NYSE$NBR

Nabors Industries Ltd · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Nabors' first quarter operating results exceeded expectations due to robust pricing and reduced costs in Lower 48 drilling, along with increased OEM repair and energy transition revenue in Rig Technologies.

Nabors reported first quarter 2024 operating revenues of $734 million, a net loss of $34 million, and adjusted EBITDA of $221 million. The company saw increased rig count in its International segment and firm pricing in the Lower 48 market.

  • First quarter operating results were stronger than expected, driven by resilient pricing and lower costs in Lower 48 drilling operations.
  • Rig count increased in the International segment due to rig startups in Saudi Arabia and Algeria.
  • Pricing in the Lower 48 market remained firm, with strong utilization of high-specification rigs.
  • International Drilling segment revenue increased by 9% compared to the first quarter of 2023.

Headline financials

Total Revenue

$734M

Previous: $779M-5.8%
EPS

-$4.54

Previous: $2.05-321.5%
Lower 48 Avg Rigs

71.9

No prior period
Other U.S. Avg Rigs

6.8

No prior period
U.S. Avg Rigs

78.7

No prior period
International Avg Rigs

81

No prior period
Total Avg Rigs

159.7

No prior period
Lower 48 Daily Rev

$35.5K

No prior period
Other U.S. Daily Rev

$64.4K

No prior period
U.S. Daily Rev

$38K

No prior period
International Daily Rev

$47.4K

No prior period
Lower 48 Daily Margin

$16K

No prior period
Other U.S. Daily Margin

$35.2K

No prior period
U.S. Daily Margin

$17.7K

No prior period
International Daily Margin

$16.1K

No prior period
Capital Expenditures

-$105M

Previous: -$119M+11.9%
Free Cash Flow

-$139M

Previous: -$69.5M-99.9%
Net Income

-$34.3M

Previous: $49.2M-169.7%
Operating Income

$104M

Previous: $119M-12.3%
Gross Profit

$297M

Previous: $317M-6.4%
Cash & Equivalents

$413M

Previous: $469M-12.1%
Total Assets

$4.64B

Previous: $4.7B-1.2%
R&D Expense

$13.9M

No prior period
Stock-Based Comp

$4.16M

Previous: $3.98M+4.4%

Revenue & EPS history

Nabors · Revenue · Quarterly

$734M

Q1 2024-5.8%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
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 an increase in international rig count with newbuilds in Saudi Arabia and Algeria, while anticipating sluggish activity in the natural gas basins in the Lower 48, keeping average rig count slightly below the first quarter average.

Tailwinds

  • Strength of the international drilling markets continues to surprise to the upside
  • Recent awards in Argentina and notification in another Middle East market
  • Material ongoing deployments in Saudi Arabia and Algeria
  • Restarted two rigs in Algeria during the first quarter, and a third in early April
  • International rig count to increase with a newbuild in Saudi Arabia and the fourth rig in Algeria

Headwinds

  • Sluggish activity in the natural gas basins
  • Average rig count slightly below the average for the first quarter
  • Downtime related to rig certification requirements following recent contract renewals in Saudi Arabia
  • Labor unrest on several rigs in Colombia
  • Other aftermarket, capital equipment, and energy transition EBITDA declined following seasonally strong year end deliveries

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 2024

Historical avgQ1 2024

+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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