|
27.04.2022 21:43:00
|
Nabors Announces First Quarter 2022 Results
HAMILTON, Bermuda, April 27, 2022 /PRNewswire/ -- Nabors Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported first quarter 2022 operating revenues of $569 million, an increase of approximately 5%, compared to operating revenues of $544 million in the fourth quarter of 2021. The net loss from continuing operations attributable to Nabors shareholders for the quarter was $184 million, or $22.51 per share. This compares to a loss of $114 million, or $14.60 per share in the prior quarter. The first quarter results include a non-cash charge of $72 million, or $8.63 per share, related to mark-to-market treatment of Nabors' warrants. First quarter adjusted EBITDA was $131 million, compared to $132 million in the previous quarter.
Anthony G. Petrello, Nabors Chairman, CEO and President, commented, "Our first quarter financial results demonstrate the value of our technology-focused strategy. Drilling Solutions' quarterly Adjusted EBITDA marked another post-pandemic high, and we saw excellent sequential growth in the U.S. Drilling segment.
"In the Lower 48, our daily drilling adjusted gross margin reflects the strong pricing environment. Our average daily revenue of $23,000 represents an increase of nearly $1,300 versus the prior quarter. Leading-edge daily rates continue to increase sharply and are now at least $5,000 higher than the first quarter's average daily revenue. Adjusted EBITDA from our Drilling Solutions segment grew sequentially, on top of the strong performance in the prior quarter. This segment's contribution to the Company's total adjusted EBITDA exceeded 15%, an all-time high.
"The first quarter marked significant exercises of our innovative equity warrants. We issued the warrants last June, as part of our strategy to de-lever. As a result, the reduction in face value of debt outstanding from these exercises exceeded $130 million.
"Oilfield activity in the Lower 48 market, and land drilling rig counts in particular, increased significantly during the quarter. With support from commodity prices that have risen markedly since the beginning of the year, we remain optimistic that drilling activity in the oil & gas industry will continue to increase over the balance of the year. We are also encouraged by the signals coming from certain of the key international markets, where planning and tendering for additional activity are also accelerating, setting up another potential driver of future growth."
Consolidated and Segment Results
The U.S. Drilling segment reported $74.3 million in adjusted EBITDA for the first quarter of 2022, a 7% increase from the prior quarter. Nabors' average Lower 48 rig count, at 83.4, increased by nearly nine rigs, or 12%. Daily adjusted gross margins in the Lower 48 averaged $7,694, more than 7% higher than the prior quarter. The U.S. Drilling segment's rig count currently stands at 96, with 89 rigs working in the Lower 48.
International Drilling adjusted EBITDA totaled $71.2 million, a $1.9 million decrease from the fourth quarter of 2021. Operations in Russia primarily accounted for this change. The International rig count averaged 72 rigs, a slight increase from the prior quarter. Daily adjusted gross margin averaged $13,134, in line with the prior quarter.
In Drilling Solutions, adjusted EBITDA increased slightly to $20.0 million reflecting increasing activity in the U.S. Revenue grew sequentially by 5%, driven by performance drilling software, managed pressure drilling, and wellbore placement.
In Rig Technologies, adjusted EBITDA declined to a loss of $1.0 million in the first quarter. Results in this segment were impacted by delays of Canrig shipments and issues related to Russia.
Adjusted Free Cash Flow and Capital Discipline
Adjusted free cash flow, defined as net cash provided by operating activities less net cash used by investing activities, as presented in the Company's cash flow statement, was an outflow of $41 million in the first quarter. This result was primarily driven by an increase in working capital. Revenue growth, especially late in the quarter, led to increases in accounts receivable. Inventories also expanded with the expectations for increasing activity in future quarters. In addition, supply chain challenges resulted in increasing lead times and delays in shipments of equipment.
Capital expenditures for the first quarter totaled $84 million, including $33 million for the SANAD newbuilds.
The Company reduced its net debt, defined as total debt less cash, cash equivalents and short-term investments, by $55 million in the first quarter. Net debt at the end of the first quarter was $2,216 million. Exercises of warrants on Nabors common shares contributed to the improvement in net debt. Also, during the first quarter, the Company completed the replacement of its Revolving Credit Facility, which was scheduled to mature in 2023, with a new facility maturing in 2026.
William Restrepo, Nabors CFO, stated, "Activity across our segments and geographies continued to strengthen and is generating improving financial results, a trend we expect to continue during the year. As utilization expanded to approximately 80% for our high-spec U.S. rigs, pricing has already increased significantly and well above the higher labor expenses and general cost inflation. The market's development since our December analyst event gives us greater confidence in the outlook for 2023. Our focus remains on the timely staffing of our expanding fleet as recruiting is still a challenge and on the aggressive management of our working capital to mitigate the impact on our cash flow from our rapidly growing business.
"Once again, we made progress reducing our net debt and expect to continue making further progress over the balance of the year. We also expect to generate adjusted free cash flow well in excess of $100 million for all of 2022. Finally, we have continued to de-risk our company's capital structure with the extension of our credit facility in January and the reduction of our near-term outstanding notes to a manageable $261 million maturing before the end of 2024. Our $350 million credit facility was undrawn at the end of the first quarter, and we now have just under $1 billion in available capacity to issue additional priority guaranteed notes."
Mr. Petrello added, "Last year at our Analyst Meeting, we introduced five strategic initiatives that we believe are key to our success. I am pleased that we made progress on each of these during the first quarter:
- Our Lower 48 business continued its robust upward trend.
- Our International segment performed well in the face of challenges in Russia. In the second quarter, we are looking forward to deployments in Saudi Arabia of the first In-Kingdom newbuild rig, as well as an advanced PACE®-M1200 series rig that incorporates the latest technology Nabors has to offer.
- On top of outstanding performance in the prior quarter, our Drilling Solutions segment continued to grow. Our fully-automated land rig, which we deployed in 2021, has succeeded in demonstrating the potential of our innovative automation. Using this new technology, we are now deploying our first automation module on an existing rig in the Permian Basin. We are confident these advances, which enable both best-in-class performance and a step-change improvement in safety, will see increasing demand across the industry.
- We made progress to de-lever, reducing net debt and total debt.
- We expanded our efforts supporting the Energy Transition, recently completing two additional investments. The first is a geothermal company developing leading-edge drilling technology. The second company provides monitoring of greenhouse gases and other emissions. We also made additional headway on our own internal initiatives in fuel management, energy storage, hydrogen, and carbon capture."
Outlook for the Second Quarter of 2022
Nabors expects the following quarterly metrics:
U.S. Drilling
- An increase in average Lower 48 rig count of 6 to 7 rigs over the first quarter average
- Lower 48 adjusted gross margin per day of approximately $8,500, reflecting a significant increase in average daily revenue from the strengthening of our leading-edge dayrates, somewhat offset by higher labor expenses and inflation
- Offshore slightly above the first quarter levels and higher average dayrates in Alaska
International
- An increase in average rig count of 2 to 3 rigs over the first quarter average
- Adjusted gross margin per day of $12,700 to $13,000, including a full-quarter impact from Russia
Drilling Solutions
- Adjusted EBITDA up by more than 5% over the first quarter level
Rig Technologies
- Adjusted EBITDA of approximately $2 million
Capital Expenditures
- Capital expenditures between $110 million and $120 million
- Capital expenditures for the full year 2022 of approximately $380 million
Mr. Petrello concluded, "Industry fundamentals in the Lower 48, and rig counts in particular, have improved dramatically over the last several quarters. Increasing utilization is driving improvement in our financial metrics and we are now on the path toward significant pricing power. With the backdrop of the constructive commodity price outlook, we expect Nabors' Lower 48 rig utilization and financial performance to accelerate materially over the balance of 2022. These prospects are augmented by growing adoption of our technology portfolio, which enables operators to improve their production profiles and limit their per-barrel costs. Given the positive signals coming from our international markets, we are poised for growth across the Company. That should enable us to make further progress improving our financial position."
About Nabors Industries
Nabors Industries (NYSE: NBR) is a leading provider of advanced technology for the energy industry. With operations in more than 15 countries, Nabors has established a global network of people, technology and equipment to deploy solutions that deliver safe, efficient and responsible energy production. By leveraging its core competencies, particularly in drilling, engineering, automation, data science and manufacturing, Nabors aims to innovate the future of energy and enable the transition to a lower-carbon world. Learn more about Nabors and its energy technology leadership: www.nabors.com.
Forward-looking Statements
The information included in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are subject to a number of risks and uncertainties, as disclosed by Nabors from time to time in its filings with the Securities and Exchange Commission. As a result of these factors, Nabors' actual results may differ materially from those indicated or implied by such forward-looking statements. The forward-looking statements contained in this press release reflect management's estimates and beliefs as of the date of this press release. Nabors does not undertake to update these forward-looking statements.
Non-GAAP Disclaimer
This press release presents certain "non-GAAP" financial measures. The components of these non-GAAP measures are computed by using amounts that are determined in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Adjusted operating income (loss) represents income (loss) from continuing operations before income taxes, interest expense, earnings (losses) from unconsolidated affiliates, investment income (loss), (gain)/loss on debt buybacks and exchanges, impairments and other charges and other, net. Adjusted EBITDA is computed similarly, but also excludes depreciation and amortization expenses. In addition, adjusted EBITDA and adjusted operating income (loss) exclude certain cash expenses that the Company is obligated to make. Net debt is calculated as total debt minus the sum of cash, cash equivalents and short-term investments. Adjusted free cash flow represents net cash provided by operating activities less cash used for investing activities. Adjusted free cash flow is an important liquidity measure for the company and it is useful to investors and management as a measure of our ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Management believes that this non-GAAP measure is useful information to investors when comparing our cash flows with the cash flows of other companies. Each of these non-GAAP measures has limitations and therefore should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including Adjusted EBITDA, adjusted operating income (loss), net debt, and adjusted free cash flow, because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors also use these measures as some of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. Reconciliations of consolidated adjusted EBITDA and adjusted operating income (loss) to income (loss) from continuing operations before income taxes, net debt to total debt, and adjusted free cash flow to cash flow provided by operations, which are their nearest comparable GAAP financial measures, are included in the tables at the end of this press release.
Investor Contacts: William C. Conroy, CFA, Vice President of Corporate Development & Investor Relations, +1 281-775-2423 or via e-mail william.conroy@nabors.com, or Kara Peak, Director of Corporate Development & Investor Relations, +1 281-775-4954 or via email kara.peak@nabors.com. To request investor materials, contact Nabors' corporate headquarters in Hamilton, Bermuda at +441-292-1510 or via e-mail mark.andrews@nabors.com
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | December 31, | ||||||
(In thousands, except per share amounts) | 2022 | 2021 | 2021 | ||||
Revenues and other income: | |||||||
Operating revenues | $ 568,539 | $ 460,511 | $ 543,539 | ||||
Investment income (loss) | 163 | 1,263 | 156 | ||||
Total revenues and other income | 568,702 | 461,774 | 543,695 | ||||
Costs and other deductions: | |||||||
Direct costs | 372,712 | 290,654 | 347,238 | ||||
General and administrative expenses | 53,639 | 54,660 | 54,422 | ||||
Research and engineering | 11,678 | 7,467 | 10,223 | ||||
Depreciation and amortization | 164,359 | 177,276 | 167,955 | ||||
Interest expense | 46,910 | 42,975 | 44,570 | ||||
Other, net | 80,401 | 7,346 | 10,170 | ||||
Total costs and other deductions | 729,699 | 580,378 | 634,578 | ||||
Income (loss) from continuing operations before income taxes | (160,997) | (118,604) | (90,883) | ||||
Income tax expense (benefit) | 13,671 | 9,725 | 18,393 | ||||
Income (loss) from continuing operations, net of tax | (174,668) | (128,329) | (109,276) | ||||
Income (loss) from discontinued operations, net of tax | - | 19 | 13 | ||||
Net income (loss) | (174,668) | (128,310) | (109,263) | ||||
Less: Net (income) loss attributable to noncontrolling interest | (9,828) | (8,776) | (4,414) | ||||
Net income (loss) attributable to Nabors | (184,496) | (137,086) | (113,677) | ||||
Less: Preferred stock dividend | - | (3,653) | - | ||||
Net income (loss) attributable to Nabors common shareholders | $ (184,496) | $ (140,739) | $ (113,677) | ||||
Amounts attributable to Nabors common shareholders: | |||||||
Net income (loss) from continuing operations | $ (184,496) | $ (140,758) | $ (113,690) | ||||
Net income (loss) from discontinued operations | - | 19 | 13 | ||||
Net income (loss) attributable to Nabors common shareholders | $ (184,496) | $ (140,739) | $ (113,677) | ||||
Earnings (losses) per share: | |||||||
Basic from continuing operations | $ (22.51) | $ (20.16) | $ (14.60) | ||||
Basic from discontinued operations | - | - | - | ||||
Total Basic | $ (22.51) | $ (20.16) | $ (14.60) | ||||
Diluted from continuing operations | $ (22.51) | $ (20.16) | $ (14.60) | ||||
Diluted from discontinued operations | - | - | - | ||||
Total Diluted | $ (22.51) | $ (20.16) | $ (14.60) | ||||
Weighted-average number of common shares outstanding: | |||||||
Basic | 8,311 | 7,102 | 7,950 | ||||
Diluted | 8,311 | 7,102 | 7,950 | ||||
Adjusted EBITDA | $ 130,510 | $ 107,730 | $ 131,656 | ||||
Adjusted operating income (loss) | $ (33,849) | $ (69,546) | $ (36,299) | ||||
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
March 31, | December 31, | |||||
(In thousands) | 2022 | 2021 | ||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets: | ||||||
Cash and short-term investments | $ 394,039 | $ 991,488 | ||||
Accounts receivable, net | 297,209 | 287,572 | ||||
Assets held for sale | 16,582 | 16,561 | ||||
Other current assets | 236,238 | 222,188 | ||||
Total current assets | 944,068 | 1,517,809 | ||||
Property, plant and equipment, net | 3,245,574 | 3,332,498 | ||||
Other long-term assets | 667,524 | 675,057 | ||||
Total assets | $ 4,857,166 | $ 5,525,364 | ||||
LIABILITIES AND EQUITY | ||||||
Current liabilities: | ||||||
Current portion of debt | $ - | $ - | ||||
Other current liabilities | 513,445 | 525,228 | ||||
Total current liabilities | 513,445 | 525,228 | ||||
Long-term debt | 2,610,092 | 3,262,795 | ||||
Other long-term liabilities | 375,070 | 343,120 | ||||
Total liabilities | 3,498,607 | 4,131,143 | ||||
Redeemable noncontrolling interest in subsidiary | 677,829 | 675,283 | ||||
Equity: | ||||||
Shareholders' equity | 543,616 | 590,656 | ||||
Noncontrolling interest | 137,114 | 128,282 | ||||
Total equity | 680,730 | 718,938 | ||||
Total liabilities and equity | $ 4,857,166 | $ 5,525,364 | ||||
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||||||
SEGMENT REPORTING | ||||||||
(Unaudited) | ||||||||
The following tables set forth certain information with respect to our reportable segments and rig activity: | ||||||||
Three Months Ended | ||||||||
March 31, | December 31, | |||||||
(In thousands, except rig activity) | 2022 | 2021 | 2021 | |||||
Operating revenues: | ||||||||
U.S. Drilling | $ 217,583 | $ 142,299 | $ 192,310 | |||||
Canada Drilling | - | 20,989 | - | |||||
International Drilling | 279,030 | 246,838 | 271,069 | |||||
Drilling Solutions | 54,182 | 35,706 | 51,776 | |||||
Rig Technologies (1) | 36,736 | 25,748 | 46,920 | |||||
Other reconciling items (2) | (18,992) | (11,069) | (18,536) | |||||
Total operating revenues | $ 568,539 | $ 460,511 | $ 543,539 | |||||
Adjusted EBITDA: (3) | ||||||||
U.S. Drilling | $ 74,265 | $ 58,786 | $ 69,249 | |||||
Canada Drilling | (19) | 9,659 | 223 | |||||
International Drilling | 71,248 | 62,611 | 73,168 | |||||
Drilling Solutions | 20,000 | 11,458 | 19,559 | |||||
Rig Technologies (1) | (1,044) | (533) | 3,842 | |||||
Other reconciling items (4) | (33,940) | (34,250) | (34,385) | |||||
Total adjusted EBITDA | $ 130,510 | $ 107,730 | $ 131,656 | |||||
Adjusted operating income (loss): (5) | ||||||||
U.S. Drilling | $ (5,851) | $ (23,336) | $ (12,587) | |||||
Canada Drilling | (19) | 3,907 | 223 | |||||
International Drilling | (6,327) | (18,632) | (5,749) | |||||
Drilling Solutions | 14,709 | 4,710 | 12,930 | |||||
Rig Technologies (1) | (2,751) | (2,569) | 1,493 | |||||
Other reconciling items (4) | (33,610) | (33,626) | (32,609) | |||||
Total adjusted operating income (loss) | $ (33,849) | $ (69,546) | $ (36,299) | |||||
Rig activity: | ||||||||
Average Rigs Working: (7) | ||||||||
Lower 48 | 83.4 | 56.2 | 74.7 | |||||
Other US | 6.9 | 4.3 | 6.0 | |||||
U.S. Drilling | 90.3 | 60.5 | 80.7 | |||||
Canada Drilling | - | 13.7 | - | |||||
International Drilling | 72.0 | 64.8 | 71.4 | |||||
Total average rigs working | 162.3 | 139.0 | 152.1 | |||||
Daily Rig Revenue: (6),(8) | ||||||||
Lower 48 | $ 23,030 | $ 21,656 | $ 21,739 | |||||
Other US | 72,089 | 83,793 | 77,833 | |||||
U.S. Drilling (10) | 26,781 | 26,115 | 25,911 | |||||
Canada Drilling | - | 16,995 | - | |||||
International Drilling | 43,065 | 42,347 | 41,239 | |||||
Daily Adjusted Gross Margin: (6),(9) | ||||||||
Lower 48 | $ 7,694 | $ 8,466 | $ 7,161 | |||||
Other US | 37,236 | 54,974 | 47,734 | |||||
U.S. Drilling (10) | 9,953 | 11,803 | 10,179 | |||||
Canada Drilling | - | 8,160 | - | |||||
International Drilling | 13,134 | 12,917 | 13,172 | |||||
(1) | Includes our oilfield equipment manufacturing activities. | |||||||
(2) | Represents the elimination of inter-segment transactions related to our Rig Technologies operating segment. | |||||||
(3) | Adjusted EBITDA represents net income (loss) before income (loss) from discontinued operations, net of tax, income taxes, investment income (loss), interest expense, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". | |||||||
(4) | Represents the elimination of inter-segment transactions and unallocated corporate expenses. | |||||||
(5) | Adjusted operating income (loss) represents net income (loss) before income (losses) from discontinued operations, net of tax, income taxes, investment income (loss), interest expense, and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. A reconciliation of this non-GAAP measure to net income (loss), which is the most closely comparable GAAP measure, is provided in the table set forth immediately following the heading "Reconciliation of Non-GAAP Financial Measures to Net Income (Loss)". | |||||||
(6) | Rig revenue days represents the number of days the Company's rigs are contracted and performing under a contract during the period. These would typically include days in which operating, standby and move revenue is earned. | |||||||
(7) | Average rigs working represents a measure of the average number of rigs operating during a given period. For example, one rig operating 45 days during a quarter represents approximately 0.5 average rigs working for the quarter. On an annual period, one rig operating 182.5 days represents approximately 0.5 average rigs working for the year. Average rigs working can also be calculated as rig revenue days during the period divided by the number of calendar days in the period. | |||||||
(8) | Daily rig revenue represents operating revenue, divided by the total number of revenue days during the quarter. | |||||||
(9) | Daily adjusted gross margin represents operating revenue less direct costs, divided by the total number of rig revenue days during the quarter. | |||||||
(10) | The U.S. Drilling segment includes the Lower 48, Alaska, and Gulf of Mexico operating areas. | |||||||
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||||||||||||
RECONCILIATION OF ADJUSTED EBITDA BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||
(In thousands) | U.S. | Canada | International | Drilling | Rig | Other | Total | |||||||
Adjusted operating income (loss) | $ (5,851) | $ (19) | $ (6,327) | $ 14,709 | $ (2,751) | $ (33,610) | $ (33,849) | |||||||
Depreciation and amortization | 80,116 | - | 77,575 | 5,291 | 1,707 | (330) | 164,359 | |||||||
Adjusted EBITDA | $ 74,265 | $ (19) | $ 71,248 | $ 20,000 | $ (1,044) | $ (33,940) | $ 130,510 | |||||||
Three Months Ended March 31, 2021 | ||||||||||||||
U.S. | Canada | International | Drilling | Rig | Other | Total | ||||||||
Adjusted operating income (loss) | $ (23,336) | $ 3,907 | $ (18,632) | $ 4,710 | $ (2,569) | $ (33,626) | $ (69,546) | |||||||
Depreciation and amortization | 82,122 | 5,752 | 81,243 | 6,748 | 2,036 | (624) | 177,276 | |||||||
Adjusted EBITDA | $ 58,786 | $ 9,659 | $ 62,611 | $ 11,458 | $ (533) | $ (34,250) | $ 107,730 | |||||||
Three Months Ended December 31, 2021 | ||||||||||||||
U.S. | Canada | International | Drilling | Rig | Other | Total | ||||||||
Adjusted operating income (loss) | $ (12,587) | $ 223 | $ (5,749) | $ 12,930 | $ 1,493 | $ (32,609) | $ (36,299) | |||||||
Depreciation and amortization | 81,836 | - | 78,917 | 6,629 | 2,349 | (1,776) | 167,955 | |||||||
Adjusted EBITDA | $ 69,249 | $ 223 | $ 73,168 | $ 19,559 | $ 3,842 | $ (34,385) | $ 131,656 | |||||||
Adjusted EBITDA by segment represents adjusted income (loss) plus depreciation and amortization. | ||||||||||||||
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||||||
RECONCILIATION OF ADJUSTED GROSS MARGIN BY SEGMENT TO ADJUSTED OPERATING INCOME (LOSS) BY SEGMENT | ||||||||
(Unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, | December 31, | |||||||
(In thousands) | 2022 | 2021 | 2021 | |||||
Lower 48 - U.S. Drilling | ||||||||
Adjusted operating income (loss) | $ (14,596) | $ (31,022) | $ (25,474) | |||||
Plus: General and administrative costs | 4,447 | 4,279 | 4,610 | |||||
Plus: Research and engineering | 1,638 | 644 | 1,064 | |||||
GAAP Gross Margin | (8,511) | (26,099) | (19,800) | |||||
Plus: Depreciation and amortization | 66,243 | 68,921 | 68,994 | |||||
Adjusted gross margin | $ 57,732 | $ 42,822 | $ 49,194 | |||||
Other - U.S. Drilling | ||||||||
Adjusted operating income (loss) | $ 8,745 | $ 7,686 | $ 12,887 | |||||
Plus: General and administrative costs | 383 | 525 | 515 | |||||
Plus: Research and engineering | 132 | 83 | 105 | |||||
GAAP Gross Margin | 9,260 | 8,294 | 13,507 | |||||
Plus: Depreciation and amortization | 13,873 | 13,201 | 12,842 | |||||
Adjusted gross margin | $ 23,133 | $ 21,495 | $ 26,349 | |||||
U.S. Drilling | ||||||||
Adjusted operating income (loss) | $ (5,851) | $ (23,336) | $ (12,587) | |||||
Plus: General and administrative costs | 4,830 | 4,804 | 5,125 | |||||
Plus: Research and engineering | 1,770 | 727 | 1,169 | |||||
GAAP Gross Margin | 749 | (17,805) | (6,293) | |||||
Plus: Depreciation and amortization | 80,116 | 82,122 | 81,836 | |||||
Adjusted gross margin | $ 80,865 | $ 64,317 | $ 75,543 | |||||
Canada Drilling | ||||||||
Adjusted operating income (loss) | $ (19) | $ 3,907 | $ 223 | |||||
Plus: General and administrative costs | 20 | 366 | 174 | |||||
Plus: Research and engineering | - | 53 | - | |||||
GAAP Gross Margin | 1 | 4,326 | 397 | |||||
Plus: Depreciation and amortization | - | 5,752 | - | |||||
Adjusted gross margin | $ 1 | $ 10,078 | $ 397 | |||||
International Drilling | ||||||||
Adjusted operating income (loss) | $ (6,327) | $ (18,632) | $ (5,749) | |||||
Plus: General and administrative costs | 12,483 | 11,408 | 12,057 | |||||
Plus: Research and engineering | 1,368 | 1,276 | 1,359 | |||||
GAAP Gross Margin | 7,524 | (5,949) | 7,667 | |||||
Plus: Depreciation and amortization | 77,575 | 81,243 | 78,917 | |||||
Adjusted gross margin | $ 85,099 | $ 75,294 | $ 86,584 | |||||
Adjusted gross margin by segment represents adjusted operating income (loss) plus general and administrative | ||||||||
costs, research and engineering costs and depreciation and amortization. | ||||||||
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO NET INCOME (LOSS) | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | December 31, | ||||||
(In thousands) | 2022 | 2021 | 2021 | ||||
Net income (loss) | $ (174,668) | $ (128,310) | $ (109,263) | ||||
(Income) loss from discontinued operations, net of tax | - | (19) | (13) | ||||
Income (loss) from continuing operations, net of tax | (174,668) | (128,329) | (109,276) | ||||
Income tax expense (benefit) | 13,671 | 9,725 | 18,393 | ||||
Income (loss) from continuing operations before income taxes | (160,997) | (118,604) | (90,883) | ||||
Investment (income) loss | (163) | (1,263) | (156) | ||||
Interest expense | 46,910 | 42,975 | 44,570 | ||||
Other, net | 80,401 | 7,346 | 10,170 | ||||
Adjusted operating income (loss) (1) | (33,849) | (69,546) | (36,299) | ||||
Depreciation and amortization | 164,359 | 177,276 | 167,955 | ||||
Adjusted EBITDA (2) | $ 130,510 | $ 107,730 | $ 131,656 | ||||
(1) Adjusted operating income (loss) represents net income (loss) before income (losses) from discontinued operations, net of tax, income taxes, investment income (loss), interest expense, and other, net. Adjusted operating income (loss) is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted operating income (loss) excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. | |||||||
(2) Adjusted EBITDA represents net income (loss) before income (loss) from discontinued operations, net of tax, income taxes, investment income (loss), interest expense, other, net and depreciation and amortization. Adjusted EBITDA is a non-GAAP financial measure and should not be used in isolation or as a substitute for the amounts reported in accordance with GAAP. In addition, adjusted EBITDA excludes certain cash expenses that the Company is obligated to make. However, management evaluates the performance of its operating segments and the consolidated Company based on several criteria, including adjusted EBITDA and adjusted operating income (loss), because it believes that these financial measures accurately reflect the Company's ongoing profitability and performance. Securities analysts and investors use this measure as one of the metrics on which they analyze the Company's performance. Other companies in this industry may compute these measures differently. | |||||||
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | ||||
RECONCILIATION OF NET DEBT TO TOTAL DEBT | ||||
March 31, | December 31, | |||
(In thousands) | 2022 | 2021 | ||
(Unaudited) | ||||
Current portion of debt | $ - | $ - | ||
Long-term debt | 2,610,092 | 3,262,795 | ||
Total Debt | 2,610,092 | 3,262,795 | ||
Less: Cash and short-term investments | 394,039 | 991,488 | ||
Net Debt | $ 2,216,053 | $ 2,271,307 | ||
NABORS INDUSTRIES LTD. AND SUBSIDIARIES | |||||||
RECONCILIATION OF ADJUSTED FREE CASH FLOW TO | |||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | |||||||
(Unaudited) | |||||||
Three Months Ended | |||||||
March 31, | December 31, | ||||||
(In thousands) | 2022 | 2021 | 2021 | ||||
Net cash provided by operating activities | $ 41,354 | $ 79,490 | $ 102,293 | ||||
Less: Net cash used for investing activities | (82,107) | (19,119) | (52,137) | ||||
Adjusted free cash flow | $ (40,753) | $ 60,371 | $ 50,156 | ||||
Adjusted free cash flow represents net cash provided by operating activities less net cash used for investing activities. Management believes that adjusted free cash flow is an important liquidity measure for the company and that it is useful to investors and management as a measure of the company's ability to generate cash flow, after reinvesting in the company for future growth, that could be available for paying down debt or other financing cash flows, such as dividends to shareholders. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Adjusted free cash flow is a non-GAAP financial measure that should be considered in addition to, not as a substitute for or superior to, cash flow from operations reported in accordance with GAAP. |
View original content:https://www.prnewswire.com/news-releases/nabors-announces-first-quarter-2022-results-301534662.html
SOURCE Nabors Industries Ltd.
Der finanzen.at Ratgeber für Aktien!
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!
Nachrichten zu Nabors Industries Ltd.mehr Nachrichten
| Keine Nachrichten verfügbar. |
Analysen zu Nabors Industries Ltd.mehr Analysen
Nachrichten
ETF-Sparplan
Oskar ist der einfache und intelligente ETF-Sparplan. Er übernimmt die ETF-Auswahl, ist steuersmart, transparent und kostengünstig.