Vantage Drilling International (VTDRF) 8-K Vantage Drilling International Reports First Quarter Results for 2017

Exhibit 99.1

Vantage Drilling International Reports First Quarter Results for 2017

HOUSTON, TX—(MARKET WIRE) May 4, 2017 — Vantage Drilling International (“Vantage” or the “Company”) reported a net loss of approximately $36.5 million or $7.30 per share for the three months ended March 31, 2017 as compared to a net loss of $29.0 million or $5.81 per share for the Successor period from February 10, 2016 through March 31, 2016 and a net loss of $471.0 million for the period from January 1, 2016 to February 10, 2016 for the Predecessor Company. The weighted-average shares outstanding for the three months ended March 31, 2017 and for the period from February 10, 2016 through March 31, 2016 was 5,000,053. 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.

As of March 31, 2017, Vantage had approximately $227.6 million of available cash as compared to $231.7 million as of December 31, 2016. Additionally, Vantage had $22.6 million available for issuance of letters of credit under its revolving letter of credit facility at the end of the quarter. Vantage also delivered operational rig uptime of 99% together with revenue efficiency of 101%. Ihab Toma, CEO, commented. “We are happy to report another successful quarter of superior operational performance combined with further reducing costs while maintaining our committed sharp focus on safety. Additionally, with the completion of theVantage 260acquisition in early April, the extension of theAquamarine Driller contract, and the reactivation of both theTopaz Driller andSapphire Driller set for May, we continue to build backlog and benefit from positive economies of scale, whilst preserving our strong balance sheet.”

Vantage Drilling International, a Cayman Islands exempted company, is an offshore drilling contractor, with a fleet of three ultra-deepwater drillships, four premium jackup drilling rigs and one standard jack-up drilling rig. 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 and preservation management 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 data)

(Unaudited)

	Successor						Predecessor
	Three Months Ended March 31, 2017			Period from February 10, 2016 to March 31, 2016			Period from January 1, 2016 to February 10, 2016
Revenue
Contract drilling services	$	38,056		$	24,059		$	20,891
Management fees		401			959			752
Reimbursables		3,592			4,768			1,897
Total revenue		42,049			29,786			23,540
Operating costs and expenses
Operating costs		28,998			27,439			25,213
General and administrative		11,479			9,168			2,558
Depreciation		18,439			12,076			10,696
Total operating costs and expenses		58,916			48,683			38,467
Loss from operations		(16,867	)		(18,897	)		(14,927	)
Other income (expense)
Interest income		141			6			3
Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016)		(18,899	)		(10,650	)		(1,728	)
Other, net		552			1,834			(69	)
Reorganization items		—			(154	)		(452,919	)
Total other expense		(18,206	)		(8,964	)		(454,713	)
Loss before income taxes		(35,073	)		(27,861	)		(469,640	)
Income tax provision		1,426			1,167			2,371
Net loss		(36,499	)		(29,028	)		(472,011	)
Net loss attributable to noncontrolling interests		—			—			(969	)
Net loss attributable to VDI	$	(36,499	)	$	(29,028	)	$	(471,042	)
Net loss per share, basic and diluted	$	(7.30	)	$	(5.81	)		N/A
Weighted average successor ordinary shares outstanding, basic and diluted		5,000			5,000			N/A

Vantage Drilling International

Supplemental Operating Data

(Unaudited, in thousands, except percentages)

	Successor				Predecessor
	Three Months Ended March 31, 2017		Period from February 10, 2016 to March 31, 2016		Period from January 1, 2016 to February 10, 2016
Operating costs and expenses
Jackups	$	12,862	$	8,278	$	5,975
Deepwater		11,056		13,146		15,550
Operations support		2,969		2,215		2,219
Reimbursables		2,111		3,800		1,469
	$	28,998	$	27,439	$	25,213
Utilization
Jackups		50.0%		60.0%		53.6%
Deepwater		33.3%		33.3%		33.3%

Vantage Drilling International

Consolidated Balance Sheet

(In thousands, except share and par value information)

(Unaudited)

	March 31, 2017			December 31, 2016
ASSETS
Current assets
Cash and cash equivalents	$	227,592		$	231,727
Trade receivables		19,643			20,850
Inventory		44,913			45,206
Prepaid expenses and other current assets		13,375			12,423
Total current assets		305,523			310,206
Property and equipment
Property and equipment		904,397			902,241
Accumulated depreciation		(86,152	)		(67,713	)
Property and equipment, net		818,245			834,528
Other assets		15,599			15,694
Total assets	$	1,139,367		$	1,160,428
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	36,951		$	35,283
Accrued liabilities		22,896			18,448
Current maturities of long-term debt		4,430			1,430
Total current liabilities		64,277			55,161
Long–term debt, net of discount and financing costs of $93,260 and $105,568		876,322			867,372
Other long-term liabilities		8,707			11,335
Commitments and contingencies
Shareholders’ equity
Ordinary shares, $0.001 par value, 50 million shares authorized; 5,000,053 shares issued and outstanding		5			5
Additional paid-in capital		373,972			373,972
Accumulated deficit		(183,916	)		(147,417	)
Total shareholders’ equity		190,061			226,560
Total liabilities and shareholders’ equity	$	1,139,367		$	1,160,428

Vantage Drilling International

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

	Successor						Predecessor
	Three Months Ended March 31, 2017			Period from February 10, 2016 to March 31, 2016			Period from January 1, 2016 to February 10, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(36,499	)	$	(29,028	)	$	(472,011	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense		18,439			12,076			10,696
Amortization of debt financing costs		117			76			—
Amortization of debt discount		12,191			6,847			—
PIK interest on the Convertible Notes		1,890			1,684			—
Reorganization items		—			—			430,210
Share-based compensation expense		780			—			—
Deferred income tax benefit		(1,789	)		(606	)		—
Loss on disposal of assets		—			144			—
Changes in operating assets and liabilities:
Restricted cash		—			—			(1,000	)
Trade receivables		1,207			22,629			(3,575	)
Inventory		293			(221	)		223
Prepaid expenses and other current assets		(951	)		(4,954	)		6,893
Other assets		1,434			368			941
Accounts payable		1,668			6,708			(14,890	)
Accrued liabilities and other long-term liabilities		(401	)		(7,485	)		21,148
Net cash provided by (used in) operating activities		(1,621	)		8,238			(21,365	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(2,156	)		(7,674	)		116
Net cash provided by (used in) investing activities		(2,156	)		(7,674	)		116
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		(358	)		(358	)		(7,000	)
Proceeds from issuance of 10% Second Lien Notes		—			—			75,000
Debt issuance costs		—			(51	)		(1,125	)
Net cash provided by (used in) financing activities		(358	)		(409	)		66,875
Net increase (decrease) in cash and cash equivalents		(4,135	)		155			45,626
Cash and cash equivalents—beginning of period		231,727			249,046			203,420
Cash and cash equivalents—end of period	$	227,592		$	249,201		$	249,046