NYSE$NBR

Nabors Industries Ltd · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Nabors' Q3 2022 results were announced, revealing increased operating revenues and adjusted EBITDA.

Nabors reported Q3 2022 operating revenues of $694 million, a 10% increase compared to the previous quarter. The company's net loss was $14 million, or $1.80 per share. Adjusted EBITDA reached $191 million, a 21% increase from the prior quarter. The U.S. Drilling segment and International segment also showed growth.

  • Operating revenues increased by 10% to $694 million compared to the second quarter of 2022.
  • Net loss attributable to Nabors shareholders was $14 million, or $1.80 per share.
  • Adjusted EBITDA increased by 21% to $191 million compared to the previous quarter.
  • The U.S. Drilling segment reported a 31% increase in adjusted EBITDA, while the International Drilling segment saw a 4% increase.

Headline financials

Total Revenue

$694M

Previous: $524M+32.4%
EPS (adj)

-$1.80

Previous: -$14.16+87.3%
Capital Expenditures

-$272M

Previous: -$180M-51.2%
Free Cash Flow

-$286M

Previous: -$302M+5.5%
Net Income

-$13.8M

Previous: -$123M+88.7%
Operating Income

$60.4M

Previous: -$15.1M+500.0%
Gross Profit

$262M

Previous: $188M+39.5%
Cash & Equivalents

$420M

Previous: $772M-45.5%
Total Assets

$4.77B

Previous: $5.17B-7.9%
Stock-Based Comp

$4.03M

Previous: $4.47M-9.9%

Revenue & EPS history

Nabors · Revenue · Quarterly

$694M

Q3 2022+32.4%vs Q3 2021
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 fourth quarter results for all segments to increase materially over those of the third quarter.

Tailwinds

  • Favorable pricing and activity trends continue to improve across the globe.
  • The pace of dayrate increases has been particularly brisk in the Lower 48, where we have recently started to sign contracts with revenue per day approaching $40,000.
  • Utilization for our high-specification rigs now stands at 86% and as utilization for the industry continues to increase, we expect to see higher dayrates through the end of this year and into 2023.
  • At these leading edge dayrates, we believe it makes sense to contract a portion of our Lower 48 fleet on longer term.
  • Assuming favorable commodity prices persist, we are forecasting approximately $400 million in net debt reduction during 2023.

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 Q3 2022

Historical avgQ3 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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