Vantage Drilling International (VTDR) Q2 2024 earnings summary

Executive summary

• Achieved a successful Q2 2024 with safe and efficient operations, focusing on safety, fleet contracting, and stakeholder returns.

• Continued integration of sustainability into decision-making, with progress in waste, water management, and GHG reduction initiatives.

• Net income attributable to controlling interest was $1.5 million ($0.11 per diluted share) for Q2 2023, down from $48.1 million ($3.61 per diluted share) in Q2 2022.

• All owned, managed, and supported rigs were operational during Q2 2023, contributing to positive results.

Financial highlights

• Total revenue for Q2 2024 was $49.8 million, down from $107.8 million in Q2 2023, mainly due to lower fleet utilization and contract roll-offs.

• EBITDA for Q2 2024 was $4.6 million; net loss attributable to shareholders was $14.2 million.

• Operating costs were $39.6 million in Q2 2024, down from $74.4 million in Q2 2023, reflecting lower utilization and ongoing maintenance.

• Ended Q2 2024 with $50.8 million in cash, including $10.5 million restricted and $12.8 million pre-funded by managed services customers.

• Working capital at quarter-end was $88.1 million, down from $120.9 million in the previous quarter.

Outlook and guidance

• Backlog at the end of Q2 2024 was $261.5 million, with the Topaz Driller contract contributing $107.3 million.

• The Platinum Explorer is expected to be available for work later in Q4 2024 after upgrades, with ongoing marketing for new contracts.

• The Tungsten Explorer is expected to be sold to a JV with TotalEnergies in 2025, after completion of its current drilling campaign.

• Market sentiment remains robust for the long term, despite some short-term postponements and white space in 2024 and early 2025.

• Management expressed confidence in continued operational performance, citing all rigs working and ongoing cash generation.