Nabors Announces Second Quarter Results
Bermuda-based Nabors Industries Ltd. reported its financial results for the second quarter and first six months of 2013. Adjusted income from operating activities was $90.9 million, compared to $225.3 million in the second quarter of 2012 and $149.6 million in the first quarter of 2013. Operating cash flow [EBITDA] was $361.1 million for the second quarter, compared to $486.4 million in the same quarter last year and $423.0 million in the first quarter of this year.
Net income from continuing operations was $29.3 million [$0.08 per diluted share], compared to a net loss of $98.7 million [-$0.34 per diluted share] in the second quarter of 2012 and $97.2 million [$0.33 per diluted share] in the first quarter of 2013. Operating revenues and earnings from unconsolidated affiliates for this quarter totaled $1.49 billion, compared to $1.60 billion in the same quarter of the prior year and $1.58 billion in the first quarter of 2013. For the first six months ended June 30, 2013, adjusted income derived from operating activities was $240.5 million compared to $540.9 million in the first six months of 2012.
Net income from continuing operations for the first six months of 2013 was $126.4 million [$0.41 per diluted share] compared to $44.0 million [$0.16 per diluted share] in 2012. Operating revenues and earnings from unconsolidated affiliates totaled $3.07 billion for the first six months of 2013, compared to $3.42 billion for the first six months of 2012.
Tony Petrello, Nabors’ Chairman, President & CEO, commented, “Our second quarter was disappointing as seasonal declines in our Alaska and Canada operations were compounded by a weather-induced drop in the utilization of our eight Bakken Shale frac spreads and a further slowdown in Canrig’s capital equipment shipments. These developments have dampened our full-year outlook and mask a number of positive developments that support our continuing expectation of improving results in the second half of this year.
“We reduced debt by another $300 million during the quarter, despite the shortfall in operating cash flow. We also received long-term contract awards for 11 major rig projects, including two additional new PACE®-X rigs in our U.S. Drilling operations and nine substantial rig upgrades internationally, six of which are for shale projects in Argentina. Three of these rigs will be PACE®-F rigs exported from our U.S. operations. In aggregate these contracts, which average 3.2 years in duration, should generate over $600 million in revenue. Returns on the approximately $150 million in associated capital are well within our capital allocation criteria. Three of these rigs have recently commenced operations, and the remaining rigs are expected to commence in the second half of next year.”
