Nabors cuts loss on rising revenues
Nabors Industries Ltd, the Bermudian-based energy driller, has reported that its third-quarter operating revenues jumped by 10 per cent and the company cut its quarterly loss to $14 million in the period.
Nabors said operating revenues were $694 million compared with $631 million in the previous quarter of 2022.
The net loss attributable to Nabors shareholders for the quarter was $14 million, or $1.80 per share. This compares to a loss of $83 million, or $9.41 per share, in the second quarter.
Energy drillers are benefiting from soaring oil and gas prices around the world.
The third-quarter results included a non-cash gain of $34 million, or $3.74 per share, related to mark-to-market treatment of Nabors' warrants, while the second-quarter results included a non-cash charge for the warrants of $22 million, or $2.42 per share.
Third quarter adjusted Ebitda was $191 million, a 21 per cent increase compared with $158 million in the previous quarter.
In the third quarter, net debt was $2.16 billion, a $23 million reduction compared with the second quarter.
Anthony G Petrello, Nabors’ chairman, CEO and president, said: “We had an outstanding third quarter. All of our operating segments grew sequentially.
“Total adjusted Ebitda increased to pre-pandemic levels and the US drilling segment once again delivered strong growth, largely driven by continued day rate increases in the Lower 48 market.
“Daily margin and Ebitda also improved in our International segment.
“In Drilling Solutions, the annual Ebitda run rate exceeded $100 million and gross margin set another all-time high.”
William Restrepo, Nabors’ CFO, added: "Third- quarter results were significantly better than we anticipated. Across the company, we continued to experience strong pricing momentum coupled with higher activity levels, more than offsetting cost pressure in certain markets.
“Favourable pricing and activity trends continue to improve across the globe. We expect fourth-quarter results for all segments to increase materially over those of the third quarter.”
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