Vantage Drilling cuts losses

Offshore drilling company Vantage Drilling International saw its net loss shrink in the first quarter of 2020 on the back of higher revenues.

Vantage said on Tuesday that its reported net loss attributable to controlling interest was approximately $30.6 million, a better result than the $47.9 million loss in the first quarter of 2019.

Revenue also rose from $34.6 million in the first quarter of 2019 to this quarter’s $51.5 million.

As of 31 March 2020, Vantage had approximately $210.5 million in cash, including $14.1 million of restricted cash, compared to $242.9 million in cash, including $11 million of restricted cash at 31 December 2019.

The company also said that cash flows used in operating activities include $15 million paid under a settlement reached with Vantage Drilling Company, the offshore driller’s former parent company.

Utilization of the company’s jack-up rigs in 1Q 2020 was 88.9 per cent – down from 98.4 per cent in the 2019 first quarter.

Deepwater utilization almost doubled in the first quarter of this year with 61.8 per cent, a major rise from the 32.5 per cent in the 1Q from the previous year.

Ihab Toma, CEO of Vantage, said: “Despite the challenges presented by COVID-19 and the resulting global economic crisis, I am very proud to report another quarter of excellent operational results, with seven of our eight assets working during the quarter and producing a revenue efficiency of 99 per cent.

“During the quarter we successfully took redelivery of the Soehanah jack-up rig after completion of its bareboat charter contract, completed project work required to achieve Vantage’s operational standards on the rig, and redeployed the rig under a drilling contract in Indonesia.

“Unfortunately, we also recognize that uncertainties surrounding the containment of COVID-19, the resulting economic crisis and the oversupply of oil worldwide will present significant challenges to our industry.

“However, with our healthy balance sheet and our proven agility in managing costs, we are well-positioned to navigate through these unprecedented times”.

In related news, it is worth reminding that Houston-based oil and gas company Vaalco Energy released the Vantage-owned Topaz Driller jack-up drilling rig after it completed well workover operations on the South East Etame 2H well offshore Gabon.