Nabors Industries Slips To Loss In Q4 On Charges

(RTTNews) - Oil drilling and rig services provider Nabors Industries Ltd. (NBR) on Tuesday reported a loss for the fourth quarter, as higher revenues were more than offset by impairment charges. Revenues for the quarter missed analysts' expectations.

William Restrepo, Nabors CFO, said, "While our liquidity and financial flexibility remain strong, we are moving swiftly to reduce all aspects of our operating, support and capital costs in the current environment. In addition to curtailing our newbuild program, we have reduced staffing levels and have begun consolidating our operating footprint."

The Hamilton, Bermuda-based company reported net loss for the fourth quarter of $891.07 million or $3.08 per share, compared to net income of $150.60 million or $0.50 per share in the prior-year quarter.

The latest quarter's results include $982.7 million in after-tax charges or $3.39 per share for asset impairments and transaction costs, related to the current industry downturn and to the pending transaction with C&J Energy Services.

Excluding items, adjusted earnings from continuing operations was $96.3 million or $0.33 per share, compared to $128.5 million or $0.42 per share last year.

On average, 24 analysts polled by Thomson Reuters expected the company to report earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues and other income for the quarter increased 11 percent to $1.79 billion from $1.61 billion in the same quarter last year, but missed analysts' consensus estimate of $1.83 billion.

Drilling and rig services revenues grew 15 percent to $1.26 billion, while completion and production services revenues increased 8 percent to $601.69 million.

Nabors said it is taking numerous actions to lower costs in ways that do not inhibit its core capabilities and flexibility. The company has significantly scaled back its pace of new U.S. rig construction and will make further adjustments based on the outcome of ongoing discussions regarding additional rig awards.

Looking ahead, Nabors said it expects further improvement in International and Alaska drilling operations, but these will be more than offset by sharp decreases in the U.S. Lower 48 operations and smaller, but significant, decreases in the U.S. Offshore, Canada and Rig Services operations.

The company also foresees smaller, but still meaningful decreases in its Completion & Production Services businesses.

Restrepo said, "Our transaction with C&J Energy Services is now awaiting the outcome of the C&J shareholder vote, scheduled for March 20. Assuming a favorable outcome, we anticipate closing the transaction the following week."

NBR closed Tuesday's regular trading session at $12.54, down $0.27 or 2.11 percent on a volume of 7.19 million shares. The stock declined a further $0.46 or 3.67 percent to $12.08 in after-hours trading.