Ventura Offshore (VTURA) Q3 2024 earnings summary

Executive summary

• Achieved strong operational results in Q3 2024, with all four rigs under contract, high utilization, and zero recordable safety incidents; technical uptime at 97% and financial uptime at 93.6%.

• Completed acquisition of SSV Catarina, which commenced a contract with ENI Indonesia in August 2024, and secured $105 million in financing through a bond tap and private placement.

• Completed acquisition of Universal Energy Resources Inc. in May 2024, adding two drillships operating in Brazil and expanding the fleet to three owned vessels and one managed vessel.

• Revenue backlog reached $401 million as of September 30, 2024, including Zonda management fee.

Financial highlights

• Q3 2024 adjusted revenue was $51.2 million, with $48 million from drilling rigs, $1.4 million mobilization fee, and $1.8 million management fees; total reported revenue was $87.4 million.

• Adjusted EBITDA for Q3 2024 was $21.4 million; net income was $26.3 million; basic EPS was $0.25.

• OPEX for Q3 was $24.9 million, averaging $109,000 per day; SG&A expenses totaled $4.9 million.

• Cash and cash equivalents at quarter-end were $39.8 million, with restricted cash of $11.8 million.

• Gross interest-bearing debt stood at $195 million, including $185 million in bonds and $9.9 million drawn on the RCF.

Outlook and guidance

• Full utilization of all rigs expected through 2026, with optimism for contract renewals and new tenders in Brazil; SSV Catarina's contract with ENI may extend into Q2 2026 if options are exercised.

• Strong demand for rigs in Brazil, driven by Petrobras' multi-year drilling plans and ongoing tenders; DS Zonda expected to commence operations in Brazil in Q1 2025 under a three-year contract.

• Anticipates continued operations in Indonesia with ENI, expecting optional wells to be exercised.