#United States #Hamilton #Q4 2024 #Nabors Industries #Parker Wellbore

Nabors Industries Reports Fourth Quarter Financial Results for 2024

Nabors Industries Ltd. (NYSE: NBR), a prominent name in energy technology, announced its fourth-quarter results for 2024, detailing operating revenues of $730 million. This figure is a slight decrease compared to $732 million reported in the previous quarter. The company faced a net loss attributable to shareholders of $54 million, which is an improvement from the $56 million loss in the third quarter. This translates to a loss of $6.67 per diluted share compared to $6.86 in the prior quarter. Adjusted EBITDA for the fourth quarter stood at $221 million, only marginally down from $222 million in Q3.

Merger Developments

In a significant move, shareholders of Nabors approved the issuance of shares related to the merger with Parker Wellbore. This merger is pending certain international regulatory approvals and is expected to finalize in early 2025. The merger reflects Nabors' strategic growth approach in aligning with other industry leaders to strengthen its market position.

Operational Highlights

Nabors has secured three new rig contracts in Argentina, with two rigs transitioning from the U.S. on five-year contracts, while a third rig continues operations in the region. Additional noteworthy developments include the award of an idle rig contract in Colombia, aimed at capitalizing on operational efficiencies while enhancing asset utilization.

In its international markets, Nabors successfully deployed its ninth new rig in its SANAD joint venture with Saudi Aramco. This venture highlights Nabors' commitment to expanding its footprint in the increasing demand for natural gas. Furthermore, Nabors' subsidiary, Canrig, was awarded an upgrade package by a U.S. drilling contractor, emphasizing the competitive edge provided by its advanced technology suite.

Market Challenges and 2025 Outlook

Chairman and CEO Anthony G. Petrello indicated that while the U.S. market faced challenges due to fluctuating activity levels among operators, steady pricing in the market allowed for higher daily margins. Looking forward to 2025, Nabors plans for stable activity levels through the initial months, implementing measures to enhance efficiency and align operational costs.

Internationally, Nabors is anticipating expansion across various markets including, but not limited to, Saudi Arabia and Argentina. Despite potential pressures on capital expenditures, these markets present lucrative multi-year contract opportunities with high potential returns.

In terms of adjusted free cash flow, Nabors reported a use of $53 million in Q4, attributed partly to a temporary payment halt from a client in Mexico and elevated capital expenditures.

The company is forecasting consolidated adjusted free cash flow nearing breakeven for 2025, with significant opportunities for debt reduction given its expected operational improvements.

Conclusion

As Nabors continues to navigate through the complexities of the energy market, their commitment to leveraging innovative technologies and strategic mergers positions them to seize growth opportunities ahead. With substantial investments in their international operations and advancing drilling solutions, Nabors Industries aims for transformative value creation for its stakeholders while generating sustainable energy production globally.