VTDRF - Vantage Drilling: Proposed TotalEnergies Joint Venture Addresses Debt Issues - Hold

2024-05-13 07:29:26 ET

Summary

• Small offshore driller Vantage Drilling International is facing some near-term headwinds as two rigs are currently undergoing expensive shipyard projects.
• In addition, the 6th generation drillship "Platinum Explorer" is likely to face some idle time in the second half of the year.
• Discussing proposed sale of the 7th generation drillship "Tungsten Explorer" to a joint venture with TotalEnergies.
• The transaction will result in the company becoming debt free, but likely limit the rig's future EBITDA contributions.
• Given very limited trading volume on the OTC, investors should consider larger competitors like Seadrill, Valaris or Diamond Offshore Drilling for exposure to the offshore drilling industry.

Note:

Vantage Drilling International or "Vantage Drilling" ( OTCPK:VTDRF ) has been discussed by me previously, so investors should view this article as an update to my earlier coverage of the company. ...

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