Q3 2025 Vantage Drilling International Earnings Call

November 25, 2025

Operator: Good day, and thank you for standing by. Welcome to the Vantage Drilling International Q3, Q2, Q5 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised today's conference is being recorded. I will now turn the conference over to your speaker today, Raphael Blattner. Please go ahead.

Rafael Blattner: Thank you. Good morning, everyone, and welcome to the Vantage Drilling International Q3, Q2, Q5 earnings conference call. On the call with me today is Ehab Toma, our CEO. This morning, we released our earnings announcement for the quarter ended 30 September 2025. The earnings release is available on our website at vantagedrilling.com. Please note that any comments we make today about our expectations of future events and projections are forward-looking statements pursuant to the Private Securities Litigation Reform Act. We have based forward-looking statements on management's current expectations and assumptions, and not on historical facts. Examples of these statements include, but are not limited to, our expectations regarding future results, including expectations regarding our liquidity position, future costs and expenses related to upgrades and out-of-service work, as well as contract preparation costs and expenses.

Rafael Blattner: Thank you. Good morning, everyone, and welcome to the Vantage Drilling International Q3, Q2, Q5 earnings conference call. On the call with me today is Ihab Toma, our CEO. This morning, we released our earnings announcement for the quarter ended 30 September 2025. The earnings release is available on our website at vantagedrilling.com. Please note that any comments we make today about our expectations of future events and projections are forward-looking statements pursuant to the Private Securities Litigation Reform Act. We have based forward-looking statements on management's current expectations and assumptions, and not on historical facts. Examples of these statements include, but are not limited to, our expectations regarding future results, including expectations regarding our liquidity position, future costs and expenses related to upgrades and out-of-service work, as well as contract preparation costs and expenses.

Good day, and thank you for standing by. Welcome to the Vantage Drilling International third quarter 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press *1.1 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *1.1 again. Please be advised that today's conference is being recorded. I would like to turn the conference over to your speaker today, Raphael Blackner. Please go ahead.

Thank you.

Good morning, everyone, and welcome to the Vantage Drilling International Limited third quarter 2025 earnings conference call.

On the call with me today is Ehab Tomah, our CEO.

This morning, we released our earnings announcement for the quarter ended September 30, 2025.

The earnings release is available on our website at VantageDrilling.com. Please note that any comments we make today about our expectations of future events and projections are our forward-looking statements pursuant to the Private Securities Litigation Reform Act.

We have based forward-looking statements on management's current expectations and assumptions, and not on historical facts.

Examples of these statements include, but are not limited to, our expectations regarding future results.

Including expectations regarding our liquidity position.

Rafael Blattner: Forward-looking statements in today's call are subject to a number of risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from the projections made today. Vantage does not undertake to update any such statement or risk factor that could cause actual results to differ materially from our expectations. We refer you to our earnings release and financials available on our website. We have pre-recorded our prepared remarks and are participating on the call remotely to manage the question and answer session segment of the call. In the event there are issues with sound quality or of a similar nature, please accept our apologies in advance, and thank you for your understanding. Now, let me turn the call over to our CEO, Mr. Ehab Toma.

Forward-looking statements in today's call are subject to a number of risks and uncertainties, many of which are beyond our control and could cause actual results to differ materially from the projections made today. Vantage does not undertake to update any such statement or risk factor that could cause actual results to differ materially from our expectations. We refer you to our earnings release and financials available on our website. We have pre-recorded our prepared remarks and are participating on the call remotely to manage the question and answer session segment of the call. In the event there are issues with sound quality or of a similar nature, please accept our apologies in advance, and thank you for your understanding. Now, let me turn the call over to our CEO, Mr. Ihab Toma.

Future costs and expenses related to upgrades and out-of-service work, as well as contract preparation costs and expenses.

Vantage does not undertake to update any such statement or risk factor that could cause actual results to differ materially from our expectations.

We refer you to our earnings release and financials available on our website. We have pre-recorded our prepared remarks, and we are participating on the call remotely to manage the question-and-answer session segment of the call.

In the event that there are issues with sound quality or of a similar nature, please accept our apologies in advance. Thank you for your understanding.

Ihab Toma: Thank you, Raphael, and welcome, everyone. I am pleased to report a successful Q3 of 2025, driven by safe and efficient operations. As previously reported, we sold a Tungsten Explorer on 11 August 2025 for $265 million to the joint venture with TotalEnergies, in which TotalEnergies owns 75% interest and Vantage owns 25%. The consideration consisted of $198.75 million in cash and $66.25 million in equity. Vantage will continue to operate the Tungsten Explorer under a management agreement for 10 years, with an option to extend for an additional five years. Subsequent to the sale, the Tungsten Explorer completed its scheduled maintenance, certification, and upgrade work scope in Las Palmas, and has since mobilized back to Congo and successfully commenced operations on 5 November 2025. As a result of the sale, Vantage redeemed its outstanding senior notes of approximately $65.1 million on 10 September.

Ihab Toma: Thank you, Rafael, and welcome, everyone. I am pleased to report a successful Q3 of 2025, driven by safe and efficient operations. As previously reported, we sold a Tungsten Explorer on 11 August 2025 for $265 million to the joint venture with TotalEnergies, in which TotalEnergies owns 75% interest and Vantage owns 25%. The consideration consisted of $198.75 million in cash and $66.25 million in equity. Vantage will continue to operate the Tungsten Explorer under a management agreement for 10 years, with an option to extend for an additional five years. Subsequent to the sale, the Tungsten Explorer completed its scheduled maintenance, certification, and upgrade work scope in Las Palmas, and has since mobilized back to Congo and successfully commenced operations on 5 November 2025. As a result of the sale, Vantage redeemed its outstanding senior notes of approximately $65.1 million on 10 September.

Now, let me turn the call over to our CEO Mr. Ehab Tomah

Thank you. Raphael, and welcome everyone.

I am pleased to report a successful third quarter of 2025, driven by safe and efficient operations.

As previously reported, we sold a plankton Explorer on August 11th, 2025 for 265 million to the joint venture. With total energies in which total energy is owned, 75% interest and Vantage owns 25%.

The consideration consisted of $198.75 million in cash and $66.25 million in equity.

Advantage will continue to operate the function Explorer under a management agreement for 10 years, with an option to extend for an additional 5 years.

Subsequent to the sale that Explorer completed, its scheduled maintenance certification and upgrade work scope in Las Palmas has since mobilized back to Congo and successfully commenced operations on November 5, 2025.

Ihab Toma: In April, we announced a conditional letter of award for the Platinum Explorer for an approximately 260-day campaign, including mobilization and demobilization. Unfortunately, in October, Vantage was required to terminate the contract due to changes in the applicable economic sanctions that made performance of the contract unlawful. Prior to the sanctions being imposed, Vantage was both contractually entitled to and received a payment to cover the preparation costs incurred. Accordingly, we do not expect this termination to have a material financial impact on the company. I would now like to take you through our progress in relation to our three corporate goals of: 1) Maintaining our stellar safety and operational performance, 2) The contracting of our entire fleet, and 3) Achieving excellent stakeholder returns. I will begin with our first corporate goal and our number one differentiator: our stellar safety and operational performance.

In April, we announced a conditional letter of award for the Platinum Explorer for an approximately 260-day campaign, including mobilization and demobilization. Unfortunately, in October, Vantage was required to terminate the contract due to changes in the applicable economic sanctions that made performance of the contract unlawful. Prior to the sanctions being imposed, Vantage was both contractually entitled to and received a payment to cover the preparation costs incurred. Accordingly, we do not expect this termination to have a material financial impact on the company. I would now like to take you through our progress in relation to our three corporate goals of: 1) Maintaining our stellar safety and operational performance, 2) The contracting of our entire fleet, and 3) Achieving excellent stakeholder returns. I will begin with our first corporate goal and our number one differentiator: our stellar safety and operational performance.

The result of a sale Advantage redeemed, its outstanding, senior notes of approximately 65.1 million on September 10th.

In April, we announced a conditional letter of a word for the Platinum Explorer for an approximately 260-day campaign, including mobilization and demobilization.

Unfortunately, in October, Vantage was required to terminate the contract. Due to changes in the applicable economic sanctions that made performance of the contract and lawful

Prior to the sanctions, being imposed Vantage, was both contractually entitled to and received a payment to cover the preparation cost incurred.

Accordingly, we do not expect this termination to have a material financial impact on the company.

I would now like to take you through our progress in relation to our three corporate goals of.

1. Maintaining our stellar safety and operational performance to

the contracting of our entire fleet, and

Achieving excellent. Stakeholder returns.

Ihab Toma: Our safety performance remained strong in Q3, with zero recordable and lost-time incidents. Environmental performance remained strong this quarter, with no reported incidents, with our focus remaining on sustainable and efficient operations. The company's sustainability initiatives continue to progress, including enhanced GHG emissions tracking and ongoing waste reduction efforts, whilst all corporate certifications remain fully compliant. Now, switching to operations, revenue efficiency for the Tungsten Explorer during Q3 2025 was 99.8%, while our managed fleet achieved 99.4%. I will now walk you through our fleet status, which is directly aligned with our second corporate objective, contracting the entire fleet. Starting with our own fleet for Platinum Explorer, our priority remains to focus on opportunities and adding term backlog. The rig is participating in a number of active tenders and will participate in the highly anticipated ONGC tender for a 3-year plus 1-year option campaign.

Our safety performance remained strong in Q3, with zero recordable and lost-time incidents. Environmental performance remained strong this quarter, with no reported incidents, with our focus remaining on sustainable and efficient operations. The company's sustainability initiatives continue to progress, including enhanced GHG emissions tracking and ongoing waste reduction efforts, whilst all corporate certifications remain fully compliant. Now, switching to operations, revenue efficiency for the Tungsten Explorer during Q3 2025 was 99.8%, while our managed fleet achieved 99.4%. I will now walk you through our fleet status, which is directly aligned with our second corporate objective, contracting the entire fleet. Starting with our own fleet for Platinum Explorer, our priority remains to focus on opportunities and adding term backlog. The rig is participating in a number of active tenders and will participate in the highly anticipated ONGC tender for a 3-year plus 1-year option campaign.

I will begin with our first corporate goal and our number one differentiator: our stellar safety and operational performance.

Our safety performance remains strong in the third quarter, with zero recordable and lost time incidents. Environmental performance remained strong this quarter, with no reported incidents, as our focus remains on sustainable and efficient operations.

The company's sustainability initiatives continue to progress, including enhanced GHG emissions tracking and ongoing waste reduction efforts. While all corporate certifications remain fully compliant.

Operations revenue efficiency for the Tungsten Explorer during the third quarter of 2025 was 99.8%, while our managed fleet achieved 99.4%.

I will now walk you through our Fleet status, which is directly aligned with our second corporate objective.

Contracting, the entire fleet.

Starting with our own fleet for Platinum Explorer, our priority remains to focus on opportunities and adding term backlog.

Ihab Toma: Turning to the Tungsten Explorer, the rig has successfully completed its major out-of-service work scope in Las Palmas and commenced drilling operations in the Republic of Congo for TotalEnergies under the management agreement. The firm duration for this contract is 160 days, with additional options for a further 290 days. For the managed jack-ups, the Topaz Driller continues operations with CPOC in the joint development area between Malaysia and Thailand. There is currently over 11 months remaining of the firm term, and a further three-month option available to be exercised, with the first option strike date in Q1 2026. The SOHANA concluded operations with Metco Energies in Indonesia in Q3 and subsequently demobilized to Johor Bahru, where the rig is idle and is being actively marketed for a number of opportunities. At Q4, our total backlog was $206.6 million.

Turning to the Tungsten Explorer, the rig has successfully completed its major out-of-service work scope in Las Palmas and commenced drilling operations in the Republic of Congo for TotalEnergies under the management agreement. The firm duration for this contract is 160 days, with additional options for a further 290 days. For the managed jack-ups, the Topaz Driller continues operations with CPOC in the joint development area between Malaysia and Thailand. There is currently over 11 months remaining of the firm term, and a further three-month option available to be exercised, with the first option strike date in Q1 2026. The SOHANA concluded operations with Metco Energies in Indonesia in Q3 and subsequently demobilized to Johor Bahru, where the rig is idle and is being actively marketed for a number of opportunities. At Q4, our total backlog was $206.6 million.

The rig is participating in a number of active tenders and will participate in the highly anticipated ONGC tender for a 3-year plus 1-year option campaign.

Turning to the function Explorer, the rig has successfully completed its major out-of-service work scope in Las Palmas and commenced drilling operations in the Republic of Congo for Total Energies under the management agreement.

The Firm duration for this contract is 160 days with additional options for a further 290 days.

For the managed Jack UPS, the Topaz Driller continues operations with CPO in the joint development area between Malaysia and Thailand.

There is currently over 11 months remaining of the firm term, along with further 3-month options available to be exercised.

with the first option, strike date in the first quarter of 2026.

The Sohana concluded operations with Metco Energies in Indonesia in the third quarter and subsequently demobilized to Johar Baru, where the rig is idle and is being actively marketed for a number of opportunities.

Ihab Toma: The majority relates to our managed fleet, primarily the Tungsten Explorer's 10-year management agreement. The remaining balance reflects the Platinum Explorer's backlog as of Q4, which has now been fully earned and recognized upon contract termination. Turning to market dynamics, we continue to see positive long-term fundamentals in both the shallow water and deep water segments, while we still expect some idle periods across all segments extending through 2026. This outlook is supported by the issuance of several deep-water longer-term tenders, and jack-ups being recalled to operation on long-term contracts after periods of suspension in the Middle East. These signs of renewed contracting activity reinforce our view that utilization will continue to improve gradually, underpinning a resilient offshore market in the years ahead. Moving to our third corporate goal of achieving excellent stakeholder returns. In Q3 of 2025, we ended with a total cash balance of $197.4 million.

The majority relates to our managed fleet, primarily the Tungsten Explorer's 10-year management agreement. The remaining balance reflects the Platinum Explorer's backlog as of Q4, which has now been fully earned and recognized upon contract termination. Turning to market dynamics, we continue to see positive long-term fundamentals in both the shallow water and deep water segments, while we still expect some idle periods across all segments extending through 2026. This outlook is supported by the issuance of several deep-water longer-term tenders, and jack-ups being recalled to operation on long-term contracts after periods of suspension in the Middle East. These signs of renewed contracting activity reinforce our view that utilization will continue to improve gradually, underpinning a resilient offshore market in the years ahead. Moving to our third corporate goal of achieving excellent stakeholder returns. In Q3 of 2025, we ended with a total cash balance of $197.4 million.

At quarter-end, our total backlog was $206.6 million.

The majority relates to our managed Fleet primarily the tungsten Explorer's 10year management agreement.

The remaining balance reflects the Platinum Explorer's backlog as of quarter-end, which has now been fully earned and recognized upon contract termination.

Turning to market dynamics, we continue to see positive long-term fundamentals in both the shallow water and deep water segments, while we still expect some idle periods across all segments extending through 2026.

This outlook is supported by the issuance of several deep-water, longer-term tenders and Jack-ups being recalled to operation on long-term contracts after periods of suspension in the Middle East.

These signs of renewed contracting activity reinforce our view that utilization will continue to improve gradually, underpinning a resilient offshore market in the years ahead.

Moving to our third corporate goal of achieving excellent stakeholder returns in the third quarter of 2025.

Ihab Toma: This includes $2.4 million of restricted cash and $39.7 million of pre-funded cash by managed services clients. The increased liquidity was driven by the sale of the Tungsten Explorer, partially offset by the redemption of senior notes. The monetization of the Tungsten Explorer highlights Vantage's continued success in its managed services business, setting the company asset-light, debt-free, and well-positioned to return capital to shareholders. In closing, we remain focused on maintaining exceptional safety and operational performance, and securing profitable long-term drilling contracts to deliver strong returns for our stakeholders. With that, I would like to turn the call back over to Raphael to take us through the numbers.

This includes $2.4 million of restricted cash and $39.7 million of pre-funded cash by managed services clients. The increased liquidity was driven by the sale of the Tungsten Explorer, partially offset by the redemption of senior notes. The monetization of the Tungsten Explorer highlights Vantage's continued success in its managed services business, setting the company asset-light, debt-free, and well-positioned to return capital to shareholders. In closing, we remain focused on maintaining exceptional safety and operational performance, and securing profitable long-term drilling contracts to deliver strong returns for our stakeholders. With that, I would like to turn the call back over to Rafael to take us through the numbers.

We ended with a total cash balance of 197.4 million.

2.4 million of restricted cash.

And $39.7 million of pre-funded cash by managed services clients.

The increased liquidity was driven by the sale of the Tungsten Explorer.

Partially offset by the redemption of senior notes.

The monetization of the Tungsten Explorer highlights Vantage's continued success in its managed services business.

Setting the company asset light, debt-free, and well-positioned to return capital to shareholders.

In closing.

We remain focused on maintaining exceptional safety and operational performance, and securing profitable long-term drilling contracts to deliver strong returns for our stakeholders.

Rafael Blattner: Thank you, Ehab, and welcome, everyone. I will now provide an overview of our financial performance for Q4, Q3, 2025. The company ended Q3 with approximately $197.4 million in cash, up from $89.6 million at year-end 2024. Excluding cash pre-funded by our managed services customers, Vantage Drilling International's cash balance was $157.7 million, compared to $61.4 million at year-end. This meaningful improvement reflects the sale of the Tungsten Explorer to the joint venture and demonstrates the continued execution of our asset-light strategy, delivering accretive transactions and strengthening value for our stakeholders. The increase in cash during Q3 of $96.3 million, net of managed services pre-funding, was driven primarily by $198.8 million of proceeds from the sale of the Tungsten Explorer and $4 million received from the purchase price adjustment on the SOHANA sale to Addis.

Rafael Blattner: Thank you, Ihab, and welcome, everyone. I will now provide an overview of our financial performance for Q4, Q3, 2025. The company ended Q3 with approximately $197.4 million in cash, up from $89.6 million at year-end 2024. Excluding cash pre-funded by our managed services customers, Vantage Drilling International's cash balance was $157.7 million, compared to $61.4 million at year-end. This meaningful improvement reflects the sale of the Tungsten Explorer to the joint venture and demonstrates the continued execution of our asset-light strategy, delivering accretive transactions and strengthening value for our stakeholders. The increase in cash during Q3 of $96.3 million, net of managed services pre-funding, was driven primarily by $198.8 million of proceeds from the sale of the Tungsten Explorer and $4 million received from the purchase price adjustment on the SOHANA sale to Addis.

With that, I would like to turn the call back over to Rafael to take us through the numbers.

Thank you, Ehab. And welcome, everyone. I will now provide an overview of our financial performance for the quarter ending September 30, 2025.

the company ended, the third quarter with approximately 197.4 million in cash up from 89.6 million at year-end 2024,

Excluding cash pre-funded by our managed Services. Customers vdis cash. Balance was 157.7 Million compared to 61.4 million at year end.

This meaningful improvement reflects the sale of the tungsten Explorer to the joint venture and demonstrates the continued execution of our asset-light strategy, delivering creative transactions and strengthening value for our stakeholders.

The increase in cash during the quarter of $96.3 million, net of managed services pre-funding, was driven primarily by $198.8 million of proceeds for.

Rafael Blattner: These inflows were partially offset by $65.1 million used to redeem the senior notes, $12.5 million used in operations, $11.6 million invested in the joint venture for scheduled out-of-service maintenance and equipment certification, $9.6 million of capital expenditures, $5.2 million of cash interest, and $2.5 million in repurchased shares and dividend equivalents. Working capital at Q3 2025 increased to $154.5 million from $115.3 million at year-end. The increase was driven mainly by higher cash and a rise in accounts receivable, including $20 million from the now-terminated Platinum Explorer contract, which we collected in Q4. These increases were partly offset by a $29.6 million reduction in inventory after the sale of the Tungsten Explorer and a $20 million increase in performance obligations for the Platinum Explorer, which are now fully recognized following the contract termination.

These inflows were partially offset by $65.1 million used to redeem the senior notes, $12.5 million used in operations, $11.6 million invested in the joint venture for scheduled out-of-service maintenance and equipment certification, $9.6 million of capital expenditures, $5.2 million of cash interest, and $2.5 million in repurchased shares and dividend equivalents. Working capital at Q3 2025 increased to $154.5 million from $115.3 million at year-end. The increase was driven mainly by higher cash and a rise in accounts receivable, including $20 million from the now-terminated Platinum Explorer contract, which we collected in Q4. These increases were partly offset by a $29.6 million reduction in inventory after the sale of the Tungsten Explorer and a $20 million increase in performance obligations for the Platinum Explorer, which are now fully recognized following the contract termination.

The sale of the tungsten Explorer and $4 million received from the purchase price adjustment on the Sohana sale to Addis.

These inflows were partially offset by $65.1 million used to redeem the senior notes, $12.5 million used in operations, and $11.6 million invested in the joint venture for scheduled out-of-service maintenance and equipment certification.

$9.6 million of capital expenditures, $5.2 million in cash, interest, and $2.5 million in repurchase, shares, and dividend equivalents.

Working capital at September 30, 2025, increased to $154.5 million.

From 115.3 million at year-end.

The increase was driven mainly by higher cash and a rise in accounts receivable, including $20 million from the now terminated Platinum Explorer contract, which we collected in the fourth quarter.

Rafael Blattner: Accounts payable also increased by $14.7 million, reflecting out-of-service and mobilization costs for the Platinum Explorer, out-of-service projects for the Tungsten Explorer, and ongoing operations. For Q3 and year-to-date of 2025, we reported revenues of $23.3 million and $89.7 million, respectively, compared to $49 million and $174.9 million in the same periods last year. The decline in revenue reflects our strategic shift to an asset-light model, which resulted in fewer operating days for the Tungsten Explorer following its sale, the sale of the Topaz Driller and SOHANA, and the completion of the Capella, Polaris, and EDC management agreements. These impacts were partially offset by higher management fees. Revenue efficiency in Q3 of 2025 was 99.8% and 99.4% for the Tungsten Explorer and the managed fleet, respectively. Year-to-date, revenue efficiency was 99.8% and 98.5%, respectively.

Accounts payable also increased by $14.7 million, reflecting out-of-service and mobilization costs for the Platinum Explorer, out-of-service projects for the Tungsten Explorer, and ongoing operations. For Q3 and year-to-date of 2025, we reported revenues of $23.3 million and $89.7 million, respectively, compared to $49 million and $174.9 million in the same periods last year. The decline in revenue reflects our strategic shift to an asset-light model, which resulted in fewer operating days for the Tungsten Explorer following its sale, the sale of the Topaz Driller and SOHANA, and the completion of the Capella, Polaris, and EDC management agreements. These impacts were partially offset by higher management fees. Revenue efficiency in Q3 of 2025 was 99.8% and 99.4% for the Tungsten Explorer and the managed fleet, respectively. Year-to-date, revenue efficiency was 99.8% and 98.5%, respectively.

These increases were partly offset by a $29.6 million reduction in inventory, after the sale of the Tungsten Explorer, and a $20 million increase in performance obligations for the Platinum Explorer, which are now fully recognized following the contract termination.

For the third quarter and year-to-date of 2025, we reported revenues of $23.3 million and $89.7 million, respectively, compared to $49 million and $174.9 million in the same periods last year.

The decline in revenue reflects our strategic shift to an asset-light model, which resulted in fewer operating days for the tungsten Explorer following its sale, the sale of the topaz driller, and the completion of the Capella Polaris and EDC management agreements.

These impacts were partially offset by higher management fees. Revenue efficiency in the third quarter of 2025 was 99.8% for the Tungsten Explorer and 99.4% for the managed fleet, respectively.

Rafael Blattner: Operating costs for Q3 were $40.4 million, compared to $38 million in Q2, an increase of $2.4 million. The increase was driven mainly by the $12.9 million write-off of deferred costs related to the sale of the Tungsten Explorer, the early contract termination warranty for the SOHANA of $2.4 million, and higher reimbursable costs. These increases were partially offset by the completion of the Capella and EDC management agreements, the sale of the jack-ups, and lower Platinum Explorer costs due to completion of the out-of-service work scope. Year-to-date operating costs for 2025 were $101.7 million, compared to $130.3 million in the same period of 2024, a decrease of $28.6 million. The reduction reflects our strategic shift to an asset-light model, driven by the sale of our jack-ups and the Tungsten Explorer, the conclusion of the Polaris, Capella, and EDC management agreements, and lower Platinum Explorer costs due to reduced activity.

Operating costs for Q3 were $40.4 million, compared to $38 million in Q2, an increase of $2.4 million. The increase was driven mainly by the $12.9 million write-off of deferred costs related to the sale of the Tungsten Explorer, the early contract termination warranty for the SOHANA of $2.4 million, and higher reimbursable costs. These increases were partially offset by the completion of the Capella and EDC management agreements, the sale of the jack-ups, and lower Platinum Explorer costs due to completion of the out-of-service work scope. Year-to-date operating costs for 2025 were $101.7 million, compared to $130.3 million in the same period of 2024, a decrease of $28.6 million. The reduction reflects our strategic shift to an asset-light model, driven by the sale of our jack-ups and the Tungsten Explorer, the conclusion of the Polaris, Capella, and EDC management agreements, and lower Platinum Explorer costs due to reduced activity.

Year-to-date revenue, efficiency was 99.8% and 98.5% respectively.

Operating costs for the third quarter were $40.4 million compared to $38 million in the same quarter of 2024, an increase of $2.4 million.

Of $2.4 million and higher reimbursable costs.

These increases were partially offset by the completion of the capella and EDC management. Agreements the sale of the jack-ups and lower platinum, Explorer costs due to completion of the out-of-service work scope.

Year-to-date operating costs for 2025 were $101.7 million compared to $130.3 million in the same period of 2024, a decrease of $28.6 million.

Rafael Blattner: The decreases were partially offset by the write-off of deferred costs related to the Tungsten Explorer's sale, the early contract termination warranty expense for the SOHANA, and increased reimbursable costs. General and administrative expenses for Q3 and year-to-date were higher by $900,000 and $2.5 million, respectively. The increase was mainly due to accelerated vesting of share-based compensation of $2.5 million and $5.7 million, respectively, partially offset by lower professional fees related to the Tungsten Explorer transaction, the Bermuda domiciliation, and the Oslo listing. Equity investment loss from unconsolidated affiliates totaled $1.8 million for Q3 and $2.4 million year-to-date in 2025. These losses primarily reflect our share of joint venture expenses associated with the Tungsten Explorer's major maintenance, certification activities, and upgrade work performed ahead of and during its out-of-service period.

The decreases were partially offset by the write-off of deferred costs related to the Tungsten Explorer's sale, the early contract termination warranty expense for the SOHANA, and increased reimbursable costs. General and administrative expenses for Q3 and year-to-date were higher by $900,000 and $2.5 million, respectively. The increase was mainly due to accelerated vesting of share-based compensation of $2.5 million and $5.7 million, respectively, partially offset by lower professional fees related to the Tungsten Explorer transaction, the Bermuda domiciliation, and the Oslo listing. Equity investment loss from unconsolidated affiliates totaled $1.8 million for Q3 and $2.4 million year-to-date in 2025. These losses primarily reflect our share of joint venture expenses associated with the Tungsten Explorer's major maintenance, certification activities, and upgrade work performed ahead of and during its out-of-service period.

The reduction reflects our strategic shift to an asset-light model driven by the sale of our jack-ups and the Tungsten Explorer, the conclusion of the Polaris Capella and EDC management agreements, and lower Platinum Explorer costs due to reduced activity.

The decreases were partially offset by the right off of deferred costs, related to the tungsten Explorer sale, the early contract, termination warranty expense for the sohana and increased reimbursable costs.

General and administrative expenses for the third quarter and year to date were higher by $900,000 and $2.5 million, respectively.

The increase was mainly due to accelerated vesting of share-based compensation of $2.5 million and $5.7 million, respectively, partially offset by lower professional fees related to the tungsten Explorer transaction, the Bermuda domiciliation, and the Oslo listing.

Equity investment loss from unconsolidated Affiliates totaled, 1.8 million for

the third quarter and 2.4 million year to date in 2025.

Rafael Blattner: For Q3 of 2025, gain on sale of assets was $102.1 million associated with the sale of Tungsten Explorer to the joint venture. The year-to-date gain on sale of assets was $102.4 million due to the sale of Tungsten Explorer and purchase price adjustment from the sale of the SOHANA to Addis of $300,000. Interest income was higher by $1.4 million for Q3 and $1.3 million for year-to-date due to higher cash balance after the sale of the Tungsten Explorer. Interest expense decreased by $4.6 million in Q3 and by $12.4 million year-to-date, reflecting the redemption of $184.9 million of senior notes in November 2024 and $65.1 million in September 2025. The net result attributed to shareholders for Q3 and year-to-date was $67.2 million and $32.2 million, respectively.

For Q3 of 2025, gain on sale of assets was $102.1 million associated with the sale of Tungsten Explorer to the joint venture. The year-to-date gain on sale of assets was $102.4 million due to the sale of Tungsten Explorer and purchase price adjustment from the sale of the SOHANA to Addis of $300,000. Interest income was higher by $1.4 million for Q3 and $1.3 million for year-to-date due to higher cash balance after the sale of the Tungsten Explorer. Interest expense decreased by $4.6 million in Q3 and by $12.4 million year-to-date, reflecting the redemption of $184.9 million of senior notes in November 2024 and $65.1 million in September 2025. The net result attributed to shareholders for Q3 and year-to-date was $67.2 million and $32.2 million, respectively.

These losses primarily reflect our share of joint venture expenses associated with the tungsten Explorer's. Major maintenance certification activities and upgrade work performed ahead of and during its out of service period,

for the third quarter of 2025 gain on sale of assets, was 102.1 million associated with the sale of tungsten Explorer to the joint venture,

The year-to-date gain on the sale of assets was $102.4 million due to the sale of the Tungsten Explorer and a purchase price adjustment from the sale of the Sohana to add us of $300,000.

Interest income was higher by $1.4 million for the third quarter and $1.3 million year to date due to a higher cash balance after the sale of the Tungsten Explorer.

Interest expense decreased by 4.6 million in the third quarter and by 12.4 million year to date.

Reflecting the Redemption of 184.9 million of senior notes in November 2024 and 65.1 million in September 2025.

Rafael Blattner: Please note we will post our Q3 2025 quarterly report to our website later today, and with that, I will now turn the call back over to the operator to begin the Q&A.

Please note we will post our Q3 2025 quarterly report to our website later today, and with that, I will now turn the call back over to the operator to begin the Q&A.

The net result attributed to shareholders for the third quarter and year-to-date was $67.2 million and $32.2 million, respectively.

Operator: Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press star 11 on your telephone. If your question has been answered and you wish to remove yourself from the queue, please press star 11 again. We'll pause for a moment while we compile our Q&A roster. One moment for our first question. Our first question comes from Frederick Stenney with Clarkson Securities. Your line is open.

Operator: Thank you. Ladies and gentlemen, if you have a question or a comment at this time, please press star 11 on your telephone. If your question has been answered and you wish to remove yourself from the queue, please press star 11 again. We'll pause for a moment while we compile our Q&A roster. One moment for our first question. Our first question comes from Frederik Stene with Clarkson Securities. Your line is open.

Please note, we will post our September 30th 2025 quarterly report to our website later today. And with that, I will now turn the call back over to the operator. To begin the Q&A.

Thank you, ladies and gentlemen. If you have a question or a comment at this time, please press *1 to ask a question. If your question has been answered and you wish to remove yourself from the queue, please press *1 again.

We will pause for a moment while we compile, our Q&A roster.

1 moment before our first question,

Our first question comes from Frederick stenny with Clarks and securities. Your line is open.

Ihab Toma: Hey, Ehab and Raphael. Hope you're both well, and thank you for taking my questions. I wanted to group this a bit thematically, touching first on the Platinum Explorer, then a bit on the Tungsten, and then talking kind of high level about shareholder returns in the end. Let's start with the Platinum Explorer. Just one clarification. Did you say, Raphael, that you had received $20 million in Q4, or did I hear?

Frederik Stene: Hey, Ihab and Rafael. Hope you're both well, and thank you for taking my questions. I wanted to group this a bit thematically, touching first on the Platinum Explorer, then a bit on the Tungsten, and then talking kind of high level about shareholder returns in the end. Let's start with the Platinum Explorer. Just one clarification. Did you say, Raphael, that you had received $20 million in Q4, or did I hear?

Hey, and Raphael. Hope you're both well, and thank you for taking my questions. Um,

I wanted to, to group this a bit, uh, thematically touching first on on the Platinum Explorer, then a bit on the tungsten and then talking kind of high level about shareholder returns uh, in the end.

Uh so so let's start with the Platinum Explorer just 1 uh classification. No sorry clarification.

Did you say, Rafael, that you had received $20 million in the fourth quarter?

Rafael Blattner: Yes, you're talking about the Platinum Explorer, correct?

Or did I hear?

Ihab Toma: The Platinum Explorer, yeah.

Frederik Stene: The Platinum Explorer, yeah.

Rafael Blattner: Yes, we did receive $20 million during Q4. Your understanding is correct.

Yes, you're talking about the Platinum Explorer, correct?

Ihab Toma: Okay. Thank you for clarifying. Those $20 million, if you kind of net that—this was also my understanding from the remarks—if you net that against the work that you have been doing on the rig in relation to that contract prep, you'll be effectively net zero around that? Second, what should we think about kind of OpEx-wise for the Platinum Explorer until it gets new work? Thanks.

Frederik Stene: Okay. Thank you for clarifying. Those $20 million, if you kind of net that—this was also my understanding from the remarks—if you net that against the work that you have been doing on the rig in relation to that contract prep, you'll be effectively net zero around that? Second, what should we think about kind of OpEx-wise for the Platinum Explorer until it gets new work? Thanks.

The Platinum Explorer? Yeah, yes we did receive $20 million during the fourth quarter. Your understanding is correct.

Yeah. Okay. Thank you for for clarifying it and

Rafael Blattner: All right. Your understanding is correct on both the revenue question and on Vantage being somewhat indifferent in terms of inflows and net of outflows. Regarding the Platinum, while it is warm stacked or waiting on a contract, for modeling's sake, I would use approximately $50,000 a day as a proxy for its idle cost.

On the Reagan, in relation to that contract preparation, you will be effectively net zero around that. Uh, and second, what should we think about, kind of OPEX-wise, for the Platinum Explorer until it gets new work? Thanks.

Ihab Toma: All right. Great. I guess you're still going to be targeting the ONGC tender as the main potential long-term work for this rig. Beyond what you said in the prepared remarks, are there any other, call it, latest and greatest news around ONGC and the tender that we should be aware of?

Frederik Stene: All right. Great. I guess you're still going to be targeting the ONGC tender as the main potential long-term work for this rig. Beyond what you said in the prepared remarks, are there any other, call it, latest and greatest news around ONGC and the tender that we should be aware of?

All right, so you're you're understanding is it's correct on on both the uh the revenue question and on Vantage being somewhat indifferent, in terms of uh uh inflows net about flows regarding the Platinum while is that warm stack or waiting on a contract for modeling site? I would use approximately $50,000 a day. It's a proxy for its uh, for idle cost.

Operator: Frederick, first of all, thank you for being the first on the line for questions. You were in the queue before we even started the meeting, so that's good. Yeah, no. ONGC is scheduled to receive the bids on Thursday. As I'm sure you have followed, every week, there has been a delay for one week, an extension for one week. We hope that this time we will be submitting on Thursday, but that's the only news at the moment.

Ihab Toma: Frederik, first of all, thank you for being the first on the line for questions. You were in the queue before we even started the meeting, so that's good. Yeah, no. ONGC is scheduled to receive the bids on Thursday. As I'm sure you have followed, every week, there has been a delay for one week, an extension for one week. We hope that this time we will be submitting on Thursday, but that's the only news at the moment.

All right, great. And I, I guess, you know, you're, you're still going to be targeting the the ongc tender. It's like the main potential long-term work for for this rig beyond what you said in the prepared remarks. Are you any other, you know, call it latest and greatest news, uh, around on DC and, and the tender that we should be aware of.

Frederick, uh, first of all, thank you for, you know, being the first on the line for questions. You were in the queue before we even started the meeting, so that's good. So, yeah, no. So OMGC is scheduled to receive the bids on Thursday, as I'm sure you are aware.

We have followed that. That has been every week. There has been a delay for one week, an extension for one week. So, we hope that this time we will be submitting on Thursday. That's the only news at the moment.

Ihab Toma: All right. Thanks. My last one. Regarding the Tungsten Explorer, obviously, that's going to be some nice asset-light cash flow going forward. Can you just elaborate a bit on the dynamic? What would happen with your management fee if the rig itself doesn't have a contract or doesn't get an extension? I know it's going to average around $47,000, $48,000 per day over the 10-year period, but how would that dynamic be governed in the short term if there were gaps on the rig?

Frederik Stene: All right. Thanks. My last one. Regarding the Tungsten Explorer, obviously, that's going to be some nice asset-light cash flow going forward. Can you just elaborate a bit on the dynamic? What would happen with your management fee if the rig itself doesn't have a contract or doesn't get an extension? I know it's going to average around $47,000, $48,000 per day over the 10-year period, but how would that dynamic be governed in the short term if there were gaps on the rig?

All right, thanks. And then my last one regarding the tungsten explorer. Obviously, that's going to be some nice asset like cash flow going forward. But um,

You can. Can you just elaborate a bit on the dynamic? What would happen with your management fee if...?

Rafael Blattner: I'll take that question, Frederick. The JV, number one, there is a joint venture for the ownership of the asset, and the ownership split is going to be, or it is, 75% TotalEnergies and 25% Vantage. In the event that there is no work for the Platinum Explorer, the JV is kept whole. Once it comes to the management fee side, if there is no work, there is a reduced fee to the manager. Whenever the rig is ramping up to go back to work, the fee increases, and you would get back to the $47,500 on average once the rig is mobilizing, demobilizing, or operational. That's how the deal was structured. No exposure on the ownership side. On the management side, there are reduced fees in the event that there are no wells to be drilled by TotalEnergies or third-party operators.

Rafael Blattner: I'll take that question, Frederik. The JV, number one, there is a joint venture for the ownership of the asset, and the ownership split is going to be, or it is, 75% TotalEnergies and 25% Vantage. In the event that there is no work for the Platinum Explorer, the JV is kept whole. Once it comes to the management fee side, if there is no work, there is a reduced fee to the manager. Whenever the rig is ramping up to go back to work, the fee increases, and you would get back to the $47,500 on average once the rig is mobilizing, demobilizing, or operational. That's how the deal was structured. No exposure on the ownership side. On the management side, there are reduced fees in the event that there are no wells to be drilled by TotalEnergies or third-party operators.

The rig itself, you know, doesn't have a contractor, doesn't get an extension, and now it's going to average, you know, around $47,000 to $48,000 per day over the 10-year period. But, oh, that dynamic being governed in the short term, if there were gaps on the rig.

I'll take that question. Uh, Frederick, the JV number one, there is a joint venture for the ownership of the asset.

And the, uh, ownership split is going to be, or it is, 75% TotalEnergies and 25% Vantage. In the event that there is no work for the Platinum Explorer, the JV is kept whole.

Uh, once it comes to, uh, the management fee side, if there is no work, uh, there is a reduced fee, uh, to the manager.

Rafael Blattner: As a reminder, this deal can operate for third-party operators, and that's worth noting. Thanks.

As a reminder, this deal can operate for third-party operators, and that's worth noting. Thanks.

Ihab Toma: All right. Thank you. Actually, one last one. I'm sorry about hijacking all the questions here. I think, in the end there, you said something about being well-positioned to return cash to shareholders. I apologize if that's not the exact quote. I wondered, now that you have received all this cash, has anything changed in the way you view that? Do you think still that having a contract on the Platinum Explorer will be a prerequisite to paying out any dividends, or do you feel comfortable that you could potentially do that sooner rather than later?

Frederik Stene: All right. Thank you. Actually, one last one. I'm sorry about hijacking all the questions here. I think, in the end there, you said something about being well-positioned to return cash to shareholders. I apologize if that's not the exact quote. I wondered, now that you have received all this cash, has anything changed in the way you view that? Do you think still that having a contract on the Platinum Explorer will be a prerequisite to paying out any dividends, or do you feel comfortable that you could potentially do that sooner rather than later?

Uh, and then whenever the rig is ramping up, uh, to go back to work, the fee increases and then you would get back to the, uh, 47 and a half thousand dollars on average. Uh, once the rig is mobilizing the mobilizing, or operational. That's, that's how the, uh, how the deal was uh, was structured. So no exposure on the ownership side. And on the management side, there are reduced fees in the event that, uh, there are no Wells to be drilled by total energies or third-party operators as a reminder. Uh, this deal can operate for third-party operators. Uh, and uh, that's that's worth noting, thanks.

All right, thank you. And, and actually 1 last 1, I'm sorry about hijacking, uh, all the questions here, but I think you can kind of in in the end there you you said something about being well positioned to return cash to shareholders. And and I apologize if that's not the exact quote, but I I wondered now that you have received, you know, all this cash. Um,

Operator: Frederick, there is no decision that has been taken on that. We do have a board meeting early December, and it's an agenda item, as you can imagine. For now, there has been no decision taken.

Ihab Toma: Frederik, there is no decision that has been taken on that. We do have a board meeting early December, and it's an agenda item, as you can imagine. For now, there has been no decision taken.

Have anything changed in the way? Do you you view that you think still that having a contract on the Platinum Explorer, will be like a prerequisite to paying out any dividends or, or do you feel comfortable that you could potentially do that sooner rather than later?

Ihab Toma: All right. Thank you so much for all the answers, and apologies for all the questions. Have a good day.

Frederik Stene: All right. Thank you so much for all the answers, and apologies for all the questions. Have a good day.

Perfect. There has been no decision taken on that. We do have a board meeting in early December, and it's an agenda item, as you can imagine. But for now, there has been no decision taken.

Operator: Thank you for all the questions, Frederick.

Ihab Toma: Thank you for all the questions, Frederick.

Rafael Blattner: Thank you, Frederick.

All right, thank you so much for all the answers, and apologies for all the questions. Have a good day. Thank you for all the questions, Reg.

Operator: Ladies and gentlemen, if you have a question or a comment at this time, please press star 11 on your telephone. Again, ladies and gentlemen, if you have a question or a comment at this time, please press star 11 on your telephone. I'm not showing any further questions at this time. As such, this does conclude today's presentation. We thank you for your participation. You may now disconnect and have a wonderful day.

Thank you for Greg.

Ladies and gentlemen, if you have a question or a comment at this time, please press *1, 1 on your telephone.

Again, ladies and gentlemen, if you have a question or a comment at this time, please press star 1, 1 on your telephone.

And I'm not showing any further questions at this time.

And as such this does conclude today's presentation, we thank you for your participation. You may now disconnect and have a wonderful day.

Q3 2025 Vantage Drilling International Earnings Call

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