HAMILTON, Bermuda, March 25, 2020 /PRNewswire/ -- Nabors
Industries Ltd. (NYSE: NBR) ("Nabors" or the "Company") announced
today it is taking several actions in light of current market
conditions, which have arisen from the combination of the COVID-19
outbreak and the ongoing dispute between two of the largest oil
exporters.
Anthony G. Petrello, Nabors'
Chairman, CEO and President, commented, "The safety of our
employees remains our top priority. In the face of COVID-19, we
have implemented several measures throughout our operations
globally to protect our employees and to mitigate operational
impact. Additionally, the industry has experienced a significant
drop in oil prices as consumption of hydrocarbons has fallen
precipitously. As a result, many E&P operators are implementing
activity reductions in the U.S. Lower 48, in excess of the cuts
they had previously announced for 2020. Internationally, activity
is expected to hold up better, although we could experience
disruptions from the effect of government actions aimed at
containing the virus. Given the expected deterioration in our
activity, triggered by the steep drop in oil prices, as well as the
uncertain duration and severity of the virus outbreak, we have
already taken several actions to bolster our company's
liquidity."
In response to current market and industry conditions, Nabors
has implemented measures aimed at mitigating the impact on its
financial results, including:
- An additional $75 million
reduction in planned 2020 capital expenditures. The new reduced
target is $275 to $295 million, compared to $350 to $370
million previously
- A recommendation by management to the Board of Directors to
suspend the dividend on Nabors' common shares
- Salary reductions totaling 20 percent for each of the CEO and
CFO, as well as a 20 percent reduction in the annual retainer paid
to non-employee members of the Board of Directors
- Salary reductions of 10% for U.S., corporate and expatriate
employees with base salaries exceeding $100,000
The Company is also actively reviewing its organizational
structure and taking additional steps to further streamline its
operations, all with the view of improving liquidity while still
retaining the ability to deliver safe and outstanding performance
to our customers.
Given the uncertainty in the current market conditions,
primarily in the Lower 48, Nabors has withdrawn any
previously-issued guidance for its full-year 2020 results. The
Company expects its first quarter 2020 results to fall somewhat
below the guidance provided on its fourth quarter earnings
conference call.
Mr. Petrello further commented, "The announced reactions from
operators have been swift and substantial, and the market
conditions we face are sure to be difficult. We are acting quickly
and decisively. We remain committed to improving the company's
capital structure this year even under the expected market
conditions, and we are confident these announced measures will
support that goal."
About Nabors
Nabors owns and operates one of the world's largest land-based
drilling rig fleets and is a provider of offshore rigs in the
United States and numerous international markets. Nabors
also provides directional drilling services, performance software,
and other innovative technologies for its own rig fleet and
those of third parties. Leveraging its advanced drilling automation
capabilities, Nabors' highly skilled workforce continues to set new
standards for operational excellence and transform its
industry.
Media Contact
For further information regarding Nabors, please
contact Dennis A. Smith, Senior Vice President of Corporate
Development & Investor Relations at + 1 281-775-8038
or William Conroy, Senior Director of Corporate Development
& Investor Relations, +1 281-775-2423. To request investor
materials, contact Nabors' corporate headquarters in Hamilton,
Bermuda at + 1 441-292-1510 or via email
at mark.andrews@nabors.com.
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SOURCE Nabors Industries Ltd.