NYSE$NBR

Nabors Industries Ltd · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Nabors' first quarter results exceeded expectations, maintaining strong execution across the portfolio.

Nabors reported first quarter 2021 operating revenues of $461 million. The net loss from continuing operations attributable to Nabors common shareholders for the quarter was $141 million, or $20.16 per share. First quarter adjusted EBITDA of $108 million was in line with the strong fourth quarter. Nabors cut total debt by $70 million during the first quarter.

  • First quarter results exceeded expectations, with strong execution across the portfolio.
  • Adjusted EBITDA of $108 million was in line with the strong fourth quarter.
  • Global oil inventories drew down further, contributing to the rise in commodity prices and increased drilling activity.
  • Free cash flow generation was outstanding, and total debt was reduced by $70 million.

Headline financials

Total Revenue

$461M

Previous: $718M-35.9%
EPS (adj)

-$20.16

Previous: -$19.86-1.5%
Lower 48 Avg Rigs

56

No prior period
Capital Expenditures

$40.9M

No prior period
Free Cash Flow

-$137M

Previous: -$392M+65.0%
Net Income

-$137M

Previous: -$392M+65.0%
Operating Income

-$35.9M

Previous: -$9.12M-294.0%
Gross Profit

$170M

Previous: $257M-33.8%
Cash & Equivalents

$418M

Previous: $481M-13.1%
Total Assets

$5.25B

Previous: $6.31B-16.7%
Stock-Based Comp

$6.78M

Previous: $9.16M-26.0%

Revenue & EPS history

Nabors · Revenue · Quarterly

$461M

Q1 2021-35.9%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Nabors · $749M total across 4 segments · Q3 2023

  • International Drilling
    $302M
  • U.S. Drilling
    $287M
  • Drilling Solutions
    $91.2M
  • Rig Technologies
    $68.6M+37.1%

Forward guidance

Nabors anticipates continued increases in drilling activity both in the U.S. and internationally, with pricing expected to generally increase in the second half of 2021. Second quarter average Lower 48 rig count is expected to increase by approximately six to seven rigs over the first quarter average. Nabors expects second quarter drilling margins to exceed $7,000.

Tailwinds

  • Continued increases in drilling activity expected in the U.S. and internationally.
  • Pricing expected to generally increase in the second half of 2021.
  • Second quarter average Lower 48 rig count is expected to increase by approximately six to seven rigs over the first quarter average.
  • Nabors expects second quarter drilling margins to exceed $7,000.
  • Second quarter Drilling Solutions adjusted EBITDA to be in line with the first quarter.

Headwinds

  • Second quarter outlook for the International segment includes daily margins softening by up to $500.
  • Following the seasonal activity peak, the Company expects an average rig count of slightly more than six rigs versus almost 14 in the prior quarter.
  • Second quarter adjusted EBITDA for Rig Technologies slightly above breakeven.
  • U.S. Drilling segment reported $58.8 million in adjusted EBITDA for the first quarter of 2021, a 5% reduction from the prior quarter.
  • International Drilling adjusted EBITDA declined from the prior quarter by $1.9 million, to $62.6 million.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.4%

Avg return

30 days after

56%

40 / 72 earnings

Positive

+26.4%

Q3 2022

Best reaction

-17.0%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.4%+10.5%-1.7%
Q4 2025-9.9%+1.5%+8.1%
Q3 2025+10.2%+14.3%+5.7%
Q1 2025-7.0%-8.8%-10.6%
Q4 2024-7.1%-13.9%-18.6%
Q3 2024-5.9%+1.4%+1.2%
Q2 2024+9.3%+24.3%-8.0%
Q1 2024-5.5%-3.2%-9.5%
Q4 2023+4.9%+3.4%+10.8%
Q3 2023-7.2%-13.4%-18.7%
Q2 2023+2.0%+1.1%-8.8%
Q1 2023-3.5%-11.1%-14.5%
Q4 2022+10.3%+1.5%-20.1%
Q3 2022+26.4%+27.6%+17.9%
Q2 2022-17.0%-11.4%-4.9%
Q1 2022+1.4%-5.5%+7.5%
Q4 2021+3.7%+11.0%+42.2%
Q3 2021-8.7%-16.6%-28.3%
Q2 2021-1.0%-3.8%-17.6%
Q1 2021+6.6%+4.4%+12.9%
Q4 2020+18.1%+24.3%+8.0%
Q3 2020+11.6%+6.3%+89.2%
Q2 2020-1.2%-3.2%-11.9%
Q1 2020-5.3%+7.5%+230.8%
Q4 2019+1.3%-21.1%-79.7%
Q3 2019+10.5%+13.5%+20.5%
Q2 2019+23.6%+19.1%-19.5%
Q1 2019+2.5%+5.4%-35.0%
Q4 2018+5.8%+14.7%+12.1%
Q3 2018+1.8%+11.5%-28.1%
Q2 2018+4.6%+10.2%+3.3%
Q1 2018-0.7%-0.9%-1.8%
Q4 2017-6.5%-2.5%+1.0%
Q3 2017-0.3%-13.7%-9.3%
Q2 2017-0.8%-6.3%-12.1%
Q1 2017-10.4%-13.8%-25.7%
Q4 2016-2.1%-2.5%-19.6%
Q3 2016-5.9%-8.4%+11.5%
Q2 2016+5.3%+7.5%+15.0%
Q1 2016-13.7%
Q4 2015+19.9%
Q3 2015+0.6%
Q2 2015-2.8%
Q1 2015+1.1%
Q4 2014-1.6%
Q3 2014+1.8%
Q2 2014+2.2%
Q1 2014+1.8%
Q4 2013+16.9%
Q3 2013-4.2%
Q2 2013-1.0%
Q1 2013-2.0%
Q4 2012-5.7%
Q3 2012-3.7%
Q2 2012+7.8%
Q1 2012+0.6%
Q4 2011+0.2%
Q3 2011-4.1%
Q2 2011-5.1%
Q4 2010+1.0%
Q1 2009+1.0%
Q1 2011+1.0%
Q3 2010+1.3%
Q2 2010-3.6%
Q1 2010+2.8%
Q4 2007+1.5%
Q4 2009+1.5%
Q3 2009-6.1%
Q3 2008-6.1%
Q2 2009+7.9%
Q2 2008+7.9%
Q4 2008+7.9%

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