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Nabors Industries says 1Q net fell 26 percent

The Associated Press

Drilling contractor Nabors Industries Ltd. said Tuesday that its first-quarter net income fell 26 percent as it dealt with bad weather and declines in U.S. and international drilling operations.

The company earned $99.1 million, or 33 cents per share, for the quarter that ended March 31. That was down from $134.1 million, or 46 cents per share, during the same period a year earlier.

Revenue fell almost 10 percent to $1.66 billion.

Analysts surveyed by FactSet expected a profit of 28 cents per share on revenue of $1.62 billion.

Nabors Chairman and CEO Tony Petrello said the company's completion services unit saw a "sharp decline" compared to the fourth quarter.

"Despite the slow start, we expect our performance to improve later this year," as the company ramps up its production services and drilling operations, he said.

In its U.S. drilling operation, better results in the Gulf of Mexico and Alaska mostly offset a steep decline in the Lower 48 states. Results in Canada were short of expectations as customers cut back on their plans and wrapped up projects earlier than usual, even though the weather was favorable.

Nabors owns and operates land drilling rigs and offshore rigs in U.S. and international markets.

Shares of the Bermuda-based company rose 17 cents to close at 15.27.