Nabors Announces FY 2016 and Fourth Quarter Results

The U.S. Drilling segment posted adjusted EBITDA of $49.2 million for the quarter, primarily as a result of a 26% increase in rig activity and higher revenues in Alaska.  Nearly all of the rig count increase was realized in the lower 48 operation which averaged 64 rigs operating in the quarter compared to 50 in the third quarter.  The Company currently has 86 rigs on revenue in the lower 48 operation, but expects lower average margins in the near term as more rigs return to work at current market rates and incur start-up expenses.  However, with improving pricing and relatively short average contract durations, this margin trend can reverse quickly.  This segment expects to complete six X, R and M800 new built rigs by year end and utilize some existing components to construct four M1000 rigs, all but one of which already have customer commitments.   All of this supports the expectation of increasingly improving results throughout the balance of 2017. 

Rig Services, which consists of the Company's manufacturing, directional drilling, and complementary services, reported positive adjusted EBITDA of $0.9 million compared to a loss of $4.3 million in the third quarter.  The improved results were primarily from increased penetration by Nabors Drilling Solutions (NDS), and a modest improvement in Canrig primarily attributable to reduced costs and higher revenues from service and repair operations.  The Company expects these trends to accelerate throughout 2017.

William Restrepo, Nabors' Chief Financial Officer, stated, "2016 was a productive year in which we continued to execute on our near and longer term goals.  We significantly enhanced the capabilities of our lower 48 fleet while maintaining capital and cost discipline.  We signed a joint venture with our largest customer.  We started to turn our NDS vision into a reality and increased our market lead in rig automation and integration.  Finally, we generated free cash flow throughout the down cycle, and recently extended our debt maturity profile through attractively priced six-year senior notes.  

"I am excited about our prospects for 2017.  We expect to accelerate NDS growth and deliver on our goal of fully automating our rigs and the drilling process through increased integration.  We plan to complete the upgrading of our U.S. fleet into the most modern and capable in the industry.  We believe 2017 will allow us to grow our U.S. and International rig counts, while making significant progress in pricing.  Nabors is committed to remain disciplined and focused on our strategy to deliver solid cash generation and return on capital to our shareholders." 

Mr. Petrello concluded, "We expect the fourth quarter to represent the bottom in our results with a gradual progression in the first half followed by a more meaningful improvement throughout the second half, assuming stable oil prices.  Our rig counts and margins are increasing with our highest specification rigs, the PACE^®-X and PACE^®-M800 operating at full utilization.  NDS has achieved positive adjusted EBITDA and increased market penetration.  We continue to implement our Rigtelligent™ operating system and upgrade our AC rigs to SmartRig™ system configuration at a steady pace.  As of today, we have 61 SmartRig™ system upgrades in service and plan to have completed 100 by year end.  We expect to begin deploying our new iRacker™ automated drill pipe and casing handling system later this year.  There are clear signs of building momentum in our business, particularly considering the customer commitments for nine of our ten 2017 new deployments in the low $20,000 per day range.  All of this bolsters our confidence in an improving 2017 outlook.  Meanwhile, we will continue to focus on controlling costs, reducing leverage and restoring attractive rates of return on our capital."

About Nabors

Nabors Industries (NYSE: NBR) owns and operates the world's largest land-based drilling rig fleet and is a leading provider of offshore platform rigs in the United States and numerous international markets. Nabors also provides directional drilling services, performance tools, and innovative technologies throughout many of the most significant oil and gas markets. Leveraging our advanced drilling automation capabilities, Nabors' highly skilled workforce continues to set new standards for operational excellence and transform our industry.

Forward-looking Statements

The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements.  The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release.  Nabors does not undertake to update these forward-looking statements.  

Non-GAAP Disclaimer

This press release presents certain "non-GAAP" financial measures.  The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP").  Adjusted EBITDA is computed by subtracting the sum of direct costs, general and administrative expenses and research and engineering expenses from operating revenues.  Adjusted operating income (loss) is computed similarly, but also subtracts depreciation and amortization expenses from operating revenues. Net debt is computed by subtracting the sum of cash and short-term investments from total debt.  Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA and adjusted operating income exclude certain cash expenses that we are obligated to make.  However, management evaluates the performance of our operating segments and the consolidated Company based on several criteria, including adjusted EBITDA, adjusted operating income (loss), and net debt, because it believes that these financial measures accurately reflect our ongoing profitability and performance. In addition, securities analysts and investors use these measures as some of the metrics on which they analyze the company's performance. Other companies in our industry may compute these measures differently.  A reconciliation of adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes and net debt to total debt, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release. 

Media Contact:  Dennis A. Smith, Vice President of Corporate Development & Investor Relations, +1 281-775-8038.  To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail at mark.andrews@nabors.com

NABORS INDUSTRIES LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
		Three Months Ended						Year Ended
		December 31,				September 30,		December 31,
(In thousands, except per share amounts)		2016		2015		2016		2016		2015
Revenues and other income:
Operating revenues		$  538,948		$  738,872		$         519,729		$  2,227,839		$ 3,864,437
Earnings (losses) from unconsolidated affiliates		4		(45,367)		2		(221,914)		(75,081)
Investment income (loss)		260		180		310		1,183		2,308
Total revenues and other income		539,212		693,685		520,041		2,007,108		3,791,664
Costs and other deductions:
Direct costs		331,560		445,130		306,436		1,344,298		2,371,436
General and administrative expenses		52,603		61,056		56,078		227,639		324,328
Research and engineering		8,764		9,354		8,476		33,582		41,253
Depreciation and amortization		216,187		231,137		220,713		871,631		970,459
Interest expense		47,557		46,410		46,836		185,360		181,928
Other, net		275,270		124,568		10,392		542,673		329,795
Total costs and other deductions		931,941		917,655 Werbung Mehr Nachrichten zur Nabors Industries Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 24.04.24 - PR Newswire Invesco Bond Income Plus Ltd - Issue of Equity 24.04.24 - PR Newswire Fidelity Special Values Plc - Monthly Factsheet 24.04.24 - PR Newswire Fidelity European Trust Plc - Monthly Factsheet Solarboom 2024:    5 Gründe die für diese Aktie sprechen… weiterlesen» Anzeige wo-site-teaser-box-16746_site-teaser-box_2024-04-24_08%253A00%253A00_2024-04-25_09%253A00%253A59