Vantage Drilling International Reports First Quarter Results for 2017

FOR: VANTAGE DRILLING INTERNATIONAL

Date issue: May 04, 2017
Time in: 7:00 AM e

Attention:

HOUSTON, TX--(Marketwired - May 04, 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 the Vantage 260 acquisition in early April, the extension of the Aquamarine Driller contract, and the reactivation of both the Topaz Driller and Sapphire 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.

/T/

Vantage Drilling International Consolidated Statement of Operations (In thousands, except per share data) (Unaudited) Successor Predecessor -------------------------- ------------- Period from Period from February 10, January 1, Three Months 2016 to 2016 to Ended March March 31, February 10, 31, 2017 2016 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 -------------------------- ------------- Period from Period from February 10, January 1, Three Months 2016 to 2016 to Ended March March 31, February 10, 31, 2017 2016 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, December 31, 2017 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 -------------------------- ------------- Period from Period from February 10, January 1, Three Months 2016 to 2016 to Ended March March 31, February 10, 31, 2017 2016 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 ============ ============ =============

/T/

- END RELEASE - 04/05/2017

For further information:
Public & Investor Relations Contact:
Thomas J. Cimino
Chief Financial Officer
Vantage Drilling International
(281) 404-4700

COMPANY:
FOR: VANTAGE DRILLING INTERNATIONAL

INDUSTRY: Energy and Utilities - Oil and Gas , Energy and Utilities
- Pipelines
RELEASE ID: 20170504CC0020

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