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Nabors improves net operating income

Bermuda-registered Nabors Industries Ltd has reported a third-quarter net loss of $115.7 million, an improvement over the comparative three months of 2020 when it lost nearly $147 million.

But it means that Nabors has lost more than $434 million in the first three quarters of the fiscal year.

The earnings statement said that the company had third-quarter 2021 operating revenues of $524 million, compared with operating revenues of $489 million in the second quarter of the year.

The net loss from continuing operations attributable to Nabors shareholders for the quarter was $122 million, or $15.79 per share. The third quarter included a $13 million after-tax expense, or $1.63 per share, related to the purchase of technology in the energy transition space.

This compares with a loss of $196 million, or $26.59 per share, in the second quarter. The second-quarter results included charges of $81 million after taxes, comprised mainly of an impairment of assets in Canada related to the sale of Canada drilling rigs, and a tax reserve for contingencies in the international segment.

Third quarter adjusted ebitda was $125 million compared with $117 million in the second quarter.

Anthony G Petrello, Nabors chairman, CEO and president, said: "Our performance in the third quarter was noteworthy on a number of fronts.

“Adjusted ebitda increased by 7 per cent versus the second quarter even with the sale of Canada drilling operations. All of our current segments grew sequentially.

“Once again, our free cashflow generation was excellent. That performance drove another improvement in our leverage. We reached notable milestones in our technology portfolio, which reinforces our leadership in innovation.

“In particular, we successfully deployed the industry's first fully-automated rig for an operator in the Permian Basin. The PACE®-R801 utilises Nabors' full portfolio of digital solutions.

“ It recently completed drilling its initial well with a total depth of 20,000 feet. We are proud of the performance delivered by this transformative and unique addition to our technology portfolio.

"In the third quarter, global oil prices remained above the $60 mark. Since the end of the quarter, they have climbed above $80.

“Natural gas prices have risen to levels not seen in over a decade. In turn, oilfield activity has strengthened. In our two largest markets — Saudi Arabia and the United States — both the industry's and our own rig counts grew.

“In the US, pricing increased as industry utilisation rose. Looking through the balance of this year and into 2022, we are optimistic that a continued favourable commodity environment will drive strong increases in rig count and pricing."

Nabors owns and operates one of the world's largest land-based drilling rig fleets and is a provider of offshore platform rigs in the US and numerous international markets.

The company provides directional drilling services, performance tools and innovative technologies for its own rig fleet and those of third parties.

Anthony G Petrello, chairman, president and chief executive officer of Bermuda-based Nabors Industries Ltd (Photograph supplied)

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Published October 26, 2021 at 6:23 pm (Updated October 26, 2021 at 7:14 pm)

Nabors improves net operating income

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