10-Q
--12-31Q2false0001465872five yearsthree yearshttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2023#LiabilitiesOtherThanLongtermDebtNoncurrenthttp://fasb.org/us-gaap/2023#LiabilitiesOtherThanLongtermDebtNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2023#OtherAssetsNoncurrent0001465872ck0001465872:CustomerThreeMemberus-gaap:TradeAccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMemberck0001465872:ManagementFeesMember2023-04-012023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2023-01-012023-06-300001465872us-gaap:EarliestTaxYearMember2023-01-012023-06-300001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2023-04-012023-06-300001465872us-gaap:NoncontrollingInterestMember2022-03-310001465872ck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2023-02-140001465872ck0001465872:DrillingServicesAndManagedServicesMemberus-gaap:SalesRevenueNetMemberck0001465872:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2023-04-012023-06-300001465872ck0001465872:ReimbursableRevenuesMember2022-04-012022-06-300001465872us-gaap:SalesRevenueNetMemberck0001465872:CustomerFiveMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2022-01-012022-06-300001465872us-gaap:AdditionalPaidInCapitalMember2023-03-310001465872us-gaap:DebtInstrumentRedemptionPeriodOneMemberck0001465872:FirstPaymentMemberck0001465872:NinePointTwoFivePercentFirstLienNotesMember2023-03-060001465872us-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2023-04-012023-06-300001465872us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMemberck0001465872:CustomerFourMember2023-01-012023-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:ReimbursableRevenuesMember2023-04-012023-06-300001465872ck0001465872:CustomerFiveMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2022-04-012022-06-300001465872ck0001465872:JackupsMember2023-04-012023-06-300001465872ck0001465872:ReimbursablesAndOtherMember2022-01-012022-06-300001465872us-gaap:RestrictedStockMember2022-01-012022-06-300001465872ck0001465872:DayrateRevenueMemberck0001465872:JackupsMember2023-01-012023-06-300001465872ck0001465872:AmortizedRevenueMemberck0001465872:DeepwaterMember2022-04-012022-06-300001465872ck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2022-12-310001465872ck0001465872:AmortizedRevenueMember2022-01-012022-06-300001465872ck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2023-06-300001465872ck0001465872:ReimbursablesAndOtherMember2023-01-012023-06-300001465872us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001465872ck0001465872:DayrateRevenueMember2023-01-012023-06-3000014658722023-01-012023-03-310001465872us-gaap:LeaseholdImprovementsMember2023-06-3000014658722022-12-310001465872ck0001465872:DayrateRevenueMemberck0001465872:JackupsMember2023-04-012023-06-300001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2023-02-032023-02-030001465872us-gaap:GeneralAndAdministrativeExpenseMember2022-04-012022-06-300001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2023-06-300001465872ck0001465872:JackupsMember2022-01-012022-06-300001465872ck0001465872:AdesGroupMember2023-01-012023-06-3000014658722022-03-310001465872ck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2022-01-012022-06-300001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:DeepwaterMember2022-04-012022-06-3000014658722023-01-012023-06-300001465872us-gaap:RetainedEarningsMember2022-04-012022-06-300001465872ck0001465872:ManagementFeesMember2022-01-012022-06-300001465872ck0001465872:CustomerThreeMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2022-01-012022-06-300001465872ck0001465872:CharterLeaseRevenueMember2023-04-012023-06-300001465872ck0001465872:ColdStackedRigMember2023-01-012023-06-300001465872ck0001465872:ManagementFeesMember2023-01-012023-06-300001465872us-gaap:EnergyEquipmentMember2022-12-310001465872ck0001465872:ManagementFeesMember2023-04-012023-06-300001465872ck0001465872:JackupsMember2023-01-012023-06-300001465872us-gaap:OilAndGasServiceMember2023-04-012023-06-300001465872ck0001465872:AdesGroupMember2023-04-012023-06-300001465872ck0001465872:DayrateRevenueMemberck0001465872:DeepwaterMember2023-01-012023-06-300001465872us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-06-300001465872ck0001465872:CustomerThreeMemberus-gaap:TradeAccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001465872country:IN2022-12-310001465872ck0001465872:DrillingServicesAndManagedServicesMembercountry:IN2023-04-012023-06-300001465872ck0001465872:CustomerFiveMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2023-01-012023-06-300001465872us-gaap:EnergyEquipmentMember2023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2022-01-012022-06-300001465872country:INck0001465872:DrillingServicesAndManagedServicesMember2022-04-012022-06-300001465872ck0001465872:AquadrillLlcMember2022-01-012022-06-300001465872us-gaap:AssetUnderConstructionMember2022-12-310001465872ck0001465872:DrillingServicesAndManagedServicesMembercountry:IN2022-01-012022-06-300001465872us-gaap:TradeAccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:CustomerTwoMember2023-01-012023-06-300001465872ck0001465872:ContractDrillingServicesMember2022-01-012022-06-300001465872ck0001465872:AmortizedRevenueMember2023-04-012023-06-300001465872ck0001465872:ManagedServicesMember2023-01-012023-06-300001465872us-gaap:AdditionalPaidInCapitalMember2023-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:DayrateRevenueMember2022-04-012022-06-300001465872ck0001465872:JackupsMemberck0001465872:AmortizedRevenueMember2023-01-012023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:UnallocatedMember2022-04-012022-06-300001465872ck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2023-01-012023-06-300001465872ck0001465872:OfficeAndTechnologyEquipmentMember2023-06-300001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:DeepwaterMember2023-01-012023-06-300001465872ck0001465872:CustomerThreeMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2023-04-012023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:UaeMember2023-01-012023-06-300001465872srt:MinimumMemberus-gaap:EnergyEquipmentMember2023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:OtherCountriesMember2022-04-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2022-04-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:UnallocatedMember2023-04-012023-06-300001465872us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001465872ck0001465872:CustomerThreeMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2022-04-012022-06-300001465872us-gaap:NoncontrollingInterestMember2021-12-310001465872us-gaap:OtherCurrentLiabilitiesMember2023-06-3000014658722022-04-012022-06-300001465872us-gaap:AdditionalPaidInCapitalMember2021-12-310001465872ck0001465872:ManagedServicesMember2023-04-012023-06-300001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2022-11-220001465872ck0001465872:ManagedServicesMemberck0001465872:AmortizedRevenueMember2023-04-012023-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:AmortizedRevenueMember2023-01-012023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMembercountry:ID2022-04-012022-06-300001465872us-gaap:GeneralAndAdministrativeExpenseMember2023-04-012023-06-300001465872country:QAck0001465872:DrillingServicesMember2022-04-012022-06-300001465872ck0001465872:DayrateRevenueMember2022-04-012022-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:OtherCountriesMember2023-01-012023-06-300001465872us-gaap:CommonStockMember2022-03-310001465872us-gaap:NoncontrollingInterestMember2023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:UnallocatedMember2023-01-012023-06-300001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:JackupsMember2023-01-012023-06-300001465872us-gaap:NoncontrollingInterestMember2023-03-310001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2022-04-012022-06-300001465872ck0001465872:DeepwaterMember2023-04-012023-06-300001465872ck0001465872:DayrateRevenueMember2023-04-012023-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:ReimbursableRevenuesMember2022-01-012022-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:UaeMember2023-04-012023-06-300001465872us-gaap:SalesRevenueNetMemberck0001465872:ManagedServicesMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:CustomerTwoMember2023-04-012023-06-300001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:JackupsMember2023-04-012023-06-300001465872srt:MaximumMember2023-01-012023-06-300001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:DeepwaterMember2022-01-012022-06-300001465872us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001465872country:INck0001465872:DrillingServicesAndManagedServicesMember2023-01-012023-06-300001465872us-gaap:NoncontrollingInterestMember2022-04-012022-06-300001465872ck0001465872:OfficeAndTechnologyEquipmentMembersrt:MaximumMember2023-06-3000014658722023-07-012023-06-3000014658722023-07-012023-01-012023-06-300001465872us-gaap:DebtInstrumentRedemptionPeriodTwoMemberck0001465872:NinePointTwoFivePercentFirstLienNotesMember2023-02-030001465872us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-06-300001465872ck0001465872:AquadrillLlcMember2023-04-012023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMembercountry:ID2023-01-012023-06-300001465872ck0001465872:AmortizedRevenueMember2022-04-012022-06-300001465872us-gaap:NoncontrollingInterestMember2023-01-012023-03-310001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:UaeMember2022-01-012022-06-300001465872us-gaap:RestrictedStockMember2023-04-012023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberus-gaap:SalesRevenueNetMemberck0001465872:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001465872ck0001465872:PerformanceBasedRestrictedStockUnitMember2023-01-012023-06-300001465872ck0001465872:AquadrillLlcMember2023-01-012023-06-300001465872ck0001465872:ManagementFeesMember2022-04-012022-06-300001465872us-gaap:RestrictedStockMember2023-01-012023-06-3000014658722021-12-310001465872us-gaap:RetainedEarningsMember2022-03-310001465872ck0001465872:OtherCountriesMember2022-12-310001465872ck0001465872:InternationalWatersMember2022-12-310001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2022-01-012022-06-300001465872us-gaap:CommonStockMember2023-01-012023-03-310001465872ck0001465872:ManagementFeesMember2022-01-012022-06-300001465872us-gaap:OperatingExpenseMember2023-04-012023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMemberck0001465872:ManagementFeesMember2023-01-012023-06-300001465872us-gaap:RetainedEarningsMember2023-04-012023-06-300001465872us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMemberck0001465872:CustomerFourMember2022-04-012022-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:ReimbursableRevenuesMember2023-01-012023-06-300001465872us-gaap:OperatingExpenseMember2022-04-012022-06-3000014658722022-01-012022-12-310001465872ck0001465872:ManagementFeesMember2023-04-012023-06-300001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2023-01-012023-06-300001465872ck0001465872:ReimbursableRevenuesMember2023-01-012023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2023-01-012023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:UaeMember2022-04-012022-06-300001465872ck0001465872:CharterLeaseRevenueMember2023-01-012023-06-300001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2023-01-012023-03-310001465872us-gaap:RetainedEarningsMember2023-06-300001465872ck0001465872:DeepwaterMemberck0001465872:AmortizedRevenueMember2023-01-012023-06-3000014658722022-01-012022-06-300001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2022-11-222022-11-220001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMemberck0001465872:ContractDrillingServicesMember2023-04-012023-06-300001465872ck0001465872:WarmStackedRigMember2023-01-012023-06-300001465872us-gaap:DebtInstrumentRedemptionPeriodOneMemberck0001465872:FirstPaymentMemberck0001465872:NinePointTwoFivePercentFirstLienNotesMember2022-12-220001465872ck0001465872:OtherCountriesMember2023-06-300001465872ck0001465872:CustomerFiveMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2023-04-012023-06-3000014658722023-06-300001465872country:EGck0001465872:DrillingServicesMember2022-01-012022-06-300001465872ck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2022-11-222022-11-220001465872ck0001465872:DrillingServicesAndManagedServicesMembercountry:ID2022-01-012022-06-300001465872us-gaap:RetainedEarningsMember2021-12-310001465872us-gaap:SalesRevenueNetMemberck0001465872:ManagedServicesMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:CustomerTwoMember2022-01-012022-06-300001465872ck0001465872:ReimbursablesAndOtherMember2022-01-012022-06-300001465872us-gaap:OilAndGasServiceMember2022-01-012022-06-300001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2023-04-012023-06-3000014658722022-06-300001465872ck0001465872:OfficeAndTechnologyEquipmentMember2022-12-310001465872ck0001465872:JackupsMemberck0001465872:AmortizedRevenueMember2022-04-012022-06-300001465872us-gaap:CommonStockMember2023-06-300001465872us-gaap:CommonStockMember2023-03-310001465872ck0001465872:OperatingRigMember2023-01-012023-06-300001465872ck0001465872:CustomerOneMemberus-gaap:TradeAccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001465872ck0001465872:ReimbursablesAndOtherMember2023-04-012023-06-300001465872us-gaap:NoncontrollingInterestMember2022-12-310001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2022-12-310001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2023-01-012023-06-300001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2022-01-012022-06-3000014658722023-04-012023-06-300001465872ck0001465872:ReimbursablesAndOtherMember2022-04-012022-06-300001465872ck0001465872:JackupsMember2022-04-012022-06-300001465872ck0001465872:DayrateRevenueMemberck0001465872:DeepwaterMember2023-04-012023-06-300001465872us-gaap:OilAndGasServiceMember2022-04-012022-06-300001465872us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMemberck0001465872:CustomerFourMember2023-04-012023-06-300001465872us-gaap:OtherCurrentLiabilitiesMember2022-12-310001465872us-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2022-04-012022-06-300001465872us-gaap:OperatingExpenseMember2023-01-012023-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:ReimbursableRevenuesMember2022-04-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMemberck0001465872:ContractDrillingServicesMember2023-01-012023-06-300001465872us-gaap:TradeAccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:CustomerFourMember2023-01-012023-06-300001465872ck0001465872:ManagementFeesMember2022-04-012022-06-300001465872us-gaap:RetainedEarningsMember2023-03-310001465872country:BRck0001465872:BrazilImprobityActionMember2023-01-012023-06-300001465872srt:MinimumMemberck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2023-01-012023-06-300001465872ck0001465872:NinePointTwoFivePercentFirstLienNotesMember2018-11-300001465872us-gaap:NoncontrollingInterestMember2023-04-012023-06-300001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:JackupsMember2022-01-012022-06-300001465872us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CashDistributionMemberck0001465872:TimeBasedRestrictedStockUnitsMember2023-01-012023-06-300001465872ck0001465872:TimeBasedRestrictedStockUnitsMember2022-01-012022-06-3000014658722023-08-010001465872us-gaap:AdditionalPaidInCapitalMember2022-12-310001465872us-gaap:AdditionalPaidInCapitalMember2023-01-012023-03-3100014658722022-01-012022-03-310001465872us-gaap:CashDistributionMember2023-01-012023-06-300001465872srt:MaximumMemberus-gaap:EnergyEquipmentMember2023-06-300001465872ck0001465872:DayrateRevenueMemberck0001465872:DeepwaterMember2022-04-012022-06-300001465872us-gaap:AdditionalPaidInCapitalMember2022-03-310001465872us-gaap:OperatingExpenseMember2022-01-012022-06-300001465872ck0001465872:DayrateRevenueMemberck0001465872:JackupsMember2022-01-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ContractDrillingServicesMemberck0001465872:DrillingServicesMember2022-01-012022-06-300001465872srt:MaximumMemberck0001465872:FirstPaymentMemberck0001465872:NinePointTwoFivePercentFirstLienNotesMember2018-11-302018-11-300001465872us-gaap:CommonStockMember2021-12-310001465872ck0001465872:JackupsMemberck0001465872:AmortizedRevenueMember2022-01-012022-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberus-gaap:SalesRevenueNetMemberck0001465872:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2022-04-012022-06-300001465872ck0001465872:CharterLeaseRevenueMemberck0001465872:JackupsMember2023-01-012023-06-300001465872us-gaap:RetainedEarningsMember2022-06-300001465872ck0001465872:DeepwaterMemberck0001465872:AmortizedRevenueMember2023-04-012023-06-3000014658722023-03-310001465872ck0001465872:ContractDrillingServicesMember2023-04-012023-06-300001465872country:BRck0001465872:BrazilImprobityActionMember2018-04-272018-04-270001465872ck0001465872:ManagedServicesMemberck0001465872:DayrateRevenueMember2023-04-012023-06-300001465872ck0001465872:ReimbursablesAndOtherMember2023-04-012023-06-300001465872ck0001465872:AmortizedRevenueMember2023-01-012023-06-300001465872ck0001465872:DeepwaterMember2023-01-012023-06-300001465872us-gaap:SalesRevenueNetMemberck0001465872:ManagedServicesMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:CustomerTwoMember2023-01-012023-06-300001465872us-gaap:TradeAccountsReceivableMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:CustomerTwoMember2022-01-012022-06-300001465872ck0001465872:CustomerOneMemberus-gaap:TradeAccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2022-01-012022-06-300001465872ck0001465872:ReimbursablesAndOtherMember2023-01-012023-06-300001465872ck0001465872:ManagementFeesMember2023-01-012023-06-300001465872us-gaap:RetainedEarningsMember2023-01-012023-03-310001465872us-gaap:CashDistributionMemberck0001465872:TimeBasedRestrictedStockUnitsMember2023-01-012023-06-300001465872us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMemberck0001465872:CustomerFourMember2022-01-012022-06-300001465872ck0001465872:ReactivatingRigMember2023-01-012023-06-300001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:DeepwaterMember2023-04-012023-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:DayrateRevenueMember2023-01-012023-06-300001465872country:IN2023-06-300001465872us-gaap:RestrictedStockMember2022-04-012022-06-300001465872srt:MinimumMember2023-01-012023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMembercountry:ID2023-04-012023-06-300001465872ck0001465872:DeepwaterMember2022-04-012022-06-300001465872ck0001465872:CharterLeaseRevenueMemberck0001465872:JackupsMember2023-04-012023-06-300001465872us-gaap:RetainedEarningsMember2022-12-310001465872ck0001465872:ReimbursableRevenuesMemberck0001465872:JackupsMember2022-04-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ContractDrillingServicesMemberck0001465872:DrillingServicesMember2022-04-012022-06-300001465872ck0001465872:OfficeAndTechnologyEquipmentMembersrt:MinimumMember2023-06-300001465872country:EGck0001465872:DrillingServicesMember2022-04-012022-06-300001465872country:NAck0001465872:DrillingServicesMember2023-04-012023-06-300001465872ck0001465872:JackupsMemberck0001465872:AmortizedRevenueMember2023-04-012023-06-300001465872us-gaap:OilAndGasServiceMember2023-01-012023-06-300001465872ck0001465872:AmortizedRevenueMemberck0001465872:DeepwaterMember2022-01-012022-06-300001465872us-gaap:RetainedEarningsMember2022-01-012022-03-310001465872ck0001465872:CustomerThreeMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:DrillingServicesMember2023-01-012023-06-300001465872ck0001465872:ReimbursableRevenuesMember2022-01-012022-06-300001465872ck0001465872:ManagedServicesMember2022-01-012022-06-300001465872us-gaap:NoncontrollingInterestMember2022-06-300001465872country:ID2022-12-310001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:OtherCountriesMember2023-04-012023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberck0001465872:OtherCountriesMember2022-01-012022-06-300001465872country:ID2023-06-300001465872us-gaap:AdditionalPaidInCapitalMember2022-06-300001465872us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2023-06-300001465872ck0001465872:DrillingServicesAndManagedServicesMemberus-gaap:SalesRevenueNetMemberck0001465872:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2023-01-012023-06-300001465872us-gaap:CommonStockMember2022-06-300001465872country:QAck0001465872:DrillingServicesMember2022-01-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2023-04-012023-06-300001465872us-gaap:LeaseholdImprovementsMember2022-12-310001465872ck0001465872:AquadrillLlcMember2022-04-012022-06-300001465872country:NA2023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMemberck0001465872:ManagementFeesMember2022-04-012022-06-300001465872ck0001465872:DayrateRevenueMemberck0001465872:DeepwaterMember2022-01-012022-06-300001465872us-gaap:AssetUnderConstructionMember2023-06-300001465872us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2023-06-300001465872ck0001465872:TimeBasedRestrictedStockUnitsMember2023-01-012023-06-300001465872ck0001465872:CharterLeaseRevenueMemberck0001465872:DeepwaterMember2022-01-012022-06-300001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2023-01-012023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMemberck0001465872:ManagementFeesMember2022-01-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:UnallocatedMember2022-01-012022-06-300001465872us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001465872ck0001465872:ContractDrillingServicesMember2023-01-012023-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ContractDrillingServicesMemberck0001465872:DrillingServicesMember2023-04-012023-06-300001465872ck0001465872:DeepwaterMember2022-01-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:ContractDrillingServicesMemberck0001465872:DrillingServicesMember2023-01-012023-06-300001465872us-gaap:CashDistributionMemberck0001465872:TimeBasedRestrictedStockUnitsMemberus-gaap:OtherCurrentLiabilitiesMember2023-01-012023-06-300001465872ck0001465872:DayrateRevenueMember2022-01-012022-06-300001465872us-gaap:CommonStockMember2022-12-310001465872us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-12-310001465872country:NAck0001465872:DrillingServicesMember2023-01-012023-06-300001465872ck0001465872:ReimbursableRevenuesMember2023-04-012023-06-300001465872ck0001465872:ManagedServicesMember2022-04-012022-06-300001465872us-gaap:OperatingSegmentsMemberck0001465872:DrillingServicesMember2022-01-012022-06-300001465872us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-12-310001465872ck0001465872:ContractDrillingServicesMember2022-04-012022-06-300001465872ck0001465872:ManagedServicesMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMemberck0001465872:CustomerTwoMember2022-04-012022-06-300001465872ck0001465872:ReimbursablesAndOtherMemberus-gaap:OperatingSegmentsMemberck0001465872:ManagedServicesMember2022-04-012022-06-300001465872srt:MaximumMemberck0001465872:NinePointFiveZeroPercentFirstLienNotesMember2023-01-012023-06-300001465872ck0001465872:DayrateRevenueMemberck0001465872:JackupsMember2022-04-012022-06-300001465872ck0001465872:ManagedServicesMemberck0001465872:DayrateRevenueMember2022-01-012022-06-300001465872ck0001465872:ReimbursablesAndOtherMember2022-04-012022-06-30xbrli:pureiso4217:BRLiso4217:USDxbrli:sharesxbrli:sharesck0001465872:Segmentck0001465872:Customerck0001465872:Defendantiso4217:USD
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 333-159299
VANTAGE DRILLING INTERNATIONAL
(Exact name of Registrant as specified in its charter)
|
|
|
Cayman Islands |
|
98-1372204 |
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification No.) |
c/o Vantage Energy Services, Inc.
777 Post Oak Boulevard, Suite 440
Houston, TX 77056
(Address of principal executive offices and zip code)
Registrant’s telephone number, including area code: (281) 404-4700
Securities registered pursuant to Section 12(b) of the Act:
|
|
|
Title of each class |
Trading Symbol |
Name of each exchange on which registered |
N/A |
N/A |
N/A |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
|
|
|
|
|
|
Large accelerated filer |
|
|
|
Accelerated filer |
|
|
Non-accelerated filer |
|
|
|
Smaller reporting company |
|
☐ |
|
|
|
|
Emerging growth company |
|
☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No ☒
The number of Vantage Drilling International Ordinary Shares outstanding as of August 1, 2023 is 13,229,280 shares.
TABLE OF CONTENTS
2
SAFE HARBOR STATEMENT
This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements are included throughout this Quarterly Report, including under “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” When used, statements which are not historical in nature, including those containing words such as “anticipate,” “assume,” “believe,” “budget,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “would,” “will,” “future” and similar expressions are intended to identify forward-looking statements in this Quarterly Report.
These forward-looking statements reflect our current views with respect to future events and are based on assumptions and subject to risks and uncertainties. You should not place undue reliance on these forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements.
Among the factors that could cause actual results to differ materially are the risks and uncertainties described under “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022, which was filed with the SEC on March 31, 2023, “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report, and the following:
•reduced expenditures by oil and gas exploration and production companies;
•general economic conditions and conditions in the oil and gas industry, including the worldwide supply and demand for oil and gas, and expectations regarding future prices of oil and gas;
•excess supply of drilling units worldwide;
•competition within our industry;
•growing focus on climate change, including regulatory, social and market efforts to address climate change, and its overall impact on the level of investments being directed to fossil fuel exploration and production companies and the associated products or services;
•our current level of indebtedness and the ability to incur additional indebtedness in the near- and long-term;
•epidemics, pandemics, global health crises, or other public health events and concerns, including any future resurgence of COVID-19, and the effectiveness of associated vaccinations and treatments;
•governmental, tax and environmental regulations and related actions and legal matters, including the actions taken by governments in response to any global health events and crises, as well as the results and effects of legal proceedings and governmental audits, assessments, orders and investigations;
•volatility in the price of commodities due to actions taken by members of OPEC, OPEC+ and other, oil-exploring countries, with respect to oil production levels and announcements of potential changes in such levels, including the ability of members of OPEC+ to agree on and comply with announced supply limitations;
•the potential for increased production from U.S. shale producers and non-OPEC countries driven by current oil prices, including the effect of such production rates on the overall global oil and gas supply, demand balance and commodity prices;
•termination or renegotiation of our customer contracts, and the invoking of force majeure clauses;
•termination or renegotiation of our management and marketing agreements, including any terminations arising directly or indirectly from the consummation of the Aquadrill Merger (as defined below);
•losses on impairment of long-lived assets;
•any non-compliance with the U.S. Foreign Corrupt Practices Act, as amended, and any other anti-corruption laws;
•the sufficiency of our internal controls, including exposure arising from the failure to (i) establish and maintain effective internal control over financial reporting in accordance with applicable regulatory requirements, and (ii) fully remediate any material weaknesses identified with respect to such internal controls;
•operating hazards in the offshore drilling industry;
•operations in international markets, including geopolitical, global, regional or local economic and financial market risks and challenges, applicability of foreign laws, including foreign labor and employment laws, foreign tax and customs regimes, and foreign currency exchange rate risk;
3
•political disturbances, geopolitical instability and tensions, or terrorist attacks, and associated changes in global trade policies and economic sanctions, including, but not limited to, Russia’s invasion of Ukraine in February 2022 and the Russo-Ukrainian War;
•adequacy of, or gaps in, insurance coverage upon the occurrence of a catastrophic or other material adverse event;
•effects of new products and new technology on the market;
•the occurrence (or recurrence) of cybersecurity incidents, attacks, intrusions or other breaches to our information technology systems;
•our small number of customers, related concentration and/or the loss of any customers;
•consolidation of our competitors and suppliers;
•termination or renegotiation of vendor contracts;
•changes in the status of pending, or the initiation of new litigation, claims or proceedings, including our ability to prevail in the defense of any appeal or counterclaim;
•changes in legislation removing or increasing current applicable limitations of liability;
•limited mobility of our drilling units between geographic regions;
•the small size of our fleet and associated vulnerabilities in the case of prolonged downtime of any of our drilling rigs;
•levels of operating and maintenance costs;
•our dependence on key personnel;
•availability of workers and the related labor costs;
•increased costs resulting from supply chain constraints, delays and impediments, including, but not limited to, increases in (i) the costs of obtaining supplies, (ii) labor costs, and (iii) freight, transportation and input costs, among others;
•changes in tax laws, treaties or regulations;
•credit risks of our key customers and other third parties we engage commercially;
•compliance with restrictions and covenants in our debt agreements;
•our recent lack of overall profitability and whether we will generate material revenues or profits in the near- and long-term;
•adverse macroeconomic conditions, including (i) inflationary pressures and potential recessionary conditions, as well as actions taken by central banks and regulators across the world in an attempt to reduce, curtail and address such pressures and conditions, and (ii) the effects of adverse developments at financial institutions, including bank failures, that impact general sentiment regarding the stability and liquidity of banks, and the resulting impact on the stability of the global financial markets at large;
•our incorporation under the laws of the Cayman Islands and the limited rights to relief that may be available compared to U.S. law;
•compliance with the Economic Substance Act 2021 (as amended) and the Economic Substance Act 2018 (as amended), among other legislation enacted in the Cayman Islands and Bermuda; and
•our ability to identify and complete strategic and/or transformational transactions, including acquisitions, dispositions, joint ventures and mergers, as well as the impact that such transactions may have on our operations and financial condition.
Many of these factors are beyond our ability to control or predict. Any, or a combination of these factors, could materially affect our future financial condition or results of operations and the ultimate accuracy of the forward-looking statements. These forward-looking statements are not guarantees of our future performance, and our actual results and future developments may differ materially from those projected in the forward-looking statements. Management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels.
In addition, each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements. We may not update these forward-looking statements, even if our situation changes in the future. All forward-looking statements attributable to us are expressly qualified by these cautionary statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in filings we may make with the SEC, which may be obtained by contacting us or the SEC. These filings
4
are also available through our website at www.vantagedrilling.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system (“EDGAR”) at www.sec.gov. The contents of our website are not part of this Quarterly Report.
Unless the context indicates otherwise, all references to the “Company,” “Vantage Drilling International,” “we,” “our” or “us” refer to Vantage Drilling International and its consolidated subsidiaries. References to “VDI” refer to Vantage Drilling International, a Cayman Islands exempted company and the group parent company.
5
GLOSSARY OF TERMS
The following terms used in this Quarterly Report have the following meanings, unless specified elsewhere in this Quarterly Report:
|
|
|
Abbreviation/Acronym |
|
Definition |
2016 Amended MIP |
|
The Company's Amended and Restated 2016 Management Incentive Plan |
9.25% First Lien Indenture |
|
First Lien Indenture, dated as of November 30, 2018, by and between Vantage Drilling International and U.S. Bank National Association |
9.25% First Lien Notes |
|
The Company's 9.25% Senior Secured First Lien Notes due November 15, 2023 |
9.50% First Lien Indenture |
|
Indenture, dated as of March 1, 2023, by and between VDI, the guarantors party thereto, and U.S. Bank Trust Company, National Association, as trustee and first lien collateral agent |
9.50% First Lien Notes |
|
The Company's 9.50% Senior Secured First Lien Notes due February 15, 2028 |
ADES |
|
ADES International Holding Ltd, an offshore and onshore provider of oil and gas drilling and production services in the Middle East, India and Africa |
ADVantage |
|
ADVantage Drilling Services SAE, a joint venture owned 51% by the Company and 49% by ADES |
ASC |
|
Accounting Standards Codification |
Board of Directors |
|
The Company's board of directors |
Comparable Period |
|
The six months ended June 30, 2022 |
Comparable Quarter |
|
The three months ended June 30, 2022 |
Convertible Notes |
|
The Company's 1%/12% Step-Up Senior Secured Third Lien Convertible Notes due 2030 |
COVID-19 |
|
Coronavirus disease 2019, a strain of coronavirus caused by SARS-CoV-2 |
Current Period |
|
The six months ended June 30, 2023 |
Current Quarter |
|
The three months ended June 30, 2023 |
DOJ |
|
U.S. Department of Justice |
EDC |
|
Emerald Driller Company, which owns the Emerald Driller, Sapphire Driller and Aquamarine Driller |
EDC Sale |
|
The sale by VHI of all of the issued and outstanding equity of EDC to ADES Arabia Holding, pursuant to the terms of that certain Share Purchase Agreement, dated as of December 6, 2021, by and between VHI and to sell to ADES Arabia Holding, as amended, which closed on May 27, 2022 |
Effective Date |
|
February 10, 2016, the date the Company emerged from bankruptcy |
EPS |
|
Earnings per share |
Exchange Act |
|
Securities Exchange Act of 1934, as amended |
IRS |
|
U.S. Internal Revenue Service |
OPEC |
|
The Organization of the Petroleum Exporting Countries |
OPEC+ |
|
The Organization of the Petroleum Exporting Countries plus 10 non-OPEC nations |
Ordinary Shares |
|
The Company's ordinary shares, par value $0.001 per share |
PBGs |
|
Performance-based restricted stock units |
QLE |
|
A qualified liquidity event as defined in the 2016 Amended MIP |
ROU |
|
Right-of-use |
Russo-Ukrainian War |
|
The ongoing war resulting from Russia's invasion of Ukraine in February 2022 |
SEC |
|
Securities and Exchange Commission |
Securities Act |
|
Securities Act of 1933, as amended |
Tax Election |
|
Tax election filed with the IRS on January 22, 2020, to allow VDI to be treated as a partnership, rather than a corporation, for U.S. federal income tax purposes, with an effective date retroactive to December 9, 2019 |
TBGs |
|
Time-based restricted stock units |
TEV |
|
Total enterprise value |
U.S. |
|
United States of America |
U.S. GAAP |
|
Accounting principles generally accepted in the United States of America |
U.S. Holder |
|
A beneficial owner of the Ordinary Shares that is, for U.S. federal income tax purposes, (i) a citizen or individual resident of the United States, (ii) a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) that was organized under the laws of the United States, any state thereof, or the District of Columbia, (iii) an estate, the income of which is subject to U.S. federal income tax regardless of its source or (iv) a trust, if a U.S. court can exercise primary supervision over the administration of the trust and one or more U.S. persons have the authority to control all substantial decisions of the trust, or such trust has a valid election in effect under applicable treasury regulations to be treated as a U.S. person for U.S. federal income tax purposes |
USD or $ |
|
U.S. Dollar |
VDC |
|
Vantage Drilling Company, the Company's former parent company |
VDI |
|
Vantage Drilling International |
VHI |
|
Vantage Holdings International, a subsidiary of VDI |
VIE |
|
Variable interest entity |
6
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
Vantage Drilling International
Consolidated Balance Sheets
(In thousands, except share and par value information)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
79,650 |
|
|
$ |
74,026 |
|
Restricted cash |
|
|
455 |
|
|
|
16,450 |
|
Trade receivables, net of allowance for credit losses of $3,850 and $4,962, respectively |
|
|
83,109 |
|
|
|
62,776 |
|
Materials and supplies |
|
|
44,759 |
|
|
|
41,250 |
|
Prepaid expenses and other current assets |
|
|
40,166 |
|
|
|
25,621 |
|
Total current assets |
|
|
248,139 |
|
|
|
220,123 |
|
Property and equipment |
|
|
|
|
|
|
Property and equipment |
|
|
649,910 |
|
|
|
647,909 |
|
Accumulated depreciation |
|
|
(330,911 |
) |
|
|
(309,453 |
) |
Property and equipment, net |
|
|
318,999 |
|
|
|
338,456 |
|
Operating lease ROU assets |
|
|
812 |
|
|
|
1,648 |
|
Other assets |
|
|
12,659 |
|
|
|
18,334 |
|
Total assets |
|
$ |
580,609 |
|
|
$ |
578,561 |
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
55,570 |
|
|
$ |
57,775 |
|
Other current liabilities |
|
|
65,770 |
|
|
|
66,179 |
|
Total current liabilities |
|
|
121,340 |
|
|
|
123,954 |
|
Long–term debt, net of discount and financing costs of $11,080 and $773, respectively |
|
|
188,920 |
|
|
|
179,227 |
|
Other long-term liabilities |
|
|
9,678 |
|
|
|
12,881 |
|
Commitments and contingencies (see Note 8) |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,229,280 and 13,115,026 shares issued and outstanding, each period |
|
|
13 |
|
|
|
13 |
|
Additional paid-in capital |
|
|
633,605 |
|
|
|
633,863 |
|
Accumulated deficit |
|
|
(373,971 |
) |
|
|
(373,147 |
) |
Controlling interest shareholders' equity |
|
|
259,647 |
|
|
|
260,729 |
|
Noncontrolling interests |
|
|
1,024 |
|
|
|
1,770 |
|
Total equity |
|
|
260,671 |
|
|
|
262,499 |
|
Total liabilities and shareholders' equity |
|
$ |
580,609 |
|
|
$ |
578,561 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
7
Vantage Drilling International
Consolidated Statement of Operations
(In thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Contract drilling services |
|
$ |
67,673 |
|
|
$ |
42,744 |
|
|
$ |
115,590 |
|
|
$ |
87,657 |
|
Management fees |
|
|
5,569 |
|
|
|
2,840 |
|
|
|
7,689 |
|
|
|
3,943 |
|
Reimbursables and other |
|
|
34,598 |
|
|
|
27,654 |
|
|
|
61,633 |
|
|
|
39,969 |
|
Total revenue |
|
|
107,840 |
|
|
|
73,238 |
|
|
|
184,912 |
|
|
|
131,569 |
|
Operating costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs |
|
|
74,383 |
|
|
|
59,405 |
|
|
|
140,938 |
|
|
|
103,338 |
|
General and administrative |
|
|
5,161 |
|
|
|
6,910 |
|
|
|
9,992 |
|
|
|
13,492 |
|
Depreciation |
|
|
11,045 |
|
|
|
11,087 |
|
|
|
22,094 |
|
|
|
22,382 |
|
(Gain) loss on EDC Sale |
|
|
— |
|
|
|
(60,781 |
) |
|
|
3 |
|
|
|
(60,781 |
) |
Total operating costs and expenses |
|
|
90,589 |
|
|
|
16,621 |
|
|
|
173,027 |
|
|
|
78,431 |
|
Income from operations |
|
|
17,251 |
|
|
|
56,617 |
|
|
|
11,885 |
|
|
|
53,138 |
|
Other (expense) income |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
141 |
|
|
|
7 |
|
|
|
190 |
|
|
|
11 |
|
Interest expense and other financing charges |
|
|
(5,346 |
) |
|
|
(8,503 |
) |
|
|
(10,904 |
) |
|
|
(17,007 |
) |
Other, net |
|
|
(457 |
) |
|
|
(1,011 |
) |
|
|
(135 |
) |
|
|
(1,786 |
) |
Total other expense |
|
|
(5,662 |
) |
|
|
(9,507 |
) |
|
|
(10,849 |
) |
|
|
(18,782 |
) |
Income before income taxes |
|
|
11,589 |
|
|
|
47,110 |
|
|
|
1,036 |
|
|
|
34,356 |
|
Income tax provision (benefit) |
|
|
10,584 |
|
|
|
(1,221 |
) |
|
|
2,606 |
|
|
|
217 |
|
Net income (loss) |
|
|
1,005 |
|
|
|
48,331 |
|
|
|
(1,570 |
) |
|
|
34,139 |
|
Net (loss) income attributable to noncontrolling interests |
|
|
(457 |
) |
|
|
232 |
|
|
|
(746 |
) |
|
|
938 |
|
Net income (loss) attributable to shareholders |
|
$ |
1,462 |
|
|
$ |
48,099 |
|
|
$ |
(824 |
) |
|
$ |
33,201 |
|
Earnings (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.11 |
|
|
$ |
3.67 |
|
|
$ |
(0.06 |
) |
|
$ |
2.53 |
|
Diluted |
|
$ |
0.11 |
|
|
$ |
3.61 |
|
|
$ |
(0.06 |
) |
|
$ |
2.49 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
8
Vantage Drilling International
Consolidated Statement of Shareholders’ Equity
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-Month Period Ended June 30, 2022 |
|
|
|
Ordinary Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Additional Paid-in Capital |
|
|
Accumulated Deficit |
|
|
Non-Controlling Interests |
|
|
Total Equity |
|
Balance January 1, 2022 |
|
|
13,115 |
|
|
$ |
13 |
|
|
$ |
633,847 |
|
|
$ |
(369,792 |
) |
|
$ |
1,783 |
|
|
$ |
265,851 |
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
Share-based compensation - dividend equivalents |
|
|
— |
|
|
|
— |
|
|
|
(63 |
) |
|
|
— |
|
|
|
— |
|
|
|
(63 |
) |
Net (loss) income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14,898 |
) |
|
|
706 |
|
|
|
(14,192 |
) |
Balance March 31, 2022 |
|
|
13,115 |
|
|
$ |
13 |
|
|
$ |
633,810 |
|
|
$ |
(384,690 |
) |
|
$ |
2,489 |
|
|
$ |
251,622 |
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
48,099 |
|
|
|
232 |
|
|
|
48,331 |
|
Balance June 30, 2022 |
|
|
13,115 |
|
|
$ |
13 |
|
|
$ |
633,828 |
|
|
$ |
(336,591 |
) |
|
$ |
2,721 |
|
|
$ |
299,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six-Month Period Ended June 30, 2023 |
|
|
|
Ordinary Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
Amount |
|
|
Additional Paid-in Capital |
|
|
Accumulated Deficit |
|
|
Non-Controlling Interests |
|
|
Total Equity |
|
Balance January 1, 2023 |
|
|
13,115 |
|
|
$ |
13 |
|
|
$ |
633,863 |
|
|
$ |
(373,147 |
) |
|
$ |
1,770 |
|
|
$ |
262,499 |
|
Share-based compensation issuance of shares |
|
|
114 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Shares repurchased to settle withholding taxes |
|
|
— |
|
|
|
— |
|
|
|
(246 |
) |
|
|
— |
|
|
|
— |
|
|
|
(246 |
) |
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
|
— |
|
|
|
— |
|
|
|
11 |
|
Share-based compensation - dividend equivalents |
|
|
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
— |
|
|
|
— |
|
|
|
(37 |
) |
Net loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,286 |
) |
|
|
(289 |
) |
|
|
(2,575 |
) |
Balance March 31, 2023 |
|
|
13,229 |
|
|
$ |
13 |
|
|
$ |
633,591 |
|
|
$ |
(375,433 |
) |
|
$ |
1,481 |
|
|
$ |
259,652 |
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
— |
|
|
|
14 |
|
Net income (loss) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,462 |
|
|
|
(457 |
) |
|
|
1,005 |
|
Balance June 30, 2023 |
|
|
13,229 |
|
|
$ |
13 |
|
|
$ |
633,605 |
|
|
$ |
(373,971 |
) |
|
$ |
1,024 |
|
|
$ |
260,671 |
|
The accompanying notes are an integral part of these unaudited consolidated financial statements.
9
Vantage Drilling International
Consolidated Statement of Cash Flows
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
2022 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(1,570 |
) |
|
$ |
34,139 |
|
Adjustments to reconcile net income (loss) to net cash used in operating activities |
|
|
|
|
|
|
Depreciation expense |
|
|
22,094 |
|
|
|
22,382 |
|
Amortization of debt financing costs |
|
|
862 |
|
|
|
820 |
|
Share-based compensation expense |
|
|
25 |
|
< |