Vantage Drilling International Ltd · OSL:VDI
Vantage Drilling International — Q1 2021 Earnings Presentation
27 slides from Vantage Drilling International's earnings presentation, May 2021
Slide 1: Vantage Drilling International
Vantage Drilling International May 2021 Q2 2021
Slide 2: Disclaimer
Disclaimer This presentation is being provided solely for use by the recipient in making its own evaluation of Vantage Drilling International (the “Company”), its business, assets and financial condition, and may not be disclosed, distributed, copied, reproduced or used for any purpose other than wi
Slide 3: Q1 2021 Financial Position
Q1 2021 Financial Position $152.2 $197.8 $243.3 million million million Net Debt of Gross of Cash ($350 million of Working Capital Gross Debt minus cash) 3
Slide 4: Agenda
Agenda 1. 1 Company overview 2. 2 Operating strategy and results 3. 3 Leverage and liquidity 4. 4 Market outlook 5. 5 Summary and Path Forward 4
Slide 5: Company overview
Company overview VANTAGE
Slide 6: Vantage Drilling at a glance
Vantage Drilling at a glance Overview • Offshore drilling contractor that provides offshore drilling services and other management services for third-party owned drilling units. • Offices in Houston (split HQ), Dubai (split HQ) and Singapore. • Maintains among the most conservative capital structure
Slide 7: Modern Fleet: Drillships
Modern Fleet: Drillships Platinum Explorer Tungsten Explorer Capella Polaris Type: Drillship Drillship Drillship Drillship Generation: UDW (6th gen) UDW (6th gen) UDW (6th gen) UDW (6th gen) Built: 2010 2013 2008 2008 Yard: DSME DSME Samsung 10000 Samsung 10000 Water depth(1): 12,000ft 12,000ft 10,0
Slide 8: Modern Fleet: Semi-submersibles
Modern Fleet: Semi-submersibles Leo Sirius Type: Semi-submersible Semi-submersible th 6 Gen F&G ExD Millennium Generation: 6th Gen Moss CS50 Mk II design design Built: 2011 2008 Yard: Jurong Jurong Water depth: 10,000ft 10,000ft Drilling depth: 35,000 ft 35,000 ft Hook load: Offline Activity, 2.0m l
Slide 9: Modern Fleet: Jackups
Modern Fleet: Jackups Emerald Driller Sapphire Driller Aquamarine Driller Topaz Driller Soehanah Type: Jackup Jackup Jackup Jackup Jackup Generation: Premium Premium Premium Premium Premium Built: 2008 2009 2009 2009 2007 Yard: PPL PPL PPL PPL PPL Design: Baker Marine Pacific Baker Marine Pacific Ba
Slide 10: Presence in Key Offshore Regions
Presence in Key Offshore Regions Tungsten Explorer Platinum Explorer Eastern Med India Leo Norway Topaz Driller Montenegro Houston (Co-HQ) Emerald Driller Qatar Capella Dubai Malaysia Sirius (Co-HQ) USA Fleet and offices Singapore 4 Managed floaters Sapphire Driller Soehanah Gabon Indonesia 5 Jack-u
Slide 11: Experienced Management Team
Experienced Management Team Ihab Toma Douglas Stewart Douglas Halkett Bill Thomson Chief Executive Officer Chief Financial Officer & Chief Operating Officer VP Marketing & General Counsel Business Development Joined Vantage in 2016 Joined Vantage in 2016 Joined Vantage in 2008 Joined Vantage in 2008
Slide 12: Operating Strategy and Results
Operating Strategy and Results
Slide 13: Clear Strategy: Companywide Focus Areas - WIGs
Clear Strategy: Companywide Focus Areas - WIGs A self-funding platform achieving margin accretive fleet utilization and fully satisfied clients by following our Wildly Important Goals (WIGs): 0 Maintain world class safety and operational performance Reduce costs and Preserve Cash through lean operat
Slide 14: WIG1: Safety & Operations Differentiation
WIG1: Safety & Operations Differentiation Focus on safety is visible in the incident rate trends 0.7 Safety Performance Chart 12-Month Rolling Average 0.6 2016 Target TRIR = 0.59 0.5 0.4 2017 & 2018 Target TRIR = 0.45 2019 & 2020 Target TRIR = 0.35 0.3 2016 Target LTIR = 0. 28 2021Target TRIR = 0.25
Slide 15: WIG1: Safety & Operations Differentiation
WIG1: Safety & Operations Differentiation § Focused on performance, but never at the expense of safety § The Customer and Operational focus of Vantage ! We are very close to our clients from CEO down ! As a management team we pride ourselves of being close to our employees with weekly conversations
Slide 16: WIG1: HSE Investments since 2016
WIG1: HSE Investments since 2016 § Changed the Company Vision in 2016 to “A Perfect Day, Every Day” and defined it as: ! No Incidents ! No Non-Productive Time ! Fully Satisfied Client § Developed a 2 days “Perfect Day Leadership” training program for offshore supervisors covering the following aspec
Slide 17: WIG2: Achieve and maintain full fleet utilization
WIG2: Achieve and maintain full fleet utilization Vantage high utilization focus Customer Focus driving Success • Appreciation of Customers’ prioritizing • Customer-Focus: Long term relationship “hot” rigs with Total, Eni, ONGC and a wide range of NOCs and Independent Operators • Avoidance of stacki
Slide 18: WIG2: Achieve and maintain full fleet utilization
WIG2: Achieve and maintain full fleet utilization One Year after COVID-19 shutdowns – Returning to high utilization by Q2-2021 18
Slide 19: WIG3: Saving Cost and preserving cash
WIG3: Saving Cost and preserving cash Reduced G&A, Global Support and Base costs Reduced operating costs Shore-base Costs • Invested in Crew Competency and Offshore Excludes MIP expense, non-recurring legal fees, severance expense & Special Insurance Litigation Policy expense Supervisors’ Perfect Da
Slide 20: Leverage and Liquidity
Leverage and Liquidity VANTAGE
Slide 21: Manageable Leverage, Ample Liquidity - Undistracted Operations
Manageable Leverage, Ample Liquidity - Undistracted Operations Vantage debt maturities • No new build commitments • No significant stacking or reactivation costs • Minimal capex and maintenance commitments • Optimized Cost Structure • At December 31st, 2020: $350M • Over $240 million in Gross Workin
Slide 22: Market Outlook
=| Market Outlook VANTAGE
Slide 23: Post COVID-19 Industry Outlook
Post COVID-19 Industry Outlook • Since 2015, the offshore drilling industry has faced challenges in providing investors with desirable returns and participants were anticipating a recovery in 2020 in order to create value for shareholders. • However, the 2020 black swan events, have stopped the reco
Slide 24: Consolidation and Fleet Management Platform
Consolidation and Fleet Management Platform • With no debt maturities until the end of 2023, approximately $152 million of cash (Q1- 2021) and a favorable working capital position, Vantage is well positioned to provide investors with a strong, cost effective and efficient Consolidation and Fleet Man
Slide 25: Path Forward
Path Forward VANTAGE
Slide 26: Well-positioned Operationally and Financially
Well-positioned Operationally and Financially Maintain solid platform well positioned for the long-haul • Efficient and low costs overhead structure. • Working rigs with positive cash flow contracts. • Healthy Balance Sheet with no debt maturities until the end of 2023. Continue our operational focu
Slide 27: A Perfect Day, Every Day
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