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

Exhibit 99.1

Vantage Drilling International Reports Second Quarter Results for 2017

HOUSTON, TX—(Marketwired - Aug 1, 2017) - Vantage Drilling International (“Vantage” or the “Company”) reported a net loss of approximately $36.6 million or $7.32 per share for the three months ended June 30, 2017 as compared to a net loss of $35.7 million or $7.15 per share for the three months ended June 30, 2016.

Vantage continued to deliver solid operating results with rig uptime of 98% and revenue efficiency of 99%. We added the recently acquired Vantage 260 to our fleet during the quarter and the related drilling service contract was amended to provide that the Sapphire Driller is subject to the contract. Both rigs operated concurrently during the quarter and plan to operate until the removal of the Vantage 260 later this year.

As of June 30, 2017, Vantage had approximately $200.9 million of available cash. Uses of cash during the quarter included, among other things, the funding of the aforementioned acquisition, debt service costs, and there-activation of two rigs. The startup of operations for new customers and the corresponding higher level of receivables impacted the quarter end cash balance. Vantage had $12.5 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. “We are happy to report another impressive operational quarter maximizing uptime for our customers. During the second quarter we completed the acquisition of the Vantage 260, and successfully reactivated and deployed both the Sapphire Driller and the Topaz Driller on time and under budget. Additionally, with the recently announced letter of award for the Platinum Explorer and a new six month contract for the Topaz Driller, we continue to build backlog and put our fleet to work.”

Vantage, 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 jackup 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 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..

Vantage Drilling International

Consolidated Statement of Operations

(In thousands, except per share data)

(Unaudited)

	Successor												Predecessor
	Three Months Ended June 30,						Six Months Ended June 30, 2017			Period from February 10, 2016 to June 30, 2016			Period from January 1, 2016 to February 10, 2016
	2017			2016
Revenue
Contract drilling services	$	47,785		$	40,901		$	85,841		$	64,960		$	20,891
Management fees		405			1,712			806			2,671			752
Reimbursables		5,073			5,898			8,665			10,666			1,897
Total revenue		53,263			48,511			95,312			78,297			23,540
Operating costs and expenses
Operating costs		40,184			34,965			69,182			62,404			25,213
General and administrative		11,501			8,695			22,980			17,863			2,558
Depreciation		18,554			18,381			36,993			30,457			10,696
Total operating costs and expenses		70,239			62,041			129,155			110,724			38,467
Loss from operations		(16,976	)		(13,530	)		(33,843	)		(32,427	)		(14,927	)
Other income (expense)
Interest income		215			9			356			15			3
Interest expense and other financing charges (contractual interest of $23,219 for the period from January 1, 2016 to February 10, 2016)		(19,023	)		(18,772	)		(37,922	)		(29,422	)		(1,728	)
Other, net		663			(1,516	)		1,215			318			(69	)
Reorganization items		—			(487	)		—			(641	)		(452,919	)
Bargain purchase gain		1,910			—			1,910			—			—
Total other expense		(16,235	)		(20,766	)		(34,441	)		(29,730	)		(454,713	)
Loss before income taxes		(33,211	)		(34,296	)		(68,284	)		(62,157	)		(469,640	)
Income tax provision		3,381			1,438			4,807			2,605			2,371
Net loss		(36,592	)		(35,734	)		(73,091	)		(64,762	)		(472,011	)
Net loss attributable to noncontrolling interests		—			—			—			—			(969	)
Net loss attributable to VDI	$	(36,592	)	$	(35,734	)	$	(73,091	)	$	(64,762	)	$	(471,042	)
Net loss per share, basic and diluted	$	(7.32	)	$	(7.15	)	$	(14.62	)	$	(12.95	)		N/A
Weighted average successor ordinary shares outstanding, basic and diluted		5,000			5,000			5,000			5,000			N/A

Vantage Drilling International
Supplemental Operating Data
(Unaudited, in thousands, except percentages)
	Successor												Predecessor
	Three Months Ended June 30,						Six Months Ended June 30, 2017			Period from February 10, 2016 to June 30, 2016			Period from January 1, 2016 to February 10, 2016
	2017			2016
Operating costs and expenses
Jackups	$	20,034		$	12,441		$	32,896		$	20,719		$	5,975
Deepwater		13,908			15,372			24,964			28,518			15,550
Operations support		3,314			2,596			6,283			4,811			2,219
Reimbursables		2,928			4,556			5,039			8,356			1,469
	$	40,184		$	34,965		$	69,182		$	62,404		$	25,213
Utilization
Jackups		80.4	%		52.2	%		66.9	%		55.0	%		53.6	%
Deepwater		32.8	%		33.3	%		33.1	%		33.3	%		33.3	%

Vantage Drilling International
Consolidated Balance Sheet
(In thousands, except share and par value information)
(Unaudited)
	June 30, 2017			December 31, 2016
ASSETS
Current assets
Cash and cash equivalents	$	200,940		$	231,727
Trade receivables		33,464			20,850
Inventory		44,391			45,206
Prepaid expenses and other current assets		14,895			12,423
Total current assets		293,690			310,206
Property and equipment
Property and equipment		903,924			902,241
Accumulated depreciation		(104,677	)		(67,713	)
Property and equipment, net		799,247			834,528
Other assets		24,325			15,694
Total assets	$	1,117,262		$	1,160,428
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	39,418		$	35,283
Accrued liabilities		19,277			18,448
Current maturities of long-term debt		4,430			1,430
Total current liabilities		63,125			55,161
Long-term debt, net of discount and financing costs of $80,932 and $105,568		892,073			867,372
Other long-term liabilities		8,595			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
Additionalpaid-in capital		373,972			373,972
Accumulated deficit		(220,508	)		(147,417	)
Total shareholders’ equity		153,469			226,560
Total liabilities and shareholders’ equity	$	1,117,262		$	1,160,428

Vantage Drilling International

Consolidated Statement of Cash Flows

(In thousands)

(Unaudited)

	Successor						Predecessor
	Six Months Ended June 30, 2017			Period from February 10, 2016 to June 30, 2016			Period from January 1, 2016 to February 10, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(73,091	)	$	(64,762	)	$	(472,011	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation expense		36,993			30,457			10,696
Amortization of debt financing costs		234			193			—
Amortization of debt discount		24,401			18,945			—
Amortization of contract value		1,504			—			—
PIK interest on the Convertible Notes		3,780			2,932			—
Reorganization items		—			—			430,210
Share-based compensation expense		1,727			—			—
Gain on bargain purchase		(1,910	)		—			—
Deferred income tax benefit		(3,315	)		(1,741	)		—
Loss on disposal of assets		191			624			—
Changes in operating assets and liabilities:
Restricted cash		—			—			(1,000	)
Trade receivables		(12,614	)		46,147			(3,575	)
Inventory		815			(2,129	)		223
Prepaid expenses and other current assets		(422	)		(1,914	)		6,893
Other assets		5,471			569			941
Accounts payable		4,135			92			(14,890	)
Accrued liabilities and other long-term liabilities		(3,768	)		(29,209	)		21,148
Net cash (used in) provided by operating activities		(15,869	)		204			(21,365	)
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment		(1,203	)		(7,982	)		116
Cash paid for Vantage 260 acquisition		(13,000	)		—			—
Net cash (used in) provided by investing activities		(14,203	)		(7,982	)		116
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt		(715	)		(715	)		(7,000	)
Proceeds from issuance of 10% Second Lien Notes		—			—			75,000
Debt issuance costs		—			(51	)		(1,125	)
Net cash (used in) provided by financing activities		(715	)		(766	)		66,875
Net (decrease) increase in cash and cash equivalents		(30,787	)		(8,544	)		45,626
Cash and cash equivalents - beginning of period		231,727			249,046			203,420
Cash and cash equivalents - end of period	$	200,940		$	240,502		$	249,046