As the offshore drilling market continues to improve, rig owner Vantage Drilling managed to reduce its net loss in the first quarter of 2022 on the back of higher revenues driven by better utilisation rates compared to the same period of 2021.
Vantage Drilling on Monday reported a net loss attributable to controlling interest of approximately $14.9 million for the three months ended 31 March 2022 as compared to a net loss attributable to controlling interest of $36 million in the same period of 2021.
Furthermore, Vantage booked a total of $58.3 million in revenues in the first quarter of this year compared to $20.2 million in 1Q 2021.
At the end of March 2022, Vantage had approximately $78.6 million in cash, including $16.4 million of restricted cash, compared to $90.6 million in cash, including $17.3 million of restricted cash, at the end of December 2021.
Ihab Toma, Vantage CEO, commented: “We continue to see improving signs in the market as the recovery moves forward. Our focus remains on operating safely, efficiently and effectively for our clients.”
The rig owner’s utilisation rate for jack-ups in 1Q 2022 nearly doubled when compared to the same period last year, totalling 60.3 per cent, and more than doubled in the deepwater segment, totalling 98.8 per cent from 49.1 per cent in 1Q 2021.
Another offshore drilling contractor last week shared its expectations that the global jack-up utilisation and pricing would surpass pre-pandemic levels during 2022.
Toma continued, “In addition, we are making progress towards closing the previously announced sale of three of our jack-up rigs to the ADES Group, which we expect to occur in the second quarter of 2022. The sale will materially improve the liquidity profile of the company.”
As a reminder, Vantage and ADES International last December entered into an agreement for Vantage to sell three of its jack-up rigs to ADES for $170 million. The three rigs included in the agreement were Emerald Driller, Sapphire Driller, and Aquamarine Driller.
The two companies also entered into an agreement to pursue a global strategic alliance leveraging the new support services agreement and their existing joint venture in Egypt.
Currently, Vantage has a fleet of five jack-ups and two drillships and a managed fleet, on behalf of another owner.