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Dec 31, 2023
Nabors Q4 2023 Earnings Report
Nabors reported strong Q4 2023 results, exceeding expectations across all segments.
Key Takeaways
Nabors Industries Ltd. reported Q4 2023 operating revenues of $726 million, with a net loss of $17 million. Adjusted EBITDA was $230 million. The company saw improvements in U.S. and International drilling margins and growth in Drilling Solutions and Rig Technologies segments.
Q4 operating results exceeded expectations across all segments.
U.S. daily rig margins in the Lower 48 increased sequentially.
International daily margins widened due to better operating performance and newbuild deployments in Saudi Arabia.
Drilling Solutions segment growth reflected expansion in third-party and international markets.
Revenue by Segment
Forward Guidance
Nabors anticipates building on its 2023 results in 2024, with international rig awards driving growth and expanding demand for advanced technology solutions.
Positive Outlook
- Annual average rig count for 2024 should approach the prior year’s level.
- Robust international deployment schedule in 2024.
- Number of incremental opportunities continues to grow.
- Adoption of the NDS portfolio is still expanding, particularly on third party rigs and in international markets.
- Increased global drilling activity should benefit Rig Technologies.
Challenges Ahead
- High level of rig churn to keep average rig count essentially in line with the fourth quarter exit rate.
- Operating rigs continue to reprice to the current market, we expect some erosion in daily margin.
- Still have a number of open international tenders.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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