,189			—
Accelerated deferred mobilization income		(21,508	)		—
Amortization of debt discount		7,309			8,496
Non-cash (gain) loss on debt extinguishment		(38,944	)		462
Share-based compensation expense		5,020			6,540
Deferred income tax benefit		(997	)		(184	)
Equity in loss of joint venture		337			317
Loss on disposal of assets		370			558
Changes in operating assets and liabilities:
Restricted cash		—			2,125
Trade receivables		51,371			(55,917	)
Inventory		(122	)		(8,681	)
Prepaid expenses and other current assets		8,503			7,686
Other assets		13,917			6,660
Restructuring costs		2,504			—
Accounts payable		(10,991	)		(7,267	)
Accrued liabilities and other long-term liabilities		42,344			81,194
Net cash provided by operating activities		186,772			174,982
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(41,409	)		(34,137	)
Return of investment in joint venture		—			23,250
Net cash used in investing activities		(41,409	)		(10,887	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		(154,191	)		(127,466	)
Proceeds from (repayment of) revolving credit agreement, net		150,000			(10,000	)
Net cash used in financing activities		(4,191	)		(137,466	)
Net increase in cash and cash equivalents		141,172			26,629
Cash and cash equivalents—beginning of period		82,812			54,686
Cash and cash equivalents—end of period	$	223,984		$	81,315

Public & Investor Relations Contact:

Paul A. Bragg

Chairman & Chief Executive Officer

Vantage Drilling Company

(281) 404-4700