Nabors Expects Lower 2Q 2013 Operating Income Relative to Mean Estimates
HAMILTON, Bermuda, July 9, 2013 /CNW/ - Nabors Industries Ltd. (NYSE:NBR)
today announced that it expects second quarter operating results to fall below
consensus estimates. Operating Income is projected to be in the range of $88
to $91 million. The shortfall is most pronounced in two business lines: Rig
Services and Completion and Production Services. Within Rig Services, lower
sales of capital equipment and reduced service and rental activity impacted
financial performance. Adverse weather and intense competition negatively
affected results in Completion and Production Services, particularly for
pressure pumping in the U.S. and Canada.
Tony Petrello, Nabors' Chairman and CEO, commented, "For some time our outlook
for the second quarter has been cautious, with results improving in subsequent
quarters. Unfortunately, the lingering winter weather and subsequent flooding
in our northern markets, together with a slower recovery in Canrig, have
resulted in a weaker than expected quarter. Our other operations appear to be
in-line to favorable compared to expectations. Despite the shortfalls and no
asset sales, we still realized a significant reduction in gross debt of nearly
$300 million in the second quarter.
"Efficiency gains appear to be consuming operator budgets more rapidly than
anticipated and could result in year-end weakness absent favorable mid-year
budget revisions. We remain particularly cautious in our outlook for pressure
pumping. Although industry activity appears to be increasing slightly, the
combination of improving pumping efficiency and increasing competitive
intensity tempers our view. Nonetheless, the improving near and longer term
outlook for our other business lines remains intact."
The Nabors companies own and operate approximately 473 land drilling rigs
throughout the world and approximately 546 land workover and well servicing
rigs in North America. Nabors' actively marketed offshore fleet consists of
37 platform rigs, 7 jackup units and 4 barge rigs in the United States and
multiple international markets. In addition, Nabors is one of the largest
providers of hydraulic fracturing, cementing, nitrogen and acid pressure
pumping services with approximately 805,000 hydraulic horsepower currently in
service. Nabors also manufactures top drives and drilling instrumentation
systems and provides comprehensive oilfield hauling, engineering, civil
construction, logistics, and facilities maintenance and project management
services. Nabors participates in most of the significant oil and gas markets
in the world.
For further information, please contact Dennis A. Smith, Director of Corporate
Development & Investor Relations, at 281-775-8038. To request investor
materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at
441-292-1510 or via email at firstname.lastname@example.org.
SOURCE: Nabors Industries Ltd.
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