Click here to close now.

Welcome!

.NET Authors: Pat Romanski, Andreas Grabner, Elizabeth White, Tad Anderson, Greg O'Connor

News Feed Item

Vantage Drilling Company Reports Third Quarter 2012 Results and Provides Fleet Update

HOUSTON, TX -- (Marketwire) -- 11/09/12 -- Vantage Drilling Company ("Vantage") (NYSE MKT: VTG) reports a net income for the three months ended September 30, 2012 of $2.0 million or $0.01 per diluted share, excluding approximately $2.5 million of charges for the early retirement of debt, as compared to a net loss of $11.9 million or ($0.04) per diluted share for the three months ended September 30, 2011. Including the charges for the early retirement of debt, Vantage reported a loss of $538,000 or $0.00 per diluted share for the three months ended September 30, 2012.

For the nine months ended September 30, 2012, Vantage reports a net loss of $9.2 million or ($0.03) per diluted shares, excluding approximately $2.5 million of charges for the early retirement of debt as compared to a net loss of $45.4 million or ($0.16) per diluted shares, excluding approximately $25.2 million of charges for the early retirement of debt for the nine months ended September 30, 2011. Including the charges for early retirement of debt, the company reported net losses of $11.7 million or ($0.04) per diluted share and $70.6 million or ($.24) per diluted share respectively for the nine months ended September 30, 2012 and 2011.

Paul Bragg, Chairman and Chief Executive Officer, commented, "We are pleased to announce another strong quarter from operations, with the fleet including the jackups and the Platinum Explorer achieving utilization in excess of 98%."

Titanium Explorer Update

The Titanium Explorer, which was acquired in April 2012, mobilized to the United States Gulf of Mexico, to commence an eight year contract. Acceptance testing with our customer was interrupted during the third quarter by Hurricane Isaac, which necessitated our sailing out of harm's way and further disrupted the supply chain and vendor access to the Titanium Explorer for more than a week. Most of the testing protocol has now been completed successfully, including third party certification of the BOP. The functional tests of the BOP in deepwater were unfortunately interrupted by operational issues of the customer-supplied ROV. The ROV cameras and robotics are essential to complete the seafloor testing of the equipment. We lost approximately ten days of testing associated with the ROV issues. During the testing delays, we noted an engine issue aboard the Titanium Explorer. After consultation with the engine manufacturer, we decided that it would be prudent to not only repair the problem, but to undertake a preventative upgrade recommended by the manufacturer to all six primary engines onboard. The repair and upgrade is being conducted currently and is expected to be completed in the third week of November. Following this, we will return to deepwater to recommence acceptance testing. We expect to commence operations under the drilling contract in December. "We are clearly disappointed by the disruptions and delays we have encountered commencing operations for the Titanium Explorer, but we believe we are very close to a successful commencement of our contract. The crew and support team has done an outstanding job preparing the Titanium Explorer and dealing with the adversities encountered," commented Mr. Bragg.

Jackup Fleet Update

Vantage, together with our customer for the Topaz Driller in Malaysia, has agreed to modify the terms of their contract in order for the Topaz Driller to perform a one-year drilling program in Indonesia. The original contract was for two wells in Malaysia plus a one well option. Under the modified terms, Vantage and the customer's Indonesian affiliate have entered into a new one-year contract for a drilling program in Indonesia at an increased rate. Additionally, the Indonesian affiliate will be granted three options for six months each. Upon completion of the Indonesian contract, the customer is anticipated to generate revenue of approximately $57 million.

The Emerald Driller has received a letter of award for a two year contract from its customer in Thailand. The contract will commence in continuity with the Emerald Driller's current contract, which we estimate will be completed in June 2013. Estimated revenues to be generated over the initial two year term of the contract are approximately $114 million.

Vantage, a Cayman Islands exempted company, is an offshore drilling contractor, with an owned fleet of four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs and two ultra-deepwater drillships, the Platinum Explorer and the Titanium Explorer, as well as an additional ultra-deepwater drillship, the Tungsten Explorer, now under construction. 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. Vantage also provides construction supervision services for, and will operate and manage, drilling units owned by others. Through its fleet of seven owned drilling units, Vantage is 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     Nine Months Ended
                                     September 30,         September 30,
                                 --------------------  --------------------
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------
Revenues
  Contract drilling services     $ 105,521  $  89,916  $ 310,202  $ 274,646
  Management fees                      966      3,285      4,644     10,499
  Reimbursables                      5,047     25,367     33,662     79,148
                                 ---------  ---------  ---------  ---------
    Total revenues                 111,534    118,568    348,508    364,293
                                 ---------  ---------  ---------  ---------
Operating costs and expenses
  Operating costs                   52,004     69,644    171,358    212,468
  General and administrative         6,622      6,219     18,586     20,469
  Depreciation                      16,575     15,988     49,519     48,126
                                 ---------  ---------  ---------  ---------
    Total operating costs and
     expenses                       75,201     91,851    239,463    281,063
                                 ---------  ---------  ---------  ---------
Income from operations              36,333     26,717    109,045     83,230
Other income (expense)
  Interest income                       15          7         48         68
  Interest expense and other
   financing charges               (31,583)   (37,074)  (104,518)  (117,966)
  Loss on debt extinguishment       (2,528)         -     (2,528)   (25,196)
  Other, net                           (61)       455        800      1,913
                                 ---------  ---------  ---------  ---------
    Total other income (expense)   (34,157)   (36,612)  (106,198)  (141,181)
                                 ---------  ---------  ---------  ---------
Income (loss) before income
 taxes                               2,176     (9,895)     2,847    (57,951)
Income tax provision                 2,714      1,986     14,541     12,654
                                 ---------  ---------  ---------  ---------
Net loss                         $    (538) $ (11,881) $ (11,694) $ (70,605)
                                 =========  =========  =========  =========

Loss per share
  Basic                          $    0.00  $   (0.04) $   (0.04) $   (0.24)
  Diluted                        $    0.00  $   (0.04) $   (0.04) $   (0.24)



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

                                               September 30,   December 31,
                                                    2012           2011
                                               -------------  -------------
                                                (Unaudited)
                    ASSETS
Current assets
  Cash and cash equivalents                    $      62,476  $     110,031
  Restricted cash                                      5,878          7,028
  Trade receivables                                   76,627        100,908
  Inventory                                           34,323         24,376
  Prepaid expenses and other current assets           12,374         16,909
                                               -------------  -------------
    Total current assets                             191,678        259,252
                                               -------------  -------------
Property and equipment
  Property and equipment                           2,850,707      1,913,596
  Accumulated depreciation                          (157,318)      (108,521)
                                               -------------  -------------
    Property and equipment, net                    2,693,389      1,805,075
                                               -------------  -------------
Other assets
  Other assets                                        82,297         58,173
                                               -------------  -------------
Total assets                                   $   2,967,364  $   2,122,500
                                               =============  =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                             $      60,452  $      46,362
  Accrued liabilities                                 69,419        103,809
                                               -------------  -------------
    Total current liabilities                        129,871        150,171
                                               -------------  -------------
Long-term debt, net of premium (discount) of
 $19,563 and ($38,572)                             2,129,563      1,246,428
Other long-term liabilities                           14,750         29,755
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, 500,000
   shares authorized; 294,130 and 291,241
   shares issued and outstanding                         294            291
  Additional paid-in capital                         869,227        860,502
  Accumulated deficit                               (176,341)      (164,647)
                                               -------------  -------------
    Total shareholders' equity                       693,180        696,146
                                               -------------  -------------
Total liabilities and shareholders' equity     $   2,967,364  $   2,122,500
                                               =============  =============



                          Vantage Drilling Company
                    Consolidated Statement of Cash Flows
                               (In thousands)
                                (Unaudited)
                                            Nine Months Ended September 30,
                                           --------------------------------
                                                 2012             2011
                                           ---------------  ---------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss                                   $       (11,694) $       (70,605)
Adjustments to reconcile net loss to net
 cash used in operating activities:
  Depreciation expense                              49,519           48,126
  Amortization of debt financing costs              12,617            6,269
  Non-cash loss on debt extinguishment               2,528            3,532
  Share-based compensation expense                   5,808            4,044
  Accretion of long-term debt                            -            2,582
  Amortization of debt discount (premium)           (3,473)           7,374
  Deferred income tax expense                        2,978              123
  (Gain) / loss on disposal of assets                  502              (86)
Changes in operating assets and
 liabilities:
  Restricted cash                                    1,150           22,243
  Trade receivables                                 (9,382)         (68,633)
  Inventory                                         (9,948)          (2,566)
  Prepaid expenses and other current
   assets                                            1,509            6,393
  Other assets                                       2,074             (456)
  Accounts payable                                  14,090            4,772
  Accrued liabilities                             (105,126)         (38,080)
                                           ---------------  ---------------
    Net cash used in operating activities          (46,848)         (74,968)
                                           ---------------  ---------------
CASH FLOWS FROM INVESTING ACTIVITIES
  Additions to property and equipment             (848,939)        (126,695)
  Proceeds from sale of property and
   equipment                                             -              301
                                           ---------------  ---------------
    Net cash used in investing activities         (848,939)        (126,394)
                                           ---------------  ---------------
CASH FLOWS FROM FINANCING ACTIVITIES
  Proceeds from issuance of senior secured
   notes, including issue premiums of
   $62,000 and $15,750                             837,000          240,750
  Proceeds from the issuance of senior
   convertible notes                                50,000                -
  Repayment of long-term debt                            -         (109,716)
  Debt issuance costs                              (38,768)         (12,927)
                                           ---------------  ---------------
    Net cash provided by financing
     activities                                    848,232          118,107
                                           ---------------  ---------------
    Net decrease in cash and cash
     equivalents                                   (47,555)         (83,255)
  Cash and cash equivalents-beginning of
   period                                          110,031          120,443
                                           ---------------  ---------------
  Cash and cash equivalents-end of period  $        62,476  $        37,188
                                           ===============  ===============

Public & Investor Relations Contact:
Paul A. Bragg
Chairman & Chief Executive Officer
Vantage Drilling Company
(281) 404-4700

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Cloud data governance was previously an avoided function when cloud deployments were relatively small. With the rapid adoption in public cloud – both rogue and sanctioned, it’s not uncommon to find regulated data dumped into public cloud and unprotected. This is why enterprises and cloud providers alike need to embrace a cloud data governance function and map policies, processes and technology controls accordingly. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, will focus on how to set up a cloud data governance program and s...
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been involved at the beginning of four IT industries: EDA, Open Systems, Computer Security and now SOA.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Every innovation or invention was originally a daydream. You like to imagine a “what-if” scenario. And with all the attention being paid to the so-called Internet of Things (IoT) you don’t have to stretch the imagination too much to see how this may impact commercial and homeowners insurance. We’re beyond the point of accepting this as a leap of faith. The groundwork is laid. Now it’s just a matter of time. We can thank the inventors of smart thermostats for developing a practical business application that everyone can relate to. Gone are the salad days of smart home apps, the early chalkb...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along with a steady stream of well-publicized data breaches, only add to the uncertainty
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
PubNub on Monday has announced that it is partnering with IBM to bring its sophisticated real-time data streaming and messaging capabilities to Bluemix, IBM’s cloud development platform. “Today’s app and connected devices require an always-on connection, but building a secure, scalable solution from the ground up is time consuming, resource intensive, and error-prone,” said Todd Greene, CEO of PubNub. “PubNub enables web, mobile and IoT developers building apps on IBM Bluemix to quickly add scalable realtime functionality with minimal effort and cost.”
Docker is an excellent platform for organizations interested in running microservices. It offers portability and consistency between development and production environments, quick provisioning times, and a simple way to isolate services. In his session at DevOps Summit at 16th Cloud Expo, Shannon Williams, co-founder of Rancher Labs, will walk through these and other benefits of using Docker to run microservices, and provide an overview of RancherOS, a minimalist distribution of Linux designed expressly to run Docker. He will also discuss Rancher, an orchestration and service discovery platf...
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics archive, in his session at @ThingsExpo, Jim Kaskade, Vice President and General Manager, Big Data & Ana...
CommVault has announced that top industry technology visionaries have joined its leadership team. The addition of leaders from companies such as Oracle, SAP, Microsoft, Cisco, PwC and EMC signals the continuation of CommVault Next, the company's business transformation for sales, go-to-market strategies, pricing and packaging and technology innovation. The company also announced that it had realigned its structure to create business units to more directly match how customers evaluate, deploy, operate, and purchase technology.