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Investing.com -- Nabors Industries Ltd. (NYSE:NBR) reported first quarter earnings that significantly exceeded analyst expectations, sending shares up 8.3% in after-hours trading.
The oilfield services company posted adjusted earnings per share of $2.18, compared to the analyst consensus estimate of a loss of $2.88 per share. Revenue came in at $742.78 million, beating expectations of $708.81 million and rising 1.7% YoY.
Nabors’ strong performance was driven by improving results in its international drilling segment and the recent acquisition of Parker Wellbore. International drilling adjusted EBITDA increased to $115.5 million from $112 million in the previous quarter, with daily adjusted gross margin expanding to $17,421.
"With the acquisition of Parker completed, we are already realizing the benefits we anticipated," said Anthony G. Petrello, Nabors Chairman, CEO and President. "Parker’s operations contributed to our first quarter. We commenced our well-planned integration, and the early achievements are encouraging."
The company faced some headwinds in its U.S. drilling segment, where adjusted EBITDA declined to $92.7 million from $105.8 million in Q4 due to reduced rig count and higher expenses. However, management expressed optimism about recent success in adding rigs in the Lower 48 region.
For Q2, Nabors expects its Lower 48 average rig count to increase slightly to 63-64 rigs. The company also anticipates its international average rig count to reach 85-86 rigs, including two rigs from Parker.
Nabors projects full-year 2025 adjusted free cash flow of approximately $80 million, excluding any impact from tariffs. This outlook factors in the expected contributions from the Parker acquisition and planned rig deployments in international markets.
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