Nabors undeterred by Q2 losses – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS PODCAST

Nabors undeterred by Q2 losses

Bermuda-based Nabors Industries Ltd, the global oil and gas drilling contractor, has reported second quarter 2021 operating revenues of $489 million, compared to operating revenues of $461 million in the first quarter of 2021.

The net loss from continuing operations attributable to Nabors common shareholders for the quarter was $196 million, or $26.59 per share.

The company said second quarter results included charges of $81 million comprised mainly of an impairment of assets in Canada, related to the pending sale of the company’s Canada drilling rigs, and a tax reserve for contingencies in its International segment.

This compares to a loss from continuing operations of $141 million, or $20.16 per share in the prior quarter.

Excluding the above unusual items in the second quarter, the company said the net loss improved by $26 million, primarily reflecting higher adjusted EBITDA, and lower depreciation and income tax expense. Second quarter adjusted EBITDA was $117 million, compared to $108 million in the first quarter.

Anthony G Petrello, Nabors chairman, CEO and president, said: "Our second quarter results validate our strategy as we made concrete progress on our goals. All of our segments performed well.

“Second quarter adjusted EBITDA was nine per cent higher than the first quarter, and above our expectations. We benefited from continued activity increases in US and International markets. Sequential improvements were achieved in our Drilling Solutions business, as well as Rig Technologies, which recorded its highest performance in the last year.

"We had another outstanding quarter in terms of free cashflow generation, which drove further progress in cutting our debt.

"During the second quarter, global oil prices increased steadily. Oilfield activity responded, and in particular in our drilling markets. The Lower 48 land drilling market grew by 16 per cent on average in the second quarter.

“Activity also strengthened in our major international markets, notably for Nabors, in Saudi Arabia and Latin America. With the strength in commodity markets since the pandemic lows, we expect continued increases in drilling activity both in the US and internationally. In tandem with improved utilisation, we also expect pricing to increase in the second half of 2021."

You must be registered or signed-in to post comment or to vote.

Published July 28, 2021 at 5:25 pm (Updated July 28, 2021 at 5:26 pm)

Nabors undeterred by Q2 losses

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon