NYSE$NBR

Nabors Industries Ltd · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Nabors reported strong Q4 2023 results, exceeding expectations across all segments.

Nabors Industries Ltd. reported Q4 2023 operating revenues of $726 million, with a net loss of $17 million. Adjusted EBITDA was $230 million. The company saw improvements in U.S. and International drilling margins and growth in Drilling Solutions and Rig Technologies segments.

  • Q4 operating results exceeded expectations across all segments.
  • U.S. daily rig margins in the Lower 48 increased sequentially.
  • International daily margins widened due to better operating performance and newbuild deployments in Saudi Arabia.
  • Drilling Solutions segment growth reflected expansion in third-party and international markets.

Headline financials

Total Revenue

$726M

Previous: $760M-4.5%
EPS (adj)

-$1.56

Previous: -$3.89+59.9%
Lower 48 Avg Rigs

70.3

No prior period
International Avg Rigs

79.6

No prior period
Lower 48 Daily Rev

$35.8K

No prior period
International Daily Rev

$46.8K

No prior period
Lower 48 Daily Margin

$16.2K

No prior period
International Daily Margin

$16.7K

Previous: $14.9K+11.7%
Capital Expenditures

$134M

Previous: $101M+32.3%
Net Income

-$17M

Previous: -$69M+75.4%
Operating Income

-$17M

Previous: -$69M+75.4%
Gross Profit

$140M

Previous: $134M+4.2%
R&D Expense

$13.9M

No prior period
Stock-Based Comp

$3.17M

Previous: $3.97M-20.3%

Revenue & EPS history

Nabors · Revenue · Quarterly

$726M

Q4 2023-4.5%vs Q4 2022
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 anticipates building on its 2023 results in 2024, with international rig awards driving growth and expanding demand for advanced technology solutions.

Tailwinds

  • Annual average rig count for 2024 should approach the prior year’s level.
  • Robust international deployment schedule in 2024.
  • Number of incremental opportunities continues to grow.
  • Adoption of the NDS portfolio is still expanding, particularly on third party rigs and in international markets.
  • Increased global drilling activity should benefit Rig Technologies.

Headwinds

  • High level of rig churn to keep average rig count essentially in line with the fourth quarter exit rate.
  • Operating rigs continue to reprice to the current market, we expect some erosion in daily margin.
  • Still have a number of open international tenders.
  • Potential upside in activity level for the Lower 48.
  • Amount and significance of items required to develop meaningful comparable GAAP financial measures cannot be estimated at this time without unreasonable efforts.

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 Q4 2023

Historical avgQ4 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%

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