Offshore drilling contractor Vantage Drilling to explore strategic sale options

(Bloomberg) – Vantage Drilling International is exploring strategic options including a potential sale, according to people familiar with the matter.

The offshore drilling contractor is working with a financial adviser, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and Vantage could opt to remain independent, the people added.

A representative for Vantage didn’t respond to requests for comment.

Vantage, which trades over the counter, has a market value of about $207 million. It also has about $180 million of debt, according to data compiled by Bloomberg.

The Houston-based company considered a strategic review in 2021, when many peers went through restructuring and the company was looking to seize on a market recovery. Management is now focused on generating cash and escaping legacy contract rates, according to a transcript of its fourth-quarter call compiled by Bloomberg.

Vantage has a fleet of two ultra-deepwater drillships and two jackup drilling rigs that are contracted for most of the year. As oil prices recovered last year, the company sold three jackup rigs to ADES Arabia Holding to get financial breathing room.

Vantage cut more than $1.5 billion of debt through a bankruptcy in 2016.