Nabors' (NBR) Q4 Loss In Line With Estimates, Sales Miss
Zacks Investment Research | Feb 24, 2020 10:48PM ET
Nabors Industries Ltd.’s (NYSE:NBR) fourth-quarter 2019 loss from continuing operations (excluding special items) came in at 24 cents per share, in line with the Zacks Consensus Estimate, primarily due to weak performance of the International and U.S. drilling segments.
However, the bottom line is narrower than the year-ago adjusted loss of 25 cents owing to a marginal rise in daily gross margin, driven by stable pricing, excellent operating performance and a favourable rig mix.
Quarterly revenues of $715.8 million fell short of the Zacks Consensus Estimate of $743 million. Moreover, the top line was lower than the year-ago level of $776.6 million.
Notably, year over year, Nabors’ adjusted EBITDA grew from $201.6 million to $202.5 million.
Segmental Performance
U.S. Drilling segment generated quarterly operating revenues of $289.5 million, down 4.71% from the year-ago level of $303.8 million. The segment recorded an operating income of $6.8 million, significantly lower than the year-ago income of $8.9 million due to drop in the rig count at Lower 48.
Canadian Drilling segment’s revenues came in at $19.38 million in the quarter under review, down 33.22% from the year-ago figure of $29.02 million. Moreover, the segment’s operating loss came in at $3.19 million against the year-ago quarter’s income of $0.93 million amid a weak market environment for rig components.
International Drilling segment’s operational revenues of $331.7 million decreased 3.9% from the year-ago quarter’s $345.08 million as well as lagged the Zacks Consensus Estimate of $336 million. However, the segmental operating income of $1.15 million in the reported quarter came in against the prior-year loss of $0.48 million. The primary reason for this upside was a step forward in the earlier-implemented initiatives to reduce operating costs as well as operational efficiency.
Revenues from the Drilling Solutions segment were down to $60.5 million in the fourth quarter from $66.8 million a year ago and also missed the Zacks Consensus Estimate of $62 million. However, the unit’s operating income of $16.7 million improved from $11.85 million. This can be attributed to higher-margin international activity along with activities related to tubular running services (TRS) in the United States.
Revenues from the Rig Technologies segment decreased 14.3% to $52.6 million from the prior-year level of $61.4 million. The same also missed the Zacks Consensus Estimate of $61 million. Moreover, the segment’s operating loss widened to $5.95 million from the prior-year loss of $5.21 million. This downside is due to declined sales of parts alongside lower repair activity.
Nabors Industries Ltd. Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.