Nabors Posts Loss
October 27 2015 - 9:10PM
Dow Jones News
Nabors Industries Ltd. posted a loss of $295.8 million for the
third quarter, reflecting impairment charges during a prolonged
downturn in the energy sector.
The contract driller posted a per-share loss of $1.02.
Nabors said results were "essentially in line," with sequential
revenue improvement internationally offset by a decline in North
America.
"Our view of the timing and shape of the recovery remains
unchanged with an expectation of a protracted trough followed by a
more gradual recovery than recent cycles," Nabors said.
Year-over-year comparisons are affected by the March deal that
combined C&J Energy Services Inc. with the
completion-and-production businesses of Nabors in the U.S. and
Canada. In an unusual deal structure, C&J was the nominal buyer
but Nabors owned 53% of C&J when the deal closed.
Nabors posted pretax charges of $250.9 million, or 79 cents a
share, including $180.6 million of impairment charges for the
company's stake in C&J.
The company said it has reduced costs and has helped its
financial flexibility with moves including a $325 million term loan
with favorable terms.
Revenue for the quarter ended Sept. 30 was $847.6 million.
During the prior-year quarter, revenue totaled $1.81 billion, which
included $612 million from completion and production services,
which is no longer consolidated with Nabors.
In the latest quarter, revenue at the international segment was
$516.2 million, compared with $458.5 million in the second
quarter.
Loss from continuing operations was 86 cents a share, which
included a total of 72 cents a share of items, impairments and
other charges related to the downturn, and a loss of 12 cents a
share from unconsolidated affiliates.
Analysts polled by Thomson Reuters expected a per-share loss of
14 cents and revenue of $767 million.
In after-hours trading, Nabors shares were down seven cents to
$9.85.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 27, 2015 20:55 ET (00:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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