Vantage Drilling International (VTDR) Q3 2024 earnings summary

Executive summary

• Achieved a successful third quarter of 2024 with zero recordable injuries across all rigs and strong safety program advancements.

• Completed the sale of Topaz Driller and Sohana/Soehanah jackup rigs for $190 million and signed three-year management agreements for the sold rigs, supporting an asset-light strategy.

• Listed on Euronext Growth Oslo in October to enhance liquidity and market following.

• Issued $50 million in new notes to ensure liquidity ahead of JV incorporation and planned out-of-service period for the Tungsten Explorer.

• Reported net loss attributable to shareholders of $10.6 million ($0.80 per diluted share) for Q3 2024, compared to near breakeven in Q3 2023.

Financial highlights

• Total revenue for Q3 2024 was $38.2 million, down from $83.1 million in Q3 2023, mainly due to the conclusion of major campaigns and fewer operating days.

• EBITDA for Q3 2024 was $6.4 million, with a net loss attributable to shareholders of $10.6 million.

• Operating costs were $38 million, down from $74 million in Q3 2023, reflecting lower activity and reimbursable costs.

• Cash and cash equivalents as of September 30, 2024, were $57.6 million (including $6.4 million restricted and $12.4 million pre-funded), down from $84.0 million at year-end 2023.

• Working capital at quarter-end was $94.3 million, up from $88.1 million in the previous quarter.

Outlook and guidance

• Platinum Explorer expected to be available for work in Q1 2025 after upgrades, with ongoing pursuit of new contracts.

• Tungsten Explorer campaign with TotalEnergies continues into Q2/Q3 2025, after which it will be sold to the JV for $265 million.

• Multiple opportunities for both jackups and floaters anticipated in 2025, despite near-term project postponements and idle periods.

• Management emphasized commitment to managed services and strengthening the balance sheet through asset sales and long-term management agreements.

• Continued focus on operational efficiency and marketability improvements for the fleet.