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Mar 31, 2022
Nabors Q1 2022 Earnings Report
Nabors reported an increase in operating revenues and a net loss, with growth in U.S. Drilling and Drilling Solutions segments.
Key Takeaways
Nabors Industries Ltd. reported first quarter 2022 operating revenues of $569 million, a 5% increase compared to the previous quarter. The net loss was $184 million, or $22.51 per share, which includes a non-cash charge of $72 million related to warrant valuations. Adjusted EBITDA was $131 million. The company saw growth in the U.S. Drilling segment and Drilling Solutions.
Operating revenues increased by approximately 5% to $569 million compared to the previous quarter.
Net loss from continuing operations attributable to Nabors shareholders was $184 million, or $22.51 per share.
Adjusted EBITDA was $131 million, compared to $132 million in the previous quarter.
Reduction in face value of debt outstanding from warrant exercises exceeded $130 million.
Forward Guidance
Nabors expects industry fundamentals and rig counts to improve, driving financial metrics and pricing power. They anticipate growth across the company with increasing adoption of their technology portfolio, enabling progress in improving their financial position.
Positive Outlook
- Industry fundamentals in the Lower 48 are improving.
- Rig counts are increasing.
- Utilization is driving improvement in financial metrics.
- The company is on the path toward significant pricing power.
- Growing adoption of technology portfolio is expected.
Challenges Ahead
- Recruiting is still a challenge.
- Aggressive management of working capital is needed.
- Supply chain challenges resulted in increasing lead times and delays in shipments of equipment.
- Working capital increased due to revenue growth and inventory expansion.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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