Loading...
•
Dec 31, 2019
Nabors Q4 2019 Earnings Report
Nabors reported a net loss due to asset impairments but saw strength in international drilling and Drilling Solutions.
Key Takeaways
Nabors Industries reported Q4 2019 operating revenues of $714 million with a net loss of $267 million, impacted by asset impairments. Adjusted EBITDA was $203 million. The company reduced net debt by $218 million.
Q4 operating revenues were $714 million, compared to $758 million in the third quarter.
Net loss was $267 million, or $0.77 per share, including after-tax charges of $186 million related to asset impairments.
Adjusted EBITDA was $203 million, compared to $207 million in the prior quarter.
Net debt was reduced by $218 million to $2.88 billion.
Forward Guidance
Short-term expectations have grown more cautious in North America, with a more positive outlook for international operations. Focus remains on improving free cash flow, generating returns on capital, and reducing debt.
Positive Outlook
- Demand for high specification rigs remains strong internationally.
- International activity is less responsive to short-term declines in oil prices.
- Expect an increasing rig count and higher pricing internationally as rig availability tightens.
- Signals in the market suggest the current oil supply/demand situation will tighten.
- Focus on improving free cash flow, generating returns on capital, and reducing debt.
Challenges Ahead
- Impacts of the coronavirus outbreak on global economic activity and oil demand are uncertain.
- Downward pressure on commodity prices.
- Slow ramp in activity in the New Year.
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...