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Jun 30, 2023
Nabors Q2 2023 Earnings Report
Nabors reported mixed results with international strength offsetting U.S. drilling weakness.
Key Takeaways
Nabors Industries Ltd. reported second quarter 2023 operating revenues of $767 million with a net income of $5 million. The company's international segment showed strong performance, offsetting weaknesses in the U.S. drilling market.
Operating revenues were $767 million, compared to $779 million in the first quarter.
Net income attributable to Nabors shareholders was $5 million, compared to $49 million in the first quarter.
Second quarter adjusted EBITDA was $235 million, compared to $240 million in the previous quarter.
International segment benefitted from strong performance in the Middle East, including the start of the third newbuild rig in Saudi Arabia.
Forward Guidance
Nabors anticipates a weakening drilling market in the Lower 48 during the third quarter but expects some recovery in the fourth quarter. Further strength is anticipated in International markets, with growth expected in Drilling Solutions and Rig Technologies.
Positive Outlook
- Early signs of growth developing into awards for incremental rigs in International markets.
- Drilling Solutions is expected to increase sequentially.
- Rig Technologies are also expected to increase sequentially.
- Some recovery is expected in the Lower 48 market in the fourth quarter.
- International activity in all segments is anticipated to continue improving during the second half of this year.
Challenges Ahead
- The drilling market should continue to weaken in the Lower 48 during the third quarter.
- Softness in the Lower 48 market is expected to continue.
- Colombia market is expected to remain soft.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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