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."