HAMILTON, Bermuda, Feb. 22, 2017 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors") (NYSE: NBR) today reported
full-year 2016 operating revenue of $2.2
billion, compared to operating revenue of $3.9 billion in the prior year, which included
$366 million in 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 ceased to be
consolidated with Nabors on that date. Net income from
continuing operations for the year was a loss of $1.0 billion, or $3.58 per share, compared to a loss of
$330 million, or $1.14 per share, in FY 2015. Included in
the net loss from continuing operations for full year 2016 were
total after-tax impairments and other charges of $487 million, or $1.71 per share, as well as $0.80 per share in Nabors' proportional share of
CJES' net loss for the
period. This compares to prior year impairments and other
charges of $380 million, or
$1.31 per share, and $0.29 per diluted share for the company's
proportional share of CJES' net loss.
Revenue for the quarter of $539
million represented an increase of $19.2 million, the first sequential increase in
nine quarters. Net loss from continuing operations for the
fourth quarter totaled $331 million,
or $1.17 per share. The fourth
quarter results include $245 million
in net after-tax charges, or $0.87
per share, related primarily to the impairment and retirement of certain assets. These
results compare to a loss of $99.0
million, or $0.35 per share,
in the preceding quarter.
Anthony Petrello, Nabors'
Chairman and CEO, commented, "2016 was a challenging year with the
U.S. rig count reaching its lowest point since rig counts were
first published. Nabors was proportionally impacted with our
working U.S. land rig count declining as much as 81% from our late
2014 high. Our U.S. rig count bottomed in the second quarter
while our international count appears to have done so at the end of
2016. We believe the fourth quarter should mark the low point in our financial results both in
North America and
internationally. Despite the challenges of 2016, we delivered
positive free cash flow while funding the continued upgrading of
our U.S. fleet. We also were able to implement our new
operating system, maintain our critical engineering projects, such
as the development of automation initiatives, and keep our dividend
commitment. We achieved this through stringent costs control,
disciplined capital allocation and efficiencies derived from the
streamlining of our operations, engineering and support
organizations. We also deployed a significant number of new and upgraded rigs
and rolled out our SmartRig™ systems and introduced our
iRig® technology. These new technologies represent a game
changer in the implementation of a high degree of automation of
both surface and downhole drilling systems.
"The high point of the year was the fourth quarter signing of a
joint venture agreement with Saudi Aramco, a key strategic
relationship and growth driver for both parties. We expect to
form the JV at the end of the second quarter. The formation
of this new company will be a significant step in creating a
best-in-class local drilling operation, utilizing locally
manufactured rigs, in accordance with the Kingdom's Vision 2030
initiative."
Consolidated and Segment Results
Adjusted operating income for the Company was a loss of
$70.2 million during the quarter as
compared to a loss of $72.0 million in the prior quarter.
Drilling & Rig Services adjusted operating income was a
loss of $36.4 million, slightly
better than the loss of $38.4 million
in the third quarter. Quarterly adjusted EBITDA for the
Company showed a slight decrease sequentially at $146 million, compared to $149 million in the third quarter. For the
quarter, the Company averaged 177 rigs operating at an average
gross margin of $12,482 per rig day,
compared to 164 rigs at $14,029 per
rig day in the third quarter.
International adjusted EBITDA decreased sequentially by
$20.5 million to $128 million. The decrease was attributable
to several factors, the most impactful being a reduction of 5.5
average rigs working. These reductions are mostly temporary
and consist of three rigs in Algeria and single rigs in various other
venues for a portion of the quarter. Aggregating to a
slightly larger impact were an unusually high number of non-revenue
days for rig maintenance in Saudi combined with a lesser amount of
discrete favorable items in the fourth quarter in comparison to the
third. The Company has recently had five high-specification
rigs commence with another rig startup imminent. Most of
these rigs commenced either late in, or subsequent to, the fourth
quarter. This leads to an expectation of gradually improving
results in the near term and more meaningful increases as the year
progresses. Although some tenders have been delayed, there
are still numerous awards pending with second-half start dates,
further supporting the improving outlook. Canada operations increased sequentially with
seasonally stronger winter activity.
The U.S. Drilling segment posted adjusted EBITDA of $49.2 million for the quarter, primarily as a
result of a 26% increase in rig activity and higher revenues in
Alaska. Nearly all of the rig count increase was realized in
the lower 48 operation which averaged 64 rigs operating in the
quarter compared to 50 in the third quarter. The Company
currently has 86 rigs on revenue in the lower 48 operation, but expects lower average margins
in the near term as more rigs return to work at current market
rates and incur start-up expenses. However, with improving
pricing and relatively short average contract durations, this
margin trend can reverse
quickly. This segment expects to complete six X, R and M800 new built rigs by year end
and utilize some existing components to construct four M1000 rigs,
all but one of which already have customer commitments.
All of this supports the expectation of increasingly
improving results throughout the balance of 2017.
Rig Services, which consists of the Company's manufacturing,
directional drilling, and complementary services, reported positive
adjusted EBITDA of $0.9 million
compared to a loss of $4.3 million in
the third quarter. The improved results were primarily from
increased penetration by Nabors Drilling Solutions (NDS), and a
modest improvement in Canrig primarily attributable to reduced
costs and higher revenues from service and repair operations.
The Company expects these trends to accelerate throughout 2017.
William Restrepo, Nabors' Chief
Financial Officer, stated, "2016 was a productive year in which we
continued to execute on our near and longer term goals. We
significantly enhanced the capabilities of our lower 48 fleet while
maintaining capital and cost discipline. We signed a joint
venture with our largest customer. We started to turn our NDS
vision into a reality and increased our market lead in rig
automation and integration. Finally, we generated free cash
flow throughout the down cycle, and
recently extended our debt maturity profile through attractively
priced six-year senior notes.
"I am excited about our prospects for 2017. We expect to
accelerate NDS growth and deliver on our goal of fully automating
our rigs and the drilling process through increased integration.
We plan to complete the upgrading of our U.S. fleet into the
most modern and capable in the industry. We believe 2017 will
allow us to grow our U.S. and International rig counts, while
making significant progress in pricing. Nabors is committed
to remain disciplined and focused on our strategy to deliver solid
cash generation and return on capital to our
shareholders."
Mr. Petrello concluded, "We expect the fourth quarter to
represent the bottom in our results with a gradual progression in
the first half followed by a more meaningful improvement throughout
the second half, assuming stable oil
prices. Our rig counts and margins are increasing with
our highest specification rigs, the PACE®-X
and PACE®-M800 operating
at full utilization. NDS has achieved positive adjusted
EBITDA and increased market penetration. We continue to
implement our Rigtelligent™ operating system and
upgrade our AC rigs to SmartRig™ system configuration
at a steady pace. As of today, we have 61 SmartRig™ system
upgrades in service and plan to have completed 100 by year
end. We expect to begin deploying our new iRacker™ automated drill pipe
and casing handling system later this year. There are clear
signs of building momentum in our business, particularly
considering the customer commitments for nine of our ten 2017 new deployments in the low $20,000 per day range. All of this bolsters our
confidence in an improving 2017 outlook. Meanwhile, we will
continue to focus on controlling costs, reducing leverage and
restoring attractive rates of return on our capital."
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 included in this press release 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
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
538,948
|
|
$
738,872
|
|
$
519,729
|
|
$
2,227,839
|
|
$
3,864,437
|
Earnings (losses)
from unconsolidated affiliates
|
|
4
|
|
(45,367)
|
|
2
|
|
(221,914)
|
|
(75,081)
|
Investment income
(loss)
|
|
260
|
|
180
|
|
310
|
|
1,183
|
|
2,308
|
Total
revenues and other income
|
|
539,212
|
|
693,685
|
|
520,041
|
|
2,007,108
|
|
3,791,664
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
331,560
|
|
445,130
|
|
306,436
|
|
1,344,298
|
|
2,371,436
|
General and
administrative expenses
|
|
52,603
|
|
61,056
|
|
56,078
|
|
227,639
|
|
324,328
|
Research and
engineering
|
|
8,764
|
|
9,354
|
|
8,476
|
|
33,582
|
|
41,253
|
Depreciation and
amortization
|
|
216,187
|
|
231,137
|
|
220,713
|
|
871,631
|
|
970,459
|
Interest
expense
|
|
47,557
|
|
46,410
|
|
46,836
|
|
185,360
|
|
181,928
|
Other, net
|
|
275,270
|
|
124,568
|
|
10,392
|
|
542,673
|
|
329,795
|
Total costs and other
deductions
|
|
931,941
|
|
917,655
|
|
648,931
|
|
3,205,183
|
|
4,219,199
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(392,729)
|
|
(223,970)
|
|
(128,890)
|
|
(1,198,075)
|
|
(427,535)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(62,533)
|
|
(62,880)
|
|
(31,051)
|
|
(186,831)
|
|
(98,038)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(330,196)
|
|
(161,090)
|
|
(97,839)
|
|
(1,011,244)
|
|
(329,497)
|
Income (loss) from
discontinued operations, net of tax
|
|
(4,266)
|
|
(1,730)
|
|
(12,187)
|
|
(18,363)
|
|
(42,797)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(334,462)
|
|
(162,820)
|
|
(110,026)
|
|
(1,029,607)
|
|
(372,294)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(1,125)
|
|
(834)
|
|
(1,185)
|
|
(135)
|
|
(381)
|
Net income (loss)
attributable to Nabors
|
|
$
(335,587)
|
|
$
(163,654)
|
|
$
(111,211)
|
|
$
(1,029,742)
|
|
$
(372,675)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
(331,321)
|
|
$
(161,924)
|
|
$
(99,024)
|
|
$
(1,011,379)
|
|
$
(329,878)
|
Net income (loss)
from discontinued operations
|
|
(4,266)
|
|
(1,730)
|
|
(12,187)
|
|
(18,363)
|
|
(42,797)
|
Net income (loss)
attributable to Nabors
|
|
$
(335,587)
|
|
$
(163,654)
|
|
$
(111,211)
|
|
$
(1,029,742)
|
|
$
(372,675)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$
(1.17)
|
|
$
(.57)
|
|
$
(.35)
|
|
$
(3.58)
|
|
$
(1.14)
|
Basic
from discontinued operations
|
|
(.01)
|
|
(.01)
|
|
(.04)
|
|
(.06)
|
|
(.15)
|
Basic
|
|
$
(1.18)
|
|
$
(.58)
|
|
$
(.39)
|
|
$
(3.64)
|
|
$
(1.29)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$
(1.17)
|
|
$
(.57)
|
|
$
(.35)
|
|
$
(3.58)
|
|
$
(1.14)
|
Diluted
from discontinued operations
|
|
(.01)
|
|
(.01)
|
|
(.04)
|
|
(.06)
|
|
(.15)
|
Diluted
|
|
$
(1.18)
|
|
$
(.58)
|
|
$
(.39)
|
|
$
(3.64)
|
|
$
(1.29)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number
|
|
|
|
|
|
|
|
|
|
|
of
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
276,793
|
|
276,371
|
|
276,707
|
|
276,475
|
|
282,982
|
Diluted
|
|
276,793
|
|
276,371
|
|
276,707
|
|
276,475
|
|
282,982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
146,021
|
|
$
223,332
|
|
$
148,739
|
|
$
622,320
|
|
$
1,127,420
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(70,166)
|
|
$
(7,805)
|
|
$
(71,974)
|
|
$
(249,311)
|
|
$
156,961
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2016
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
295,202
|
|
$
200,650
|
|
$
274,589
|
Accounts receivable,
net
|
|
508,355
|
|
503,966
|
|
784,671
|
Assets held for
sale
|
|
76,668
|
|
69,436
|
|
75,678
|
Other current
assets
|
|
275,614
|
|
298,028
|
|
340,959
|
Total current
assets
|
|
1,155,839
|
|
1,072,080
|
|
1,475,897
|
Property, plant and
equipment, net
|
|
6,267,583
|
|
6,616,711
|
|
7,027,802
|
Goodwill
|
|
166,917
|
|
167,131
|
|
166,659
|
Investment in
unconsolidated affiliates
|
|
893
|
|
889
|
|
415,177
|
Other long-term
assets
|
|
595,783
|
|
567,693
|
|
452,305
|
Total assets
|
|
$
8,187,015
|
|
$
8,424,504
|
|
$
9,537,840
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current
debt
|
|
$
297
|
|
$
120
|
|
$
6,508
|
Other current
liabilities
|
|
821,637
|
|
787,742
|
|
999,991
|
Total current
liabilities
|
|
821,934
|
|
787,862
|
|
1,006,499
|
Long-term
debt
|
|
3,578,335
|
|
3,475,978
|
|
3,655,200
|
Other long-term
liabilities
|
|
531,951
|
|
561,970
|
|
582,273
|
Total liabilities
|
|
4,932,220
|
|
4,825,810
|
|
5,243,972
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Shareholders'
equity
|
|
3,247,025
|
|
3,591,929
|
|
4,282,710
|
Noncontrolling
interest
|
|
7,770
|
|
6,765
|
|
11,158
|
Total equity
|
|
3,254,795
|
|
3,598,694
|
|
4,293,868
|
Total liabilities and
equity
|
|
$
8,187,015
|
|
$
8,424,504
|
|
$
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
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except rig activity)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ 148,959
|
|
$ 222,060
|
|
$
116,095
|
|
$
554,072
|
|
$
1,256,989
|
Canada
|
|
16,917
|
|
28,312
|
|
10,444
|
|
51,472
|
|
137,494
|
International
|
|
343,259
|
|
448,507
|
|
363,552
|
|
1,508,890
|
|
1,862,393
|
Rig Services
(1)
|
|
63,659
|
|
72,862
|
|
58,950
|
|
215,710
|
|
391,066
|
Subtotal
Drilling & Rig Services
|
|
572,794
|
|
771,741
|
|
549,041
|
|
2,330,144
|
|
3,647,942
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
207,860
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
158,512
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
366,372
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (2)
|
|
(33,846)
|
|
(32,869)
|
|
(29,312)
|
|
(102,305)
|
|
(149,877)
|
Total operating
revenues
|
|
$ 538,948
|
|
$ 738,872
|
|
$
519,729
|
|
$
2,227,839
|
|
$
3,864,437
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$
49,245
|
|
$
94,254
|
|
$
37,299
|
|
$
190,657
|
|
$
513,003
|
Canada
|
|
2,647
|
|
10,041
|
|
196
|
|
5,325
|
|
39,757
|
International
|
|
128,289
|
|
160,716
|
|
148,833
|
|
576,049
|
|
719,266
|
Rig Services
(1)
|
|
914
|
|
(4,491)
|
|
(4,334)
|
|
(15,334)
|
|
20,978
|
Subtotal
Drilling & Rig Services
|
|
181,095
|
|
260,520
|
|
181,994
|
|
756,697
|
|
1,293,004
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(28,110)
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
23,043
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,067)
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(35,074)
|
|
(37,188)
|
|
(33,255)
|
|
(134,377)
|
|
(160,517)
|
Total adjusted
EBITDA
|
|
$ 146,021
|
|
$ 223,332
|
|
$
148,739
|
|
$
622,320
|
|
$
1,127,420
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
Drilling & Rig Services:
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
$ (42,947)
|
|
$
(7,398)
|
|
$
(58,876)
|
|
$
(197,710)
|
|
$
87,051
|
Canada
|
|
(8,553)
|
|
(1,034)
|
|
(10,156)
|
|
(36,818)
|
|
(7,029)
|
International
|
|
20,351
|
|
51,850
|
|
43,595
|
|
164,677
|
|
308,262
|
Rig Services
(1)
|
|
(5,246)
|
|
(13,505)
|
|
(12,937)
|
|
(48,484)
|
|
(12,641)
|
Subtotal
Drilling & Rig Services
|
|
(36,395)
|
|
29,913
|
|
(38,374)
|
|
(118,335)
|
|
375,643
|
|
|
|
|
|
|
|
|
|
|
|
Completion & Production Services:
|
|
|
|
|
|
|
|
|
|
|
Completion
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(55,243)
|
Production
Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,559)
|
Subtotal
Completion & Production Services
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(58,802)
|
|
|
|
|
|
|
|
|
|
|
|
Other reconciling items (4)
|
|
(33,771)
|
|
(37,718)
|
|
(33,600)
|
|
(130,976)
|
|
(159,880)
|
Total
adjusted operating income (loss)
|
|
$ (70,166)
|
|
$
(7,805)
|
|
$
(71,974)
|
|
$
(249,311)
|
|
$
156,961
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates (6)
|
|
$
4
|
|
$ (45,367)
|
|
$
2
|
|
$
(221,914)
|
|
$
(75,081)
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(7)
|
|
|
|
|
|
|
|
|
|
|
U.S.
|
|
72.1
|
|
91.0
|
|
57.3
|
|
62.0
|
|
120.0
|
Canada
|
|
13.3
|
|
14.4
|
|
8.8
|
|
9.7
|
|
16.7
|
International
|
|
91.9
|
|
117.5
|
|
97.4
|
|
100.2
|
|
124.0
|
Total average rigs
working
|
|
177.3
|
|
222.9
|
|
163.5
|
|
171.9
|
|
260.7
|
|
|
(1)
|
Includes our other
services comprised of our manufacturing, directional drilling
and complementary 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 $45.4 million for the three months ended
December 31, 2015 and $221.9 million and $81.3 million for the
years ended December 31, 2016 and 2015, respectively, 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)
|
Represents 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 average rigs
working.
|
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)
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
146,021
|
|
$
223,332
|
|
$
148,739
|
|
$
622,320
|
|
$
1,127,420
|
Depreciation and
amortization
|
|
(216,187)
|
|
(231,137)
|
|
(220,713)
|
|
(871,631)
|
|
(970,459)
|
Adjusted operating
income (loss)
|
|
(70,166)
|
|
(7,805)
|
|
(71,974)
|
|
(249,311)
|
|
156,961
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
4
|
|
(45,367)
|
|
2
|
|
(221,914)
|
|
(75,081)
|
Investment income
(loss)
|
|
260
|
|
180
|
|
310
|
|
1,183
|
|
2,308
|
Interest
expense
|
|
(47,557)
|
|
(46,410)
|
|
(46,836)
|
|
(185,360)
|
|
(181,928)
|
Other, net
|
|
(275,270)
|
|
(124,568)
|
|
(10,392)
|
|
(542,673)
|
|
(329,795)
|
Income (loss) from
continuing operations before income taxes
|
|
$
(392,729)
|
|
$
(223,970)
|
|
$
(128,890)
|
|
$
(1,198,075)
|
|
$
(427,535)
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
(In
thousands)
|
|
2016
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
debt
|
|
$
297
|
|
$
120
|
|
$
6,508
|
Long-term
debt
|
|
3,578,335
|
|
3,475,978
|
|
3,655,200
|
Total Debt
|
|
3,578,632
|
|
3,476,098
|
|
3,661,708
|
Less: Cash and
short-term investments
|
|
295,202
|
|
200,650
|
|
274,589
|
Net Debt
|
|
$
3,283,430
|
|
$
3,275,448
|
|
$
3,387,119
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nabors-announces-fy-2016-and-fourth-quarter-results-300412132.html
SOURCE Nabors Industries Ltd.