NYSE$NBR

Nabors Industries Ltd · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Nabors reported an increase in operating revenues and a net loss, with growth in U.S. Drilling and Drilling Solutions segments.

Nabors Industries Ltd. reported first quarter 2022 operating revenues of $569 million, a 5% increase compared to the previous quarter. The net loss was $184 million, or $22.51 per share, which includes a non-cash charge of $72 million related to warrant valuations. Adjusted EBITDA was $131 million. The company saw growth in the U.S. Drilling segment and Drilling Solutions.

  • Operating revenues increased by approximately 5% to $569 million compared to the previous quarter.
  • Net loss from continuing operations attributable to Nabors shareholders was $184 million, or $22.51 per share.
  • Adjusted EBITDA was $131 million, compared to $132 million in the previous quarter.
  • Reduction in face value of debt outstanding from warrant exercises exceeded $130 million.

Headline financials

Total Revenue

$569M

Previous: $461M+23.5%
EPS (adj)

-$13.88

Previous: -$20.16+31.2%
Capital Expenditures

-$84.3M

Previous: $40.9M-306.3%
Free Cash Flow

-$269M

Previous: -$137M-96.0%
Net Income

-$184M

Previous: -$137M-34.6%
Operating Income

-$239K

Previous: -$35.9M+99.3%
Gross Profit

$196M

Previous: $170M+15.3%
Cash & Equivalents

$394M

Previous: $418M-5.6%
Total Assets

$4.86B

Previous: $5.25B-7.6%
Stock-Based Comp

$3.88M

Previous: $6.78M-42.7%

Revenue & EPS history

Nabors · Revenue · Quarterly

$569M

Q1 2022+23.5%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
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 expects industry fundamentals and rig counts to improve, driving financial metrics and pricing power. They anticipate growth across the company with increasing adoption of their technology portfolio, enabling progress in improving their financial position.

Tailwinds

  • Industry fundamentals in the Lower 48 are improving.
  • Rig counts are increasing.
  • Utilization is driving improvement in financial metrics.
  • The company is on the path toward significant pricing power.
  • Growing adoption of technology portfolio is expected.

Headwinds

  • Recruiting is still a challenge.
  • Aggressive management of working capital is needed.
  • Supply chain challenges resulted in increasing lead times and delays in shipments of equipment.
  • Working capital increased due to revenue growth and inventory expansion.
  • Operations in Russia primarily accounted for the decrease in the international drilling adjusted EBITDA.

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 2022

Historical avgQ1 2022

+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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