VANTAGE DRILLING INTERNATIONAL - 10-K filing on 2017-03-10

Business Segment Information

12 Months Ended

Dec. 31, 2016

10. Business Segment Information

We aggregate our contract drilling operations into one reportable segment even though we provide contract drilling services with different types of rigs, including jackup rigs and drillships, and in different geographic regions. 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.

Additionally, for drilling units owned by others, we provide construction supervision services while under construction and preservation management services when stacked. In September 2013, we signed an agreement to supervise and manage the construction of two ultra-deepwater drillships for a third party. We receive management fees and reimbursable costs during the construction phase of the two drillships, subject to a maximum amount for each drillship. This business represented approximately 2.6 %, 3.2%, 1.0% and 2.4 % of our total revenue for the periods from February 10, 2016 to December 31, 2016 and from January 1, 2016 to February 10, 2016 and the years ended December 31, 2015 and 2014, respectively.

For the years ended December 31, 2016, 2015 and 2014, the majority of our revenue was 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 accounted for approximately 58%, 19% and 11% of consolidated revenue for the period from February 10, 2016 2016 to December 31, 2016. Three customers accounted for approximately 58%, 18% and 14% of consolidated revenue for the period from January 1, 2016 to February 10, 2016. Three customers accounted for approximately 32%, 25% and 20% of consolidated revenue for the year ended December 31, 2015. Four customers accounted for approximately 24%, 18%, 17% and 14% of consolidated revenue for the year ended December 31, 2014.

Our revenues by country were as follows:

	Successor		Predecessor
	Period from February 10, 2016 to December 31, 2016		Period from January 1, 2016 to February 10, 2016		Year Ended December 31,
	Period from February 10, 2016 to December 31, 2016		Period from January 1, 2016 to February 10, 2016		2015		2014
Congo	$	91,435	$	13,769	$	247,415	$	—
Malaysia		30,397		3,319		—		165,004
Indonesia		18,075		4,214		—		—
India		—		—		189,973		207,309
U.S.		—		—		128,157		—
Gabon		—		—		—		207,419
Other countries (a)		18,741		2,238		206,720		303,172
Total revenues	$	158,648	$	23,540	$	772,265	$	882,904

(a)

Other countries represent countries in which we operate that individually had operating revenues representing less than 10% of total revenues earned.

Our property and equipment, net by country were as follows:

	Successor		Predecessor
	December 31, 2016		December 31, 2015

Congo	$	277,305	$	582,590
Malaysia		280,689		—
South Africa		196,473		851,099
India		—		718,966
Other countries (a)		80,061		795,732
Total property and equipment	$	834,528	$	2,948,387

(a)

Other countries represent countries in which we operate that individually had property equipment, net representing less than 10 percent of total property and equipment.

A substantial portion of our assets are mobile drilling units. 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.