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Dec 31, 2024
Nabors Q4 2024 Earnings Report
Nabors reported a net loss of $54 million on revenues of $730 million for the fourth quarter of 2024.
Key Takeaways
Nabors Industries Ltd. reported a net loss of $54 million for the fourth quarter of 2024, a slight improvement from the $56 million net loss in the previous quarter, despite a marginal decrease in operating revenues to $730 million. Adjusted EBITDA for the quarter was $221 million, consistent with the prior quarter. The company is looking forward to the acquisition of Parker Wellbore, which is expected to close in Q1 2025, and anticipates stable market activity in early 2025.
Nabors shareholders approved the merger with Parker Wellbore, which is expected to close in Q1 2025, pending international regulatory approvals.
The company secured awards for three rigs in Argentina and one in Colombia, enhancing asset utilization and supporting growth.
SANAD, the joint venture with Saudi Aramco, deployed its ninth newbuild rig, with two more expected in Q1 2025, contributing to the Kingdom's natural gas activity.
Rig Technologies saw a 51% increase in adjusted EBITDA, driven by higher capital equipment shipments in the Middle East.
Revenue by Segment
Forward Guidance
Nabors expects stable market activity in early 2025, with continued expansion in international markets and significant contributions from the SANAD joint venture. The acquisition of Parker Wellbore is anticipated to provide incremental free cash flow.
Positive Outlook
- U.S. Drilling: Lower 48 average rig count of approximately 61 rigs.
- U.S. Drilling: Lower 48 daily adjusted gross margin of approximately $14,800.
- International: Average rig count of 85-86 rigs.
- International: Daily adjusted gross margin of approximately $17,000.
- Adjusted free cash flow for 2025 of approximately breakeven, with SANAD consuming approximately $150 million, while remaining operations should generate around $150 million.
Challenges Ahead
- U.S. Drilling: Alaska and Gulf of Mexico combined adjusted EBITDA approximately in line with the fourth quarter of 2024.
- Drilling Solutions: Adjusted EBITDA of approximately $33 million.
- Rig Technologies: Adjusted EBITDA of approximately $5 million.
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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