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Mon, August 10, 2009 Vantage Drilling Company: Vantage Drilling Company Reports Second Quarter 2009 Results
HOUSTON, TX--(Marketwire - August 10, 2009) - Vantage Drilling Company ("Vantage") (
For the six months ended June 30, 2009, Vantage reports net income of $6.3 million or $0.07 per share as compared to $0.6 million or $.01 per share for the six months ended June 30, 2008.
Paul Bragg, President and Chief Executive Officer, commented, "The second quarter of 2009 was another period of achievement for Vantage as we took delivery of our second jackup rig, the Sapphire Driller. The Sapphire Driller is contracted to work in West Africa for the remainder of 2009 and for a 6 to 12 month period in 2011.
Summarizing several important accomplishments are the following:
-- Emerald Driller operating in Thailand achieved 99% plus productive time for the second quarter and year to date. -- Accepted delivery of Sapphire Driller ahead of schedule and on budget. -- Contracted the Sapphire Driller for work in West Africa and rig is currently enroute to its first drilling location. -- Achieved first steel cutting on the Platinum Explorer (45% ownership drillship) on schedule. -- Completed a private placement of common stock raising $25.7 million.
Vantage Drilling Company is a Cayman Islands exempted company. Our primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells. We also provide construction supervision services for, and will operate and manage, drilling units owned by others. Through our fleet of four ultra-premium jackup rigs and a 45% ownership interest in an ultra-deepwater drillship, and our five managed drilling units, we are 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 June 30, --------------------- 2009 2008 --------- --------- Revenues Contract drilling services $ 15,506 $ - Management fees 5,300 - Reimbursables 1,387 - --------- --------- Total revenues 22,193 - --------- --------- Operating costs and expenses Operating costs 9,942 - General and administrative 4,055 1,976 Depreciation 2,102 6 --------- --------- Total operating costs and expenses 16,099 1,982 --------- --------- Income (loss) from operations 6,094 (1,982) Other income (expense) Interest income - 1,326 Interest expense (1,310) - Other income 87 - --------- --------- Total other income (expense) (1,223) 1,326 --------- --------- Income (loss) before income taxes 4,871 (656) Income tax provision (benefit) 919 (125) --------- --------- Net income (loss) $ 3,952 $ (531) ========= ========= Earnings (loss) per share Basic $ 0.04 $ (0.01) Diluted $ 0.04 $ (0.01) Vantage Drilling Company Consolidated Statement of Operations (In thousands, except per share amounts) (Unaudited) Six Months Ended June 30, --------------------- 2009 2008 --------- --------- Revenues Contract drilling services $ 25,293 $ - Management fees 9,442 - Reimbursables 1,754 - --------- --------- Total revenues 36,489 - --------- --------- Operating costs and expenses Operating costs 15,582 - General and administrative 7,491 2,696 Depreciation 3,758 12 --------- --------- Total operating costs and expenses 26,831 2,708 --------- --------- Income (loss) from operations 9,658 (2,708) Other income (expense) Interest income 8 3,831 Interest expense (2,058) - Other income 173 - --------- --------- Total other income (expense) (1,877) 3,831 --------- --------- Income before income taxes 7,781 1,123 Income tax provision 1,471 483 --------- --------- Net income $ 6,310 $ 640 ========= ========= Earnings per share Basic $ 0.07 $ 0.01 Diluted $ 0.07 $ 0.01 Vantage Drilling Company Consolidated Balance Sheet (In thousands, except par value information) June 30, December 31, 2009 2008 ------------ ------------ (Unaudited) ASSETS Current assets Cash and cash equivalents $ 4,625 $ 16,557 Restricted cash 15,705 1,700 Trade receivables 15,203 3,186 Inventory 6,934 - Prepaid expenses and other current assets 4,016 2,077 ------------ ------------ Total current assets 46,483 23,520 ------------ ------------ Property and equipment Property and equipment 627,191 631,008 Accumulated depreciation (3,870) (112) ------------ ------------ Property and equipment, net 623,321 630,896 ------------ ------------ Other assets Investment in joint venture 75,619 - Other assets 18,574 10,867 ------------ ------------ Total other assets 94,193 10,867 ------------ ------------ Total assets $ 763,997 $ 665,283 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $ 4,966 $ 3,827 Accrued liabilities 13,808 14,766 Short-term debt 15,070 11,239 Current maturities of long-term debt 19,410 6,000 ------------ ------------ Total current liabilities 53,254 35,832 ------------ ------------ Long-term debt 158,058 133,000 Commitments and contingencies - - Shareholders' equity Preferred shares, $0.001 par value, 1,000 shares authorized; none issued or outstanding - - Ordinary shares, $0.001 par value, 400,000 shares authorized; 109,299 and 75,708 shares issued and outstanding 109 76 Additional paid-in capital 592,222 542,331 Retained deficit (39,646) (45,956) ------------ ------------ Total shareholders' equity 552,685 496,451 ------------ ------------ Total liabilities and shareholders' equity $ 763,997 $ 665,283 ============ ============ Vantage Drilling Company Consolidated Statement of Cash Flows (In thousands) (Unaudited) Six Months Ended June 30, --------------------------- 2009 2008 ------------ ------------ CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 6,310 $ 640 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation expense 3,758 12 Amortization of debt financing costs 464 - Share-based compensation expense 2,391 184 Deferred income tax benefit - (814) Changes in operating assets and liabilities: Restricted cash (14,005) (600) Trade receivables (12,018) - Inventory (6,934) - Prepaid expenses and other current assets (1,939) (606) Other assets (170) - Accounts payable 1,139 940 Accrued liabilities 9,042 643 Short-term debt 760 - ------------ ------------ Net cash provided by (used in) operating activities (11,202) 399 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of assets - (213,397) Additions to property and equipment (67,248) (2,064) Investment in joint venture (15,574) - Deferred acquisition costs - 757 Restricted cash held in trust account - 273,109 ------------ ------------ Net cash provided by (used in) investing activities (82,822) 58,405 ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings under credit agreement 41,821 34,000 Repayment of long-term debt (3,353) - Proceeds from issuance of ordinary shares in private placement, net 24,954 - Proceeds from warrant exercise in connection with joint venture 15,600 - Proceeds from short-term notes payable-shareholders 4,000 - Repayments of short-term debt (930) - Debt issuance costs - (8,473) Advances from stockholders of OGIL - 3,300 Repayments of advances from stockholders of OGIL - (3,300) Repayment of deferred underwriters fee - (8,280) ------------ ------------ Net cash provided by financing activities 82,092 17,247 ------------ ------------ Net increase (decrease) in cash and cash equivalents (11,932) 76,051 Cash and cash equivalents -- beginning of period 16,557 1,263 ------------ ------------ Cash and cash equivalents -- end of period $ 4,625 $ 77,314 ============ ============
