Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | VANTAGE DRILLING INTERNATIONAL | |
Entity Central Index Key | 0001465872 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 13,115,026 | |
Entity File Number | 333-159299 | |
Entity Tax Identification Number | 98-1372204 | |
Entity Address, Address Line One | 777 Post Oak Boulevard | |
Entity Address, Address Line Two | Suite 440 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77056 | |
City Area Code | 281 | |
Local Phone Number | 404-4700 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | E9 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 62,234 | $ 73,343 |
Restricted cash | 726 | 1,621 |
Trade receivables, net of allowance for doubtful accounts of $5.0 million, each period | 50,732 | 37,527 |
Materials and supplies | 38,143 | 37,580 |
Assets held for sale | 150,465 | 117,117 |
Prepaid expenses and other current assets | 14,772 | 18,309 |
Total current assets | 317,072 | 285,497 |
Property and equipment | ||
Property and equipment | 645,622 | 645,622 |
Accumulated depreciation | (276,751) | (266,018) |
Property and equipment, net | 368,871 | 379,604 |
Operating lease ROU assets | 2,049 | 2,450 |
Other assets | 31,915 | 31,843 |
Total assets | 719,907 | 699,394 |
Current liabilities | ||
Accounts payable | 45,836 | 31,420 |
Other current liabilities | 42,692 | 31,533 |
Liabilities held for sale | 15,985 | 6,720 |
Total current liabilities | 104,513 | 69,673 |
Long-term debt, net of discount and financing costs of $2,732 and $3,412, respectively | 347,268 | 346,858 |
Other long-term liabilities | 16,504 | 17,012 |
Commitments and contingencies (see Note 8) | ||
Shareholders' equity | ||
Ordinary shares, $0.001 par value, 50 million shares authorized; 13,115,026 shares issued and outstanding, respectively | 13 | 13 |
Additional paid-in capital | 633,810 | 633,847 |
Accumulated deficit | (384,690) | (369,792) |
Controlling interest shareholders' equity | 249,133 | 264,068 |
Noncontrolling interests | 2,489 | 1,783 |
Total equity | 251,622 | 265,851 |
Total liabilities and shareholders' equity | $ 719,907 | $ 699,394 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,000 | $ 5,000 |
Long-term debt, discount and financing costs | $ 2,732 | $ 3,142 |
Ordinary shares, par value | $ 0.001 | $ 0.001 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 13,115,026 | 13,115,026 |
Ordinary shares, shares outstanding | 13,115,026 | 13,115,026 |
Consolidated Statement of Opera
Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Total revenue | $ 58,331 | $ 20,166 |
Operating costs and expenses | ||
Operating costs | 43,933 | 25,357 |
General and administrative | 6,582 | 5,495 |
Depreciation | 11,295 | 14,125 |
Total operating costs and expenses | 61,810 | 44,977 |
Loss from operations | (3,479) | (24,811) |
Other (expense) income | ||
Interest income | 4 | 100 |
Interest expense and other financing charges | (8,504) | (8,510) |
Other, net | (775) | (614) |
Total other expense | (9,275) | (9,024) |
Loss before income taxes | (12,754) | (33,835) |
Income tax provision | 1,438 | 2,162 |
Net loss | (14,192) | (35,997) |
Net income attributable to noncontrolling interests | 706 | (13) |
Net loss attributable to shareholders | $ (14,898) | $ (35,984) |
Loss per share | ||
Basic and Diluted | $ (1.14) | $ (2.74) |
Contract Drilling Services | ||
Revenue | ||
Total revenue | $ 44,913 | $ 17,725 |
Management Fees | ||
Revenue | ||
Total revenue | 1,103 | 98 |
Reimbursables and Other | ||
Revenue | ||
Total revenue | $ 12,315 | $ 2,343 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2020 | $ 375,745 | $ 13 | $ 634,181 | $ (259,655) | $ 1,206 |
Beginning Balance (in shares) at Dec. 31, 2020 | 13,115,000 | ||||
Share-based compensation | 306 | 306 | |||
Share-based compensation - dividend equivalents | (760) | (760) | |||
Net loss | (35,997) | (35,984) | (13) | ||
Ending Balance at Mar. 31, 2021 | 339,294 | $ 13 | 633,727 | (295,639) | 1,193 |
Ending Balance (in shares) at Mar. 31, 2021 | 13,115,000 | ||||
Beginning Balance at Dec. 31, 2021 | $ 265,851 | $ 13 | 633,847 | (369,792) | 1,783 |
Beginning Balance (in shares) at Dec. 31, 2021 | 13,115,026 | 13,115 | |||
Share-based compensation | $ 26 | 26 | |||
Share-based compensation - dividend equivalents | (63) | (63) | |||
Net loss | (14,192) | (14,898) | 706 | ||
Ending Balance at Mar. 31, 2022 | $ 251,622 | $ 13 | $ 633,810 | $ (384,690) | $ 2,489 |
Ending Balance (in shares) at Mar. 31, 2022 | 13,115,026 | 13,115 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (14,192) | $ (35,997) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation expense | 11,295 | 14,125 |
Amortization of debt financing costs | 410 | 410 |
Share-based compensation expense | 26 | 306 |
Deferred income tax expense (benefit) | 365 | (150) |
Loss (gain) on disposal of assets | (1,893) | (2,733) |
Changes in operating assets and liabilities: | ||
Trade receivables, net | (13,205) | (430) |
Materials and Supplies | (482) | 9 |
Prepaid expenses and other current assets | 155 | (1,766) |
Other assets | (16,639) | (2,069) |
Accounts payable | 23,165 | (878) |
Other current liabilities and other long-term liabilities | 2,790 | 13,822 |
Net cash used in operating activities | (8,205) | (15,351) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to property and equipment | (6,899) | (456) |
Net proceeds from sale of assets | 3,100 | 0 |
Net proceeds from sale of Titanium Explorer | 13,557 | |
Net cash (used in) provided by investing activities | (3,799) | 13,101 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net cash provided by financing activities | ||
Net decrease in unrestricted and restricted cash and cash equivalents | (12,004) | (2,250) |
Unrestricted and restricted cash and cash equivalents—beginning of period | 90,608 | 154,487 |
Unrestricted and restricted cash and cash equivalents—end of period | 78,604 | 152,237 |
Cash paid for: | ||
Interest | 9 | |
Income taxes (net of refunds) | 1,769 | 785 |
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ||
Accrued additions to property and equipment | $ 8,097 | $ 0 |
Organization and Recent Events
Organization and Recent Events | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Recent Events | 1. Organization and Recent Events Vantage Drilling International, a Cayman Islands exempted company, together with its consolidated subsidiaries (collectively the “Company”), is an international offshore drilling company focused on operating a fleet of modern, high specification drilling units. Our principal business is to contract drilling units, related equipment and work crews, primarily on a dayrate basis to drill oil and gas wells for our customers. Through our fleet of drilling units, we are a provider of offshore contract drilling services to major, national and independent oil and gas companies, focused on international markets. Additionally, for third-party owned drilling units, we provide operations and marketing services for operating and stacked rigs, construction supervision services for rigs that are under construction, and preservation management services for rigs that are stacked. Geopolitical Instability Caused by the Conflict in Ukraine The markets generally exhibited a strong recovery in global oil prices during 2021, a trend which was further exemplified during the first quarter of 2022, reaching $ 125.72 per barrel in March 2022. While our management anticipates the continuation of the upward trend in the near-term, oil and gas prices are still expected to continue to be volatile as a result of, among other factors, (i) the ongoing COVID-19 pandemic, including the transmission and presence of highly contagious and new variants and the pace of vaccine rollouts, (ii) changes in oil and gas inventories, (iii) global market demand, (iv) geopolitical instability, armed conflict and social unrest, including the invasion of Ukraine by Russia in February 2022, the associated response undertaken by western nations, such as the implementation of broad sanctions, the potential for retaliatory actions on the part of Russia and the overall impact on OPEC+ countries’ ability to reach production targets in the near term, (v) potential future disagreements among OPEC+ countries regarding the supply of oil, and (vi) the potential for increased production and activity from U.S. shale producers and non-OPEC countries driven by the current oil prices, and therefore, the Company cannot predict how long oil and gas prices will remain stable or further increase, if at all, or whether they could reverse course and decline. In particular, the invasion of Ukraine by Russia has led to, and will likely continue to lead to, geopolitical instability, disruption and volatility in the markets with which we operate. While it is not possible at this time to predict or determine the ultimate consequences of the conflict in Ukraine, which could include, among other things, additional sanctions, greater regional instability, embargoes, geopolitical shifts and other material and adverse effects on macroeconomic conditions, supply chains, financial markets and currency exchange rates, hydrocarbon price volatility in particular is likely to continue for the foreseeable future. To the extent negotiations of a cease fire between Russia and Ukraine are unsuccessful, the potential destruction of critical oil-related infrastructure in Ukraine, and the implementation of further sanctions and other measures taken by governmental bodies and private actors, could have a lasting impact in the near- and long-term on the (i) operations and financial condition of our business and the businesses of our critical counterparties and (ii) the global economy. While our management is actively monitoring the foregoing events and its associated financial impact our business, it is uncertain at this time as to the full magnitude that volatile and uncertain oil and gas prices will ultimately have on our financial condition and future results of operations. Share Purchase Agreement to Sell EDC to ADES Arabia Holding On December 6, 2021, VHI, a wholly owned subsidiary of the Company, entered into a certain Share Purchase Agreement (the “ADES Purchase Agreement”) with ADES Arabia Holding (“ADES Arabia”), which wholly owns ADES, pursuant to which VHI agreed to sell to ADES Arabia (the “ADES Sale”) all of the issued and outstanding equity of VHI’s wholly-owned subsidiary, EDC. EDC is the owner of the following jackup rigs, each of which are currently operating in Qatar: the Emerald Driller; the Sapphire Driller; and the Aquamarine Driller . The ADES Purchase Agreement became effective on December 20, 2021 and the transactions contemplated under such agreement are expected to close in the second quarter of 2022. Pursuant to the ADES Purchase Agreement, VHI will receive an aggregate cash consideration payment of $ 170.0 million (the “Cash Consideration Payment”). In addition to the Cash Consideration Payment, the Company anticipates that it will receive from ADES Arabia approximately $ 34 million in certain reimbursable amounts in relation to the preparation and mobilization costs associated with the Sapphire Driller and Aquamarine Driller Qatari contracts incurred prior to closing of the ADES Sale (the “Reimbursable Amounts”). However, both the Cash Consideration Payment and Reimbursable Amounts are subject to potential adjustments contemplated by the ADES Purchase Agreement, and therefore, the actual amounts of the Cash Consideration Payment and Reimbursable Amounts that are ultimately received by the Company could vary from those set forth above. Moreover, certain subsidiaries of the Company and ADES agreed, in connection with the ADES Purchase Agreement, to enter into a three-year support services agreement (the “ADES Support Services Agreement”), pursuant to which a subsidiary of the Company agreed to provide support services to EDC with respect to the Emerald Driller , Sapphire Driller and Aquamarine Driller . The Company and ADES also entered into an agreement on December 6, 2021 (the “Collaboration Agreement”) to pursue a global strategic alliance in order to leverage both the ADES Support Services Agreement and ADVantage, the parties’ existing joint venture in Egypt. Pursuant to the Collaboration Agreement, the parties agreed to collaborate on exploring future commercial and operational opportunities. While the Company continues to evaluate potential uses of the proceeds it anticipates will be derived from the ADES Sale, the Company is limited in how it may deploy and utilize such proceeds as a result of the terms of the First Lien Indenture. In particular, the Company may only use the proceeds from the ADES Sale to repay, prepay or purchase our senior secured indebtedness (including the 9.25% First Lien Notes), acquire all or substantially all of the assets or capital stock of any other entity engaged in a similar or complementary business to the Company’s lines of business, or make capital expenditures or acquire non-current assets (including vessels and related assets) that are useful in such lines of business (including any deposit or installment payments with respect thereto as well as any expenditures related to the acquisition, construction or “ready for sea” costs of such vessels). To the extent such proceeds are not so applied (or committed to be applied) within one year after receipt, the Company will be required to offer to purchase the 9.25% First Lien Notes with such proceeds. Ongoing Impact of the COVID-19 Pandemic The global spread of COVID-19, including its highly contagious variants and sub-lineages, continues to pose significant risks and challenges worldwide, and has caused and continues to cause widespread illness and significant loss of life, leading governments across the world to impose and re-impose severely stringent and extensive limitations on movement and human interaction, with certain countries, including those where we maintain significant operations and derive material revenue, implementing quarantine, testing and vaccination requirements. These governmental reactions to the COVID-19 pandemic, as well as changes to and extensions of such approaches, have led to, and continue to result in, uncertain and volatile economic activity worldwide, including within the oil and gas industry and the regions and countries in which we operate. While the Company has previously managed, and continues to actively manage, the business in an attempt to mitigate any ongoing and material impact from the spread of COVID-19, management anticipates that our industry, and the world at large, will need to continue to operate in, and further adapt, to the current environment for the foreseeable future. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | 2. Basis of Presentation and Significant Accounting Policies Basis of Consolidation: The accompanying interim consolidated financial information as of March 31, 2022, and for the three months ended March 31, 2022 and 2021, has been prepared without audit, pursuant to the rules and regulations of the SEC, and includes our accounts and those of our majority owned subsidiaries and VIEs (as discussed below). All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures made are adequate to provide for fair presentation. Our Consolidated Balance Sheet at December 31, 2021 is derived from our December 31, 2021 audited consolidated financial statements. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 30, 2022. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. Certain previously reported amounts have been reclassified to conform to the current period presentation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we are entitled to use ADVantage for deepwater drilling contract opportunities rejected by ADES, and have the (a) power to direct the operating activities associated with the deepwater drilling rigs, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheets. The carrying amount associated with ADVantage was as follows: March 31, 2022 December 31, 2021 (unaudited, in thousands) Current assets $ 22,635 $ 8,099 Non-current assets 288 212 Current liabilities 9,545 2,838 Non-current liabilities 8,327 1,859 Net carrying amount $ 5,051 $ 3,614 As ADVantage is a majority owned subsidiary of the Company, it serves as a guarantor under the First Lien Indenture relating to the 9.25% First Lien Notes. The 9.25% First Lien Notes are secured by a first priority lien on all of the assets of ADVantage, subject to certain exceptions. Creditors’ recourse against ADVantage for liabilities of ADVantage is limited to the assets of ADVantage. See “ Note 9. Supplemental Financial Information ” of these “Notes to Unaudited Consolidated Financial Statements” for additional information regarding related party transactions associated with this joint venture. Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. Cash and Cash Equivalents: Includes deposits with financial institutions as well as short-term money market instruments with maturities of three months or less when purchased. Materials and Supplies: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. We record these materials and supplies at their average cost. Property and Equipment: Consists of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated useful lives ranging from five to 35 years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are removed from our Consolidated Balance Sheets and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. For the three months ended March 31, 2022 and 2021 , we recognized a net gain of approximately $ 1.9 million and $ 2.7 million, respectively, related to the sale or retirement of assets. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and gas exploration, development and production expenditures. Oil and gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. As of March 31, 2022, no triggering event has occurred to indicate that the carrying value of our drilling rigs may not be recoverable. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did no t capitalize any interest for the reported periods. Debt Financing Costs: Costs incurred with financing debt are deferred and amortized over the term of the related financing facility on a straight-line basis, which approximates the interest method. Debt issuance costs related to a recognized debt liability are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of that debt liability. Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment, and must maintain such certifications through periodic inspections and surveys. The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. Revenue Recognition: See “ Note 3. Revenue from Contracts with Customers ” of these “Notes to Unaudited Consolidated Financial Statements” for further information. Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which our operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or tax deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. Concentrations of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Payment terms on customer invoices typically range from 30 to 45 days . Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. Credit Losses – Accounts Receivable: The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. Current estimates of expected credit losses consider factors such as the historical experience and credit quality of our customers. The Company considers historical loss information as the most reasonable basis on which to determine expected credit losses unless current or forecasted future conditions for customers (or customer groups) indicate that risk characteristics have changed. We also considered the impact of the COVID-19 pandemic and the associated oil price and market share volatility on our allowance for doubtful accounts. The allowance for doubtful accounts on our trade receivables was $ 5.0 million as of each of March 31, 2022 and December 31, 2021, respectively. This amount represents a customer’s decision not to pay us for days impacted by what we believe were force majeure and other similar events for which we would still be entitled to receive payment under the applicable contract. We disagree with the customer's decision and are currently evaluating our remedies, if any, under the applicable contract. Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees and directors that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of Ordinary Shares outstanding during the applicable period. Diluted EPS are computed based on the weighted average number of Ordinary Shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into Ordinary Shares (using the treasury stock method). The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended March 31, 2022 2021 (unaudited, in thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,115 13,115 Restricted share equity awards — — Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,115 13,115 The following sets forth the number of shares excluded from diluted EPS computations: Three Months Ended March 31, 2022 2021 (unaudited, in thousands) Restricted share equity awards 220 218 Future potentially dilutive Ordinary Shares excluded from diluted EPS 220 218 Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the three months ended March 31, 2022 and 2021 , we recognized a net loss of approximately $ 0.8 million and $ 0.6 million, respectively, related to currency exchange rates. Fair Value of Financial Instruments: The fair value of our short-term financial assets and liabilities approximates the carrying amounts represented in our Consolidated Balance Sheets principally due to the short-term nature or floating rate nature of these instruments. As of March 31, 2022 , the fair value of the 9.25% First Lien Notes was approximately $ 335.3 million based on quoted market prices in a less active market, a Level 2 measurement. Share-based Compensation: TBGs granted under the 2016 Amended MIP vest annually, ratably over four years ; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the Effective Date. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that actually vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. Both the TBGs and PBGs were classified as liabilities consistent with the classification of the underlying securities prior to the Conversion. Following the Conversion, outstanding TBGs and PBGs were subject to modification accounting and were re-classified as equity awards. Under the provisions of ASC 718 Compensation – Stock Compensation share-based compensation expense is recognized over the requisite service period from the grant date to the fourth year vest date for TBGs. For PBGs, expense will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the conversion date of the Convertible Notes will be recognized for the service period completed to the seventh anniversary of the Effective Date for PBGs. Noncontrolling Interest: Noncontrolling interests represent the equity investments of the minority owner in ADVantage, a joint venture with ADES that we consolidate in our financial statements. Recently Adopted Accounting Standards: No new accounting standards were adopted during the three-month period ended March 31, 2022 . Recently Issued Accounting Standards: There have been no new accounting pronouncements not yet effective that have significance, or potential significance, with respect to our consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 3. Revenue from Contracts with Customers The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to and demobilizing from the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. Amortizable Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for (i) the mobilization of equipment and personnel prior to the commencement of drilling services, (ii) the demobilization of equipment and personnel upon contract completion and (iii) postponement fees in consideration for the postponement of a contract until a later date. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight‑line basis over the initial contract period. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the initial contract term with an offset to an accretive contract asset. In many contracts, demobilization fees are contingent upon the occurrence or non-occurrence of a future event and the estimate for such revenue may therefore be constrained. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term. Postponement fees received that are contingent upon the occurrence or non-occurrence of a future event are recognized on a straight-line basis over the contract term. Fees received for the mobilization or demobilization of equipment and personnel are included in “Contract drilling services” in our Consolidated Statement of Operations. Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We are generally considered a principal in such transactions and therefore, recognize reimbursable revenues and the corresponding costs as we provide the customer‑requested goods and services. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 15,331 $ 25,996 $ 1,103 $ 42,430 $ 8,898 $ 8,827 $ 98 $ 17,823 Amortized revenue 220 3,366 — 3,586 — — — — Reimbursable revenue 2,207 2,976 7,132 12,315 2,322 21 — 2,343 Total revenue $ 17,758 $ 32,338 $ 8,235 $ 58,331 $ 11,220 $ 8,848 $ 98 $ 20,166 Dayrate revenue and amortized revenue for “Jackups” and “Deepwater” are included within “Contract drilling services” in our Consolidated Statement of Operations. Dayrate revenue for “Managed” is included within “Management fees” in our Consolidated Statement of Operations. All other revenue are included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days . We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities”, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: March 31, 2022 December 31, 2021 (unaudited, in thousands) Current contract cost assets $ 1,625 $ 1,405 Noncurrent contract cost assets 5,917 6,832 Noncurrent contract cost assets - held for sale 20,095 4,196 Current contract revenue assets — 1,903 Current contract revenue liabilities 17,872 12,311 Noncurrent contract revenue liabilities 1,647 1,893 Significant changes in contract cost assets and contract revenue liabilities during the three months ended March 31, 2022 are as follows: Contract Cost Assets Contract Revenue Assets Contract Revenues (unaudited, in thousands) Balance as of December 31, 2021 $ 12,433 $ 1,903 $ 14,204 Increase (decrease) due to contractual changes 17,899 — 14,187 Decrease due to recognition of revenue ( 2,695 ) ( 1,903 ) ( 8,872 ) Balance as of March 31, 2022 (1) $ 27,637 $ — $ 19,519 (1) We expect to recognize contract revenues of approximately $ 18.6 million during the remaining nine months of 2022 and $ 0.9 million thereafter related to unsatisfied performance obligations existing as of March 31, 2022 . We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time of the future services. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease | 4. Leases We have operating leases expiring at various dates, principally for office space, onshore storage yards and certain operating equipment. Additionally, we sublease certain office space to third parties. We determine if an arrangement is a lease at inception. Operating leases with an initial term greater than 12 months are included in “Operating lease ROU assets”, “Other current liabilities”, and “Other long-term liabilities” on our Consolidated Balance Sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made prior to or at the commencement date and is reduced by lease incentives received and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally not accounted for separately. Certain of our leases include provisions for variable payments. These variable payments are not included in the calculation of lease liability and ROU assets. The components of lease expense were as follows: Three Months Ended March 31, (unaudited, in thousands) Classification in the Consolidated Statement of Operations 2022 2021 Operating lease cost (1) Operating costs $ 255 $ 902 Operating lease cost (1) General and administrative 284 152 Sublease income Operating costs — ( 121 ) Sublease income General and administrative ( 183 ) ( 62 ) Total operating lease cost $ 356 $ 871 (1) Short-term lease costs were approximately $ 0.1 million and $ 0.3 million during the three months ended March 31, 2022 and 2021 , respectively. Operating cash flows used for operating leases approximates lease expense. (unaudited, in thousands) Classification in the Consolidated Balance Sheets March 31, 2022 December 31, 2021 Assets: Operating lease assets Operating lease ROU assets $ 2,049 $ 2,450 Operating lease ROU assets - Held for sale 205 197 Total leased assets $ 2,254 $ 2,647 Liabilities: Current operating Other current liabilities $ 1,580 $ 1,710 Other current liabilities - Held for sale 150 103 Noncurrent operating Other long-term liabilities 644 969 Other long-term liabilities - Held for sale 66 93 Total lease liabilities $ 2,440 $ 2,875 As of March 31, 2022, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases Remaining nine months of 2022 $ 1,491 2023 1,096 2024 — 2025 — 2026 — Total future lease payments $ 2,587 Less imputed interest ( 147 ) Present value of lease obligations $ 2,440 The weighted average discount rate was 9.25 % as of both March 31, 2022 and December 31, 2021 . The weighted average remaining lease term for operating leases was 1.35 years and 1.56 years as of March 31, 2022 and December 31, 2021, respectively. ROU assets and lease liabilities recorded for leases commencing during the three months ended March 31, 2022 was immaterial. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 5. Debt Our debt was composed of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) 9.25% First Lien Notes, net of financing costs of $ 2,732 and $ 3,142 , respectively $ 347,268 $ 346,858 Less current maturities of long-term debt — — Long-term debt, net $ 347,268 $ 346,858 9.25% First Lien Notes. On November 30, 2018, the Company issued $ 350.0 million in aggregate principal amount of 9.25 % First Lien Notes in a private placement. The 9.25 % First Lien Notes were issued at par and are fully guaranteed on a senior secured basis by the Company’s direct and indirect subsidiaries and are secured by a first priority lien on substantially all of the assets of the Company and its subsidiaries, in each case subject to certain exceptions. The 9.25 % First Lien Notes are subject to first payment priority in favor of holders of up to $ 50.0 million of future super-priority debt and are subject to both mandatory and optional redemption provisions. The 9.25 % First Lien Notes mature on November 15, 2023 and bear interest from the date of their issuance at the rate of 9.25 % per year. Interest is computed on the basis of a 360-day year comprised of twelve 30-day months and is payable semi-annually in arrears, commencing on May 15, 2019. The First Lien Indenture includes customary covenants and events of default, including covenants that, among other things, restrict the granting of liens, restrict the making of investments, restrict the incurrence of indebtedness and the conveyance of vessels, limit transactions with affiliates, and require that the Company provide periodic financial reports. The net proceeds from the issuance were used (i) to repay all obligations under the formerly existing 2016 Term Loan Facility and to terminate the credit agreement governing such facility, (ii) to redeem all the then-outstanding 10% Second Lien Notes, (iii) to fund the remaining amounts to be paid in connection with the purchase of the Soehanah jackup rig, (iv) to pay fees and expenses related to the foregoing and to the offering of the 9.25 % First Lien Notes, and (v) for general corporate purposes. Concurrently with the issuance of the 9.25% First Lien Notes, we entered into a letter of credit facility to replace the letter of credit facility formerly existing under the 2016 Term Loan Facility. The facility has a capacity of $ 50.0 million, with all outstanding letters of credit being cash collateralized. We have issued $ 0.1 million in letters of credit under this facility as of March 31, 2022 . |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | 6. Shareholders’ Equity Stock Issuance VDI has 50,000,000 authorized Ordinary Shares. Upon emergence from bankruptcy on the Effective Date, VDI issued 5,000,053 Ordinary Shares in connection with the settlement of Liabilities Subject to Compromise in accordance with the Reorganization Plan and the VDC Note. On December 4, 2019, VDI issued an additional 8,114,977 Ordinary Shares to convert all of the outstanding Convertible Notes. As of March 31, 2022 , 13,115,026 Ordinary Shares were issued and outstanding. Share-based Compensation On August 9, 2016, the Company adopted the 2016 Amended MIP to align the interests of participants with those of the shareholders by providing incentive compensation opportunities tied to the performance of the Company’s equity securities. Pursuant to the 2016 Amended MIP, the Compensation Committee may grant to employees, directors and consultants stock options, restricted stock, restricted stock units or other awards. No awards were granted to employees or directors during the three months ended March 31, 2022 and 2021. During the three months ended March 31, 2022 , 1,564 of previously-granted TBGs vested. Both the TBGs and PBGs are classified as equity awards. For the three months ended March 31, 2022, share-based compensation expense related to the TBGs was immaterial. For the three months ended March 31, 2021 , we recognized share-based compensation expense related to the TBGs of approximately $ 0.3 million. As of March 31, 2022 , we concluded that it was not probable that the TEV performance condition would be met and therefore, no share based compensation expense was recognized for PBGs. Pursuant to the 2016 Amended MIP and the terms of the applicable unit awards, participants holding restricted stock units are contractually entitled to receive all dividends or other distributions that are paid to VDI’s stockholders, provided that any such dividends will be subject to the same vesting requirements of the underlying units. Dividend payments accrue to outstanding awards (both vested and unvested) in the form of “Dividend Equivalents” equal to the dividend per share underlying the applicable award under the 2016 Amended MIP. As a result of a special cash distribution paid to shareholders of record on December 17, 2019, $ 8.8 million has been recorded in “Other long-term liabilities” in our Consolidated Balance Sheets at March 31, 2022 to be paid upon settlement of the TBGs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 7. Income Taxes VDI is a Cayman Islands company operating in multiple countries through its subsidiaries. The Cayman Islands do not impose corporate income taxes. Consequently, we have calculated income taxes based on the laws and tax rates in effect in the countries in which operations are conducted, or in which we and our subsidiaries are considered resident for income tax purposes. Our income taxes are generally dependent upon the results of our operations and when we generate significant revenues in jurisdictions where the income tax liability is based on gross revenues or asset values, there is no correlation to the net operating results and the income tax expense. Furthermore, in some jurisdictions we do not pay taxes, pay taxes at lower rates or receive benefits for certain income and expense items, including interest expense, loss on extinguishment of debt, gains or losses on disposal or transfer of assets, reorganization expenses and write-off of development costs. On January 22, 2020, VDI filed the Tax Election with the IRS to be treated as a partnership, rather than a corporation, for U.S. federal income tax purposes, with an effective date retroactive to December 9, 2019. As a result, U.S. Holders are required to take into account their allocable share of items of income, gain, loss deduction and credit of VDI for each taxable year of VDI ending with or within the U.S. Holder’s taxable year, regardless of whether any distribution has been or will be received from VDI. Each item generally will have the same character and source (either U.S. or foreign) as though the U.S. Holder had realized the item directly. VDI’s change in tax status did not have a material impact on our consolidated financial statements as of March 31, 2022. Deferred income tax assets and liabilities are recorded for the expected future tax consequences of events that have been recognized in our financial statements or tax returns. We provide for deferred taxes on temporary differences between the financial statements and tax bases of assets and liabilities using the enacted tax rates which are expected to apply to taxable income when the temporary differences are expected to reverse. Deferred tax assets are also provided for certain tax losses and tax credit carryforwards. A valuation allowance is established to reduce deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. In certain jurisdictions we are taxed under preferential tax regimes, which may require our compliance with specified requirements to sustain the tax benefits. We believe we are in compliance with the specified requirements and will continue to make all reasonable efforts to comply; however, our ability to meet the requirements of the preferential tax regimes may be affected by changes in laws or administrative practices, our business operations and other factors affecting the Company and industry, many of which are beyond our control. Our periodic tax returns are subject to examination by taxing authorities in the jurisdictions in which we operate in accordance with the normal statute of limitations in the applicable jurisdiction. These examinations may result in assessments of additional taxes that are resolved with the authorities or through the courts. Resolution of these matters involves uncertainties and there are no assurances as to the outcome. Our tax years from 2011 onward remain open to examination in many of our jurisdictions and we are currently involved in several tax examinations in jurisdictions where we are operating or have previously operated. As information becomes available during the course of these examinations, we may increase or decrease our estimates of tax assessments and accruals. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies We are subject to litigation, claims and disputes in the ordinary course of business, some of which may not be covered by insurance. There is an inherent risk in any litigation or dispute and no assurance can be given as to the outcome of any claims. Brazil Improbity Action On April 27, 2018, the Company was added as an additional defendant in a legal proceeding (the “Improbity Action”), initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer drillship to Petrobras under the Drilling Contract, with the Brazilian Government and Petrobras as plaintiffs. Vantage is alleged to have been involved in and benefitted from the purported bribery scheme at Petrobras through Hamylton Padilha, the Brazilian agent our former parent company, VDC, used in the contracting of the Titanium Explorer drillship to Petrobras, and Mr. Hsin-Chi Su, a former member of VDC’s board of directors and a significant shareholder of VDC. We first became aware of the legal proceeding on July 19, 2018 as it was previously under seal. On March 22, 2019, we were formally served in the United States, and we filed our preliminary statement of defense with the 11 th Federal court of the Judicial Branch of Curitiba, State of Parana, Brazil (the “Brazilian Federal Court”) on April 12, 2019 in response. On August 20, 2020, the Brazilian Federal Court dismissed our preliminary statement of defense. On October 5, 2020, we subsequently filed a motion to clarify with the Brazilian Federal Court requesting the reconsideration of certain aspects of the decision dismissing our preliminary statement of defense. Our motion to clarify was denied on December 14, 2020, and on February 10, 2021 we filed an interlocutory appeal to the 4 th Circuit of the Federal Court of Appeals in Porto Alegre, State of Rio Grande do Sul, Brazil (the “Brazilian Appellate Court”), the appellate court hearing appeals in the “Car Wash” cases, seeking to reverse the Brazilian Federal Court’s denial of our preliminary defense. On April 15, 2021, the Brazilian authorities served us indirectly through the U.S. Department of Justice agreeing to formally send us documents related to the Improbity Action. On May 13, 2021, the Brazilian Appellate Court’s reporting judge for our matter granted our request for preliminary relief and ordered an immediate stay of the Improbity Action as it applies to the Company until the judgment (on the merits) of the interlocutory appeal is rendered by the full three judge panel of the Brazilian Appellate Court. We will be obligated to file a statement of defense in the matter if the decision to stay the Improbity Action is later reversed. The Company understands that the Improbity Action, is a civil action and is part of the Brazilian Federal Prosecutor’s larger “Car Wash” investigation into money laundering and corruption allegations in Brazil. The damages claimed in the proceeding are in the amount of BRL 102.8 million or approximately $ 22.2 million (changes in the U.S. dollar amounts result from foreign exchange rate fluctuations), together with a civil fine equal to three times that amount. The Company understands that the Brazilian Federal Court previously issued an order authorizing the seizure and freezing of the assets of the Company and the other three defendants in the legal proceeding, as a precautionary measure, in the amount of approximately $ 88.9 million. The Company and the other three defendants are jointly and severally liable for this amount. The seizure order has not had an effect on the Company’s assets or operations, as the Company does not own any assets in Brazil, and does not currently intend to relocate any assets to Brazil. On February 13, 2019, the Company learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the U.S. DOJ pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against the Company’s U.S. assets in the approximate amount of $88.9 million. On April 12, 2019, the Company filed an interlocutory appeal with the Brazilian Appellate Court to stay the seizure and freezing order of the Brazilian Federal Court. On May 20, 2019, the Company announced that the Brazilian Appellate Court's reporting judge ruled in favor of the Company’s appeal to stay the seizure and freezing order of the Brazilian Federal Court. The foregoing ruling is still subject to confirmation by a three-judge panel, and is subject to appeal, and the Company can offer no assurances that the stay will be confirmed or as to the outcome of any appeal thereof. The Company communicated the Brazilian Appellate Court’s ruling to the DOJ and has asked the Brazilian Federal Court to do the same. On July 18, 2019, the Company announced that the Brazilian Government made a filing with the Brazilian Federal Court reporting that the DOJ has advised the Brazilian Ministry of Justice that it would not be possible for the DOJ to comply with the mutual assistance request in respect of the asset freeze order. The Company also announced that it learned from the Brazilian Ministry of Justice that the DOJ’s response to the request for mutual assistance stated that no legal grounds existed for implementing the requested asset freeze, and that the DOJ was returning the request without taking action and considers the matter concluded. The Company has defended, and intends to continue to vigorously defend against the allegations made in the Improbity Action and oppose and defend against any attempts to seize the Company's assets. However, we can neither predict the ultimate outcome of this matter nor that there will not be further developments in the “Car Wash” investigation or in any other ongoing investigation or related proceeding that could adversely affect us. At this time, we are not yet able to determine the likelihood of loss, if any, arising from this matter. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Financial Information | 9. Supplemental Financial Information Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Sales tax receivable $ 6,547 $ 8,445 Other receivables 293 234 Income tax receivable 761 1,423 Prepaid insurance 695 257 Current deferred contract costs 1,625 1,405 Current contract asset — 1,903 Other 4,851 4,642 $ 14,772 $ 18,309 Assets Held for Sale Assets held for sale consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Trade receivables, net $ 7,307 $ 7,306 Materials and supplies 13,194 13,510 Prepaid expenses and other current assets 7,561 3,768 Property & equipment, net 100,903 87,441 Noncurrent deferred contract costs 20,095 4,196 Operating lease ROU asset 205 197 Other noncurrent assets 1,200 699 $ 150,465 $ 117,117 Property and Equipment, net Property and equipment, net, consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Drilling equipment $ 625,134 $ 626,546 Assets under construction 1,560 148 Office and technology equipment 18,405 18,405 Leasehold improvements 523 523 645,622 645,622 Accumulated depreciation ( 276,751 ) ( 266,018 ) Property and equipment, net $ 368,871 $ 379,604 Other Assets Other assets consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Noncurrent restricted cash $ 15,644 $ 15,644 Deferred certification costs 5,182 5,199 Noncurrent deferred contract costs 5,917 6,832 Deferred income taxes 1,627 1,776 Other noncurrent assets 3,545 2,392 $ 31,915 $ 31,843 Other Current Liabilities Other current liabilities consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Interest $ 12,230 $ 4,136 Compensation (1) 7,207 7,040 Income taxes payable 3,129 5,589 Current deferred revenue 17,872 12,311 Current portion of operating lease liabilities 1,580 1,710 Other 674 747 $ 42,692 $ 31,533 (1) Includes $ 3.5 million as of March 31, 2022 and $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 Amended MIP. Liabilities Held for Sale Liabilities held for sale consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Accounts payable $ 12,889 $ 4,140 Compensation 542 464 Income taxes payable 919 716 Current portion of operating lease liabilities 150 103 Deferred income taxes 1,407 1,190 Noncurrent operating lease liabilities 66 93 Other 12 14 $ 15,985 $ 6,720 Other Long-term Liabilities Other Long-term liabilities consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) 2016 MIP - Dividend equivalent (1) $ 8,798 $ 8,735 Noncurrent deferred revenue 1,647 1,893 Noncurrent operating lease liabilities 644 969 Other non-current liabilities 5,415 5,415 $ 16,504 $ 17,012 (1) Dividend Equivalents on vested TBGs are payable on settlement of the applicable award. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Cash and cash equivalents $ 62,234 $ 73,343 Restricted cash 726 1,621 Restricted cash included within Other Assets 15,644 15,644 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 78,604 $ 90,608 Restricted cash represents cash held by banks as collateralizing letters of credit. Related Party Transactions In conjunction with the establishment of ADVantage, the Company entered into a series of agreements with ADES, including: (i) a Secondment Agreement; (ii) a Manpower Agreement; and (iii) a Supply Services Agreement. Pursuant to these agreements, the Company, largely through its seconded employees, has agreed to provide various services to ADES and ADES has agreed in turn to provide various services to ADVantage. As of March 31, 2022 and December 31, 2021 , accounts receivable from ADES totaled $ 2.6 million and $ 0.5 million, respectively, included in “Trade Receivables” on the Consolidated Balance Sheets. As of March 31, 2022 and December 31, 2021 , accounts payable to ADES totaled approximately $ 6.3 million and $ 2.1 million, respectively, included in “Accounts payable,” on the Consolidated Balance Sheets. On December 20, 2021, we entered into the ADES Purchase Agreement to sell to ADES Arabia all of the issued and outstanding equity of EDC, which owns the Emerald Driller , Sapphire Driller and Aquamarine Driller . We anticipate that the transactions contemplated by the ADES Purchase Agreement will close in the second quarter of 2022. For additional information regarding the ADES Purchase Agreement and the transactions contemplated thereunder, please see “ Share Purchase Agreement to Sell EDC to ADES Arabia Holding” under “ Note 1. Organization and Recent Events ” of these Notes to Unaudited Financial Statements. In addition, the Company and ADES also entered into an agreement on December 6, 2021 (the “Collaboration Agreement”) to pursue a global strategic alliance in order to leverage both the ADES Support Services Agreement and ADVantage, the parties’ existing joint venture in Egypt. Pursuant to the Collaboration Agreement, the parties agreed to collaborate on exploring future commercial and operational opportunities. VHI has entered into Framework Agreements and related Management and Marketing Agreements, as amended, on March 16, 2021 with Aquadrill, pursuant to which certain subsidiaries of VHI agreed to provide operating, management and marketing services to Aquadrill and its subsidiaries (the “Aquadrill Entities”). Fees earned as a result of these agreements are included in “Management fees” and “Reimbursable and other” in our Consolidated Statement of Operations within the Managed Services segment as reported in “ Note 10. Business Segment and Significant Customer Information .” Two of our shareholders that own a significant portion of our Ordinary shares also own an interest in Aquadrill LLC, formerly known as Seadrill Partners LLC (”Aquadrill”). We did not have any related party transactions that were not conducted in the ordinary course of business as of March 31, 2022 . |
Business Segment and Significan
Business Segment and Significant Customer Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment and Significant Customer Information | 10. Business Segment and Significant Customer Information Our operations are dependent on the global oil and gas industry and our rigs are relocated based on demand for our services and customer requirements. Our customers consist primarily of large international oil and gas companies, national or government-controlled oil and gas companies, and other international exploration and production companies. As the result of an increase in activity related to operating, management and marketing services for rigs owned by third-parties, the Company has two reportable segments: (1) “Drilling Services,” which includes activities related to owned jackup rigs and drillships and (2) “Managed Services,” which consists of activities related to rigs owned by third-parties. The chief operating decision maker evaluates the performance of our reportable segments using adjusted operating income (loss), which is a segment performance measure, because this financial measure reflects our ongoing profitability and performance. Adjusted operating income (loss) is defined as segment income (loss) from operations plus general and administrative expenses and depreciation. General and administrative expenses, other (expense) income, and income taxes are not allocated to the operating segments for purposes of measuring segment income (loss) from operations and are included in “Unallocated” in the table below. There are no intersegment revenues. Our segment results were as follows: Three Months Ended March 31, 2022 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 44,913 $ — $ — $ 44,913 Management fees — 1,103 — 1,103 Reimbursables and other 5,183 7,132 — 12,315 Total revenue 50,096 8,235 — 58,331 Operating costs and expenses Operating costs 36,438 7,495 — 43,933 General and administrative — — 6,582 6,582 Depreciation 10,856 — 439 11,295 Total operating costs and expenses 47,294 7,495 7,021 61,810 Income (loss) from operations 2,802 740 ( 7,021 ) ( 3,479 ) Other (expense) income Interest income — — 4 4 Interest expense and financing charges — — ( 8,504 ) ( 8,504 ) Other, net — — ( 775 ) ( 775 ) Total other expense — — ( 9,275 ) ( 9,275 ) Income (loss) before income taxes $ 2,802 $ 740 $ ( 16,296 ) $ ( 12,754 ) Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 2,802 $ 740 Depreciation 10,856 — Segment adjusted operating income $ 13,658 $ 740 Three Months Ended March 31, 2021 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 17,725 $ — $ — $ 17,725 Management fees — 98 — 98 Reimbursables and other 2,343 — — 2,343 Total revenue 20,068 98 — 20,166 Operating costs and expenses Operating costs 25,357 — — 25,357 General and administrative — — 5,495 5,495 Depreciation 13,715 — 410 14,125 Total operating costs and expenses 39,072 — 5,905 44,977 (Loss) income from operations ( 19,004 ) 98 ( 5,905 ) ( 24,811 ) Other (expense) income Interest income — — 100 100 Interest expense and financing charges — — ( 8,510 ) ( 8,510 ) Other, net — — ( 614 ) ( 614 ) Total other expense — — ( 9,024 ) ( 9,024 ) (Loss) income before income taxes $ ( 19,004 ) $ 98 $ ( 14,929 ) $ ( 33,835 ) Reconciliation of (loss) income from operations to segment adjusted operating (loss) income: Drilling Services Managed Services (Loss) income from operations $ ( 19,004 ) $ 98 Depreciation 13,715 — Segment adjusted operating (loss) income $ ( 5,289 ) $ 98 Our revenue by country and segment was as follows for the periods indicated (periods representing revenues of less than 10% are included in “Other countries”): Three months ended March 31, Country Segment 2022 2021 (unaudited, in thousands) Egypt Drilling Services $ 17,121 $ — India Drilling Services 13,289 8,855 UAE Managed Services 8,188 — Qatar Drilling Services 7,385 7,197 Indonesia Drilling Services — 3,970 Other countries (1) Drilling Services and Managed Services 12,348 144 Total revenues $ 58,331 $ 20,166 (1) “Other countries” represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. For the three months ended March 31, 2022 and 2021 , a substantial amount of our revenue was derived from countries outside of the United States. Consequently, we are exposed to the risk of changes in economic, political and social conditions inherent in foreign operations. Three customers in our Drilling Services segment accounted for approximately 29 %, 23 % and 13 % of consolidated revenue and one customer in our Managed Services segment accounted for approximately 14 % of consolidated revenue for the three months ended March 31, 2022 . Three customers in our Drilling Services segment accounted for approximately 44 %, 36 % and 20 % of consolidated revenue for the three months ended March 31, 2021. Information related to the Company’s “Total Assets” as reported on the Consolidated Balance Sheets is not available by reportable segment; however, a substantial portion of our assets are mobile drilling units included in the Drilling Services segment. Asset locations at the end of the period are not necessarily indicative of the geographic distribution of the revenues generated by such assets during the periods. Our property and equipment, net by country, was as follows as of the dates indicated (as of dates representing property and equipment of less than 10% are included in “Other countries”): March 31, 2022 December 31, 2021 (unaudited, in thousands) Egypt $ 168,696 $ 173,187 India 92,754 96,583 Indonesia 62,188 63,581 Other countries (1) 45,233 46,253 Total property and equipment $ 368,871 $ 379,604 (1) “Other countries” represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation: The accompanying interim consolidated financial information as of March 31, 2022, and for the three months ended March 31, 2022 and 2021, has been prepared without audit, pursuant to the rules and regulations of the SEC, and includes our accounts and those of our majority owned subsidiaries and VIEs (as discussed below). All significant intercompany transactions and accounts have been eliminated. They reflect all adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the interim periods, on a basis consistent with the annual audited financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC, although we believe that the disclosures made are adequate to provide for fair presentation. Our Consolidated Balance Sheet at December 31, 2021 is derived from our December 31, 2021 audited consolidated financial statements. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on March 30, 2022. The results of operations for the interim periods are not necessarily indicative of the operating results for the full fiscal year or any future periods. Certain previously reported amounts have been reclassified to conform to the current period presentation. In addition to the consolidation of our majority owned subsidiaries, we also consolidate VIEs when we are determined to be the primary beneficiary of a VIE. Determination of the primary beneficiary of a VIE is based on whether an entity has (1) the power to direct activities that most significantly impact the economic performance of the VIE and (2) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our determination of the primary beneficiary of a VIE considers all relationships between us and the VIE. ADVantage is a joint venture company formed to operate deepwater drilling rigs in Egypt. We determined that ADVantage met the criteria of a VIE for accounting purposes because its equity at risk was insufficient to permit it to carry on its activities without additional subordinated financial support from us. We also determined that we are the primary beneficiary for accounting purposes since we are entitled to use ADVantage for deepwater drilling contract opportunities rejected by ADES, and have the (a) power to direct the operating activities associated with the deepwater drilling rigs, which are the activities that most significantly impact the entity’s economic performance, and (b) obligation to absorb losses or the right to receive a majority of the benefits that could be potentially significant to the VIE. As a result, we consolidate ADVantage in our consolidated financial statements, we eliminate intercompany transactions and we present the interests that are not owned by us as “Noncontrolling interests” in our Consolidated Balance Sheets. The carrying amount associated with ADVantage was as follows: March 31, 2022 December 31, 2021 (unaudited, in thousands) Current assets $ 22,635 $ 8,099 Non-current assets 288 212 Current liabilities 9,545 2,838 Non-current liabilities 8,327 1,859 Net carrying amount $ 5,051 $ 3,614 As ADVantage is a majority owned subsidiary of the Company, it serves as a guarantor under the First Lien Indenture relating to the 9.25% First Lien Notes. The 9.25% First Lien Notes are secured by a first priority lien on all of the assets of ADVantage, subject to certain exceptions. Creditors’ recourse against ADVantage for liabilities of ADVantage is limited to the assets of ADVantage. See “ Note 9. Supplemental Financial Information ” of these “Notes to Unaudited Consolidated Financial Statements” for additional information regarding related party transactions associated with this joint venture. |
Use of Estimates | Use of Estimates: The preparation of financial statements in accordance with U.S. GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates, including those related to property and equipment, income taxes, insurance, employee benefits and contingent liabilities. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Includes deposits with financial institutions as well as short-term money market instruments with maturities of three months or less when purchased. |
Materials and Supplies | Materials and Supplies: Consists of materials, spare parts, consumables and related supplies for our drilling rigs. We record these materials and supplies at their average cost. |
Property and Equipment | Property and Equipment: Consists of our drilling rigs, furniture and fixtures, computer equipment and capitalized costs for computer software. Drilling rigs are depreciated on a component basis over estimated useful lives ranging from five to 35 years on a straight-line basis as of the date placed in service. Other assets are depreciated upon placement in service over estimated useful lives ranging from three to seven years on a straight-line basis. When assets are sold, retired or otherwise disposed of, the cost and related accumulated depreciation are removed from our Consolidated Balance Sheets and the resulting gain or loss is included in “Operating costs” or “General and administrative” expenses on the Consolidated Statement of Operations, depending on the nature of the asset. For the three months ended March 31, 2022 and 2021 , we recognized a net gain of approximately $ 1.9 million and $ 2.7 million, respectively, related to the sale or retirement of assets. We evaluate the realization of property and equipment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss on our property and equipment exists when estimated undiscounted cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. Any impairment loss recognized would be computed as the excess of the asset’s carrying value over the estimated fair value. Estimates of future cash flows require us to make long-term forecasts of our future revenues and operating costs with regard to the assets subject to review. Our business, including the utilization rates and dayrates we receive for our drilling rigs, depends on the level of our customers’ expenditures for oil and gas exploration, development and production expenditures. Oil and gas prices and customers’ expectations of potential changes in these prices, the general outlook for worldwide economic growth, political and social stability in the major oil and gas producing basins of the world, availability of credit and changes in governmental laws and regulations, among many other factors, significantly affect our customers’ levels of expenditures. Sustained declines in or persistent depressed levels of oil and gas prices, worldwide rig counts and utilization, reduced access to credit markets, reduced or depressed sale prices of comparably equipped jackups and drillships and any other significant adverse economic news could require us to evaluate the realization of our drilling rigs. As of March 31, 2022, no triggering event has occurred to indicate that the carrying value of our drilling rigs may not be recoverable. Interest costs and the amortization of debt financing costs related to the financings of our drilling rigs are capitalized as part of the cost while they are under construction and prior to the commencement of each vessel’s first contract. We did no t capitalize any interest for the reported periods. |
Debt Financing Costs | Debt Financing Costs: Costs incurred with financing debt are deferred and amortized over the term of the related financing facility on a straight-line basis, which approximates the interest method. Debt issuance costs related to a recognized debt liability are presented in the Consolidated Balance Sheets as a direct deduction from the carrying amount of that debt liability. |
Rig and Equipment Certifications | Rig and Equipment Certifications: We are required to obtain regulatory certifications to operate our drilling rigs and certain specified equipment, and must maintain such certifications through periodic inspections and surveys. The costs associated with these certifications, including drydock costs, are deferred and amortized over the corresponding certification periods. |
Revenue Recognition | Revenue Recognition: See “ Note 3. Revenue from Contracts with Customers ” of these “Notes to Unaudited Consolidated Financial Statements” for further information. The activities that primarily drive the revenue earned in our drilling contracts with customers include (i) providing our drilling rig, work crews, related equipment and services necessary to operate the rig, (ii) delivering the drilling rig by mobilizing to and demobilizing from the drill site, and (iii) performing pre-operating activities, including rig preparation activities and/or equipment modifications required for the contract. The integrated drilling services that we perform under each drilling contract represent a single performance obligation satisfied over time and comprised of a series of distinct time increments, or service periods. We have elected to exclude from the transaction price measurement all taxes assessed by a governmental authority. Dayrate Drilling Revenue. Our drilling contracts generally provide for payment on a dayrate basis, with higher rates for periods when the drilling unit is operating and lower rates or zero rates for periods when drilling operations are interrupted or restricted. The dayrate billed to the customer is determined based on varying rates applicable to the specific activities performed on an hourly basis. Such dayrate consideration is allocated to the distinct hourly increment it relates to within the contract term and therefore, recognized as we perform the daily drilling services. Amortizable Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for (i) the mobilization of equipment and personnel prior to the commencement of drilling services, (ii) the demobilization of equipment and personnel upon contract completion and (iii) postponement fees in consideration for the postponement of a contract until a later date. These activities are not considered to be distinct within the context of the contract and therefore, the associated revenue is allocated to the overall single performance obligation. Mobilization fees received prior to commencement of drilling operations are recorded as a contract liability and amortized on a straight‑line basis over the initial contract period. Demobilization fees expected to be received upon contract completion are estimated at contract inception and recognized on a straight-line basis over the initial contract term with an offset to an accretive contract asset. In many contracts, demobilization fees are contingent upon the occurrence or non-occurrence of a future event and the estimate for such revenue may therefore be constrained. In such cases, this may result in cumulative-effect adjustments to demobilization revenues upon changes in our estimates of future events during the contract term. Postponement fees received that are contingent upon the occurrence or non-occurrence of a future event are recognized on a straight-line basis over the contract term. Fees received for the mobilization or demobilization of equipment and personnel are included in “Contract drilling services” in our Consolidated Statement of Operations. Capital Upgrade/Contract Preparation Revenue. In connection with certain contracts, we receive lump-sum fees or similar compensation for requested capital upgrades to our drilling rigs or for other contract preparation work. These activities are not considered to be distinct within the context of the contract and therefore, fees received are recorded as a contract liability and amortized to contract drilling revenues on a straight-line basis over the initial contract term. Revenues Related to Reimbursable Expenses . We generally receive reimbursements from our customers for the purchase of supplies, equipment, personnel services and other services provided at their request in accordance with a drilling contract or other agreement. We are generally considered a principal in such transactions and therefore, recognize reimbursable revenues and the corresponding costs as we provide the customer‑requested goods and services. Disaggregation of Revenue The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 15,331 $ 25,996 $ 1,103 $ 42,430 $ 8,898 $ 8,827 $ 98 $ 17,823 Amortized revenue 220 3,366 — 3,586 — — — — Reimbursable revenue 2,207 2,976 7,132 12,315 2,322 21 — 2,343 Total revenue $ 17,758 $ 32,338 $ 8,235 $ 58,331 $ 11,220 $ 8,848 $ 98 $ 20,166 Dayrate revenue and amortized revenue for “Jackups” and “Deepwater” are included within “Contract drilling services” in our Consolidated Statement of Operations. Dayrate revenue for “Managed” is included within “Management fees” in our Consolidated Statement of Operations. All other revenue are included within “Reimbursables and other” in our Consolidated Statement of Operations. Accounts Receivable, Contract Liabilities and Contract Costs Accounts receivable are recognized when the right to consideration becomes unconditional based upon contractual billing schedules. Payment terms on customer invoices typically range from 30 to 45 days . We recognize contract liabilities, recorded in other “Other current liabilities” and “Other long-term liabilities”, for prepayments received from customers and for deferred revenue received for mobilization, contract preparation and capital upgrades. Certain direct and incremental costs incurred for contract preparation, initial mobilization and modifications of contracted rigs represent contract fulfillment costs as they relate directly to a contract, enhance resources that will be used to satisfy our performance obligations in the future and are expected to be recovered. These costs are deferred as a current or noncurrent asset depending on the length of the initial contract term and are amortized on a straight-line basis to operating costs as services are rendered over the initial term of the related drilling contract. Costs incurred for capital upgrades are capitalized and depreciated over the useful life of the asset. Costs incurred for the demobilization of rigs at contract completion are recognized as incurred during the demobilization process. Costs incurred to mobilize a rig without a contract are expensed as incurred. The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: March 31, 2022 December 31, 2021 (unaudited, in thousands) Current contract cost assets $ 1,625 $ 1,405 Noncurrent contract cost assets 5,917 6,832 Noncurrent contract cost assets - held for sale 20,095 4,196 Current contract revenue assets — 1,903 Current contract revenue liabilities 17,872 12,311 Noncurrent contract revenue liabilities 1,647 1,893 Significant changes in contract cost assets and contract revenue liabilities during the three months ended March 31, 2022 are as follows: Contract Cost Assets Contract Revenue Assets Contract Revenues (unaudited, in thousands) Balance as of December 31, 2021 $ 12,433 $ 1,903 $ 14,204 Increase (decrease) due to contractual changes 17,899 — 14,187 Decrease due to recognition of revenue ( 2,695 ) ( 1,903 ) ( 8,872 ) Balance as of March 31, 2022 (1) $ 27,637 $ — $ 19,519 (1) We expect to recognize contract revenues of approximately $ 18.6 million during the remaining nine months of 2022 and $ 0.9 million thereafter related to unsatisfied performance obligations existing as of March 31, 2022 . We have elected to utilize an optional exemption that permits us to exclude disclosure of the estimated transaction price related to the variable portion of unsatisfied performance obligations at the end of the reporting period, as our transaction price is based on a single performance obligation consisting of a series of distinct hourly increments, the variability of which will be resolved at the time of the future services. |
Income Taxes | Income Taxes: Income taxes are provided for based upon the tax laws and rates in effect in the countries in which our operations are conducted and income is earned. Deferred income tax assets and liabilities are computed for differences between the financial statement basis and tax basis of assets and liabilities that will result in future taxable or tax deductible amounts and are based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. We do not establish deferred tax liabilities for certain of our foreign earnings that we intend to indefinitely reinvest to finance foreign activities. Valuation allowances are established when necessary to reduce deferred income tax assets to the amount expected to be realized. We recognize interest and penalties related to income taxes as a component of income tax expense. |
Concentrations of Credit Risk | Concentrations of Credit Risk: Financial instruments that potentially subject us to a significant concentration of credit risk consist primarily of cash and cash equivalents, restricted cash and accounts receivable. We maintain deposits in federally insured financial institutions in excess of federally insured limits. We monitor the credit ratings and our concentration of risk with these financial institutions on a continuing basis to safeguard our cash deposits. We have a limited number of key customers, who are primarily large international oil and gas operators, national oil companies and other international oil and gas companies. Our contracts provide for monthly billings as services are performed and we monitor compliance with contract payment terms on an ongoing basis. Payment terms on customer invoices typically range from 30 to 45 days . Outstanding receivables beyond payment terms are promptly investigated and discussed with the specific customer. Credit Losses – Accounts Receivable: The allowance for doubtful accounts is based on the Company’s assessment of the collectability of customer accounts. Current estimates of expected credit losses consider factors such as the historical experience and credit quality of our customers. The Company considers historical loss information as the most reasonable basis on which to determine expected credit losses unless current or forecasted future conditions for customers (or customer groups) indicate that risk characteristics have changed. We also considered the impact of the COVID-19 pandemic and the associated oil price and market share volatility on our allowance for doubtful accounts. The allowance for doubtful accounts on our trade receivables was $ 5.0 million as of each of March 31, 2022 and December 31, 2021, respectively. This amount represents a customer’s decision not to pay us for days impacted by what we believe were force majeure and other similar events for which we would still be entitled to receive payment under the applicable contract. We disagree with the customer's decision and are currently evaluating our remedies, if any, under the applicable contract. |
Earnings (Loss) per Share | Earnings (loss) per Share: We compute basic and diluted EPS in accordance with the two-class method. We include restricted stock units granted to employees and directors that contain non-forfeitable rights to dividends as such grants are considered participating securities. Basic earnings (loss) per share are based on the weighted average number of Ordinary Shares outstanding during the applicable period. Diluted EPS are computed based on the weighted average number of Ordinary Shares and ordinary share equivalents outstanding in the applicable period, as if all potentially dilutive securities were converted into Ordinary Shares (using the treasury stock method). The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended March 31, 2022 2021 (unaudited, in thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,115 13,115 Restricted share equity awards — — Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,115 13,115 The following sets forth the number of shares excluded from diluted EPS computations: Three Months Ended March 31, 2022 2021 (unaudited, in thousands) Restricted share equity awards 220 218 Future potentially dilutive Ordinary Shares excluded from diluted EPS 220 218 |
Functional Currency | Functional Currency: We consider USD to be the functional currency for all of our operations since the majority of our revenues and expenditures are denominated in USD, which limits our exposure to currency exchange rate fluctuations. We recognize currency exchange rate gains and losses in “Other, net” in our Consolidated Statement of Operations. For the three months ended March 31, 2022 and 2021 , we recognized a net loss of approximately $ 0.8 million and $ 0.6 million, respectively, related to currency exchange rates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: The fair value of our short-term financial assets and liabilities approximates the carrying amounts represented in our Consolidated Balance Sheets principally due to the short-term nature or floating rate nature of these instruments. As of March 31, 2022 , the fair value of the 9.25% First Lien Notes was approximately $ 335.3 million based on quoted market prices in a less active market, a Level 2 measurement. |
Share-based Compensation | Share-based Compensation: TBGs granted under the 2016 Amended MIP vest annually, ratably over four years ; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the Effective Date. PBGs granted under the 2016 Amended MIP contain vesting eligibility provisions tied to the earlier of a QLE or seven years from the Effective Date. Upon the occurrence of a vesting eligibility event, the number of PBGs that actually vest will be dependent on the achievement of pre-determined TEV targets specified in the grants. Both the TBGs and PBGs were classified as liabilities consistent with the classification of the underlying securities prior to the Conversion. Following the Conversion, outstanding TBGs and PBGs were subject to modification accounting and were re-classified as equity awards. Under the provisions of ASC 718 Compensation – Stock Compensation share-based compensation expense is recognized over the requisite service period from the grant date to the fourth year vest date for TBGs. For PBGs, expense will be recognized when it is probable that the TEV targets will be met. Once it is probable the performance condition will be met, compensation expense based on the fair value of the PBGs at the conversion date of the Convertible Notes will be recognized for the service period completed to the seventh anniversary of the Effective Date for PBGs. |
Noncontrolling Interest | Noncontrolling Interest: Noncontrolling interests represent the equity investments of the minority owner in ADVantage, a joint venture with ADES that we consolidate in our financial statements. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards: No new accounting standards were adopted during the three-month period ended March 31, 2022 . |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: There have been no new accounting pronouncements not yet effective that have significance, or potential significance, with respect to our consolidated financial statements. |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Carrying Amounts of Assets and Liabilities of VIE | The carrying amount associated with ADVantage was as follows: March 31, 2022 December 31, 2021 (unaudited, in thousands) Current assets $ 22,635 $ 8,099 Non-current assets 288 212 Current liabilities 9,545 2,838 Non-current liabilities 8,327 1,859 Net carrying amount $ 5,051 $ 3,614 |
Schedule of Reconciliation of Number of Shares Used for Basic and Diluted EPS Computations | The following is a reconciliation of the number of shares used for the basic and diluted EPS computations: Three Months Ended March 31, 2022 2021 (unaudited, in thousands) Weighted average Ordinary Shares outstanding for basic EPS 13,115 13,115 Restricted share equity awards — — Adjusted weighted average Ordinary Shares outstanding for diluted EPS 13,115 13,115 |
Schedule of Number of Shares Excluded from Diluted EPS Computations | The following sets forth the number of shares excluded from diluted EPS computations: Three Months Ended March 31, 2022 2021 (unaudited, in thousands) Restricted share equity awards 220 218 Future potentially dilutive Ordinary Shares excluded from diluted EPS 220 218 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated by Revenue | The following tables present our revenue disaggregated by revenue source for the periods indicated: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 Jackups Deepwater Managed Consolidated Jackups Deepwater Managed Consolidated (unaudited, in thousands) Dayrate revenue $ 15,331 $ 25,996 $ 1,103 $ 42,430 $ 8,898 $ 8,827 $ 98 $ 17,823 Amortized revenue 220 3,366 — 3,586 — — — — Reimbursable revenue 2,207 2,976 7,132 12,315 2,322 21 — 2,343 Total revenue $ 17,758 $ 32,338 $ 8,235 $ 58,331 $ 11,220 $ 8,848 $ 98 $ 20,166 |
Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers | The following table provides information about contract cost assets and contract revenue liabilities from contracts with customers: March 31, 2022 December 31, 2021 (unaudited, in thousands) Current contract cost assets $ 1,625 $ 1,405 Noncurrent contract cost assets 5,917 6,832 Noncurrent contract cost assets - held for sale 20,095 4,196 Current contract revenue assets — 1,903 Current contract revenue liabilities 17,872 12,311 Noncurrent contract revenue liabilities 1,647 1,893 |
Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities | Significant changes in contract cost assets and contract revenue liabilities during the three months ended March 31, 2022 are as follows: Contract Cost Assets Contract Revenue Assets Contract Revenues (unaudited, in thousands) Balance as of December 31, 2021 $ 12,433 $ 1,903 $ 14,204 Increase (decrease) due to contractual changes 17,899 — 14,187 Decrease due to recognition of revenue ( 2,695 ) ( 1,903 ) ( 8,872 ) Balance as of March 31, 2022 (1) $ 27,637 $ — $ 19,519 (1) We expect to recognize contract revenues of approximately $ 18.6 million during the remaining nine months of 2022 and $ 0.9 million thereafter related to unsatisfied performance obligations existing as of March 31, 2022 . |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended March 31, (unaudited, in thousands) Classification in the Consolidated Statement of Operations 2022 2021 Operating lease cost (1) Operating costs $ 255 $ 902 Operating lease cost (1) General and administrative 284 152 Sublease income Operating costs — ( 121 ) Sublease income General and administrative ( 183 ) ( 62 ) Total operating lease cost $ 356 $ 871 (1) Short-term lease costs were approximately $ 0.1 million and $ 0.3 million during the three months ended March 31, 2022 and 2021 , respectively. Operating cash flows used for operating leases approximates lease expense. |
Schedule of Operating Leases Included in Consolidated Balance Sheet | (unaudited, in thousands) Classification in the Consolidated Balance Sheets March 31, 2022 December 31, 2021 Assets: Operating lease assets Operating lease ROU assets $ 2,049 $ 2,450 Operating lease ROU assets - Held for sale 205 197 Total leased assets $ 2,254 $ 2,647 Liabilities: Current operating Other current liabilities $ 1,580 $ 1,710 Other current liabilities - Held for sale 150 103 Noncurrent operating Other long-term liabilities 644 969 Other long-term liabilities - Held for sale 66 93 Total lease liabilities $ 2,440 $ 2,875 |
Schedule of Maturities of Operating Lease Liabilities | As of March 31, 2022, maturities of lease liabilities were as follows: (unaudited, in thousands) Operating Leases Remaining nine months of 2022 $ 1,491 2023 1,096 2024 — 2025 — 2026 — Total future lease payments $ 2,587 Less imputed interest ( 147 ) Present value of lease obligations $ 2,440 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Our debt was composed of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) 9.25% First Lien Notes, net of financing costs of $ 2,732 and $ 3,142 , respectively $ 347,268 $ 346,858 Less current maturities of long-term debt — — Long-term debt, net $ 347,268 $ 346,858 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Sales tax receivable $ 6,547 $ 8,445 Other receivables 293 234 Income tax receivable 761 1,423 Prepaid insurance 695 257 Current deferred contract costs 1,625 1,405 Current contract asset — 1,903 Other 4,851 4,642 $ 14,772 $ 18,309 |
Assets Held for Sale | Assets held for sale consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Trade receivables, net $ 7,307 $ 7,306 Materials and supplies 13,194 13,510 Prepaid expenses and other current assets 7,561 3,768 Property & equipment, net 100,903 87,441 Noncurrent deferred contract costs 20,095 4,196 Operating lease ROU asset 205 197 Other noncurrent assets 1,200 699 $ 150,465 $ 117,117 |
Property and Equipment, Net | Property and equipment, net, consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Drilling equipment $ 625,134 $ 626,546 Assets under construction 1,560 148 Office and technology equipment 18,405 18,405 Leasehold improvements 523 523 645,622 645,622 Accumulated depreciation ( 276,751 ) ( 266,018 ) Property and equipment, net $ 368,871 $ 379,604 |
Other Assets | Other assets consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Noncurrent restricted cash $ 15,644 $ 15,644 Deferred certification costs 5,182 5,199 Noncurrent deferred contract costs 5,917 6,832 Deferred income taxes 1,627 1,776 Other noncurrent assets 3,545 2,392 $ 31,915 $ 31,843 |
Other Current Liabilities | Other current liabilities consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Interest $ 12,230 $ 4,136 Compensation (1) 7,207 7,040 Income taxes payable 3,129 5,589 Current deferred revenue 17,872 12,311 Current portion of operating lease liabilities 1,580 1,710 Other 674 747 $ 42,692 $ 31,533 (1) Includes $ 3.5 million as of March 31, 2022 and $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 Amended MIP. |
Liabilities Held for Sale | Liabilities held for sale consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Accounts payable $ 12,889 $ 4,140 Compensation 542 464 Income taxes payable 919 716 Current portion of operating lease liabilities 150 103 Deferred income taxes 1,407 1,190 Noncurrent operating lease liabilities 66 93 Other 12 14 $ 15,985 $ 6,720 |
Other Long-term Liabilities | Other Long-term liabilities consisted of the following as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) 2016 MIP - Dividend equivalent (1) $ 8,798 $ 8,735 Noncurrent deferred revenue 1,647 1,893 Noncurrent operating lease liabilities 644 969 Other non-current liabilities 5,415 5,415 $ 16,504 $ 17,012 (1) Dividend Equivalents on vested TBGs are payable on settlement of the applicable award. |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same amounts shown in the Consolidated Statement of Cash Flows as of the dates indicated: March 31, 2022 December 31, 2021 (unaudited, in thousands) Cash and cash equivalents $ 62,234 $ 73,343 Restricted cash 726 1,621 Restricted cash included within Other Assets 15,644 15,644 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $ 78,604 $ 90,608 |
Business Segment and Signific_2
Business Segment and Significant Customer Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information by Segment | Our segment results were as follows: Three Months Ended March 31, 2022 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 44,913 $ — $ — $ 44,913 Management fees — 1,103 — 1,103 Reimbursables and other 5,183 7,132 — 12,315 Total revenue 50,096 8,235 — 58,331 Operating costs and expenses Operating costs 36,438 7,495 — 43,933 General and administrative — — 6,582 6,582 Depreciation 10,856 — 439 11,295 Total operating costs and expenses 47,294 7,495 7,021 61,810 Income (loss) from operations 2,802 740 ( 7,021 ) ( 3,479 ) Other (expense) income Interest income — — 4 4 Interest expense and financing charges — — ( 8,504 ) ( 8,504 ) Other, net — — ( 775 ) ( 775 ) Total other expense — — ( 9,275 ) ( 9,275 ) Income (loss) before income taxes $ 2,802 $ 740 $ ( 16,296 ) $ ( 12,754 ) Reconciliation of income from operations to segment adjusted operating income: Drilling Services Managed Services Income from operations $ 2,802 $ 740 Depreciation 10,856 — Segment adjusted operating income $ 13,658 $ 740 Three Months Ended March 31, 2021 Drilling Services Managed Services Unallocated Consolidated (unaudited, in thousands) Revenue Contract drilling services $ 17,725 $ — $ — $ 17,725 Management fees — 98 — 98 Reimbursables and other 2,343 — — 2,343 Total revenue 20,068 98 — 20,166 Operating costs and expenses Operating costs 25,357 — — 25,357 General and administrative — — 5,495 5,495 Depreciation 13,715 — 410 14,125 Total operating costs and expenses 39,072 — 5,905 44,977 (Loss) income from operations ( 19,004 ) 98 ( 5,905 ) ( 24,811 ) Other (expense) income Interest income — — 100 100 Interest expense and financing charges — — ( 8,510 ) ( 8,510 ) Other, net — — ( 614 ) ( 614 ) Total other expense — — ( 9,024 ) ( 9,024 ) (Loss) income before income taxes $ ( 19,004 ) $ 98 $ ( 14,929 ) $ ( 33,835 ) Reconciliation of (loss) income from operations to segment adjusted operating (loss) income: Drilling Services Managed Services (Loss) income from operations $ ( 19,004 ) $ 98 Depreciation 13,715 — Segment adjusted operating (loss) income $ ( 5,289 ) $ 98 |
Summary of Revenue by Country | Our revenue by country and segment was as follows for the periods indicated (periods representing revenues of less than 10% are included in “Other countries”): Three months ended March 31, Country Segment 2022 2021 (unaudited, in thousands) Egypt Drilling Services $ 17,121 $ — India Drilling Services 13,289 8,855 UAE Managed Services 8,188 — Qatar Drilling Services 7,385 7,197 Indonesia Drilling Services — 3,970 Other countries (1) Drilling Services and Managed Services 12,348 144 Total revenues $ 58,331 $ 20,166 (1) “Other countries” represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. |
Schedule of Property and Equipment, Net by Country | Our property and equipment, net by country, was as follows as of the dates indicated (as of dates representing property and equipment of less than 10% are included in “Other countries”): March 31, 2022 December 31, 2021 (unaudited, in thousands) Egypt $ 168,696 $ 173,187 India 92,754 96,583 Indonesia 62,188 63,581 Other countries (1) 45,233 46,253 Total property and equipment $ 368,871 $ 379,604 (1) “Other countries” represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |
Organization and Recent Events
Organization and Recent Events - Additional Information (Detail) $ in Millions | Dec. 06, 2021USD ($) | Mar. 31, 2022$ / bbl |
Global oil prices | ||
Organization And Recent Events [Line Items] | ||
Global oil prices | $ / bbl | 125.72 | |
Subsidiary Agreement | ADES Arabia Holding [Member] | ||
Organization And Recent Events [Line Items] | ||
Cash consideration | $ 170 | |
Reimbursable Amounts expected to be Received | $ 34 |
Basis of Presentation and Sig_4
Basis of Presentation and Significant Accounting Policies - Schedule of Carrying Amounts of Assets and Liabilities of VIE (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Variable Interest Entity [Line Items] | ||
Current assets | $ 317,072 | $ 285,497 |
Current liabilities | 104,513 | 69,673 |
ADVantage | ||
Variable Interest Entity [Line Items] | ||
Current assets | 22,635 | 8,099 |
Non-current assets | 288 | 212 |
Current liabilities | 9,545 | 2,838 |
Non-current liabilities | 8,327 | 1,859 |
Net carrying amount | $ 5,051 | $ 3,614 |
Basis of Presentation and Sig_5
Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Net gain on sale or retirement of assets | $ 1,893,000 | $ 2,733,000 | |
Capitalized interest | 0 | 0 | |
Allowance for doubtful accounts | 5,000,000 | $ 5,000,000 | |
Foreign currency transaction gain (loss) | $ (800,000) | $ (600,000) | |
TBGs | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Vesting period | 4 years | ||
Terms of TBGs vesting and settlement | TBGs granted under the 2016 Amended MIP vest annually, ratably over four years; however, accelerated vesting is provided for in the event of a QLE. Otherwise, the settlement of any vested TBGs occurs upon the seventh anniversary of the Effective Date. | ||
PBGs | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Vesting period | 7 years | ||
9.25% First Lien Notes | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Fair value of notes outstanding | $ 335,300,000 | ||
Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Term of customer invoice payment | 30 days | ||
Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Term of customer invoice payment | 45 days | ||
Drilling Equipment | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful lives | 5 years | ||
Drilling Equipment | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful lives | 35 years | ||
Office and Technology Equipment | Minimum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful lives | 3 years | ||
Office and Technology Equipment | Maximum | |||
Basis Of Presentation And Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful lives | 7 years |
Basis of Presentation and Sig_6
Basis of Presentation and Significant Accounting Policies - Schedule of Reconciliation of Number of Shares Used For Basic and Diluted EPS Computation (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Weighted average Ordinary Shares outstanding for basic EPS | 13,115 | 13,115 |
Adjusted weighted average Ordinary Shares outstanding for diluted EPS | 13,115 | 13,115 |
Restricted Shares Equity Award | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Restricted share equity awards | 0 | 0 |
Basis of Presentation and Sig_7
Basis of Presentation and Significant Accounting Policies - Schedule of Number of Shares Excluded from Diluted EPS Computation (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Future potentially dilutive Ordinary Shares excluded from diluted EPS | 220 | 218 |
Restricted Shares Equity Award | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Future potentially dilutive Ordinary Shares excluded from diluted EPS | 220 | 218 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Disaggregation Of Revenue [Line Items] | |
Term of customer invoice payment | 30 days |
Maximum | |
Disaggregation Of Revenue [Line Items] | |
Term of customer invoice payment | 45 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Schedule of Disaggregated by Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 58,331 | $ 20,166 |
Jackups | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 17,758 | 11,220 |
Deepwater | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 32,338 | 8,848 |
Managed | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8,235 | 98 |
Dayrate Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 42,430 | 17,823 |
Dayrate Revenue | Jackups | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 15,331 | 8,898 |
Dayrate Revenue | Deepwater | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 25,996 | 8,827 |
Dayrate Revenue | Managed | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,103 | 98 |
Amortized Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,586 | |
Amortized Revenue | Jackups | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 220 | |
Amortized Revenue | Deepwater | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 3,366 | |
Reimbursable Revenue | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 12,315 | 2,343 |
Reimbursable Revenue | Jackups | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,207 | 2,322 |
Reimbursable Revenue | Deepwater | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,976 | $ 21 |
Reimbursable Revenue | Managed | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 7,132 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Schedule of Contract Cost Assets and Contract Revenue Liabilities from Contracts with Customers (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Current contract cost assets | $ 1,625 | $ 1,405 |
Noncurrent contract cost assets | 5,917 | 6,832 |
Noncurrent contract cost assets - held for sale | 20,095 | 4,196 |
Current contract revenue assets | 1,903 | |
Current contract revenue liabilities | 17,872 | 12,311 |
Noncurrent contract revenue liabilities | $ 1,647 | $ 1,893 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($) | ||
Revenue from Contract with Customer [Abstract] | ||
Beginning balance, contract costs assets | $ 12,433 | |
Increase (decrease) due to contractual changes, contract cost assets | 17,899 | |
Decrease due to recognition of revenue, contract cost asset assets | (2,695) | |
Ending balance, contract cost assets | 27,637 | [1] |
Beginning balance, contract revenue assets | 1,903 | |
Decrease due to recognition of revenue, contract revenue assets | (1,903) | |
Beginning balance, contract revenues | 14,204 | |
Increase (decrease) due to contractual changes, contract revenues | 14,187 | |
Decrease due to recognition of revenue, contract revenues | (8,872) | |
Ending balance, contract revenues | $ 19,519 | [1] |
[1] | We expect to recognize contract revenues of approximately $ 18.6 million during the remaining nine months of 2022 and $ 0.9 million thereafter related to unsatisfied performance obligations existing as of March 31, 2022 . |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Schedule of Significant Changes in Contract Cost Assets and Contract Revenue Liabilities (Parenthetical) (Detail) $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Contract revenues, remaining performance obligation | $ 18.6 |
Contract revenues, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-04-01 | |
Disaggregation Of Revenue [Line Items] | |
Contract revenues, remaining performance obligation | $ 0.9 |
Contract revenues, remaining performance obligation, expected timing of satisfaction, period |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | $ 356 | $ 871 | |
Operating Costs | |||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | [1] | 255 | 902 |
Sublease income | (121) | ||
General and Administrative | |||
Lessee Lease Description [Line Items] | |||
Total operating lease cost | [1] | 284 | 152 |
Sublease income | $ (183) | $ (62) | |
[1] | Short-term lease costs were approximately $ 0.1 million and $ 0.3 million during the three months ended March 31, 2022 and 2021 , respectively. Operating cash flows used for operating leases approximates lease expense. |
Leases - Components of Lease _2
Leases - Components of Lease Expense (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Short term lease costs | $ 0.1 | $ 0.3 |
Leases - Schedule of Operating
Leases - Schedule of Operating Leases Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Operating lease assets | $ 2,049 | $ 2,450 |
Total leased assets | 2,254 | 2,647 |
Liabilities: | ||
Current operating | 1,580 | 1,710 |
Noncurrent operating | 644 | 969 |
Total lease liabilities | 2,440 | 2,875 |
Operating Lease ROU Assets | ||
Assets: | ||
Operating lease assets | 2,049 | 2,450 |
Operating Lease ROU Assets - Held for Sale | ||
Assets: | ||
Operating lease assets | 205 | 197 |
Other Current Liabilities | ||
Liabilities: | ||
Current operating | 1,580 | 1,710 |
Other Current Liabilities - Held for Sale | ||
Liabilities: | ||
Current operating | 150 | 103 |
Other Long-term Liabilities | ||
Liabilities: | ||
Noncurrent operating | 644 | 969 |
Other Long-term Liabilities - Held for Sale | ||
Liabilities: | ||
Noncurrent operating | $ 66 | $ 93 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Remaining nine months of 2022 | $ 1,491 | |
2023 | 1,096 | |
Total future lease payments | 2,587 | |
Less imputed interest | (147) | |
Present value of lease obligations | $ 2,440 | $ 2,875 |
Leases - Additional Information
Leases - Additional Information (Detail) | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average discount rate for operating leases | 9.25% | 9.25% |
Weighted average remaining lease term for operating leases | 1 year 4 months 6 days | 1 year 6 months 21 days |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less current maturities of long-term debt | $ 0 | $ 0 |
Long-term debt, net | 347,268 | 346,858 |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 347,268 | $ 346,858 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
9.25% First Lien Notes | ||
Debt Instrument [Line Items] | ||
Debt financing cost | $ 2,732 | $ 3,142 |
Debt - 9.25% First Lien Notes -
Debt - 9.25% First Lien Notes - Additional Information (Detail) - 9.25% First Lien Notes - USD ($) $ in Millions | Nov. 30, 2018 | Mar. 31, 2022 |
Debt Instrument [Line Items] | ||
Issuance of debt | $ 350 | |
Debt instrument, interest rate | 9.25% | |
Letters of credit | $ 0.1 | |
Debt instrument, maturity date | Nov. 15, 2023 | |
New Letter of Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 50 | |
First Payment | Maximum | ||
Debt Instrument [Line Items] | ||
Repayments of debt | $ 50 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) | Dec. 04, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Feb. 10, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | |||
Ordinary shares, shares issued | 13,115,026 | 13,115,026 | 5,000,053 | ||
Additional ordinary shares issued for convertible notes | 8,114,977 | ||||
Ordinary shares, shares outstanding | 13,115,026 | 13,115,026 | |||
Number of shares granted | 0 | 0 | |||
Time-based Restricted Stock Unit | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of previously granted shares vested in period | 1,564 | ||||
Share based compensation expense | $ 300,000 | ||||
Time-based Restricted Stock Unit | Special Cash Distribution | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Dividends cash | $ 8,800,000 | ||||
Performance-based Restricted Stock Unit | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share based compensation expense | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022 | |
Minimum | |
Income Tax Contingency [Line Items] | |
Open tax year | 2011 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Brazil Improbity Action - Brazil R$ in Millions | Apr. 27, 2018BRL (R$)Defendant | Apr. 27, 2018USD ($)Defendant | Mar. 31, 2022 |
Loss Contingencies [Line Items] | |||
Allegations - description | On April 27, 2018, the Company was added as an additional defendant in a legal proceeding (the “Improbity Action”), initiated by the Brazilian Federal Prosecutor against certain individuals, including an executive of Petrobras and two political lobbyists, in connection with the contracting of the Titanium Explorer drillship to Petrobras under the Drilling Contract, with the Brazilian Government and Petrobras as plaintiffs. Vantage is alleged to have been involved in and benefitted from the purported bribery scheme at Petrobras through Hamylton Padilha, the Brazilian agent our former parent company, VDC, used in the contracting of the Titanium Explorer drillship to Petrobras, and Mr. Hsin-Chi Su, a former member of VDC’s board of directors and a significant shareholder of VDC. We first became aware of the legal proceeding on July 19, 2018 as it was previously under seal. | ||
Loss contingency, damages claimed | R$ 102.8 | $ 22,200 | |
Court authorization to seizure and freezing assets of defendants | $ | $ 88,900,000 | ||
Loss contingency, number of defendants | Defendant | 3 | 3 | |
Loss contingency, actions taken by court | On February 13, 2019, the Company learned that the Brazilian Federal Prosecutor had previously requested mutual legal assistance from the U.S. DOJ pursuant to the United Nations Convention against Corruption of 2003 to obtain a freezing order against the Company’s U.S. assets in the approximate amount of $88.9 million. |
Supplemental Financial Inform_3
Supplemental Financial Information - Prepaid Expenses and Other Current Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Sales tax receivable | $ 6,547 | $ 8,445 |
Other receivables | 293 | 234 |
Income tax receivable | 761 | 1,423 |
Prepaid insurance | 695 | 257 |
Current deferred contract costs | 1,625 | 1,405 |
Current contract asset | 1,903 | |
Other | 4,851 | 4,642 |
Prepaid expenses and other current assets | $ 14,772 | $ 18,309 |
Supplemental Financial Inform_4
Supplemental Financial Information - Assets Held for Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets, Current [Abstract] | ||
Trade receivables, net | $ 7,307 | $ 7,306 |
Materials and supplies | 13,194 | 13,510 |
Prepaid expenses and other current assets | 7,561 | 3,768 |
Property & equipment, net | 100,903 | 87,441 |
Noncurrent deferred contract costs | 20,095 | 4,196 |
Operating lease ROU asset | 205 | 197 |
Other noncurrent assets | 1,200 | 699 |
Assets held for sale | $ 150,465 | $ 117,117 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 645,622 | $ 645,622 |
Accumulated depreciation | (276,751) | (266,018) |
Property and equipment, net | 368,871 | 379,604 |
Drilling Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 625,134 | 626,546 |
Assets under Construction | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 1,560 | 148 |
Office and Technology Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | 18,405 | 18,405 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment | $ 523 | $ 523 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Assets, Noncurrent Disclosure [Abstract] | ||
Noncurrent restricted cash | $ 15,644 | $ 15,644 |
Deferred certification costs | 5,182 | 5,199 |
Noncurrent deferred contract costs | 5,917 | 6,832 |
Deferred income taxes | 1,627 | 1,776 |
Other noncurrent assets | 3,545 | 2,392 |
Total other assets | $ 31,915 | $ 31,843 |
Supplemental Financial Inform_7
Supplemental Financial Information - Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Other Liabilities Disclosure [Abstract] | |||
Interest | $ 12,230 | $ 4,136 | |
Compensation | [1] | 7,207 | 7,040 |
Income taxes payable | 3,129 | 5,589 | |
Current deferred revenue | 17,872 | 12,311 | |
Current portion of operating lease liabilities | 1,580 | 1,710 | |
Other | 674 | 747 | |
Other current liabilities | $ 42,692 | $ 31,533 | |
[1] | Includes $ 3.5 million as of March 31, 2022 and $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 Amended MIP. |
Supplemental Financial Inform_8
Supplemental Financial Information - Other Current Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Other Current Liabilities [Line Items] | |||
Compensation | [1] | $ 7,207 | $ 7,040 |
Cash Awards To Certain Key Employees | |||
Other Current Liabilities [Line Items] | |||
Compensation | $ 3,500 | $ 2,300 | |
[1] | Includes $ 3.5 million as of March 31, 2022 and $ 2.3 million as of December 31, 2021 related to cash awards granted to certain key employees of the Company pursuant to underlying award agreements and issued under the 2016 Amended MIP. |
Supplemental Financial Inform_9
Supplemental Financial Information - Liabilities Held for Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Liabilities, Current [Abstract] | ||
Accounts payable | $ 12,889 | $ 4,140 |
Compensation | 542 | 464 |
Income taxes payable | 919 | 716 |
Current portion of operating lease liabilities | 150 | 103 |
Deferred income taxes | 1,407 | 1,190 |
Noncurrent operating lease liabilities | 66 | 93 |
Other | 12 | 14 |
Liabilities Held for Sale | $ 15,985 | $ 6,720 |
Supplemental Financial Infor_10
Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Liabilities, Noncurrent [Abstract] | |||
2016 MIP - Dividend equivalents | [1] | $ 8,798 | $ 8,735 |
Noncurrent deferred revenue | 1,647 | 1,893 | |
Noncurrent operating lease liabilities | 644 | 969 | |
Other non-current liabilities | 5,415 | 5,415 | |
Other long-term liabilities | $ 16,504 | $ 17,012 | |
[1] | Dividend Equivalents on vested TBGs are payable on settlement of the applicable award. |
Supplemental Financial Infor_11
Supplemental Financial Information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 62,234 | $ 73,343 |
Restricted cash | 726 | 1,621 |
Restricted cash included within Other Assets | $ 15,644 | $ 15,644 |
Restricted Cash and Cash Equivalents, Noncurrent, Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $ 78,604 | $ 90,608 |
Supplemental Financial Infor_12
Supplemental Financial Information - Additional Information (Detail) - ADES - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Supplemental Financial Information [Line Items] | ||
Accounts receivable from related parties | $ 2.6 | $ 0.5 |
Accounts payable to related parties | $ 6.3 | $ 2.1 |
Business Segment and Signific_3
Business Segment and Significant Customer Information - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2022CustomerSegment | Mar. 31, 2021Customer | |
Entity Wide Revenue Major Customer [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Customer Concentration Risk | Sales | Drilling Services | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Number of customers accounted for revenues | 3 | 3 |
Customer Concentration Risk | Sales | Managed Services | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Number of customers accounted for revenues | 1 | |
Percentage of revenue (excluding reimbursable revenue) | 14.00% | |
Customer Concentration Risk | Sales | Customer One | Drilling Services | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Percentage of revenue (excluding reimbursable revenue) | 29.00% | 44.00% |
Customer Concentration Risk | Sales | Customer Two | Drilling Services | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Percentage of revenue (excluding reimbursable revenue) | 23.00% | 36.00% |
Customer Concentration Risk | Sales | Customer Three | Drilling Services | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Percentage of revenue (excluding reimbursable revenue) | 13.00% | 20.00% |
Business Segment and Signific_4
Business Segment and Significant Customer Information - Summary of Segment Reporting Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue | ||
Total revenue | $ 58,331 | $ 20,166 |
Operating costs and expenses | ||
Operating costs | 43,933 | 25,357 |
General and administrative | 6,582 | 5,495 |
Depreciation | 11,295 | 14,125 |
Total operating costs and expenses | 61,810 | 44,977 |
Loss from operations | (3,479) | (24,811) |
Other (expense) income | ||
Interest income | 4 | 100 |
Interest expense and other financing charges | (8,504) | (8,510) |
Other, net | (775) | (614) |
Total other expense | (9,275) | (9,024) |
Loss before income taxes | (12,754) | (33,835) |
Reconciliation of income from operations to segment adjusted operating income: | ||
(Loss) income from operations | (12,754) | (33,835) |
Depreciation expense | 11,295 | 14,125 |
Contract Drilling Services | ||
Revenue | ||
Total revenue | 44,913 | 17,725 |
Management Fees | ||
Revenue | ||
Total revenue | 1,103 | 98 |
Reimbursables and Other | ||
Revenue | ||
Total revenue | 12,315 | 2,343 |
Operating Segments | Drilling Services | ||
Revenue | ||
Total revenue | 50,096 | 20,068 |
Operating costs and expenses | ||
Operating costs | 36,438 | 25,357 |
Depreciation | 10,856 | 13,715 |
Total operating costs and expenses | 47,294 | 39,072 |
Loss from operations | 2,802 | (19,004) |
Other (expense) income | ||
Loss before income taxes | 2,802 | (19,004) |
Reconciliation of income from operations to segment adjusted operating income: | ||
(Loss) income from operations | 2,802 | (19,004) |
Depreciation expense | 10,856 | 13,715 |
Segment adjusted opearting income | 13,658 | (5,289) |
Operating Segments | Drilling Services | Contract Drilling Services | ||
Revenue | ||
Total revenue | 44,913 | 17,725 |
Operating Segments | Drilling Services | Reimbursables and Other | ||
Revenue | ||
Total revenue | 5,183 | 2,343 |
Operating Segments | Managed Services | ||
Revenue | ||
Total revenue | 8,235 | 98 |
Operating costs and expenses | ||
Operating costs | 7,495 | |
Total operating costs and expenses | 7,495 | |
Loss from operations | 740 | 98 |
Other (expense) income | ||
Loss before income taxes | 740 | 98 |
Reconciliation of income from operations to segment adjusted operating income: | ||
(Loss) income from operations | 740 | 98 |
Segment adjusted opearting income | 740 | 98 |
Operating Segments | Managed Services | Management Fees | ||
Revenue | ||
Total revenue | 1,103 | 98 |
Operating Segments | Managed Services | Reimbursables and Other | ||
Revenue | ||
Total revenue | 7,132 | |
Operating Segments | Unallocated | ||
Operating costs and expenses | ||
General and administrative | 6,582 | 5,495 |
Depreciation | 439 | 410 |
Total operating costs and expenses | 7,021 | 5,905 |
Loss from operations | (7,021) | (5,905) |
Other (expense) income | ||
Interest income | 4 | 100 |
Interest expense and other financing charges | (8,504) | (8,510) |
Other, net | (775) | (614) |
Total other expense | (9,275) | (9,024) |
Loss before income taxes | (16,296) | (14,929) |
Reconciliation of income from operations to segment adjusted operating income: | ||
(Loss) income from operations | (16,296) | (14,929) |
Depreciation expense | $ 439 | $ 410 |
Business Segment and Signific_5
Business Segment and Significant Customer Information - Summary of Revenue by Country (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | ||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | $ 58,331 | $ 20,166 | |
Egypt | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 17,121 | ||
India | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 13,289 | 8,855 | |
UAE | Managed Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 8,188 | ||
Qatar | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 7,385 | 7,197 | |
Indonesia | Drilling Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | 3,970 | ||
Other countries | Drilling Services and Managed Services | |||
Entity Wide Revenue Major Customer [Line Items] | |||
Revenues | [1] | $ 12,348 | $ 144 |
[1] | “Other countries” represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned. |
Business Segment and Signific_6
Business Segment and Significant Customer Information - Schedule of Property and Equipment, Net by Country (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | $ 368,871 | $ 379,604 | |
Egypt | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 168,696 | 173,187 | |
India | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 92,754 | 96,583 | |
Indonesia | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | 62,188 | 63,581 | |
Other countries | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Total property and equipment | [1] | $ 45,233 | $ 46,253 |
[1] | “Other countries” represent countries in which we individually had property and equipment, net, representing less than 10% of total property and equipment, net. |