HAMILTON, Bermuda, Oct. 25, 2016 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors") (NYSE: NBR) today reported
third-quarter 2016 operating revenues of $519.7 million, compared to operating revenues of
$571.6 million in the second quarter
of 2016. Net income from continuing operations, attributable
to Nabors, for the current quarter was a loss of $99.0 million, or $0.35 per diluted share, compared to a loss of
$183.7 million, or $0.65 per diluted share, last
quarter.
Anthony Petrello, Nabors'
Chairman, President, and CEO, commented, "After a challenging
downturn, we are experiencing significant utilization increases in
our Lower 48 market, although spot market pricing continues to
remain competitive. Similarly, our international markets are
showing signs of impending activity increases. We are very
encouraged by our customers' acceptance of our newest rig, the
PACE®-M800. We now have contracts for the first four M800s,
with two already deployed, and awards for two
more. Likewise, the high demand for our
PACE®-X rigs has brought the utilization of that fleet
to over 80%. This increased demand is beginning to exert
upward pressure on pricing for these top-end rigs, although, in the
near-term, our fleet average margins will remain under pressure due
to expiring long-term contracts. We are also implementing a
cost-effective plan to enhance other classes of our existing AC rig
fleet to incorporate most of the features of these rigs.
Regardless of how the recovery unfolds, we expect our reduced cost
structure, improved performance and our various technology
initiatives to significantly increase operating leverage across our
global fleet.
"We recorded a sequential decline in adjusted operating income,
as a modest increase in Rig Services was more than offset by
reduction in one-time gains in Drilling, as compared to the second
quarter. We expect this trend in operating income to continue
into the beginning of 2017 driven by lower U.S. Drilling margins
and International utilization."
Segment Results
Adjusted operating income for the Company was a loss of
$72.0 million during the quarter.
Drilling and Rig Services adjusted operating income was a loss of
$38.4 million compared to a loss of
$25.0 million in the second
quarter. Quarterly adjusted EBITDA for the Company decreased
sequentially to $148.7 million, a 10%
decline from the previous quarter due to a reduction in certain
revenue items that were discrete to each quarter. For the
quarter, the Company averaged 163.5 rig years operating at an
average gross margin of $14,029 per
rig day, compared to 159.1 rigs at $15,850 per rig day in the second quarter and
187.9 rig years at an average gross margin of $13,407 per rig day in the first
quarter.
International adjusted EBITDA decreased by 1% sequentially to
$148.8 million. A reduction
of four rig years in this segment was mostly offset by an
increase in margin. Compared to the third quarter, the
Company expects quarterly adjusted EBITDA to remain under pressure
in the near term. The Company is encouraged by planned
startups at the beginning of the year, as well as, increased
tendering activity with mid-2017 start dates. Canada operations should reflect the
seasonally stronger winter activity, although the rebound should be
less robust than usual.
The U.S. Drilling segment posted adjusted EBITDA of $37.3 million for the quarter, reflecting further
margin erosion offset by a 7% increase in rig years. The
Lower 48 operation saw a 13% increase in rigs working compared to
the second quarter, with an average rig count of 50. The
Company is currently working 61 rigs in the Lower 48
operation. The recent start-up of rig CDR-3 and seasonal
winter activity will benefit near-term Alaskan
results.
Rig Services, which consists of the Company's manufacturing,
directional drilling, and complementary services, reported a loss
in adjusted EBITDA of $4.3 million,
representing a $6.1 million
improvement over the second quarter. This increase is
primarily attributable to reduced costs and higher revenues from
service and repair operations. The Company expects this trend
to continue.
William Restrepo, Nabors' Chief
Financial Officer, stated, "Third-quarter performance by our
company has confirmed the trends we had foreseen after the second
quarter. First, our International business has remained healthy and
continues to provide strong cash generation. Second, our rig count
in the Lower 48 market has rebounded. Our working rigs have
increased by 66% since our trough in early April, and we have
gained market share, mainly on strong demand for our
PACE®-X rigs. Third, as anticipated, the daily margins
for our Lower 48 rigs eroded some more, some term contracts
expired, and we added more rigs at the currently lower spot rates.
We expect this deterioration to continue near-term. Finally, our
focus on costs at all levels of the organization has paid off, as
we have mitigated the impact of average dayrate declines in the
U.S., contained our SG&A expense in the face of an uptick in
rig count and controlled our capital expenditures."
Mr. Petrello concluded, "Recent increases in Lower 48 activity
and stabilizing oil prices are encouraging. We are
experiencing utilization increases across many of our AC rig
classes, particularly our pad-optimal PACE®-X and M800
rigs, which are rapidly approaching full utilization. All of
our new-build rigs are deployed with our new Rigtelligent™
modular-code operating system and we have commenced retrofitting
most of our AC fleet. This operating system effectively
automates routine tasks and integrates downhole processes with the
rig. The incorporation of this operating system together with
on-ging enhancements to our other AC rig classes, will give us 100
pad-optimal, high-specification, automated rigs by mid-2017.
We believe these actions position us well to address the changing
market dynamic both in the United
States and internationally."
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 numerous international markets. Nabors also
provides directional drilling services, performance tools, and
innovative technologies throughout many of the 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 a number of 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. Each of these non-GAAP measures has limitations
and therefore should not be used in isolation or as a substitute
for the amounts reported in accordance with GAAP. In addition,
adjusted EBITDA and adjusted operating income exclude certain cash
expenses that we are obligated to make. 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 in the tables at
the end of 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
519,729
|
|
$
847,553
|
|
$
571,591
|
|
$
1,688,891
|
|
$
3,125,565
|
|
Earnings
(losses) from unconsolidated affiliates
|
|
2
|
|
(35,100)
|
|
(54,769)
|
|
(221,918)
|
|
(29,714)
|
|
Investment
income (loss)
|
|
310
|
|
(22)
|
|
270
|
|
923
|
|
2,128
|
|
Total revenues and other
income
|
|
520,041
|
|
812,431
|
|
517,092
|
|
1,467,896
|
|
3,097,979
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
306,436
|
|
518,174
|
|
341,279
|
|
1,012,738
|
|
1,926,306
|
|
General and
administrative expenses
|
|
56,078
|
|
72,032
|
|
56,624
|
|
175,036
|
|
263,272
|
|
Research and
engineering
|
|
8,476
|
|
9,716
|
|
8,180
|
|
24,818
|
|
31,899
|
|
Depreciation and
amortization
|
|
220,713
|
|
240,107
|
|
218,913
|
|
655,444
|
|
739,322
|
|
Interest
expense
|
|
46,836
|
|
44,448
|
|
45,237
|
|
137,803
|
|
135,518
|
|
Other, net
|
|
10,392
|
|
259,731
|
|
74,607
|
|
267,403
|
|
205,227
|
|
Total costs and other
deductions
|
|
648,931
|
|
1,144,208
|
|
744,840
|
|
2,273,242
|
|
3,301,544
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(128,890)
|
|
(331,777)
|
|
(227,748)
|
|
(805,346)
|
|
(203,565)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(31,051)
|
|
(80,898)
|
|
(41,183)
|
|
(124,298)
|
|
(35,158)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(97,839)
|
|
(250,879)
|
|
(186,565)
|
|
(681,048)
|
|
(168,407)
|
|
Income (loss) from
discontinued operations, net of tax
|
|
(12,187)
|
|
(45,275)
|
|
(984)
|
|
(14,097)
|
|
(41,067)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(110,026)
|
|
(296,154)
|
|
(187,549)
|
|
(695,145)
|
|
(209,474)
|
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(1,185)
|
|
320
|
|
2,899
|
|
990
|
|
453
|
|
Net income (loss)
attributable to Nabors
|
|
$(111,211)
|
|
$(295,834)
|
|
$(184,650)
|
|
$
(694,155)
|
|
$
(209,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors:
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
(99,024)
|
|
$(250,559)
|
|
$(183,666)
|
|
$
(680,058)
|
|
$
(167,954)
|
|
Net income (loss)
from discontinued operations
|
|
(12,187)
|
|
(45,275)
|
|
(984)
|
|
(14,097)
|
|
(41,067)
|
|
Net income (loss)
attributable to Nabors
|
|
$(111,211)
|
|
$(295,834)
|
|
$(184,650)
|
|
$
(694,155)
|
|
$
(209,021)
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$
(.35)
|
|
$
(.86)
|
|
$
(.65)
|
|
$
(2.41)
|
|
$
(.57)
|
|
Basic
from discontinued operations
|
|
(.04)
|
|
(.16)
|
|
-
|
|
(.05)
|
|
(.15)
|
|
Basic
|
|
$
(.39)
|
|
$
(1.02)
|
|
$
(.65)
|
|
$
(2.46)
|
|
$
(.72)
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$
(.35)
|
|
$
(.86)
|
|
$
(.65)
|
|
$
(2.41)
|
|
$
(.57)
|
|
Diluted
from discontinued operations
|
|
(.04)
|
|
(.16)
|
|
-
|
|
(.05)
|
|
(.15)
|
|
Diluted
|
|
$
(.39)
|
|
$
(1.02)
|
|
$
(.65)
|
|
$
(2.46)
|
|
$
(.72)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
276,707
|
|
284,112
|
|
276,550
|
|
276,369
|
|
285,186
|
|
Diluted
|
|
276,707
|
|
284,112
|
|
276,550
|
|
276,369
|
|
285,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(1)
|
|
$
148,739
|
|
$
247,631
|
|
$
165,508
|
|
$
476,299
|
|
$
904,088
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss) (2)
|
|
$
(71,974)
|
|
$
7,524
|
|
$
(53,405)
|
|
$
(179,145)
|
|
$
164,766
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 financial 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
Company's consolidated results based on several criteria, including
adjusted EBITDA and adjusted operating income (loss), because it
believes that these financial measures 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 the most
closely comparable 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 financial 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
Company's consolidated results based on several criteria, including
adjusted EBITDA and adjusted operating income (loss), because it
believes that these financial measures 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 the most closely comparable 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2016
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
200,650
|
|
$
255,856
|
|
$
274,589
|
|
Accounts receivable,
net
|
|
503,966
|
|
504,099
|
|
784,671
|
|
Assets held for
sale
|
|
69,436
|
|
86,608
|
|
75,678
|
|
Other current
assets
|
|
336,668
|
|
344,680
|
|
340,959
|
|
Total current
assets
|
|
1,110,720
|
|
1,191,243
|
|
1,475,897
|
|
Property, plant and
equipment, net
|
|
6,616,711
|
|
6,765,257
|
|
7,027,802
|
|
Goodwill
|
|
167,131
|
|
167,275
|
|
166,659
|
|
Investment in
unconsolidated affiliates
|
|
889
|
|
888
|
|
415,177
|
|
Other long-term
assets
|
|
529,053
|
|
531,642
|
|
452,305
|
|
Total assets
|
|
$
8,424,504
|
|
$
8,656,305
|
|
$
9,537,840
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current
debt
|
|
$
120
|
|
$
175
|
|
$
6,508
|
|
Other current
liabilities
|
|
787,742
|
|
868,000
|
|
999,991
|
|
Total current
liabilities
|
|
787,862
|
|
868,175
|
|
1,006,499
|
|
Long-term
debt
|
|
3,475,978
|
|
3,503,172
|
|
3,655,200
|
|
Other long-term
liabilities
|
|
561,970
|
|
562,260
|
|
582,273
|
|
Total liabilities
|
|
4,825,810
|
|
4,933,607
|
|
5,243,972
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
3,591,929
|
|
3,715,850
|
|
4,282,710
|
|
Noncontrolling
interest
|
|
6,765
|
|
6,848
|
|
11,158
|
|
Total equity
|
|
3,598,694
|
|
3,722,698
|
|
4,293,868
|
|
Total liabilities and
equity
|
|
$
8,424,504
|
|
$
8,656,305
|
|
$
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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except rig activity)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
116,095
|
|
$
259,939
|
|
$
140,342
|
|
$
405,113
|
|
$
1,034,929
|
|
Canada
|
|
10,444
|
|
29,929
|
|
6,617
|
|
34,555
|
|
109,182
|
|
International
|
|
363,552
|
|
516,180
|
|
401,024
|
|
1,165,631
|
|
1,413,886
|
|
Rig Services
(1)
|
|
58,950
|
|
73,521
|
|
39,248
|
|
152,051
|
|
318,204
|
|
Subtotal
Drilling & Rig Services
|
|
549,041
|
|
879,569
|
|
587,231
|
|
1,757,350
|
|
2,876,201
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
207,860
|
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
158,512
|
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
366,372
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (2)
|
|
(29,312)
|
|
(32,016)
|
|
(15,640)
|
|
(68,459)
|
|
(117,008)
|
|
Total operating
revenues
|
|
$
519,729
|
|
$
847,553
|
|
$
571,591
|
|
$
1,688,891
|
|
$
3,125,565
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
37,299
|
|
$
94,505
|
|
$
52,878
|
|
$
141,412
|
|
$
418,749
|
|
Canada
|
|
196
|
|
7,516
|
|
360
|
|
2,678
|
|
29,716
|
|
International
|
|
148,833
|
|
186,451
|
|
150,618
|
|
447,760
|
|
558,550
|
|
Rig Services
(1)
|
|
(4,334)
|
|
(2,455)
|
|
(10,433)
|
|
(16,248)
|
|
25,469
|
|
Subtotal
Drilling & Rig Services
|
|
181,994
|
|
286,017
|
|
193,423
|
|
575,602
|
|
1,032,484
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(28,110)
|
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
23,043
|
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,067)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(33,255)
|
|
(38,386)
|
|
(27,915)
|
|
(99,303)
|
|
(123,329)
|
|
Total adjusted
EBITDA
|
|
$
148,739
|
|
$
247,631
|
|
$
165,508
|
|
$
476,299
|
|
$
904,088
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
(58,876)
|
|
$
(14,034)
|
|
$
(48,328)
|
|
$
(154,763)
|
|
$
94,449
|
|
Canada
|
|
(10,156)
|
|
(4,085)
|
|
(10,831)
|
|
(28,265)
|
|
(5,995)
|
|
International
|
|
43,595
|
|
74,039
|
|
53,859
|
|
144,326
|
|
256,412
|
|
Rig Services
(1)
|
|
(12,937)
|
|
(10,434)
|
|
(19,657)
|
|
(43,238)
|
|
864
|
|
Subtotal
Drilling & Rig Services
|
|
(38,374)
|
|
45,486
|
|
(24,957)
|
|
(81,940)
|
|
345,730
|
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(55,243)
|
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,559)
|
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(58,802)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(33,600)
|
|
(37,962)
|
|
(28,448)
|
|
(97,205)
|
|
(122,162)
|
|
Total
adjusted operating income (loss)
|
|
$
(71,974)
|
|
$
7,524
|
|
$
(53,405)
|
|
$
(179,145)
|
|
$
164,766
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates (6)
|
|
$
2
|
|
$
(35,100)
|
|
$
(54,769)
|
|
$
(221,918)
|
|
$
(29,714)
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
|
Rig years:
(7)
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
57.3
|
|
103.0
|
|
53.7
|
|
58.6
|
|
129.8
|
|
Canada
|
|
8.8
|
|
17.2
|
|
4.2
|
|
8.5
|
|
17.5
|
|
International (8)
|
|
97.4
|
|
121.3
|
|
101.2
|
|
103.0
|
|
126.1
|
|
Total rig
years
|
|
163.5
|
|
241.5
|
|
159.1
|
|
170.1
|
|
273.4
|
|
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 financial 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
Company's consolidated results based on several criteria, including
adjusted EBITDA and adjusted operating income (loss), because it
believes that these financial measures 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 the most
closely comparable 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 financial 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
Company's consolidated results based on several criteria, including
adjusted EBITDA and adjusted operating income (loss), because it
believes that these financial measures 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 the most
closely comparable 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 $35.1 million and $54.8 million for the three
months ended September 30, 2015 and June 30, 2016, respectively,
and $221.9 million and $35.9 million for the nine months ended
September 30, 2016 and 2015 related to our share of the net loss of
C&J Energy Services, Ltd. ("C&J"), which we reported on a
quarter lag through June 30, 2016. Beginning in the third
quarter of 2016, we ceased accounting for our investment in C&J
under the equity method of accounting.
|
|
|
|
(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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
148,739
|
|
$
247,631
|
|
$
165,508
|
|
$
476,299
|
|
$
904,088
|
|
Depreciation and
amortization
|
|
(220,713)
|
|
(240,107)
|
|
(218,913)
|
|
(655,444)
|
|
(739,322)
|
|
Adjusted operating
income (loss)
|
|
(71,974)
|
|
7,524
|
|
(53,405)
|
|
(179,145)
|
|
164,766
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
2
|
|
(35,100)
|
|
(54,769)
|
|
(221,918)
|
|
(29,714)
|
|
Investment income
(loss)
|
|
310
|
|
(22)
|
|
270
|
|
923
|
|
2,128
|
|
Interest
expense
|
|
(46,836)
|
|
(44,448)
|
|
(45,237)
|
|
(137,803)
|
|
(135,518)
|
|
Other, net
|
|
(10,392)
|
|
(259,731)
|
|
(74,607)
|
|
(267,403)
|
|
(205,227)
|
|
Income (loss) from
continuing operations before income taxes
|
|
$(128,890)
|
|
$(331,777)
|
|
$(227,748)
|
|
$(805,346)
|
|
$(203,565)
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2016
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
debt
|
|
$
120
|
|
$
175
|
|
$
6,508
|
|
Long-term
debt
|
|
3,475,978
|
|
3,503,172
|
|
3,655,200
|
|
Total Debt
|
|
3,476,098
|
|
3,503,347
|
|
3,661,708
|
|
Less: Cash and
short-term investments
|
|
200,650
|
|
255,856
|
|
274,589
|
|
Net Debt
|
|
$
3,275,448
|
|
$
3,247,491
|
|
$
3,387,119
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nabors-announces-third-quarter-results-300351147.html
SOURCE Nabors Industries Ltd.