Nabors Industries Ltd. (NBR) said Tuesday that its second quarter profit declined from last year, hurt by losses on sales of long-lived assets and impairment charges.
Net income for the second quarter was $194.4 million or $0.67 per share, down from $228.3 million or $0.79 per share in the prior-year quarter. The result for the latest quarter included an adjustment to full year estimated taxes, an accounting rules dictated increase in diluted shares, and the non-cash mark-to-market loss on certain forward hedges in First Reserve E&P joint venture entities.
Adjusted net income declined to $194.4 million or $0.67 per share from $228.3 million or $0.79 per share in the year-ago quarter. On average, twenty-one analysts polled by First Call/Thomson Financial expected the company to earn $0.69 per share for the second quarter.
Operating revenues and earnings from unconsolidated affiliates increased to $1.28 billion from $1.14 billion in the same quarter of last year. Twelve analysts had a consensus revenue estimate of $1.24 billion for the second quarter.
During the latest quarter, the company incurred losses on sales of long-lived assets, impairment charges and other expense of $3.2 million, compared to gains of $39.6 million last year.
For the first six months of 2008, net income was $424.9 million or $1.48 per share, compared to $490.5 million or $1.71 per share in the previous year period. Adjusted net income would have been $424.9 million or $1.48 per share, down from $490.5 million or $1.71 per share in the prior-year period.
Operating revenues and earnings from unconsolidated affiliates increased to $2.57 billion from $2.39 billion in the preceding year period.
NBR closed Tuesday's regular trading session at $41.91, down $1.80 or 4.12%. In the after-hours, the shares gained 9 cents.
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