NYSE$NBR

Nabors Industries Ltd · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Nabors reported mixed results with international strength offsetting U.S. drilling weakness.

Nabors Industries Ltd. reported second quarter 2023 operating revenues of $767 million with a net income of $5 million. The company's international segment showed strong performance, offsetting weaknesses in the U.S. drilling market.

  • Operating revenues were $767 million, compared to $779 million in the first quarter.
  • Net income attributable to Nabors shareholders was $5 million, compared to $49 million in the first quarter.
  • Second quarter adjusted EBITDA was $235 million, compared to $240 million in the previous quarter.
  • International segment benefitted from strong performance in the Middle East, including the start of the third newbuild rig in Saudi Arabia.

Headline financials

Total Revenue

$767M

Previous: $631M+21.6%
EPS (adj)

-$0.31

Previous: -$9.41+96.7%
Capital Expenditures

-$263M

Previous: -$161M-63.8%
Free Cash Flow

-$259M

Previous: -$244M-6.2%
Net Income

$4.61M

Previous: -$82.9M+105.6%
Operating Income

$119M

Previous: $33.3M+258.4%
Gross Profit

$312M

Previous: $227M+37.2%
Cash & Equivalents

$413M

Previous: $413M+0.1%
Total Assets

$4.46B

Previous: $4.8B-7.0%
Stock-Based Comp

$4.34M

Previous: $3.95M+9.9%

Revenue & EPS history

Nabors · Revenue · Quarterly

$767M

Q2 2023+21.6%vs Q2 2022
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

Nabors anticipates a weakening drilling market in the Lower 48 during the third quarter but expects some recovery in the fourth quarter. Further strength is anticipated in International markets, with growth expected in Drilling Solutions and Rig Technologies.

Tailwinds

  • Early signs of growth developing into awards for incremental rigs in International markets.
  • Drilling Solutions is expected to increase sequentially.
  • Rig Technologies are also expected to increase sequentially.
  • Some recovery is expected in the Lower 48 market in the fourth quarter.
  • International activity in all segments is anticipated to continue improving during the second half of this year.

Headwinds

  • The drilling market should continue to weaken in the Lower 48 during the third quarter.
  • Softness in the Lower 48 market is expected to continue.
  • Colombia market is expected to remain soft.
  • Free cash flow was impacted by lower than expected adjusted EBITDA.
  • Higher than planned capital spending.

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 2023

Historical avgQ2 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro