DOW JONES NEWSWIRES
Nabors Industries Ltd. (NBR) swung to a second-quarter loss as revenue dropped by a third and the drilling contractor saw a decline in income in almost all segments.
As the oil and gas sector has slowed, contractors have been hit by cancelled or delayed contracts. Business for Nabors, which is North America's largest land-drilling oil contractor, has declined in most U.S. and Canada operations, forcing it to rely on international business and its smaller Alaskan and U.S. offshore businesses. Earlier this month, it warned full-year earnings might come in below analysts' expectations.
Chief Executive Eugene M. Isenberg said Tuesday, "Virtually all of our units experienced both sequential and year-over-year declines in quarterly operating income, but we believe most have stabilized, with the exception of our U.S. Lower 48 land drilling operations."
Nabors posted a loss of $193 million, or 68 cents a share, compared with a year-earlier profit of $176.4 million, or 60 cents a share.
The latest results included previously announced write-downs and stock-grant charges worth $240 million. Excluding items, earnings fell to 32 cents a share from 60 cents.
Revenue fell 33%, to $878 million.
A survey of analysts by Thomson Reuters expected earnings of 26 cents a share on $923 million in revenue.
Nabors shares traded up 3 cents, to $17.19, after hours. The stock has doubled since March, when it plunged to a nearly 10-year low from an all-time high in July. It remains three-fifths off that high.
-By Joan E. Solsman and Lauren Pollock, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com