Vantage Drilling International Ltd · OSL:VDI
Vantage Drilling International — Pareto Conference 2019
24 slides from Vantage Drilling International's conference presentation, September 2019
Slide 1: Vantage Drilling International Investor Presentation
Van t age Dr i l l i n g I n t er n at i on al I n vest or Pr esen t at i on Sept em ber 2019 | Par et o Con f er en ce Osl o, Nor w ay
Slide 2: Disclaimer
Di scl ai m er This pres entation is be ing provided s olely for us e by the re cipient in making its own eva luation of Va ntage Drilling Internationa l (the “Compa ny”), its bus ines s , as s ets and financial condition, and may not be dis clos e d, dis tributed, copie d, re produced or us ed for
Slide 3: Second Quarter Financial Results
Secon d Quar t er Fi n an ci al Resul t s * $ 89 7 Negat i ve $ 528 m i l l i on Net Debt m i l l i on of Ca s h ($350 million of of EBITDA ($636.4 Gros s Debt) million in Revenue) * Res ults include a one tim e $701m cas h collection related to the Petrobras arbitration agreem ent. Excluding this t
Slide 4: Agenda
Agen da 1. 1 Compa ny overview 2. 2 Levera ge a nd liquidity 3. 3 Opera ting s tra tegy a nd res ults 4. 4 Ma rket outlook 5. 5 Summa ry a nd Pa th Forwa rd 4
Slide 5: Company Overview
Company Overview VANTAGE
Slide 6: Vantage Drilling at a glance
Van t age Dr i l l i n g at a gl an ce Overview • Offs hore drilling contractor that provides offs hore drilling s ervices and pres ervation m anagem ent s ervices for third- party drilling units . • Offices in Hous ton (s plit HQ), Dubai (s plit HQ). • Maintains am ong the m os t cons ervative capi
Slide 7: Presence in key offshore regions
Pr esen ce i n k ey of f sh or e r egi on s Tungs ten Explorer Platinum Explorer Eas tern Med India Hous ton (Split HQ) Managem ent Service Em erald Driller Korea Qatar Dubai (Split HQ) Topaz Driller Gabon Singapore Fl eet an d of f i ces Sapphire Driller Soehanah Driller Congo Indones ia 5 Jack-ups
Slide 8: Timeline and Accomplishments
T i m el i n e an d Accom pl i sh m en t s Working rig count: Em erged from DOJ clos es Arbitration award Settled Collection $701m Chapter 11 FCPA $622mm (plus interes t) with SEC Arbitration award 20 16 20 17 20 18 20 19 New CEO, CFO Acquired Form ed Sold Vantage Purchas ed $350mm and GC Vantage 26
Slide 9: Leverage and Liquidity
Leverage and Liquidity VANTAGE
Slide 10: Refinancing – New $350 million Senior Secured Bond
Ref i n an ci n g – New $ 350 m i l l i on Sen i or Secur ed Bon d – I ssued Novem ber 20 18 • Extended debt m a turity to the end of 2023. • Relief from pos t ba nkruptcy res trictive covena nts . • Additiona l ca pa city under exis ting colla tera l. • Fa vora ble non-ca ll term s . • Mix of US a
Slide 11: Vantage Drilling Liquidity Advantage
Van t age Dr i l l i n g Li qui di t y Advan t age Vantage debt maturities(1) $897 Petrobras • No new build commitments. award • Manageable reactivation costs with only one warm $701 $350 stacked drillship. • Minimal capex and maintenance commitments. $196 Cash 2019 2020 2021 2022 2023 2024 2025 202
Slide 12: Operating Strategy and Results
Oper at i n g St r a t eg y a n d Res u lt s
Slide 13: Clear Strategy - Key Focus Areas for Success
Cl ear St r at egy - Key Focus Ar eas f or Success Provide our shareholders with a self-funding platform achieving margin accretive fleet utilization and fully satisfied clients, by following our Wildly Important Goals (WIGs): 16
Slide 14: Cost Savings and Lean Operating Structure
Cost Savi n gs an d Lean Oper at i n g St r uct ur e G&A, Global Support and Base costs Reduced offshore operating costs Shorebas e Cos ts – USD Millions Excludes non-Ca s h MIP expens e & non-recurring lega l fees • Reduced s a la ries on opera ting rigs a nd s ta cked rig. 93.8 20.2 • Regiona liza
Slide 15: Achieve and Maintain High Utilization
Ach i eve an d M ai n t ai n H i gh Ut i l i zat i on 12% 13% 19% 19% 21% 26% 34% 40% 41% 57% 88% 87% 81% 81% 79% 74% 66% 60% 59% 43% Contracted Uncontracted High utilization translates into: SPS and major maintenance schedules: • Avoidance of s tacking cos ts and prudent us e of cas h. • Tungs ten
Slide 16: Platinum and Tungsten Explorer
Pl at i n um an d Tu n g s t en Exp lo r er
Slide 17: Platinum Explorer Contracting Strategy
Pl at i n um Ex pl or er Con t r act i n g St r at egy USD m illion $10 $8 $7 $1 $ Year 0 ($5) Year 1 Year 2 Year 3 ($2) ($11) ($10) ($9) ($10) ($20) ($18) ($18) ($27) ($30) ($40) PLX ONGC PLX Idle PLX 75% Utilized, $175K/d 21
Slide 18: Tungsten Explorer Overview
T un gst en Ex pl or er Over vi ew All jackups contracted Platinum Explorer Tungs ten 40% contracted into 2020 contracted through 2020 into 2020 Illustrative Enterprise EBITDA & Levered FCF based on 2020 Tungsten activity EBITDA (USD Millions) Latest on the Tungsten: $175K $185K $195K $205K $215K $2
Slide 19: Market Outlook
Market Outlook VANTAGE
Slide 20: Path of Dayrates for Ultra Deepwater Drillships
Pat h of Dayr at es f or Ult r a Deepw at er Dr i llshi ps $600,000 $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Aug-13 Dec-14 May-16 Sep-17 Feb-19 Jun-20 Source: Wes twood Briefing – 22nd Augus t 2019. 27
Slide 21: Bifurcation in Jackup Market Continues to Play Out
Bi f ur cat i on i n Jack - up M ar k et con t i n ues t o pl ay out Jackups built after 2000 Clients’ clear preference for modern jackups 100 95 • While dem a nd is in recovery, it is s till not in 89 90 85 ba la nce with globa l s upply, s o E&Ps ha ve Utilization (%) 80 a bility to be very s elec
Slide 22: Path Forward
Path Forward VANTAGE
Slide 23: Well positioned operationally and financially
Wel l posi t i on ed oper at i on al l y an d f i n an ci al l y Maintain solid platform well positioned for the long-haul • Efficient and low cos ts overhead s tructure. • Working rigs with pos itive cas h flow contracts . • Healthy Balance Sheet with no debt m aturities until 2023. Continue our op
Slide 24: Questions and Answer Session
Quest i on s an d An s w er Ses s io n
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