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Nabors swings to loss on bond costs, write-downs

The Associated Press

NEWS: Nabors Industries Ltd. reported Tuesday that it swung to a third-quarter loss of $105.4 million on payments related to redemption of senior notes and asset write-downs. Its shares fell in after-hours trading.

DETAILS: Nabors and other oilfield-services companies have been hurt by sluggish drilling activity and too much competition in North America, which is driving down prices for the service companies.

Nabors Chairman and CEO Tony Petrello said based on contracts secured by his company he believes that the U.S. drilling market is "stabilizing" and the international market is at the beginning of an "extended" upswing. He added that completion services "is the only element of our business where we do not see a clear path to improved results in 2014."

Houston-based Nabors said that it was suspending "select operations" and writing down equipment in the coiled-tubing market, part of its pressure-pumping business.

NUMBERS: The $105.4 million loss equaled 35 cents per share. A year earlier, the Bermuda-based company earned $75.7 million, or 26 cents per share, on the same basis.

The company said that it made a bond-redemption payment of $208 million and took asset impairments totaling $34 million.

Revenue, including small investment losses, declined 5 percent to $1.55 billion. Analysts surveyed by FactSet expected $1.59 billion.

STOCK: Before the results were released, Nabors shares ended regular trading at $17.83, up 24 cents. In after-hours trading, the were down 43 cents, or 2.4 percent, to $17.40.