Nabors Industries Ltd (NBR) Reports Q3 2023 Earnings
Nabors Industries Ltd (NYSE:NBR) reported Q3 2023 operating revenues of $734 million, compared to $767 million in Q2 2023.
The company reported a net loss of $49 million, compared to a net income of $5 million in the previous quarter.
Adjusted EBITDA for Q3 2023 was $210 million, down from $235 million in Q2 2023.
Net debt at the end of the third quarter was $2.1 billion.
On October 26, 2023, Nabors Industries Ltd (NYSE:NBR) released its third-quarter earnings report. The company reported operating revenues of $734 million, a decrease from the second quarter's $767 million. The net loss attributable to Nabors shareholders for the quarter was $49 million, compared to a net income of $5 million in the second quarter. This equates to a loss of $6.26 per diluted share, compared to a loss per diluted share of $0.31 in the second quarter.
Company Performance and Challenges
Despite the decrease in revenues, Nabors' CEO and President, Anthony G. Petrello, noted that drilling activity across their markets generally met expectations. However, the company faced challenges with newbuild rigs and their critical components in Saudi Arabia, resulting in deployment delays and significant downtime. The company is currently addressing these issues and expects improvements from their third-party supplier.
Financial Highlights
Adjusted EBITDA for the third quarter was $210 million, compared to $235 million in the previous quarter. The company's net debt at the end of the third quarter was $2.1 billion. The U.S. Drilling segment reported $117.4 million in adjusted EBITDA for the third quarter of 2023. International Drilling adjusted EBITDA totaled $96.2 million. Adjusted free cash flow was negative $5 million in the third quarter.
Income Statement Summary
The company's operating revenues for the third quarter were $733,974,000, compared to $767,067,000 in the second quarter. The net income attributable to Nabors was a loss of $48,916,000, compared to a gain of $4,611,000 in the second quarter. The earnings per share for the third quarter were a loss of $6.26, compared to a loss of $0.31 in the second quarter.
Balance Sheet Summary
As of September 30, 2023, the company had total assets of $4,726,850,000, with total liabilities of $3,344,483,000. The company's total equity was $548,172,000. The long-term debt stood at $2,501,339,000.
Outlook
Looking ahead to the fourth quarter, Nabors expects improvements in its financial results, especially in free cash flow. With the international expansion already in hand, and the indications for growth in the U.S., the company is positioned for meaningful improvement in 2024.
Explore the complete 8-K earnings release (here) from Nabors Industries Ltd for further details.
This article first appeared on GuruFocus.
