Click here to close now.


Microsoft Cloud Authors: Liz McMillan, Jordan Sanders, Carmen Gonzalez, Pat Romanski, Keith Mayer

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)

                                  Three Months Ended     Nine Months Ended
                                     September 30,         September 30,
                                 --------------------  --------------------
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------
  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
                                               -------------  -------------
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
                                               =============  =============

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)
                                            Nine Months Ended September 30,
                                                 2012             2011
                                           ---------------  ---------------
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
  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)
                                           ---------------  ---------------
  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)
                                           ---------------  ---------------
  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
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment process from development to production scenarios using Docker containers.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and technology requirements that will drive the Internet of Things from hype to reality.
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Countless business models have spawned from the IaaS industry – resell Web hosting, blogs, public cloud, and on and on. With the overwhelming amount of tools available to us, it's sometimes easy to overlook that many of them are just new skins of resources we've had for a long time. In his general session at 17th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, an IBM Company, broke down what we have to work with, discussed the benefits and pitfalls and how we can best use them to design hosted applications.
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound effect on the world, and what should we expect to see over the next couple of years.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...