#None #financial results #Nabors Industries #Parker Wellbore

Nabors Industries Reports Impressive Q1 2025 Results

On April 29, 2025, Nabors Industries Ltd. (NYSE: NBR) announced its financial results for the first quarter of 2025. During this period, the company reported operating revenues of $736 million, marking a slight increase from $730 million in the previous quarter. This steady performance indicates ongoing strength in Nabors' operations, particularly after the recent acquisition of Parker Wellbore.

The net income attributable to Nabors shareholders experienced a significant turnaround, soaring to $33 million, compared to a notable net loss of $54 million in the fourth quarter of 2024. Adjusted earnings per diluted share climbed to $2.18, a dramatic shift from a loss of $6.67 per diluted share in the previous quarter. This improvement can be attributed in part to a substantial one-time, non-cash net gain stemming from the Parker transaction amounting to $113 million, or $9.68 per diluted share.

Highlights of the Quarter

1. Acquisition of Parker Wellbore: In March, Nabors completed the acquisition of Parker Wellbore. This strategic move enhances Nabors' portfolio by incorporating complementary businesses such as Quail Tools, the premier tubular rental franchise in the U.S., and a robust fleet of drilling rigs in various international markets.
2. Expansion of Joint Ventures: The SANAD joint venture achieved significant milestones, deploying its tenth newbuild rig and expecting further launches through the year. This initiative is anticipated to positively impact EBITDA, supporting ongoing production and resource development efforts.
3. Partnership with Corva AI: Nabors extended its collaboration with Corva AI to integrate AI-driven analytics within its RigCLOUD® platform. This enhancement promises improved decision-making through advanced real-time data processing and insights.
4. Operational Adjustments in Russia: Following recent sanctions escalation, Nabors suspended operations on three rigs in Russia, anticipating no resumption of activities in that market due to marginal financial performance.

Chairman, CEO, and President Anthony G. Petrello stated, “With Parker's acquisition finalized, we are beginning to witness the anticipated benefits. Our initial results display positive contributions from these operations.

Moreover, the quarterly outcomes indicate enhanced performance in various international sectors, even while challenges persist in the U.S. market where rig churn continues to pressure utilization rates and operational costs. Notably, we see encouraging results from adding rigs in the Lower 48 after reaching a trough in February.”

Segment Performance

Nabors reported distinct performance metrics across its operational segments. The International Drilling segment reported adjusted EBITDA of $115.5 million, reflecting stable activity levels. In contrast, the U.S. Drilling segment's EBITDA was $92.7 million, down from $105.8 million in Q4 2024, largely due to a decrease in lower 48 rig counts.

In terms of capital expenditures, Nabors projects expenditures of between $220 million and $230 million for the second quarter, anticipating significant contributions from both U.S. and international operations, particularly bolstered by the acquisition of Parker.

Future Outlook

Looking ahead, Nabors anticipates a positive trajectory for the second quarter of 2025, with projections including:

• - U.S. drilling rig count at 63-64.
• - Daily adjusted gross margins estimated at around $14,100.
• - International EBITDA expected to approach $26 million combined for Alaska and the Gulf of Mexico operations.
• - Capital expenditures targeted between $770 million and $780 million throughout the year, with substantial components allocated to SANAD's newbuilds and Parker operations.

Petrello remarked, “We believe our business's diversity and advanced technology will enable us to navigate the current landscape successfully. The Parker operation is expected to deliver immediate benefits, and our international business investments are on course to yield significant returns.”

Conclusion

The first quarter results from Nabors Industries reflect an upward trend fueled by strategic acquisitions and developments in various operational sectors. With the ongoing enhancement of efficiencies and proactive measures to tackle challenges, Nabors seems well-positioned for sustainable growth in the upcoming quarters.