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Jun 30, 2020
Nabors Q2 2020 Earnings Report
Nabors' performance was impacted by activity declines in North America and COVID-related disruptions, but demonstrated resilience through cost reductions and capital discipline.
Key Takeaways
Nabors reported Q2 2020 operating revenues of $534 million. The company experienced a net loss of $152 million, or $22.13 per share. Adjusted EBITDA was $154 million. The company focused on cost and capital discipline, reducing overhead expenses and capital spending.
Operating revenues were $534 million, compared to $718 million in the prior quarter.
Net loss from continuing operations was $152 million, or $22.13 per share.
Adjusted EBITDA was $154 million, compared to $188 million in the prior quarter.
Free cash flow reached $101 million.
Forward Guidance
The company expects further deterioration in the domestic and international markets. They anticipate a decline in Lower 48 rig count and drilling margins. International rig count and pricing are expected to continue falling.
Challenges Ahead
- Further deterioration in domestic and international markets is expected.
- Lower 48 rig count is expected to decline by two to three rigs from the second quarter exit rate.
- Drilling margins should fall to between $9,000 and $9,500.
- International rig count and pricing are expected to continue falling.
- The full impact of pricing reductions on average fleet margins still lies ahead.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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