Vantage Drilling International

Vantage reported Q3 2025 revenue of $23.3 million, down from $49 million in the same quarter last year; year-to-date revenue was $89.7 million versus $174.9 million. Operating costs were $40.4 million in Q3, up from $38 million a year ago, while GA&A was higher by $900,000; equity investment loss was $1.8 million. The company recorded a $102.1 million gain on sale of assets from the Tungsten Explorer transaction, and net result attributable to shareholders was $67.2 million for the quarter and $32.2 million year-to-date. Cash ended at $197.4 million, including $2.4 million restricted cash and $39.7 million of prefunded cash; VDI cash excluding prefunding was $157.7 million. Management did not provide formal next-quarter or full-year revenue/EPS guidance, but said the Tungsten Explorer has resumed operations under a 160-day firm contract plus 290 days of options, Platinum Explorer is pursuing the ONGC tender for a 3-year plus 1-year option campaign, and the company remains focused on securing profitable long-term contracts and evaluating shareholder returns at a Board meeting in early December.

Ihab Toma framed the quarter as a success driven by safe and efficient operations and the execution of the company’s asset-light strategy. He highlighted the Tungsten Explorer sale, the rig’s return to Congo operations, and the company’s debt reduction, saying Vantage is now well positioned to return capital to shareholders. His tone was upbeat but measured, noting no decision has yet been made on dividends or other capital returns.

Rafael Blattner focused on the cash build and the mechanics behind it: cash rose to $197.4 million from $89.6 million at year-end 2024, with VDI cash excluding customer prefunding at $157.7 million versus $61.4 million. He said the quarter’s $96.3 million cash increase net of prefunding was mainly driven by $198.8 million from the Tungsten Explorer sale and $4 million from the Soehanah purchase price adjustment, partially offset by $65.1 million to redeem senior notes, $12.5 million used in operations, $11.6 million for the JV maintenance/certification work, $9.6 million of capex, $5.2 million of interest, and $2.5 million in repurchased shares/dividend equivalents. He also noted working capital rose to $154.5 million, and explained Q3 operating costs of $40.4 million reflected a $12.9 million write-off of deferred costs related to the Tungsten Explorer sale and a $2.4 million warranty expense tied to Soehanah.

Analyst questions centered on Platinum Explorer’s terminated contract, idle-cost assumptions, the ONGC tender, and the long-term cash-return framework after the Tungsten sale. Management said it received $20 million in the fourth quarter related to Platinum Explorer and that, after netting prep costs, the company should be “somewhat indifferent” on the contract financially; they suggested using about $50,000 a day as an idle-cost proxy. On ONGC, Ihab Toma said bids are scheduled for Thursday after repeated one-week delays. On shareholder returns, management said no decision has been taken yet, and the issue will be discussed at the Board meeting in early December.