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Contract driller Nabors expects current-quarter results to fall

Contract oil and gas driller Nabors Industries Ltd forecast a decrease in third-quarter results, saying it expected current depressed market conditions to prevail for an extended period.

The company on Tuesday posted a second-quarter loss, compared with a profit a year earlier, hurt by lower drilling activity in North America due to weak oil prices.

Oil producers have cut rig usage as oil prices have halved since June 2014, forcing Nabors and its peers to idle rigs and slash expenses.

Revenue from Nabors’ drilling operations in the United States – the company’s biggest market – fell about 40 percent in the quarter ended June 30.

Total revenue and other income fell about 47 percent to $863.4 million.

The company said it expects the North American market to remain depressed for a long time.

Net loss attributable to Nabors was $36.8 million, or 13 cents per share, compared with a profit of $64.4 million, or 21 cents per share, a year earlier.

Costs and other deductions fell 84 percent to $838.8 million as the company trims expenses, idles rigs and cuts jobs.

Up to Tuesday’s close of $11.48, Nabors’ shares had fallen nearly 11.6 percent this year. The Dow Jones U.S. Oil Equipment & Services Index had declined 13 percent during the same period.

In related news, Nabors cuts nearly 3,500 jobs, more cuts could be on the way.

(Reporting by Sneha Banerjee and Kanika Sikka in Bengaluru; Editing by Savio D’Souza)

This article was from Reuters and was legally licensed through the NewsCred publisher network.

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