Nabors Q4 Profit Surges, Revenues Edge Up

(RTTNews) - Oilfield services and drilling company Nabors Industries Ltd. (NBR) on Tuesday reported a surge in profit for the fourth quarter from last year, when results included a hefty loss from discontinued operations.

However, income from continuing operations for the quarter declined from last year, while revenues edged up only slightly amid a seasonally weaker quarter for the completion and production services segment.

Tony Petrello, Chairman and CEO of Nabors said, "The strength of our fourth-quarter results reflects building momentum in our International operations and a more favorable outlook for our U.S. Drilling operations. Our Completion & Production Services operations posted an improvement in what would usually be a seasonally weaker quarter."

For the fourth quarter, net income attributable to the Hamilton, Bermuda-based company was $150.60 million or $0.50 per share, up from $27.08 million or $0.09 per share in the same period last year.

The quarter's results include income from discontinued operations of $23.11 million or $0.08 per share, compared to loss from discontinued operations to $103.41 million or $0.36 per share in the prior-year quarter.

Net income from continuing operations for the quarter were $128.52 million or $0.42 per share, down from $131.57 million or $0.45 per share in the same period last year. On average, 26 analysts polled by Thomson Reuters expected the company to earn $0.20 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues and other income for the quarter edged up slightly to $1.61 billion from $1.60 billion last year. Analysts had a consensus revenue estimate of $1.55 billion.

Adjusted income for the drilling and rig services segment increased 11 percent from the prior-year period to $157.35 million, reflecting significant improvements in International, U.S. Drilling and Canada that outpaced a loss in Rig Services where profitability in Canrig was more than offset by losses in two other operations.

Completion and production services adjusted income declined 21 percent from the year-ago period to $40.81 million, amid a seasonally weaker quarter.

For fiscal 2013, net income attributable to Nabors declined to $139.98 million or $0.47 per share from $164.03 million or $0.56 per share last year.

Net income from continuing operations was $158.34 million or $0.51 per share, down from $232.18 million or $0.79 per share in the previous year.

Total revenues and other income for the year declined to $6.25 billion from $6.60 billion in the prior year.

Street expected the company to earn $0.81 per share for the year on revenues of $6.14 billion.

Looking ahead, Petrello said, "Looking forward, we believe 2013 will represent the low point in Nabors' protracted five-year trough. Commencing with the second quarter, we foresee substantial year-over-year quarterly improvement, which should accelerate in the second half."

NBR closed Tuesday's regular trading session at $18.66, up $0.57 or 3.15 percent on a volume of 7.49 million shares. In after-hours, the stock gained $0.49 or 2.63 percent to $19.15.