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Sep 30, 2022
Nabors Q3 2022 Earnings Report
Nabors' Q3 2022 results were announced, revealing increased operating revenues and adjusted EBITDA.
Key Takeaways
Nabors reported Q3 2022 operating revenues of $694 million, a 10% increase compared to the previous quarter. The company's net loss was $14 million, or $1.80 per share. Adjusted EBITDA reached $191 million, a 21% increase from the prior quarter. The U.S. Drilling segment and International segment also showed growth.
Operating revenues increased by 10% to $694 million compared to the second quarter of 2022.
Net loss attributable to Nabors shareholders was $14 million, or $1.80 per share.
Adjusted EBITDA increased by 21% to $191 million compared to the previous quarter.
The U.S. Drilling segment reported a 31% increase in adjusted EBITDA, while the International Drilling segment saw a 4% increase.
Revenue by Segment
Forward Guidance
Nabors expects fourth quarter results for all segments to increase materially over those of the third quarter.
Positive Outlook
- Favorable pricing and activity trends continue to improve across the globe.
- The pace of dayrate increases has been particularly brisk in the Lower 48, where we have recently started to sign contracts with revenue per day approaching $40,000.
- Utilization for our high-specification rigs now stands at 86% and as utilization for the industry continues to increase, we expect to see higher dayrates through the end of this year and into 2023.
- At these leading edge dayrates, we believe it makes sense to contract a portion of our Lower 48 fleet on longer term.
- Assuming favorable commodity prices persist, we are forecasting approximately $400 million in net debt reduction during 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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