Nabors Quarterly Loss Narrower Than Expected

Print Email

Nabors Industries Ltd. (NYSE: NBR) reported fourth quarter and full-year 2015 results after markets closed Tuesday. For the quarter, the oilfield services company reported an adjusted diluted net loss per share of $0.22 on revenues of $739 billion. In the same period a year ago, the company reported EPS of $0.33 on revenues of $1.78 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for net loss of $0.38 and $732.89 million in revenues.

On a GAAP basis the quarterly loss totaled $0.57, which includes an impairment charge of $0.35 per share.

For the full year Nabors reported a net loss of $1.14 on revenues of $3.86 billion compared with 2014 EPS of $1.09 on revenues of $6.81 billion. Analysts were looking for a net loss of $0.41 on revenues of $3.86 billion. The full year loss does not include $0.15 per share for discontinued operations or

CEO Anthony Petrello said:

2015 has been a difficult year for the industry due to weak and volatile oil prices, as well as a declining rig count.  Our fourth-quarter results reflect the magnitude of progress we have made in scaling the business in line with the industry’s lowest U.S. rig count in 17 years. … From the year-end level, we expect additional decreases in drilling activity and rig count in the Lower 48 and Canada, at least through the second quarter of this year with more rigs converting to spot pricing.  We remain resilient internationally; however, no region is immune to lower oil prices.

The company did not offer guidance but analysts expect a first quarter net loss of $0.37 on revenues of $687.63 million. For the year analysts are looking for a net loss of $1.54 on revenues of $2.72 billion.

Nabors stock closed at $6.30 on Tuesday, up about 5.5% for the day. Shares are inactive in the after-hours market. The stock’s 52-week range is $4.93 to $16.99. Thomson Reuters had a consensus analyst price target of $10.59 before today’s report.