Vantage Drilling International Ltd · OSL:VDI
Vantage Drilling International — DNB Markets 7th Annual Conference 2014
25 slides from Vantage Drilling International's conference presentation, Mar 4, 2014
Slide 1: Vantage Drilling Company Presentation
Vantage Drilling Company Company Presentation March 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements in this presenta/on cons/tute forward-‐looking statements. Forward-‐looking statements relate to expecta/ons, beliefs, projec/ons, future plans and strategies, an/cipated events or trends and similar expressions concerning ma?ers that are not histo
Slide 3: Company Overview
Vantage Drilling Company Overview
Slide 4: Company Overview
Company Overview NYSE VTG Market Cap $519 Million Book Value $567 Million Enterprise Value $3.4 Billion Employees >1,300 Vantage Offices 4 Jackups 3 Drillships, plus 1 under Construction
Slide 5: Highlights
Highlights • 2013 Achieved Record Revenue, EBITDA, and Income from Operations • Ultra-Deepwater Fleet fully contracted through 2015 • Jackup fleet 98% contracted for 2014 and 30% contracted for 2015 • Refinanced Balance Sheet: – Interest savings in excess of $90 million per year – Much longer, stagg
Slide 6: Strategic Focus
Vantage Drilling Strategic Focus
Slide 7: Strategic Overview
Strategic Overview Vantage was founded with a vision of bringing the best people together with the highest specification, modern fleet in the offshore drilling Experienced industry People With exceptional operating Financial High performance and a focus on service, Structure Specification we have bu
Slide 8: Our People
Our People Industry leading safety record – Lost /me Our senior management team incident rate in 2013 and 2012 were .32 and .00, averages over 30 years of Industry experience respec/vely, as we completed approximately 2.5 million and 2.2 million man-‐hours The cornerstones of our corporate culture
Slide 9: High Specification Assets
VANTAGE = =a ae High Specification Asséis> al ?
Slide 10: High Specification Assets
High Specification Assets We have built a fleet of new, premium assets that our customers demand now and for the future Cobalt Explorer, a 7th genera/on, dual-‐ ac/vity UDW drillship equipped with (2) seven-‐ram BOP’s and 10,000 feet of riser, scheduled for delivery in 2015, will be our most techni
Slide 11: Profile of Global Jackup Fleet
Profile of Global Jackup Fleet Despite 173 new-build deliveries since 2005, the majority of worldwide jackup fleet remains older than 25 years • Capabili5es and Age: The current worldwide fleet is comprised mostly of older, inefficient rigs – 17% of today’s jackups are mat-‐supported and/or have less
Slide 12: Deepwater Supply
Deepwater Supply Bifurcation will drive cold stacking and retirements. Nearly half of the deepwater and ultra- deepwater combined fleet is 25 years of age or older 500 450 Age of Floater Fleet Age Rigs % % 400 25 years or older 149 47% 36% 99 10 to 24 years 46 15% 11% 350 149 300 ? 0 to 9 years 121
Slide 13: Market Conditions
Market Conditions Long Term Opportunities Continued Growth Cycle • Global demand for oil & gas con/nues growth driven by emerging economies with long-‐term forecast for increase E&P spending. • Success in deepwater and ultra-‐deepwater explora/on should provide the map to future growth as developm
Slide 14: Market Conditions
Market Conditions Short Term Headwinds • Shib in global spending to na/onal oil companies increases contrac/ng /me. • North American and European E&P companies facing wave of shareholder ac/vism impac/ng capital alloca/ons (dividends & share repurchases versus E&P spending). • Confidence in oil and g
Slide 15: Strong Customer Backlog
Strong Customer Backlog We have focused our marketing efforts on customers with long-term drilling requirements $2.8 Billion of backlog with with the opportunity for long-term contracts strong customer base: 4% IOC 17% NOC 79%
Slide 16: Fleet Status
Fleet Status Customer backlog of approximately $2.8 Billion provides visibility to cash flows Ownership 2013 2014 2015 Rig % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Jackups Emerald Driller 100% $130,000 $156,000 (2 years) Sapphire Driller 100% $120,000 $165,000 (net) $183,000 (18 months) Aquamarine Dril
Slide 17: Significant Growth Achieved
Significant Growth Achieved Emerald Driller Sapphire Driller Aquamarine Driller Topaz Driller Pla5num Explorer Titanium Explorer Tungsten Explorer December 2008 July 2009 September 2009 December 2009 November 2010 April 2012 July 2013
Slide 18: Progress on Financial Targets
Progress on Financial Targets Long Term Contracts provide visibility to cash flow to support our leverage reduction objectives • 4th quarter 2013, with our 7 opera/onal Strong projected EBITDA and Earnings Are assets all working, we reported record Contracted Revenue, EBITDA and Income from $600.0 O
Slide 19: Return on Capital Employed
Return on Capital Employed Strong operational 2013 Return on Capital Employed* performance from our 14% first 7 rigs, now fully 12% deployed, will lead to 11% industry leading Return 10% on Capital Employed (ROCE) 8% 8% 6% 4% 2% 0% ATW VTG 2014 DO ESV RIG SDRL VTG RDC PACD * Based on Last-‐Twelve-
Slide 20: Debt Maturities and Leverage
Debt Maturities and Leverage Debt Maturities • No significant debt $1,600.0 maturities until 2017 $1,400.0 • Cash flow from operations $1,200.0 projected to cover all debt $1,000.0 service through 2018 ($ in millions) $800.0 • Increased leverage over last $600.0 2 years has been to fund $400.0 deplo
Slide 21: Historical Financial
VANTAGE Appendix Historical Financial
Slide 22: Statement of Operations
Statement of Operations ($ in millions) December 31,December 31, For t he Quarter Ended December 31, 2011 2012 31-‐Mar-‐13 30-‐Jun-‐13 30-‐Sep-‐13 30-‐Sep-‐13 2013 REVENUE Contract Drilling Services $ 366.8 $ 423.8 $ 134.7 $ 155.8 $ 158.9 $ 216.8 $ 666.2 Net income and cash flow Management F
Slide 23: Balance Sheet
Balance Sheet ($ in millions) December 31, 31-‐Dec For t he Quarter Ended The Debt to EBITDA 2011 2012 31-‐Mar-‐13 30-‐Jun-‐13 30-‐Sep-‐13 31-‐Dec-‐13 Cash and cash equivalents $ 117.0 $ 506.2 $ 460.5 $ 443.8 $ 71.1 $ 56.8 leverage will continue to Trade receivables 100.9 119.5 101.9 107.9
Slide 24: EBITDA Reconciliation
EBITDA Reconciliation ($ i n millions) December 31,December 31, For the Quarter Ended December 31, 2011 2012 31-‐Mar-‐13 30-‐Jun-‐13 30-‐Sep-‐13 31-‐Dec-‐13 2013 Net Income (Loss) $ (80.00) $ (145.30) $ (123.20) $ 4.10 $ 6.80 $ 30.50 $ (81.80) Interest Expense, Net 154.80 149.00 59.60 51.20
Slide 25: Questions and Answers
Vantage Drilling Questions and Answers
Vantage Drilling Company — DNB Markets 7th Annual Conference 2014 on 6ix