Vantage Drilling International (VTDRF) 8-K Vantage Drilling International Reports Third Quarter Results for 2016

Exhibit 99.1

Vantage Drilling International Reports Third Quarter Results for 2016

HOUSTON, TX—(MARKET WIRE) November 10, 2016 — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss of approximately $41.5 million or ($8.31) per share for the three months ended September 30, 2016 as compared to the Predecessor reporting net income of approximately $5.2 million for the three months ended September 30, 2015. The weighted-average shares outstanding for the three months ended September 30, 2016 was 5,000,053 whereas in the prior year, as a wholly-owned subsidiary, the Predecessor did not have a comparable outstanding ordinary shares.

Upon emergence from the Company’s Chapter 11 restructuring on February 10, 2016, Vantage adopted fresh-start accounting, which resulted in the Company becoming a new entity for financial reporting purposes. References to “Successor” relate to the financial position and results of operations of the reorganized Vantage as of and subsequent to February 10, 2016. References to “Predecessor” refer to the financial position of Vantage as of and prior to February 10, 2016 and the results of operations prior to February 10, 2016. As a result of the application of fresh-start accounting and the effects of the implementation of our Plan of Reorganization, the financial statements on or after February 10, 2016 are not comparable with the financial statements prior to that date.

For the period from February 10, 2016 to September 30, 2016, Vantage reported a net loss of approximately $106.3 million or ($21.26) per share and the Predecessor for the period January 1, 2016 to February 10, 2016 reported a net loss of approximately $471.0 million. For the nine months ended September 30, 2015, the Predecessor reported net income of approximately $55.8 million.

As of September 30, 2016, Vantage had approximately $241.1 million of available cash as compared to $240.5 million as of June 30, 2016. Additionally, Vantage had $25.7 million available for issuance of letters of credit under its revolving letter of credit facility at the end of the quarter. Ihab Toma, CEO, commented. “Despite very challenging market conditions, we were awarded a new contract for the Emerald Driller in Qatar and continued our strong performance across our operating fleet. We remain committed to maintaining this performance for our customers while operating safely, managing costs and preserving our strong balance sheet position.”

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships and four 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 globally for major, national and large independent oil and natural gas companies. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others.

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 disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

Public & Investor Relations Contact:

Thomas J. Cimino

Chief Financial Officer

Vantage Drilling International

(281) 404-4700

Vantage Drilling International

Consolidated Statement of Operations

(In thousands, except per share amounts)

(Unaudited)

	Successor						Predecessor
	Three Months Ended September 30, 2016			Period from February 10, 2016 to September 30, 2016			Period from January 1, 2016 to February 10, 2016			Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Revenue
Contract drilling services	$	34,755		$	99,715		$	20,891			197,134			608,003
Management fees		993			3,664			752			1,923			5,706
Reimbursables		4,194			14,860			1,897			11,033			31,285
Total revenue		39,942			118,239			23,540			210,090			644,994
Operating costs and expenses
Operating costs		30,983			93,387			25,213			93,950			284,009
General and administrative		10,128			27,991			2,558			5,058			17,749
Depreciation		18,977			49,434			10,696			31,764			95,168
Total operating costs and expenses		60,088			170,812			38,467			130,772			396,926
Income (loss) from operations		(20,146	)		(52,573	)		(14,927	)		79,318			248,068
Other income (expense)
Interest income		11			26			3			28			53
Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016)		(18,722	)		(48,144	)		(1,728	)		(46,182	)		(138,209	)
Gain on debt extinguishment		—			—			—			—			10,823
Other, net		669			987			(69	)		465			2,285
Reorganization items		35			(606	)		(452,923	)		—			—
Total other expense		(18,007	)		(47,737	)		(454,717	)		(45,689	)		(125,048	)
Income (loss) before income taxes		(38,153	)		(100,310	)		(469,644	)		33,629			123,020
Income tax provision		3,373			5,978			2,371			28,439			66,590
Net income (loss)		(41,526	)		(106,288	)		(472,015	)		5,190			56,430
Net income (loss) attributable to noncontrolling interests		—			—			(969	)		(4	)		663
Net income (loss) attributable to VDI	$	(41,526	)	$	(106,288	)	$	(471,046	)	$	5,194		$	55,767
Net loss per share, basic and diluted	$	(8.31	)	$	(21.26	)		N/A			N/A			N/A
Weighted average successor ordinary shares outstanding, basic and diluted		5,000			5,000			N/A			N/A			N/A

Vantage Drilling International

Supplemental Operating Data

(Unaudited, in thousands, except percentages)

		Successor						Predecessor
	��	Three Months Ended September 30, 2016			Period from February 10, 2016 to September 30, 2016			Period from January 1, 2016 to February 10, 2016			Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Operating costs and expenses
Jackups		$	8,836		$	29,555		$	5,975		$	19,990		$	65,001
Deepwater			16,045			44,563			15,550			60,127			177,026
Operations support			2,645			7,456			2,219			6,005			21,693
Reimbursables			3,457			11,813			1,469			7,828			20,289
		$	30,983		$	93,387		$	25,213		$	93,950		$	284,009
Utilization
Jackups			25.6	%		43.4	%		53.6	%		72.0	%		81.0	%
Deepwater			33.1	%		33.2	%		33.3	%		87.1	%		92.9	%

Vantage Drilling International

Consolidated Balance Sheet

(In thousands, except share and par value information)

(Unaudited)

	Successor			Predecessor
	September 30, 2016			December 31, 2015
ASSETS
Current assets
Cash and cash equivalents	$	241,099		$	203,420
Trade receivables		20,892			70,722
Inventory		46,098			64,495
Prepaid expenses and other current assets		15,261			22,106
Total current assets		323,350			360,743
Property and equipment
Property and equipment		900,352			3,481,006
Accumulated depreciation		(49,177	)		(532,619	)
Property and equipment, net		851,175			2,948,387
Other assets		13,682			23,050
Total assets	$	1,188,207		$	3,332,180
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	36,683		$	49,437
Accrued liabilities		19,799			21,702
Current maturities of long-term debt		1,430			—
VDC note payable		—			61,477
Total current liabilities		57,912			132,616
Long–term debt, net of discount and financing costs of $117,835 and $0		851,682			—
Other long-term liabilities		10,924			33,097
Liabilities subject to compromise		—			2,694,456
Commitments and contingencies
Shareholders’ equity
Predecessor ordinary shares, $0.001 par value, 50 million shares authorized; one thousand shares issued and outstanding		—			—
Predecessor additional paid-in capital		—			595,119
Successor ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding		5			—
Successor additional paid-in capital		373,972			—
Accumulated deficit		(106,288	)		(138,363	)
Total VDI shareholders’ equity		267,689			456,756
Noncontrolling interests		—			15,255
Total equity		267,689			472,011
Total liabilities and equity	$	1,188,207		$	3,332,180

Vantage Drilling International

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

	Successor			Predecessor
	Period from February 10, 2016 to September 30, 2016			Period from January 1, 2016 to February 10, 2016			Nine Months Ended September 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(106,288	)	$	(472,015	)	$	56,430
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation expense		49,434			10,696			95,168
Amortization of debt financing costs		310			—			6,349
Amortization of debt discount		31,075			—			1,813
Reorganization items		—			430,210			—
Non-cash gain on debt extinguishment		—			—			(10,814	)
Share-based compensation expense		76			—			—
Deferred income tax benefit		(2,660	)		—			(997	)
Loss on disposal of assets		634			—			343
Changes in operating assets and liabilities:
Restricted cash		1,000			(1,000	)		—
Trade receivables		53,405			(3,575	)		48,436
Inventory		(1,856	)		223			657
Prepaid expenses and other current assets		(47	)		6,893			9,636
Other assets		(1,823	)		941			7,789
Accounts payable		2,136			(14,890	)		(152,300	)
Accrued liabilities and other long-term liabilities		(22,113	)		21,152			6,945
Net cash provided by (used in) operating activities		3,283			(21,365	)		69,455
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(10,107	)		116			(31,200	)
Net cash provided by (used in) investing activities		(10,107	)		116			(31,200	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		(1,072	)		(7,000	)		(67,980	)
Proceeds from issuance of 10% Second Lien Notes		—			76,125			—
Proceeds from borrowings under credit agreements		—			—			150,000
Distributions to VDC		—			—			(498	)
Debt issuance costs		(51	)		(2,250	)		—
Net cash provided by (used in) financing activities		(1,123	)		66,875			81,522
Net increase (decrease) in cash and cash equivalents		(7,947	)		45,626			119,777
Cash and cash equivalents—beginning of period		249,046			203,420			75,801
Cash and cash equivalents—end of period	$	241,099		$	249,046		$	195,578