Nabors Industries reports Q3 loss per share, projects improved Q4 performance

Nabors Industries (NYSE:) recently disclosed its Q3 2023 financial results, showing a loss per share of $6.26. This was attributed to an escalation in total costs and expenses, which reached $764.9 million. The company’s revenues were reported at $744.1 million, falling short of the consensus estimate largely because of a decrease in operating income from the U.S. Drilling segment that generated revenues of $276.4 million.

However, the International Drilling segment saw an increase in operational revenues, reaching $344.8 million. The Drilling Solutions and Rig Technologies segments also reported revenues, amounting to $72.8 million and $61.4 million respectively. The company’s adjusted EBITDA was recorded at $210 million, slightly below the model estimate, and negative free cash flow was reported at $5 million.

As of September 30, 2023, Nabors held cash and short-term investments worth $406.6 million, with long-term debt totaling about $2.5 billion.

Looking forward to Q4 2023, Nabors has projected an average rig count between 72 to 74, a daily margin between $15,000-$15,200 in the U.S. drilling segment, an EBITDA increase of 10% for Drilling Solutions and 20% for Rig Technologies. Furthermore, capital spending is anticipated to be around $95 million with about $35 million going towards new construction in Saudi Arabia. The company also expects a full-year free cash flow between $225 million and $250 million.

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