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Vantage Drilling Company Reports First Quarter 2011 Results


May 6, 2011 - HOUSTON, TX

Vantage Drilling Company ("Vantage") (NYSE Amex: VTG.U) (NYSE Amex: VTG) (NYSE Amex: VTG.WS) reports a net loss of($18.7) million or ($0.06) per diluted share for the three months endedMarch 31, 2011 as compared to a net loss of ($13.0) million or ($.05) perdiluted share in the fourth quarter of 2010 and net income of $6.0million or $0.03 per diluted share for the three months ended March 31,2010.

Revenue for the three months ended March 31, 2011 was $124.6 million ascompared to revenue of $84.9 million in the fourth quarter of 2010 and$58.3 million for the three months ended March 31, 2010. Income fromoperations for the quarter was $24.3 million as compared to $6.7 million inthe preceding quarter and $15.6 million in the prior year. The increase inrevenue and income from operations for the quarter was driven by thePlatinum Explorer which commenced operations on a five year contract inIndia in December 2010 partially offset by the Sapphire Driller andAquamarine Driller having days off contract days during the quarter.

As we have previously announced, the Sapphire Driller's contract in theCôte d'Ivoire had a force majeure claim resulting from the civil unrest andthe Aquamarine Driller's customer in the Philippines exercised the earlytermination provisions of the contract in order to reassess their drillingprogram. The Sapphire Driller and Aquamarine Driller have been mobilizedto Cameroon and Malaysia, respectively and began new contracts in earlyMarch.

Paul Bragg, Chairman and Chief Executive Officer, commented, "This was alandmark quarter for Vantage as we now have all of our rigs operating. Weare extremely pleased with the high-level of productive time across thefleet as the Platinum Explorer achieved over 93% productive time during itsfirst quarter of operations and the jackup fleet achieve over 99%productive time for the quarter while on contract."

Vantage, a Cayman Islands exempted company, is an offshore drillingcontractor with four Baker Marine Pacific Class 375 ultra-premium jackupdrilling rigs operating and an ultra deepwater drillship, the PlatinumExplorer. Vantage is also providing management services for four otherultra-deepwater drillships.

The information above includes forward-looking statements within themeaning of the Securities Act of 1933 and the Securities Exchange Act of1934. These forward-looking statements are subject to certain risks,uncertainties and assumptions identified above or as disclosed from time totime in the company's filings with the Securities and Exchange Commission.As a result of these factors, actual results may differ materially fromthose indicated or implied by such forward-looking statements.


Vantage Drilling Company
Consolidated Balance Sheet
(In thousands, except par value information)



March 31, December 31,
2011 2010
----------- -----------
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 51,709 $ 120,443
Restricted cash 27,699 29,004
Trade receivables 86,917 50,190
Inventory 21,714 19,760
Prepaid expenses and other current assets 10,940 11,472
----------- -----------
Total current assets 198,979 230,869
----------- -----------

Property and equipment
Property and equipment 1,781,926 1,762,844
Accumulated depreciation (60,824) (44,712)
----------- -----------
Property and equipment, net 1,721,102 1,718,132
----------- -----------
Other assets
Other assets 51,424 54,193
----------- -----------
Total other assets 51,424 54,193
----------- -----------
Total assets $ 1,971,505 $ 2,003,194
----------- -----------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 41,041 $ 32,332
Accrued liabilities 51,748 75,159
Short-term debt 6,002 8,574
----------- -----------
Total current liabilities 98,791 116,065
----------- -----------
Long-term debt, net of discount of $60,807 and
$63,654 1,107,816 1,103,480
Other long-term liabilities 12,486 13,498
Commitments and contingencies - -
Shareholders' equity
Preferred shares, $0.001 par value, 10,000
shares authorized; none issued or outstanding - -
Ordinary shares, $0.001 par value, 400,000 shares
authorized; 289,761 and 289,713 shares issued
and outstanding 290 290
Additional paid-in capital 855,471 854,557
Accumulated deficit (103,349) (84,696)
----------- -----------
Total shareholders' equity 752,412 770,151
----------- -----------
Total liabilities and shareholders' equity $ 1,971,505 $ 2,003,194
=========== ===========





Vantage Drilling Company
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended March 31,
-----------------------------
2011 2010
------------- --------------
Revenues
Contract drilling services $ 86,712 $ 39,356
Management fees 3,966 4,437
Reimbursables 33,911 14,457
------------- --------------
Total revenues 124,589 58,250
------------- --------------
Operating costs and expenses
Operating costs 77,351 30,659
General and administrative 6,847 4,475
Depreciation 16,112 7,477
------------- --------------
Total operating expenses 100,310 42,611
------------- --------------
Income from operations 24,279 15,639
Other income (expense)
Interest income 38 12
Interest expense and financing charges (41,542) (7,985)
Other income 1,480 612
------------- --------------
Total other expense (40,024) (7,361)
------------- --------------
Income (loss) before income taxes (15,745) 8,278
Income tax provision 2,909 2,315
============= ==============
Net income (loss) $ (18,654) $ 5,963
============= ==============
Earnings (loss) per share
Basic $ (0.06) $ 0.03

Diluted $ (0.06) $ 0.03





Vantage Drilling Company
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)


Three Months Ended March 31,
2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (18,654) $ 5,963
Adjustments to reconcile net income to net
cash provided by (used in) operating
activities:
Depreciation expense 16,112 7,477
Amortization of debt financing costs 1,868 976
Share-based compensation expense 914 1,526
Accretion of long-term debt 1,489 1,217
Amortization of debt discount 2,847 293
Deferred income tax benefit (252) -
Changes in operating assets and liabilities:
Restricted cash 1,305 (9,188)
Trade receivables (36,727) (22,205)
Inventory (1,954) (1,013)
Prepaid expenses and other current assets 533 (3,304)
Other assets 1,162 (198)
Accounts payable 8,709 1,919
Accrued liabilities (24,422) 7,245
Short-term debt - 904
------------- --------------
Net cash used in operating activities (47,070) (8,388)
============= ==============
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment (19,083) (11,934)
Investment in joint venture - (1,959)
------------- --------------
Net cash used in investing activities (19,083) (13,893)
============= ==============

CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt - (9,649)
Proceeds from issuance of ordinary shares
in public offerings, net - 47,688
Repayment of short-term debt (2,572) (1,297)
Debt issuance costs (9) (59)
------------- --------------
Net cash provided by (used in) financing
activities (2,581) 36,683
------------- --------------
Net increase (decrease) in cash and cash
equivalents (68,734) 14,402
Cash and cash equivalents-beginning of
period 120,443 15,992
------------- --------------
Cash and cash equivalents-end of period $ 51,709 $ 30,394
============= ==============

Public & Investor Relations Contact:

Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700

MarketWire

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