Nabors Industries Releases Q2 Financial Results
Bermuda-based Nabors Industries Ltd. released its financial results for the second quarter and first six months of 2012. The Company posted adjusted income derived from operating activities of $230.4 million for the current quarter which compares to $177.5 million in the second quarter of 2011 and $321.2 million in the first quarter of 2012.
Net income from continuing operations, excluding certain non-cash charges, was $109.7 million ($0.38 per diluted share) compared to $70.9 million ($0.24 per diluted share) in the second quarter of 2011 and $188.9 million ($0.65 per diluted share) in the first quarter of 2012.
Operating revenues and earnings from unconsolidated affiliates totaled $1.7 billion in the current quarter compared to $1.4 billion in the second quarter of last year and $1.9 billion in the first quarter of this year.
For the six months ended June 30, 2012, adjusted income derived from operating activities was $551.6 million compared to $385.1 million in the first six months of 2011. Net income from continuing operations for the first six months of 2012 was $298.6 million ($1.03 per diluted share) compared to $165.4 million ($0.57 per diluted share) in 2011.
Tony Petrello, Nabors’ Chairman and CEO, commented, “Second quarter results, while short of our expectations in Pressure Pumping and International operations, illustrate the capacity of long-term contracts to limit downside exposure and sustain healthy levels of operating cash flow in weakening market conditions.
“As we saw with falling natural gas prices in the first quarter, the second quarter drop in prices for crude oil and natural gas liquids is further constraining customer cash flow and spending. These spending reductions, combined with the entry of newly built rigs without term commitments, are resulting in an increasingly competitive land rig market.
“The near term impact is diminished by our term contract coverage, but that mitigation dissipates with time. Fortunately, the longer term outlook for our business remains promising as expanded shale development will require continued drilling to offset decline rates, leading to higher demand for our services.”
