Loading...
•
Mar 31, 2024
Nabors Q1 2024 Earnings Report
Nabors' first quarter operating results exceeded expectations due to robust pricing and reduced costs in Lower 48 drilling, along with increased OEM repair and energy transition revenue in Rig Technologies.
Key Takeaways
Nabors reported first quarter 2024 operating revenues of $734 million, a net loss of $34 million, and adjusted EBITDA of $221 million. The company saw increased rig count in its International segment and firm pricing in the Lower 48 market.
First quarter operating results were stronger than expected, driven by resilient pricing and lower costs in Lower 48 drilling operations.
Rig count increased in the International segment due to rig startups in Saudi Arabia and Algeria.
Pricing in the Lower 48 market remained firm, with strong utilization of high-specification rigs.
International Drilling segment revenue increased by 9% compared to the first quarter of 2023.
Revenue by Segment
Forward Guidance
Nabors expects an increase in international rig count with newbuilds in Saudi Arabia and Algeria, while anticipating sluggish activity in the natural gas basins in the Lower 48, keeping average rig count slightly below the first quarter average.
Positive Outlook
- Strength of the international drilling markets continues to surprise to the upside
- Recent awards in Argentina and notification in another Middle East market
- Material ongoing deployments in Saudi Arabia and Algeria
- Restarted two rigs in Algeria during the first quarter, and a third in early April
- International rig count to increase with a newbuild in Saudi Arabia and the fourth rig in Algeria
Challenges Ahead
- Sluggish activity in the natural gas basins
- Average rig count slightly below the average for the first quarter
- Downtime related to rig certification requirements following recent contract renewals in Saudi Arabia
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...