Ventura Offshore (VTURA) Q2 2024 earnings summary

Executive summary

• Ventura Offshore, incorporated in Bermuda in February 2024, operates a fleet of deepwater rigs with a 27-year operational history and a strong presence in Brazil, expanding internationally to India, Angola, Vietnam, and Indonesia.

• Completed the $281 million acquisition of Universal Energy Resources Inc (UER) in May 2024, expanding into contract drilling services with key assets under long-term charters in Brazil.

• Reported consolidated results for the period from inception (Feb 24, 2024) to June 30, 2024, reflecting the impact of the UER acquisition.

• Recent acquisition of SSV Catarina and management of Atlantic Zonda strengthen its fleet and market positioning, with Catarina acquired for $100 million cash, $5 million in shares, and profit-sharing.

• Raised $167.2 million in equity and $127.2 million in debt to fund the UER acquisition, and $50 million in new equity post-period for Catarina.

Financial highlights

• Total revenues of $58.5 million and net income of $7.9 million for the period from February 24 to June 30, 2024.

• Adjusted revenue of $21 million and adjusted EBITDA of $6.9 million for the 53-day period ending June 30, 2024.

• Cash and cash equivalents of $30.6 million and restricted cash of $18.2 million as of June 30, 2024.

• Gross interest-bearing debt increased to $185 million post-Catarina acquisition.

• Backlog stands at $377 million pro-forma for the Catarina acquisition.

Outlook and guidance

• Two owned rigs under three-year contracts with Petrobras expiring in Q2 2026; DS Zonda expected to commence operations in Brazil in Q1 2025.

• SSV Catarina commenced a drilling contract in Indonesia in August 2024, with potential extension into Q2 2026.

• Offshore rig demand in South America, especially Brazil, is expected to grow, with Petrobras planning to contract up to 9 rigs by 2026.

• Global upstream investment in 2024 is forecasted at $630 billion, with South America seeing a 12% increase, mainly from Brazil and Guyana.

• Ventura is well positioned to benefit from continued strong oil and gas demand and ongoing investment needs.