Notable items:
- Fourth quarter GAAP EPS
was ($0.57), which translates to
($0.22) excluding ($0.35) in impairments related to the current
downturn
- Above EPS includes a loss
of $0.16 per share from
unconsolidated affiliates
- Repurchased $27.5 million of notes in 4Q 2015
- Decreased total debt by
$677 million during 2015
HAMILTON, Bermuda, Feb. 16, 2016 /PRNewswire/ -- Nabors Industries
Ltd. ("Nabors") (NYSE: NBR) today reported FY 2015 operating
revenues of $3.86 billion, including
$366 million which comprises
first-quarter revenue from the Completion and Production Services
segment (NCPS), a business line that merged with C&J Energy
Services, Inc. (CJES) on March 24,
2015 and is no longer consolidated with Nabors. This
compares to operating revenues of $6.80
billion in FY 2014, including $2.25
billion of revenue from NCPS. The Company's equity
ownership in C&J Energy Services Ltd. is accounted for in the
Company's consolidated financial results as an unconsolidated
affiliate on a quarter-lag basis. Net income from continuing
operations for the year was a loss of $329.5
million, or ($1.14) per
diluted share, compared to a loss of $669.3
million, or ($2.28) per
diluted share, in FY 2014. Included in net loss from
continuing operations for FY 2015 were total impairments and other
charges related to the current downturn of net $1.31 per diluted share. Also included in
2015 net income was a loss of net ($0.29) per diluted share on our proportional
share of CJES earnings.
Revenue for the quarter of $739
million decreased by $109
million, or 13% sequentially. Net loss from continuing
operations for the fourth quarter totaled $161.1 million, or ($0.57) per diluted share. The current
results include $101.2 million in net
after-tax charges, or $0.35 per
diluted share, related to the impairment of certain assets.
The quarter also includes a net loss of $45.4 million, or ($0.16) per diluted share, attributable to
Nabors' equity share of CJES's third quarter results. These
results compare to a loss of $250.9
million in the third quarter of 2015. The third quarter
included after-tax charges of $206.0
million, or ($0.72) per
diluted share.
Anthony Petrello, Nabors'
Chairman and CEO, commented, "2015 has been a difficult year for
the industry due to weak and volatile oil prices, as well as a
declining rig count. Our fourth-quarter results reflect the
magnitude of progress we have made in scaling the business in line
with the industry's lowest U.S. rig count in 17 years.
Quarter to quarter, we saw moderately lower revenues across our
business units due to lower activity and increased exposure to
depressed spot market pricing. From the year-end level, we
expect additional decreases in drilling activity and rig count in
the Lower 48 and Canada, at least
through the second quarter of this year with more rigs converting
to spot pricing. We remain resilient internationally;
however, no region is immune to lower oil prices. Developing
technological solutions to drive additional sales content through
our rigs remains a core strategic focus and should be a key
differentiator for Nabors in a future recovery.
"With the timing of a recovery still uncertain, our focus is
primarily on continuing to exercise stringent control over our
operating, support and capital spending in order to meet our goals
of breakeven free cash flow and preserving more than adequate
liquidity. During the fourth quarter, we continued to generate
positive free cash flow and we continued to reduce our net
debt. I am confident we will maintain a solid financial
position, as we target positive free cash flow in 2016."
Segment Results
Quarterly adjusted operating income ("adjusted income") in
Drilling and Rig Services decreased 34% to $29.9 million from $45.5
million in the third quarter of this year. Quarterly
adjusted EBITDA in this business line decreased by only 9%
sequentially to $260.5 million, the
majority of which was attributable to the International
segment. For the quarter, the Company averaged 223 rigs
operating at an average gross margin of $14,229 per rig day, compared to 242 rigs at
$14,567 per rig day in the third
quarter. Future quarters are expected to show additional
declines as the weak commodity price environment persists and
customer spending continues to slow.
International adjusted income decreased by 30% sequentially to
$51.9 million, primarily due to a
modest reduction in rig years and some negative items, following
several positive items which occurred in the third quarter.
Quarterly adjusted EBITDA in this segment decreased by only 14%
sequentially to $160.7 million.
Compared to the fourth quarter, the Company foresees slightly
decreasing quarterly income in the near term as margins should
return to previous levels but activity moves lower. Despite
the weakening conditions throughout 2015, this segment managed to
post a $64.3 million, or 26%,
increase in annual adjusted income compared to 2014.
The U.S. Drilling segment posted an adjusted operating loss of
$7.4 million, reflecting further
activity declines during the quarter. However, margin expansion
resulted in $6.6 million higher
adjusted income versus the prior quarter. The Lower 48 saw
13% fewer rigs working versus the third quarter, for an average rig
count of 78. This was partially offset by higher margins from
both a favorable mix of higher-spec PACE®-X and
PACE®-B rigs working as well as lower compensation
cost. Going forward however, the Company anticipates lower
margins in the Lower 48 given current market conditions.
Canada saw further utilization
declines of 16% and remains a highly challenged market, though
adjusted income did improve modestly, primarily due to seasonal
factors.
Rig Services, which consists of the Company's manufacturing and
directional drilling operations, reported negative adjusted income
of $13.5 million, as the industry's
newbuild and drilling activity has declined. The Company
expects performance in this segment to modestly improve in coming
quarters with further adjustments to its cost structure.
William Restrepo, Nabors' Chief
Financial Officer, stated, "If oil prices persist at current levels
we expect further decreases in the North American land rig count
over the next couple of quarters. Paramount in this kind of
environment are cost and capital control, squeezing cash
out of our operations, and maintaining a strong
liquidity position. During the quarter, we were cash flow positive
as we continued to reduce our overhead, with material reductions in
our SG&A and field support costs. Our
operations implemented healthy reductions in direct
costs, as we contained the reduction
in adjusted income to acceptable
levels despite the reduced revenue. We also
maintained the capital discipline we have implemented
throughout the year. Capital expenditures were $132 million, with an annual drilling spend of
$827 million, well within our annual
target of $900 million. During the
fourth quarter, we entered into a new $325
million term loan facility and were able to repay our
outstanding commercial paper and repurchase $27.5 million of face value in our senior notes,
while ending the year with full availability on our
$2.25 billion revolving credit
facility.
Mr. Petrello concluded, "During 2016, we will remain vigilant by
continuing to align all of our costs to the new market reality. Not
only will we continue to rapidly scale our direct costs to our rig
count, but we are also targeting additional reductions in overhead
costs, cuts in annual capex to under $500
million and additional reductions to our debt level with any
excess liquidity."
About Nabors
Nabors Industries (NYSE: NBR) owns and operates the world's
largest land-based drilling rig fleet and is a leading provider of
offshore platform rigs in the United
States and multiple international markets. Nabors also
provides directional drilling services, performance tools, and
innovative technologies throughout the world's most significant oil
and gas markets. Leveraging our advanced drilling automation
capabilities, Nabors' highly skilled workforce continues to set new
standards for operational excellence and transform our
industry.
Forward-looking Statements
The information above includes forward-looking statements within
the meaning of the Securities Act of 1933 and the Securities
Exchange Act of 1934. Such forward-looking statements are subject
to certain risks and uncertainties, as disclosed by Nabors from
time to time in its filings with the Securities and Exchange
Commission. As a result of these factors, Nabors' actual results
may differ materially from those indicated or implied by such
forward-looking statements. The forward-looking statements
contained in this press release reflect management's estimates and
beliefs as of the date of this press release. Nabors does not
undertake to update these forward-looking
statements.
Non-GAAP Disclaimer
This press release presents certain "non-GAAP" financial
measures. The components of these non-GAAP measures are
computed by using amounts that are determined in accordance with
accounting principles generally accepted in the United States of America ("GAAP").
Adjusted EBITDA is computed by subtracting the sum of direct costs,
general and administrative expenses and research and engineering
expenses from operating revenues. Adjusted operating income
(loss) is computed similarly, but also subtracts depreciation and
amortization expenses from operating revenues. A reconciliation of
adjusted EBITDA and adjusted operating income (loss) to income
(loss) from continuing operations before income taxes, which is its
nearest comparable GAAP financial measure, are included elsewhere
in this press release.
Media Contact:
Dennis A. Smith, Vice President
of Corporate Development & Investor Relations, +1
281-775-8038. To request investor materials, contact Nabors'
corporate headquarters in Hamilton,
Bermuda at +441-292-1510 or via e-mail
at mark.andrews@nabors.com
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$ 738,872
|
|
$ 1,783,836
|
|
$
847,553
|
|
$ 3,864,437
|
|
$ 6,804,197
|
Earnings (losses)
from unconsolidated affiliates
|
|
(45,367)
|
|
(429)
|
|
(35,100)
|
|
(75,081)
|
|
(6,301)
|
Investment income
(loss)
|
|
180
|
|
1,596
|
|
(22)
|
|
2,308
|
|
11,831
|
Total
revenues and other income
|
|
693,685
|
|
1,785,003
|
|
812,431
|
|
3,791,664
|
|
6,809,727
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
445,130
|
|
1,194,844
|
|
518,174
|
|
2,371,436
|
|
4,505,064
|
General and
administrative expenses
|
|
61,056
|
|
128,081
|
|
72,032
|
|
324,328
|
|
500,036
|
Research and
engineering
|
|
9,354
|
|
14,790
|
|
9,716
|
|
41,253
|
|
49,698
|
Depreciation and
amortization
|
|
231,137
|
|
293,572
|
|
240,107
|
|
970,459
|
|
1,145,100
|
Interest
expense
|
|
46,410
|
|
43,697
|
|
44,448
|
|
181,928
|
|
177,948
|
Other, net
|
|
1,011
|
|
9,606
|
|
14,321
|
|
(39,172)
|
|
9,073
|
Impairments and other
charges
|
|
123,557
|
|
1,010,423
|
|
245,410
|
|
368,967
|
|
1,027,423
|
Total costs and other
deductions
|
|
917,655
|
|
2,695,013
|
|
1,144,208
|
|
4,219,199
|
|
7,414,342
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(223,970)
|
|
(910,010)
|
|
(331,777)
|
|
(427,535)
|
|
(604,615)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(62,880)
|
|
(23,609)
|
|
(80,898)
|
|
(98,038)
|
|
62,666
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary preferred
stock dividend
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,984
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(161,090)
|
|
(886,401)
|
|
(250,879)
|
|
(329,497)
|
|
(669,265)
|
Income (loss) from
discontinued operations, net of tax
|
|
(1,730)
|
|
(4,467)
|
|
(45,275)
|
|
(42,797)
|
|
21
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(162,820)
|
|
(890,868)
|
|
(296,154)
|
|
(372,294)
|
|
(669,244)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(834)
|
|
(202)
|
|
320
|
|
(381)
|
|
(1,415)
|
Net income (loss)
attributable to Nabors
|
|
$ (163,654)
|
|
$ (891,070)
|
|
$
(295,834)
|
|
$ (372,675)
|
|
$ (670,659)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share: (1)
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$ (.57)
|
|
$
(3.06)
|
|
$
(.86)
|
|
$
(1.14)
|
|
$
(2.28)
|
Basic
from discontinued operations
|
|
(.01)
|
|
(.02)
|
|
(.16)
|
|
(.15)
|
|
-
|
Basic
|
|
$ (.58)
|
|
$
(3.08)
|
|
$
(1.02)
|
|
$
(1.29)
|
|
$
(2.28)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$ (.57)
|
|
$
(3.06)
|
|
$
(.86)
|
|
$
(1.14)
|
|
$
(2.28)
|
Diluted
from discontinued operations
|
|
(.01)
|
|
(.02)
|
|
(.16)
|
|
(.15)
|
|
-
|
Diluted
|
|
$ (.58)
|
|
$
(3.08)
|
|
$
(1.02)
|
|
$
(1.29)
|
|
$
(2.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number
|
|
|
|
|
|
|
|
|
|
|
of
common shares outstanding: (1)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
276,371
|
|
284,938
|
|
284,112
|
|
282,982
|
|
290,694
|
Diluted
|
|
276,371
|
|
284,938
|
|
284,112
|
|
282,982
|
|
290,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(2)
|
|
$ 223,332
|
|
$ 446,121
|
|
$
247,631
|
|
$ 1,127,420
|
|
$ 1,749,399
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss) (3)
|
|
$ (7,805)
|
|
$ 152,549
|
|
$
7,524
|
|
$ 156,961
|
|
$ 604,299
|
|
|
(1)
|
See "Computation of
Earnings (Losses) Per Share" included herein as a separate
schedule.
|
|
|
(2)
|
Adjusted EBITDA is
computed by subtracting the sum of direct costs, general and
administrative expenses and research and engineering expenses from
operating revenues. Adjusted EBITDA is a non-GAAP measure and
should not be used in isolation or as a substitute for the amounts
reported in accordance with GAAP. However, management evaluates the
performance of our operating segments and the consolidated company
based on several criteria, including adjusted EBITDA and adjusted
operating income (loss), because we believe that these financial
measures accurately reflect our ongoing profitability. In
addition, securities analysts and investors use this measure of us
as one of the metrics on which they analyze our performance.
A reconciliation of this non-GAAP measure to income (loss) from
continuing operations before income taxes, which is a GAAP measure,
is provided in the table set forth immediately following the
heading "Reconciliation of Non-GAAP Financial Measures to Income
(loss) from Continuing Operations before Income Taxes".
|
|
|
(3)
|
Adjusted operating
income (loss) is computed by subtracting the sum of direct costs,
general and administrative expenses, research and engineering
expenses and depreciation and amortization from operating revenues.
Adjusted operating income (loss) is a non-GAAP measure and should
not be used in isolation or as a substitute for the amounts
reported in accordance with GAAP. However, management evaluates the
performance of our operating segments and the consolidated company
based on several criteria, including adjusted EBITDA and adjusted
operating income (loss), because it believes that these financial
measures accurately reflect our ongoing profitability. In
addition, securities analysts and investors use this measure of us
as one of the metrics on which they analyze our performance.
A reconciliation of this non-GAAP measure to income (loss) from
continuing operations before income taxes, which is a GAAP measure,
is provided in the table set forth immediately following the
heading "Reconciliation of Non-GAAP Financial Measures to Income
(loss) from Continuing Operations before Income Taxes".
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
274,589
|
|
$
276,562
|
|
$
536,169
|
Accounts receivable,
net
|
|
784,671
|
|
871,385
|
|
1,517,503
|
Assets held for
sale
|
|
75,678
|
|
78,400
|
|
146,467
|
Other current
assets
|
|
340,959
|
|
492,728
|
|
541,735
|
Total current
assets
|
|
1,475,897
|
|
1,719,075
|
|
2,741,874
|
Property, plant and
equipment, net
|
|
7,027,802
|
|
7,287,531
|
|
8,599,125
|
Goodwill
|
|
166,659
|
|
150,032
|
|
173,928
|
Investment in
unconsolidated affiliates
|
|
415,177
|
|
460,543
|
|
58,251
|
Other long-term
assets
|
|
452,305
|
|
293,818
|
|
289,745
|
Total assets
|
|
$ 9,537,840
|
|
$ 9,910,999
|
|
$ 11,862,923
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current
debt
|
|
$
6,508
|
|
$
8,982
|
|
$
6,190
|
Other current
liabilities
|
|
999,991
|
|
1,040,569
|
|
1,561,285
|
Total current
liabilities
|
|
1,006,499
|
|
1,049,551
|
|
1,567,475
|
Long-term
debt
|
|
3,655,200
|
|
3,719,591
|
|
4,331,840
|
Other long-term
liabilities
|
|
582,273
|
|
630,458
|
|
1,044,819
|
Total liabilities
|
|
5,243,972
|
|
5,399,600
|
|
6,944,134
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Shareholders'
equity
|
|
4,282,710
|
|
4,502,313
|
|
4,908,619
|
Noncontrolling
interest
|
|
11,158
|
|
9,086
|
|
10,170
|
Total equity
|
|
4,293,868
|
|
4,511,399
|
|
4,918,789
|
Total liabilities and
equity
|
|
$ 9,537,840
|
|
$ 9,910,999
|
|
$ 11,862,923
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
SEGMENT
REPORTING
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
The following tables
set forth certain information with respect to our reportable
segments and rig activity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except rig activity)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ 222,060
|
|
$ 544,862
|
|
$
259,939
|
|
$ 1,256,989
|
|
$ 2,159,968
|
Canada
|
|
28,312
|
|
88,219
|
|
29,929
|
|
137,494
|
|
335,192
|
International
|
|
448,507
|
|
432,739
|
|
516,180
|
|
1,862,393
|
|
1,624,259
|
Rig Services
(1)
|
|
72,862
|
|
190,399
|
|
73,521
|
|
391,066
|
|
692,908
|
Subtotal
Drilling & Rig Services
|
|
771,741
|
|
1,256,219
|
|
879,569
|
|
3,647,942
|
|
4,812,327
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
361,570
|
|
-
|
|
207,860
|
|
1,217,899
|
Production
Services
|
|
-
|
|
239,897
|
|
-
|
|
158,512
|
|
1,033,538
|
Subtotal
Completion & Production Services
|
|
-
|
|
601,467
|
|
-
|
|
366,372
|
|
2,251,437
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (2)
|
|
(32,869)
|
|
(73,850)
|
|
(32,016)
|
|
(149,877)
|
|
(259,567)
|
Total operating
revenues
|
|
$ 738,872
|
|
$ 1,783,836
|
|
$
847,553
|
|
$ 3,864,437
|
|
$ 6,804,197
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ 94,254
|
|
$ 207,001
|
|
$
94,505
|
|
$ 513,003
|
|
$ 835,679
|
Canada
|
|
10,041
|
|
28,315
|
|
7,516
|
|
39,757
|
|
108,454
|
International
|
|
160,716
|
|
173,903
|
|
186,451
|
|
719,266
|
|
611,320
|
Rig Services
(1)
|
|
(4,491)
|
|
17,507
|
|
(2,455)
|
|
20,978
|
|
86,933
|
Subtotal
Drilling & Rig Services
|
|
260,520
|
|
426,726
|
|
286,017
|
|
1,293,004
|
|
1,642,386
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
33,146
|
|
-
|
|
(28,110)
|
|
94,377
|
Production
Services
|
|
-
|
|
40,284
|
|
-
|
|
23,043
|
|
207,919
|
Subtotal
Completion & Production Services
|
|
-
|
|
73,430
|
|
-
|
|
(5,067)
|
|
302,296
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(37,188)
|
|
(54,035)
|
|
(38,386)
|
|
(160,517)
|
|
(195,283)
|
Total adjusted
EBITDA
|
|
$ 223,332
|
|
$ 446,121
|
|
$
247,631
|
|
$ 1,127,420
|
|
$ 1,749,399
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ (7,398)
|
|
$ 90,490
|
|
$
(14,034)
|
|
$ 87,051
|
|
$ 370,173
|
Canada
|
|
(1,034)
|
|
14,566
|
|
(4,085)
|
|
(7,029)
|
|
52,468
|
International
|
|
51,850
|
|
76,319
|
|
74,039
|
|
308,262
|
|
243,975
|
Rig Services
(1)
|
|
(13,505)
|
|
8,845
|
|
(10,434)
|
|
(12,641)
|
|
53,374
|
Subtotal
Drilling & Rig Services
|
|
29,913
|
|
190,220
|
|
45,486
|
|
375,643
|
|
719,990
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
4,701
|
|
-
|
|
(55,243)
|
|
(15,540)
|
Production
Services
|
|
-
|
|
11,752
|
|
-
|
|
(3,559)
|
|
93,414
|
Subtotal
Completion & Production Services
|
|
-
|
|
16,453
|
|
-
|
|
(58,802)
|
|
77,874
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(37,718)
|
|
(54,124)
|
|
(37,962)
|
|
(159,880)
|
|
(193,565)
|
Total
adjusted operating income (loss)
|
|
$ (7,805)
|
|
$ 152,549
|
|
$
7,524
|
|
$ 156,961
|
|
$ 604,299
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
$ (45,367)
|
|
$
(429)
|
|
$
(35,100)
|
|
$ (75,081)
|
|
$ (6,301)
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Rig years:
(6)
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
91.0
|
|
212.2
|
|
103.0
|
|
120.0
|
|
212.5
|
Canada
|
|
14.4
|
|
36.9
|
|
17.2
|
|
16.7
|
|
34.1
|
International (7)
|
|
117.5
|
|
121.2
|
|
121.3
|
|
124.0
|
|
127.1
|
Total rig
years
|
|
222.9
|
|
370.3
|
|
241.5
|
|
260.7
|
|
373.7
|
Rig hours:
(8)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Production Services
|
|
-
|
|
183,102
|
|
-
|
|
129,652
|
|
809,438
|
Canada
Production Services
|
|
-
|
|
33,218
|
|
-
|
|
23,947
|
|
139,938
|
Total rig
hours
|
|
-
|
|
216,320
|
|
-
|
|
153,599
|
|
949,376
|
|
|
(1)
|
Includes our other
services comprised of our drilling technology and top drive
manufacturing, directional drilling, rig instrumentation and
software services.
|
|
|
(2)
|
Represents the
elimination of inter-segment transactions.
|
|
|
(3)
|
Adjusted EBITDA is
computed by subtracting the sum of direct costs, general and
administrative expenses and research and engineering expenses from
operating revenues. Adjusted EBITDA is a non-GAAP measure and
should not be used in isolation or as a substitute for the amounts
reported in accordance with GAAP. However, management evaluates the
performance of our operating segments and the consolidated company
based on several criteria, including adjusted EBITDA and adjusted
operating income (loss), because we believe that these financial
measures accurately reflect our ongoing profitability. In
addition, securities analysts and investors use this measure of us
as one of the metrics on which they analyze our performance.
A reconciliation of this non-GAAP measure to income (loss) from
continuing operations before income taxes, which is a GAAP measure,
is provided in the table set forth immediately following the
heading "Reconciliation of Non-GAAP Financial Measures to Income
(loss) from Continuing Operations before Income Taxes".
|
|
|
(4)
|
Represents the
elimination of inter-segment transactions and unallocated corporate
expenses.
|
|
|
(5)
|
Adjusted operating
income (loss) is computed by subtracting the sum of direct costs,
general and administrative expenses, research and engineering
expenses and depreciation and amortization from operating revenues.
Adjusted operating income (loss) is a non-GAAP measure and should
not be used in isolation or as a substitute for the amounts
reported in accordance with GAAP. However, management evaluates the
performance of our operating segments and the consolidated company
based on several criteria, including adjusted EBITDA and adjusted
operating income (loss), because it believes that these financial
measures accurately reflect our ongoing profitability. In
addition, securities analysts and investors use this measure of us
as one of the metrics on which they analyze our performance.
A reconciliation of this non-GAAP measure to income (loss) from
continuing operations before income taxes, which is a GAAP measure,
is provided in the table set forth immediately following the
heading "Reconciliation of Non-GAAP Financial Measures to Income
(loss) from Continuing Operations before Income Taxes".
|
|
|
(6)
|
Excludes
well-servicing rigs, which are measured in rig hours.
Includes our equivalent percentage ownership of rigs owned by
unconsolidated affiliates. Rig years represent a measure of
the number of equivalent rigs operating during a given
period. For example, one rig operating 182.5 days during a
365-day period represents 0.5 rig years.
|
|
|
(7)
|
International rig
years includes our equivalent percentage ownership of rigs owned by
unconsolidated affiliates, which totaled 2.5 years during the three
months ended December 31, 2014 and 2.5 years for the year ended
December 31, 2014. As of May 24, 2015, this was no longer an
unconsolidated affiliate.
|
|
|
(8)
|
Rig hours represents
the number of hours that our well-servicing rig fleet operated
during the period. This fleet was included in the
Completion & Production Services business that was merged
with C&J Energy Services, Inc. in March 2015 and we
will therefore no longer report this performance
metric.
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 223,332
|
|
$ 446,121
|
|
$
247,631
|
|
$ 1,127,420
|
|
$ 1,749,399
|
Depreciation and
amortization
|
|
(231,137)
|
|
(293,572)
|
|
(240,107)
|
|
(970,459)
|
|
(1,145,100)
|
Adjusted operating
income (loss)
|
|
(7,805)
|
|
152,549
|
|
7,524
|
|
156,961
|
|
604,299
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
(45,367)
|
|
(429)
|
|
(35,100)
|
|
(75,081)
|
|
(6,301)
|
Interest
expense
|
|
(46,410)
|
|
(43,697)
|
|
(44,448)
|
|
(181,928)
|
|
(177,948)
|
Investment income
(loss)
|
|
180
|
|
1,596
|
|
(22)
|
|
2,308
|
|
11,831
|
Other, net
|
|
(1,011)
|
|
(9,606)
|
|
(14,321)
|
|
39,172
|
|
(9,073)
|
Impairments and other
charges
|
|
(123,557)
|
|
(1,010,423)
|
|
(245,410)
|
|
(368,967)
|
|
(1,027,423)
|
Income (loss) from
continuing operations before income taxes
|
|
$(223,970)
|
|
$ (910,010)
|
|
$ (331,777)
|
|
$ (427,535)
|
|
$ (604,615)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
COMPUTATION OF
EARNINGS (LOSSES) PER SHARE
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of
the numerators and denominators of the basic and diluted earnings
(losses) per share computations is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2015
|
|
2014
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
EPS:
Net income (loss)
(numerator):
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
$ (161,090)
|
|
$ (886,401)
|
|
$ (250,879)
|
|
$ (329,497)
|
|
$ (669,265)
|
Less:
net (income) loss attributable to noncontrolling
interest
|
|
(834)
|
|
(202)
|
|
320
|
|
(381)
|
|
(1,415)
|
Less: loss on redemption of subsidary preferred
stock
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,688)
|
Less:
(earnings) losses allocated to unvested
shareholders
|
|
3,297
|
|
13,881
|
|
5,834
|
|
7,820
|
|
10,595
|
Numerator for basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Adjusted
income (loss) from continuing operations, net of tax -
basic:
|
|
$ (158,627)
|
|
$ (872,722)
|
|
$ (244,725)
|
|
$ (322,058)
|
|
$ (661,773)
|
Income (loss)
from discontinued operations, net of tax
|
|
$ (1,730)
|
|
$ (4,467)
|
|
$
(45,275)
|
|
$ (42,797)
|
|
$
21
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding-basic
|
|
276,371
|
|
284,938
|
|
284,112
|
|
282,982
|
|
290,694
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic from continuing
operations
|
|
$ (.57)
|
|
$ (3.06)
|
|
$
(.86)
|
|
$ (1.14)
|
|
$ (2.28)
|
Basic from discontinued
operations
|
|
(.01)
|
|
(.02)
|
|
(.16)
|
|
(.15)
|
|
-
|
Total
Basic
|
|
$ (.58)
|
|
$ (3.08)
|
|
$
(1.02)
|
|
$ (1.29)
|
|
$ (2.28)
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED
EPS:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax - basic
|
|
$ (158,627)
|
|
$ (872,722)
|
|
$ (244,725)
|
|
$ (322,058)
|
|
$ (661,773)
|
Add: effect of
reallocating undistributed earnings of unvested
shareholders
|
|
-
|
|
-
|
|
-
|
|
-
|
|
25
|
Adjusted income
(loss) from continuing operations, net of tax - diluted
|
$ (158,627)
|
|
$ (872,722)
|
|
$ (244,725)
|
|
$ (322,058)
|
|
$ (661,748)
|
Income (loss) from
discontinued operations, net of tax
|
|
$ (1,730)
|
|
$ (4,467)
|
|
$
(45,275)
|
|
$ (42,797)
|
|
$
21
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding-basic
|
|
276,371
|
|
284,938
|
|
284,112
|
|
282,982
|
|
290,694
|
Add: dilutive effect of potential common shares
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Weighted-average number of shares outstanding - diluted
|
|
276,371
|
|
284,938
|
|
284,112
|
|
282,982
|
|
290,694
|
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing
operations
|
|
$ (.57)
|
|
$ (3.06)
|
|
$
(.86)
|
|
$ (1.14)
|
|
$ (2.28)
|
Diluted from discontinued
operations
|
|
(.01)
|
|
(.02)
|
|
(.16)
|
|
(.15)
|
|
-
|
Total
Diluted
|
|
$ (.58)
|
|
$ (3.08)
|
|
$
(1.02)
|
|
$ (1.29)
|
|
$ (2.28)
|
Restricted stock
grants that contain non-forfeitable rights to dividends are
considered participating securities. As such, these grants
are included in our basic and diluted earnings (losses) per share
computation using the two-class method of accounting. For all
periods presented, the computation of diluted earnings (losses) per
share excludes outstanding stock options with exercise prices
greater than the average market price of Nabors' common shares,
because their inclusion would have been anti-dilutive and because
they are not considered participating securities. For periods in
which we experience a net loss from continuing operations, all
potential common shares have been excluded from the calculation of
weighted-average shares outstanding, because their inclusion would
be anti-dilutive. The average number of options that were
excluded from diluted earnings (losses) per share that would
potentially dilute earnings (losses) per share was 8,105,161,
11,485,314 and 9,416,647 shares during the three months ended
December 31, 2015 and 2014 and September 30, 2015, respectively,
and 9,459,147 and 12,950,249 shares during the years ended December
31, 2015 and 2014, respectively. In any period during which the
average market price of Nabors' common shares exceeds the exercise
prices of these stock options, such stock options will be included
in our diluted earnings (losses) per share computation using the
if-converted method of accounting.
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS) ITEMS EXCLUDING CERTAIN NON-CASH
CHARGES
AND OTHER NON-OPERATIONAL ITEMS (NON-GAAP)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Charges and
Non-Operational
|
|
As
adjusted
|
(In thousands,
except per share amounts)
|
|
Actuals
|
|
Items
|
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2015
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
$ (161,090)
|
|
$ (101,152)
|
|
$ (59,938)
|
Diluted earnings
(losses) per share from continuing operations
|
|
$ (0.57)
|
|
$
(0.35)
|
|
$
(0.22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
$ (250,879)
|
|
$ (206,005)
|
|
$ (44,874)
|
Diluted earnings
(losses) per share from continuing operations
|
|
$ (0.86)
|
|
$
(0.72)
|
|
$
(0.14)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
SCHEDULE OF
NON-CASH CHARGES AND OTHER NON-OPERATIONAL ITEMS
(NON-GAAP)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
December
31,
|
|
September
30,
|
|
|
|
|
Per
Diluted
|
|
|
|
Per
Diluted
|
(In thousands,
except per share amounts)
|
|
2015
|
|
Share
|
|
2015
|
|
Share
|
|
|
|
|
|
|
|
|
|
Impairments and other charges (1)
|
|
$ 101,152
|
|
$
.35
|
|
$ 206,005
|
|
$
.72
|
|
|
|
|
|
|
|
|
|
Total Adjustments,
net of tax
|
|
$ 101,152
|
|
$
.35
|
|
$ 206,005
|
|
$
.72
|
|
(1) Represents
retirements and impairments to various assets related to the
current industry downturn, net of tax of $22.4 million and $44.9
million, respectively, for the three months ended December 31,
2015 and September 30, 2015.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nabors-announces-fy-2015-and-fourth-quarter-results-300220969.html
SOURCE Nabors Industries Ltd.