Land drilling contractor Nabors Industries Ltd. (NBR), Tuesday reported a net loss in the second quarter, hurt by one-time charges, and lower demand amid the difficult economic conditions. Excluding charges, it reported profit, but significantly down from the previous year.
The Hamilton, Bermuda-based company reported a net loss of $193 million or $0.68 per share for the second quarter, compared to net income of $176.4 million or $0.60 per share in the prior year quarter. Result for the latest quarter included charges of $283.9 million or $1.00 per share.
Excluding non-cash items, net income was $90.9 million or $0.32 per share for the latest quarter compared to $176.4 million or $0.60 per share during the corresponding period last year.
On average, 24 analysts polled by Thomson Reuters expected the company to earn $0.26 per share for the second quarter. Analysts' estimates typically exclude one-time items.
Second-quarter total revenue and other income declined to $878 million from $1.30 billion in the second quarter last year. Fourteen analysts had a consensus revenue estimate of $923.16 million for the second quarter.
Gene Isenberg, Nabors Chairman and CEO, said, "The quarter's results reflect the well known declines in activity among our North American gas-centric businesses since late fourth quarter combined with less robust international results, particularly in Latin America."
Segment wise, Contract Drilling operating revenues from U.S. Lower 48 Land Drilling was $249.9 million, down from $438.85 million reported in the same quarter last year. U.S. Land Well-servicing revenues declined to $100.08 million from $182.22 million in the year ago quarter.
Revenue from Alaska increased to $53.21 million from $45.11 million, Canadian revenues dropped to $45.04 million from $67.78 million, and International revenue slipped year-over-year to $327.55 million from $342.89 million.
Total costs and other deductions for the second quarter increased to $1.09 billion from $1.07 billion in the second quarter of last year.
For the first half of 2009, Nabors posted a net loss of $67.8 million or $0.24 per share, compared to net income of $388.5 million or $1.34 per share in the previous year period.
Excluding non-cash items, earnings were $275.3 million or $0.97 per share for the first six months of 2008.
Total revenue for the year-to-date period declined to $2.02 billion from $2.63 billion in the preceding year period.
Looking ahead, Isenberg said, "I believe that the third quarter will likely represent a bottom in all of our operations, although it remains difficult to predict the timing and pace of the eventual upturn in natural gas driven activity."
Among others in the industry, Helmerich & Payne, Inc. (HP) is slated to release its third quarter results on July 30. Analysts expect the company to report earnings of $0.51 per share on revenue of $376.52 million for the third quarter.
San Antonio, Texas-based Pioneer Drilling Co. (PDC) has scheduled to release second quarter results on August 6. Street estimates a loss of $0.18 per share on revenue of $71.17 million for the second quarter.
Nabors closed Tuesday's regular trading session at $17.16, down 13 cents on a volume of 8.38 million shares. In the after-hours, the shares further lost 1 cent.
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