HAMILTON, Bermuda, Aug. 2, 2016 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors") (NYSE: NBR) today reported second
quarter 2016 operating revenues of $571.6
million, compared to operating revenues of $597.6 million in the first quarter. Net
income from continuing operations for the quarter was a loss of
$186.6 million, or ($0.65) per diluted share, compared to a loss of
$396.6 million, or ($1.41) per diluted share, last quarter. Net
income from continuing operations for the second quarter
includes a loss of $0.39 per share
due to impairments and losses related to disposed businesses and
assets. The largest component, totaling $0.34 per share, is comprised of an impairment to
the carrying value of the Company's investment in C&J Energy
Services Ltd. ("C&J") and its proportionate share of C&J
losses from the prior quarter. In addition, the second
quarter benefitted from the renegotiation of two contracts, as well
as early termination revenue that improved reported net income by
$24.1 million or $0.09 per share.
Anthony Petrello, Nabors'
Chairman, President, and CEO, commented, "Thanks to our global
market position, stringent cost management and incremental revenue
from two contract renegotiations, we were able to achieve a
sequential increase in adjusted EBITDA, despite lower activity and
pricing. Additionally, continued focus on capital
expenditures and expense control has led to a reduction in net debt
of nearly $140 million
year-to-date.
"Operating income for the Company remained flat quarter over
quarter, largely attributable to favorable results in the
Gulf of Mexico and our
international business, offset by declines in Rig Services,
Alaska and Canada. Our Gulf of Mexico results
reflect amended contract terms for the MODS 400 deepwater platform
rig, which include partial recovery of standby revenue for past
quarters.
"We completed two of our three recently introduced
PACE®-M800 AC rigs under construction, with completion
of the third expected by the end of September. We have
executed a contract for the first rig and are finalizing contracts
for the other two. Our pad-optimized PACE®-X rig
also continues to set new performance records.
"We remain diligent in managing the current cycle, particularly
in light of the recent pullback in oil prices, while maintaining
our flexibility to capitalize on opportunities."
Segment Results
Adjusted operating income for the second quarter was a loss of
$53.4 million, essentially flat from
the first quarter. During the second quarter the Company
concluded negotiations on a contract amendment to the MODS 400
platform rig in the Gulf of Mexico
and resolved a contract dispute in Angola. In addition, early termination revenue
totaled approximately $14.3
million. These items had a combined favorable impact
on results of $29.7 million, as
compared to $3.6 million for early
termination revenue in the first quarter.
Drilling and Rig Services adjusted operating income was a loss
of $25.0 million compared to a loss
of $18.6 million in the first
quarter. Quarterly adjusted EBITDA in these business lines
decreased sequentially to $193.4
million, a 3% decline from the previous quarter. For
the quarter, the Company averaged 159.1 rigs operating at an
average gross margin of $15,850 per
rig day, compared to 187.9 rigs at $13,407 per rig day in the first quarter.
The Company expects additional declines in near-term volume and
pricing, as term contracts expire and adjust to spot market rates
in the lower 48, and international markets continue to adjust to
commodity prices.
International adjusted operating income increased by 15%
sequentially to $53.9 million due to
several beneficial revenue items and cost improvements.
Quarterly adjusted EBITDA in this segment increased by 2%
sequentially to $150.6 million.
Compared to the second quarter, the Company expects decreasing
quarterly income in the near term, reflecting activity
declines and the absence of specific revenue events of the second
quarter. Increased bidding activity in the Middle East and planned 2017 budget increases
by certain Latin American customers imply an upturn is possible in
the first half of next year. In Canada, the usual sequential decrease in
results due to the annual second quarter break up was minimized by
the historically low first quarter rig counts. Subsequent
quarterly results should reflect a modest improvement.
The U.S. Drilling segment posted an adjusted operating loss of
$48.3 million for the quarter,
reflecting further activity declines and margin erosion offset by
the additional standby revenue agreed with our customer for the
delayed startup of the MODS 400 platform rig. The Lower 48
operation saw 18% fewer rigs working compared to the first quarter,
with an average rig count of 44. A rig count improvement late
in the quarter implies a bottoming in activity. Provided oil
prices stabilize into the $50 per
barrel range, the Company expects the near-term rig count to
increase gradually, albeit at lower average margins, as legacy
contracts renew at current spot day rates. Subsequent to
quarter end, the Company commenced mobilization of its second
arctic coiled tubing drilling rig to the North Slope of
Alaska with startup anticipated to
occur in late third quarter.
Rig Services, which consists of the Company's manufacturing,
directional drilling, and complementary services, reported an
adjusted operating loss of $19.7
million. While the broader market continues to
struggle in these segments, the Company is encouraged by customers'
adoption of its technologies and interest in its comprehensive
offerings.
William Restrepo, Nabors' Chief
Financial Officer, stated, "Our company's strategy and preparation
continue to contain the damage inflicted by the severity and length
of the current downturn. Capital allocation over the past
five years to international markets with lower cost reservoirs, as
well as intense focus on developing advanced drilling technologies,
have helped us continue to perform well nearly two years into this
downturn. Early actions to control cost and capital
expenditures have also contributed to the positive free cash flow
that we had anticipated. Finally, the steps taken to strengthen our
liquidity position before the start of this downturn have proven
extremely valuable and have prevented the need for onerous capital
market transactions in a very unfavorable environment. In
addition to our current cash balances, our $2.25 billion revolver remains undrawn.
And although we see signs of improvement in both
international and U.S. markets, we remain committed to maintaining
liquidity and financial discipline, while targeting positive free
cash flow during the remainder of the year."
Mr. Petrello concluded, "I am pleased with our results this
quarter in light of historically low rig counts and the most
challenging drilling market in decades. Since this downturn
began in 2014, Nabors' unique best-in-class global footprint and
technological innovations have allowed us to mitigate the impact of
the implosion in North American activity, preserve our sizeable
liquidity, and position the Company for further growth."
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. Net debt is computed
by subtracting the sum of cash and short-term investments from
total debt. None of these measures should 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, adjusted operating income
(loss), and net debt, because it believes that these financial
measures accurately reflect our ongoing profitability and
performance. In addition, securities analysts and investors use
these measures as some of the metrics on which they analyze the
company's performance. Other companies in our industry may compute
these measures differently. A reconciliation of adjusted
EBITDA and adjusted operating income (loss) to income (loss) from
continuing operations before income taxes and net debt to total
debt, which are their nearest comparable GAAP financial measures,
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
571,591
|
|
$ 863,305
|
|
$
597,571
|
|
$
1,169,162
|
|
$
2,278,012
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
(54,769)
|
|
(1,116)
|
|
(167,151)
|
|
(221,920)
|
|
5,386
|
|
Investment income
(loss)
|
|
270
|
|
1,181
|
|
343
|
|
613
|
|
2,150
|
|
Total revenues and
other income
|
|
517,092
|
|
863,370
|
|
430,763
|
|
947,855
|
|
2,285,548
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
341,279
|
|
488,522
|
|
365,023
|
|
706,302
|
|
1,408,132
|
|
General and
administrative expenses
|
|
56,624
|
|
75,810
|
|
62,334
|
|
118,958
|
|
191,240
|
|
Research and
engineering
|
|
8,180
|
|
10,480
|
|
8,162
|
|
16,342
|
|
22,183
|
|
Depreciation and
amortization
|
|
218,913
|
|
218,196
|
|
215,818
|
|
434,731
|
|
499,215
|
|
Interest
expense
|
|
45,237
|
|
44,469
|
|
45,730
|
|
90,967
|
|
91,070
|
|
Other, net
|
|
74,607
|
|
1,338
|
|
182,404
|
|
257,011
|
|
(54,504)
|
|
Total costs and other
deductions
|
|
744,840
|
|
838,815
|
|
879,471
|
|
1,624,311
|
|
2,157,336
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(227,748)
|
|
24,555
|
|
(448,708)
|
|
(676,456)
|
|
128,212
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(41,183)
|
|
66,445
|
|
(52,064)
|
|
(93,247)
|
|
45,740
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(186,565)
|
|
(41,890)
|
|
(396,644)
|
|
(583,209)
|
|
82,472
|
|
Income (loss) from
discontinued operations, net of tax
|
|
(984)
|
|
5,025
|
|
(926)
|
|
(1,910)
|
|
4,208
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(187,549)
|
|
(36,865)
|
|
(397,570)
|
|
(585,119)
|
|
86,680
|
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
2,899
|
|
44
|
|
(724)
|
|
2,175
|
|
133
|
|
Net income (loss)
attributable to Nabors
|
|
$(184,650)
|
|
$ (36,821)
|
|
$(398,294)
|
|
$
(582,944)
|
|
$
86,813
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$
(.65)
|
|
$
(.14)
|
|
$
(1.41)
|
|
$
(2.06)
|
|
$
.28
|
|
Basic
from discontinued operations
|
|
-
|
|
.01
|
|
-
|
|
(.01)
|
|
.02
|
|
Basic
|
|
$
(.65)
|
|
$
(.13)
|
|
$
(1.41)
|
|
$
(2.07)
|
|
$
.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$
(.65)
|
|
$
(.14)
|
|
$
(1.41)
|
|
$
(2.06)
|
|
$
.28
|
|
Diluted
from discontinued operations
|
|
-
|
|
.01
|
|
-
|
|
(.01)
|
|
.02
|
|
Diluted
|
|
$
(.65)
|
|
$
(.13)
|
|
$
(1.41)
|
|
$
(2.07)
|
|
$
.30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number
|
|
|
|
|
|
|
|
|
|
|
|
of
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
276,550
|
|
286,085
|
|
275,851
|
|
276,201
|
|
285,723
|
|
Diluted
|
|
276,550
|
|
286,085
|
|
275,851
|
|
276,201
|
|
286,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
$
165,508
|
|
$ 288,493
|
|
$
162,052
|
|
$
327,560
|
|
$
656,457
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss) (2)
|
|
$
(53,405)
|
|
$
70,297
|
|
$
(53,766)
|
|
$
(107,171)
|
|
$
157,242
|
|
|
|
(1)
|
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 it believes that these financial
measures accurately reflect our ongoing profitability and
performance. In addition, securities analysts and investors
use this measure as one of the metrics on which they analyze our
performance. Other companies in our industry may compute
these measures differently. 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".
|
|
|
|
(2)
|
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 and
performance. In addition, securities analysts and investors use
this measure as one of the metrics on which they analyze our
performance. Other companies in our industry may compute
these measures differently. 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
(In
thousands)
|
|
2016
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
255,856
|
|
$
221,501
|
|
$
274,589
|
|
Accounts receivable,
net
|
|
504,099
|
|
594,506
|
|
784,671
|
|
Assets held for
sale
|
|
86,608
|
|
80,100
|
|
75,678
|
|
Other current
assets
|
|
344,680
|
|
363,280
|
|
340,959
|
|
Total current
assets
|
|
1,191,243
|
|
1,259,387
|
|
1,475,897
|
|
Property, plant and
equipment, net
|
|
6,765,257
|
|
6,942,315
|
|
7,027,802
|
|
Goodwill
|
|
167,275
|
|
167,217
|
|
166,659
|
|
Investment in
unconsolidated affiliates
|
|
888
|
|
94,657
|
|
415,177
|
|
Other long-term
assets
|
|
531,642
|
|
486,755
|
|
452,305
|
|
Total assets
|
|
$
8,656,305
|
|
$
8,950,331
|
|
$
9,537,840
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current
debt
|
|
$
175
|
|
$
5,880
|
|
$
6,508
|
|
Other current
liabilities
|
|
868,000
|
|
865,388
|
|
999,991
|
|
Total current
liabilities
|
|
868,175
|
|
871,268
|
|
1,006,499
|
|
Long-term
debt
|
|
3,503,172
|
|
3,584,402
|
|
3,655,200
|
|
Other long-term
liabilities
|
|
562,260
|
|
578,464
|
|
582,273
|
|
Total liabilities
|
|
4,933,607
|
|
5,034,134
|
|
5,243,972
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
3,715,850
|
|
3,904,320
|
|
4,282,710
|
|
Noncontrolling
interest
|
|
6,848
|
|
11,877
|
|
11,158
|
|
Total equity
|
|
3,722,698
|
|
3,916,197
|
|
4,293,868
|
|
Total liabilities and
equity
|
|
$
8,656,305
|
|
$
8,950,331
|
|
$
9,537,840
|
|
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except rig activity)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ 140,342
|
|
$ 321,169
|
|
$
148,676
|
|
$
289,018
|
|
$
774,990
|
|
Canada
|
|
6,617
|
|
21,413
|
|
17,494
|
|
24,111
|
|
79,253
|
|
International
|
|
401,024
|
|
458,545
|
|
401,055
|
|
802,079
|
|
897,706
|
|
Rig Services
(1)
|
|
39,248
|
|
100,599
|
|
53,853
|
|
93,101
|
|
244,683
|
|
Subtotal
Drilling & Rig Services
|
|
587,231
|
|
901,726
|
|
621,078
|
|
1,208,309
|
|
1,996,632
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
207,860
|
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
158,512
|
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
366,372
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (2)
|
|
(15,640)
|
|
(38,421)
|
|
(23,507)
|
|
(39,147)
|
|
(84,992)
|
|
Total operating
revenues
|
|
$ 571,591
|
|
$ 863,305
|
|
$
597,571
|
|
$
1,169,162
|
|
$
2,278,012
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
52,878
|
|
$ 136,499
|
|
$
51,235
|
|
$
104,113
|
|
$
324,244
|
|
Canada
|
|
360
|
|
3,732
|
|
2,122
|
|
2,482
|
|
22,200
|
|
International
|
|
150,618
|
|
177,310
|
|
148,309
|
|
298,927
|
|
372,099
|
|
Rig Services
(1)
|
|
(10,433)
|
|
6,341
|
|
(1,481)
|
|
(11,914)
|
|
27,924
|
|
Subtotal
Drilling & Rig Services
|
|
193,423
|
|
323,882
|
|
200,185
|
|
393,608
|
|
746,467
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(28,110)
|
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
23,043
|
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,067)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(27,915)
|
|
(35,389)
|
|
(38,133)
|
|
(66,048)
|
|
(84,943)
|
|
Total adjusted
EBITDA
|
|
$ 165,508
|
|
$ 288,493
|
|
$
162,052
|
|
$
327,560
|
|
$
656,457
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ (48,328)
|
|
$
31,445
|
|
$
(47,559)
|
|
$
(95,887)
|
|
$
108,483
|
|
Canada
|
|
(10,831)
|
|
(8,268)
|
|
(7,278)
|
|
(18,109)
|
|
(1,910)
|
|
International
|
|
53,859
|
|
83,571
|
|
46,872
|
|
100,731
|
|
182,373
|
|
Rig Services
(1)
|
|
(19,657)
|
|
(1,575)
|
|
(10,644)
|
|
(30,301)
|
|
11,298
|
|
Subtotal
Drilling & Rig Services
|
|
(24,957)
|
|
105,173
|
|
(18,609)
|
|
(43,566)
|
|
300,244
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(55,243)
|
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,559)
|
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(58,802)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(28,448)
|
|
(34,876)
|
|
(35,157)
|
|
(63,605)
|
|
(84,200)
|
|
Total
adjusted operating income (loss)
|
|
$ (53,405)
|
|
$
70,297
|
|
$
(53,766)
|
|
$
(107,171)
|
|
$
157,242
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates (6)
|
|
$ (54,769)
|
|
$
(1,116)
|
|
$(167,151)
|
|
$
(221,920)
|
|
$
5,386
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
|
Rig years:
(7)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
53.7
|
|
119.5
|
|
64.9
|
|
59.3
|
|
143.4
|
|
Canada
|
|
4.2
|
|
9.7
|
|
12.5
|
|
8.3
|
|
17.6
|
|
International (8)
|
|
101.2
|
|
127.1
|
|
110.5
|
|
105.9
|
|
128.6
|
|
Total rig
years
|
|
159.1
|
|
256.3
|
|
187.9
|
|
173.5
|
|
289.6
|
|
Rig hours:
(9)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
129,652
|
|
Canada
Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
23,947
|
|
Total rig
hours
|
|
-
|
|
-
|
|
-
|
|
-
|
|
153,599
|
|
|
|
(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 it believes that these financial
measures accurately reflect our ongoing profitability and
performance. In addition, securities analysts and investors
use this measure as one of the metrics on which they analyze our
performance. Other companies in our industry may compute
these measures differently. 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 and
performance. In addition, securities analysts and investors
use this measure as one of the metrics on which they analyze our
performance. Other companies in our industry may compute
these measures differently. 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)
|
Represents our share
of the net income (loss), as adjusted for our basis difference, of
our unconsolidated affiliates accounted for by the equity
method, including losses of $54.8 million, $.8 million
and $167.1 million for the three months ended June 30, 2016 and
2015 and March 31, 2016, respectively, and $221.9 million and $.8
million for the six months ended June 30, 2016 and 2015 related to
our share of the net loss of C&J, which we report on a quarter
lag.
|
|
|
|
(7)
|
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.
|
|
|
|
(8)
|
International rig
years includes our equivalent percentage ownership of rigs owned by
unconsolidated affiliates, which totaled 2.5 years during the three
months ended March 31, 2015. As of May 24, 2015, this was no
longer an unconsolidated affiliate.
|
|
|
|
(9)
|
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
165,508
|
|
$ 288,493
|
|
$
162,052
|
|
$
327,560
|
|
$ 656,457
|
|
Depreciation and
amortization
|
|
(218,913)
|
|
(218,196)
|
|
(215,818)
|
|
(434,731)
|
|
(499,215)
|
|
Adjusted operating
income (loss)
|
|
(53,405)
|
|
70,297
|
|
(53,766)
|
|
(107,171)
|
|
157,242
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
(54,769)
|
|
(1,116)
|
|
(167,151)
|
|
(221,920)
|
|
5,386
|
|
Investment income
(loss)
|
|
270
|
|
1,181
|
|
343
|
|
613
|
|
2,150
|
|
Interest
expense
|
|
(45,237)
|
|
(44,469)
|
|
(45,730)
|
|
(90,967)
|
|
(91,070)
|
|
Other, net
|
|
(74,607)
|
|
(1,338)
|
|
(182,404)
|
|
(257,011)
|
|
54,504
|
|
Income (loss) from
continuing operations before income taxes
|
|
$(227,748)
|
|
$
24,555
|
|
$(448,708)
|
|
$(676,456)
|
|
$ 128,212
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
|
(In
thousands)
|
|
2016
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
debt
|
|
$
175
|
|
$
5,880
|
|
$
6,508
|
|
Long-term
debt
|
|
3,503,172
|
|
3,584,402
|
|
3,655,200
|
|
Total Debt
|
|
3,503,347
|
|
3,590,282
|
|
3,661,708
|
|
Less: Cash and
short-term investments
|
|
255,856
|
|
221,501
|
|
274,589
|
|
Net Debt
|
|
$
3,247,491
|
|
$
3,368,781
|
|
$
3,387,119
|
|
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
June 30, 2016
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
$
(186,565)
|
|
$
(111,561)
|
|
$
(75,004)
|
|
Diluted earnings
(losses) per share from continuing operations
|
|
$
(0.65)
|
|
$
(0.39)
|
|
$
(0.26)
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
SCHEDULE OF
NON-CASH CHARGES AND OTHER NON-OPERATIONAL ITEMS
(NON-GAAP)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
|
June
30,
|
|
|
|
Per
Diluted
|
|
(In thousands,
except per share amounts)
|
|
2016
|
Share
|
|
|
|
|
|
Equity-method investment impairments and losses (1)
|
|
$
95,784
|
$
.34
|
|
Other impairments and losses (2)
|
|
$
15,777
|
$
.05
|
|
|
|
|
|
Total Adjustments,
net of tax
|
|
$
111,561
|
$
.39
|
|
|
|
(1)
|
Represents
impairments to the carrying value of our C&J holdings and
earnings (losses) from unconsolidated affiliates, which represents
our proportionate share of C&J's losses from the prior quarter,
net of tax of $1.9 million.
|
|
|
|
(2)
|
Represents
impairments and losses related to disposed businesses and assets,
net of tax of $7.7 million.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nabors-announces-second-quarter-results-300308077.html
SOURCE Nabors Industries Ltd.