NYSE$NBR

Nabors Industries Ltd · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported second quarter results, showing progress on goals and improved performance across segments.

Nabors reported Q2 2021 operating revenues of $489 million and an adjusted EBITDA of $117 million. The company made progress on its goals to generate free cash flow and reduce net debt.

  • Second quarter adjusted EBITDA was 9% higher than the first quarter, exceeding expectations.
  • The Lower 48 land drilling market grew by 16% on average in the second quarter.
  • Free cash flow generation was strong, driving further debt reduction.
  • The company expects continued increases in drilling activity both in the U.S. and internationally.

Headline financials

Total Revenue

$489M

Previous: $534M-8.4%
EPS (adj)

-$15.73

Previous: -$14.45-8.9%
International Avg Rigs

68

No prior period
Capital Expenditures

$76.9M

No prior period
Free Cash Flow

-$196M

Previous: -$148M-32.3%
Net Income

-$196M

Previous: -$148M-32.3%
Operating Income

-$26.1M

Previous: -$28.7M+9.0%
Gross Profit

$177M

Previous: $207M-14.7%
Cash & Equivalents

$400M

Previous: $484M-17.4%
Total Assets

$5.04B

Previous: $5.98B-15.7%
Stock-Based Comp

$3.97M

Previous: $6.6M-39.9%

Revenue & EPS history

Nabors · Revenue · Quarterly

$489M

Q2 2021-8.4%vs Q2 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

For the second half of 2021, Nabors expects further improvement in oilfield industry fundamentals, notwithstanding the challenges posed by the COVID Delta variant.

Tailwinds

  • Third quarter average Lower 48 rig count is expected to increase by four to six rigs over the second quarter average.
  • Nabors expects third quarter Lower 48 drilling margins in line with the second quarter level.
  • For the third quarter, for the U.S. Offshore and Alaska operations, the Company expects adjusted EBITDA similar to the second quarter.
  • The Company expects third quarter Drilling Solutions adjusted EBITDA to increase versus the second quarter.
  • The Company expects third quarter adjusted EBITDA for Rig Technologies above the second quarter level.

Headwinds

  • The third quarter outlook for the International segment includes a slight decline in rig count.
  • Third quarter outlook for the International segment includes daily margins in line with the second quarter.
  • Challenges are posed by the COVID Delta variant.
  • Idle time as one of the Company’s rigs moves between customers and an additional rig moves between platforms to accommodate the client’s change in activity profile.
  • The previously announced sale of the Canada drilling assets is expected to close around the end of July.

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 Q2 2021

Historical avgQ2 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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