HAMILTON, Bermuda, July 29, 2019 /PRNewswire/ -- Nabors Industries
Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported
second quarter 2019 operating revenue of $771 million, compared to operating revenue of
$800 million in the first
quarter. Net income from continuing operations attributable to
Nabors common shareholders for the quarter was a loss of
$208 million, or $0.61 per share, compared to a loss of
$122 million, or $0.36 per share, in the prior
quarter. Results for the second quarter included net goodwill
and intangible asset impairments of $99
million, or $0.29 per share,
which were partially offset by a non-recurring tax gain of
$31 million, or $0.09 per share.
Second-quarter consolidated adjusted EBITDA was $198.4 million, compared to $197.0 million in the previous
quarter. Substantial sequential improvements in the Lower 48,
Rig Technologies and, to a lesser extent International, more than
offset lower seasonal activity in Canada, U.S. Offshore and Alaska. Adjusted operating income for the
Company was a loss of $19.9 million
in the second quarter, compared to a loss of $13.4 million in the first quarter.
Anthony G. Petrello, Nabors
Chairman, CEO and President, commented, "For our industry, the
quarter was marked by continued gradual softening of drilling
activity in the lower 48 and a more positive outlook
internationally. We are seeing the same broad market trends and
expect they will continue throughout the third quarter. Discussions
with our customers indicate a modest temporary reduction in our
Lower 48 results, with improvement in our International second-half
results.
"Contrary to the drop in lower 48 industry rig count, we grew
our second quarter rig count by three rigs to nearly 115, as five
upgraded rigs were deployed during the quarter. We also
modestly improved daily margins. Our Canada rig count
averaged 7.4 rigs with the seasonal downturn, an 8.9 rig reduction
compared to the first quarter. We also anticipate a third
quarter improvement in Canada as
seasonal activity recovers. Our rig count in Canada is expected to approach 15 rigs in the
fourth quarter.
"Internationally, we have not yet benefitted from the increased
rig demand, as our average rig count fell by one. Two of our rigs
in Argentina, which were extended
for a multiyear term, were temporarily idled due to mandatory
recertifications before commencing the new contract term. We
expect our average International rig count to remain flat
sequentially, with the potential for a three rig increase late in
the third quarter, benefitting the fourth quarter.
Mr. Petrello continued, "Our Rig Technologies and Drilling
Solutions segments each reported sequential progress. Rig
Technologies posted a meaningful improvement with increased
aftermarket content, a larger proportion of third-party sales,
lower costs and initial revenues in robotics. Drilling
Solutions grew despite the loss of some revenue on third-party
rigs, as those rigs shut down. Meanwhile, we continue to see
greater penetration of our automation and integration initiatives,
as we secured additional jobs for our Navigator™ and
ROCKit® Pilot directional drilling automation systems.
Today these systems are working for seven customers in four basins.
Customer adoption is widening and we expect increasing financial
contributions in coming quarters."
Consolidated and Segment Results
The U.S. Drilling segment reported essentially flat adjusted
EBITDA of $125 million.
Improvement in the Lower 48 operation was offset by seasonal
declines in activity in Alaska and
U.S. Offshore. During the quarter, utilization of the Company's
high-specification rigs in the Lower 48 was approximately 95%.
Gross margin increased modestly to $10,220 per day and is expected to increase
slightly during the third quarter. This segment's rig count
currently stands at 121, with 112 rigs working in the Lower 48.
International Drilling adjusted EBITDA increased sequentially by
1%, to $87 million. Quarterly average
rig count declined by one to 89, while the average margin per day
was essentially unchanged, at approximately $12,600. During the third quarter, the Company
expects adjusted EBITDA to increase by $5 to $7 million,
reflecting improved operational performance in various markets and
cost reductions.
Canada Drilling operations were negatively impacted by the
seasonal downturn in addition to the relatively weak current market
conditions. Adjusted EBITDA of $1.1
million was down from $7.4
million in the first quarter. The average daily gross margin
decreased sequentially to slightly below $3,800.
In Drilling Solutions, adjusted EBITDA of $22.5 million was $1.4
million higher than the first quarter, despite a decreased
overall industry rig count in the lower 48. Drilling performance
software revenue and margins continued to strengthen, with
increased market penetration of drilling automation systems.
Results in wellbore placement and PetroMar also improved.
In the Rig Technologies segment, second quarter adjusted EBITDA
improved to $3.2 million from an
adjusted EBITDA loss of $2.3 million
in the first quarter. The results reflect higher margins in Canrig,
reduced costs related to the commercialization of the rotary
steerable tool, and initial revenue and lower costs in robotic
drilling systems.
Capital Expenditures and Liquidity
Capital expenditures for the quarter were higher than expected
at $131 million reflecting Lower 48
rig upgrade deployments, which were ahead of schedule, bringing
year-to-date capital spending to approximately $275 million. Capital expenditures for the
remainder of the year should decline significantly with no
additional Lower 48 rig upgrades scheduled and International
expenditures for several rig deployments winding down.
William Restrepo, Nabors Chief
Financial Officer, stated, "Free cash flow after dividends was
healthy at $82 million, as compared
to $100 million consumed in the first
quarter. In the quarter we repurchased $305
million of our 2020 senior notes, which cost us
approximately $7 million in premiums,
prepayment of accrued interest and transaction fees. Quarterly
capital expenditures were $131
million, compared to $146
million in the first quarter. In the third quarter, we are
targeting positive free cash flow after dividends, despite
semiannual interest payments on our outstanding senior notes. We
continue to target $400 million in
capital spending for the full year and expect to deliver in excess
of $200 million in net debt reduction
during the full year 2019."
Mr. Petrello concluded, "Despite ongoing volatility in oil
prices, and the resultant caution on the part of our U.S. customer
base, we continue to believe we will see improving results over the
balance of this year. This view is based on limited downside
in the Lower 48, an improving outlook in certain international
markets and Drilling Solutions, as well as seasonal recoveries in
Canada, Alaska and Offshore.
"In the U.S., our strategy of deploying the
highest-specification rigs to the industry's most demanding
customers has been successful, as demonstrated by our Lower 48
results. However, we also believe the current market conditions are
likely to result in a temporary decrease in utilization in our
Lower 48 operations during the third quarter. Nonetheless, we
are encouraged by customer inquiries regarding the availability of
our higher-spec rigs to support their drilling plans for early
2020, which we expect to benefit our fourth quarter 2019
results.
"On a consolidated basis we expect our adjusted EBITDA to
continue improving over the following quarters."
About Nabors
Nabors (NYSE: NBR) owns and operates one of the world's
largest land-based drilling rig fleets and provides offshore
platform rigs in the United States
and numerous international markets. Nabors also provides
directional drilling services, performance tools, and innovative
technologies for its own rig fleet and those of third parties.
Leveraging our advanced drilling automation capabilities, Nabors
highly skilled workforce continues to set new standards for
operational excellence and transform our industry.
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), 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. Free cash flow after dividends represents net
cash provided by operating activities less cash used for investing
activities and cash paid for dividends. Free cash flow is an
indicator of our ability to generate cash flow after required
spending to maintain or expand our asset base and pay dividends.
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 free cash flow after dividends, 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 free cash flow
after dividends 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.
Media Contact: Dennis A.
Smith, Senior Vice President of Corporate Development &
Investor Relations, +1 281-775-8038 or William C. Conroy, Senior Director of Corporate
Development & Investor Relations, +1 281-775-2423. 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
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
771,406
|
|
$
761,920
|
|
$
799,640
|
|
$
1,571,046
|
|
$
1,496,114
|
Earnings (losses)
from unconsolidated affiliates
|
-
|
|
(1)
|
|
(5)
|
|
(5)
|
|
1
|
Investment income
(loss)
|
469
|
|
(3,164)
|
|
9,677
|
|
10,146
|
|
(2,699)
|
Total revenues and
other income
|
771,875
|
|
758,755
|
|
809,312
|
|
1,581,187
|
|
1,493,416
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
496,664
|
|
493,975
|
|
520,957
|
|
1,017,621
|
|
969,378
|
General and
administrative expenses
|
64,415
|
|
67,823
|
|
68,167
|
|
132,582
|
|
142,394
|
Research and
engineering
|
11,920
|
|
12,439
|
|
13,520
|
|
25,440
|
|
28,245
|
Depreciation and
amortization
|
218,319
|
|
218,262
|
|
210,391
|
|
428,710
|
|
431,710
|
Interest
expense
|
51,491
|
|
60,592
|
|
52,352
|
|
103,843
|
|
121,978
|
Impairments and other
charges
|
102,570
|
|
69,620
|
|
(2,667)
|
|
99,903
|
|
76,664
|
Other, net
|
7,899
|
|
7,981
|
|
20,169
|
|
28,068
|
|
15,026
|
Total costs and other
deductions
|
953,278
|
|
930,692
|
|
882,889
|
|
1,836,167
|
|
1,785,395
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
(181,403)
|
|
(171,937)
|
|
(73,577)
|
|
(254,980)
|
|
(291,979)
|
Income tax expense
(benefit)
|
11,398
|
|
23,278
|
|
29,799
|
|
41,197
|
|
46,823
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
(192,801)
|
|
(195,215)
|
|
(103,376)
|
|
(296,177)
|
|
(338,802)
|
Income (loss) from
discontinued operations, net of tax
|
(34)
|
|
(584)
|
|
(157)
|
|
(191)
|
|
(659)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
(192,835)
|
|
(195,799)
|
|
(103,533)
|
|
(296,368)
|
|
(339,461)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
(10,729)
|
|
(2,953)
|
|
(14,176)
|
|
(24,905)
|
|
(3,492)
|
Net income (loss)
attributable to Nabors
|
$(203,564)
|
|
$(198,752)
|
|
$(117,709)
|
|
$
(321,273)
|
|
$
(342,953)
|
Less: Preferred stock
dividend
|
$
(4,312)
|
|
$
(3,680)
|
|
$
(4,313)
|
|
$
(8,625)
|
|
$
(3,680)
|
Net income (loss)
attributable to Nabors common shareholders
|
$(207,876)
|
|
$(202,432)
|
|
$(122,022)
|
|
$
(329,898)
|
|
$
(346,633)
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors common shareholders:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
$(207,842)
|
|
$(201,848)
|
|
$(121,865)
|
|
$
(329,707)
|
|
$
(345,974)
|
Net income (loss)
from discontinued operations
|
(34)
|
|
(584)
|
|
(157)
|
|
(191)
|
|
(659)
|
Net income (loss)
attributable to Nabors common shareholders
|
$(207,876)
|
|
$(202,432)
|
|
$(122,022)
|
|
$
(329,898)
|
|
$
(346,633)
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
Basic from continuing
operations
|
$
(0.61)
|
|
$
(0.61)
|
|
$
(0.36)
|
|
$
(0.97)
|
|
$
(1.08)
|
Basic from discontinued
operations
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
Basic
|
$
(0.61)
|
|
$
(0.61)
|
|
$
(0.36)
|
|
$
(0.97)
|
|
$
(1.08)
|
|
|
|
|
|
|
|
|
|
|
Diluted from continuing
operations
|
$
(0.61)
|
|
$
(0.61)
|
|
$
(0.36)
|
|
$
(0.97)
|
|
$
(1.08)
|
Diluted from
discontinued operations
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Total
Diluted
|
$
(0.61)
|
|
$
(0.61)
|
|
$
(0.36)
|
|
$
(0.97)
|
|
$
(1.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
351,543
|
|
328,372
|
|
350,764
|
|
351,154
|
|
318,580
|
Diluted
|
351,543
|
|
328,372
|
|
350,764
|
|
351,154
|
|
318,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 198,407
|
|
$ 187,683
|
|
$ 196,996
|
|
$
395,403
|
|
$
356,097
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
$
(19,912)
|
|
$
(30,579)
|
|
$
(13,395)
|
|
$
(33,307)
|
|
$
(75,613)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
(In
thousands)
|
2019
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and short-term
investments
|
$
395,716
|
|
$
469,717
|
|
$
481,802
|
Accounts receivable,
net
|
737,353
|
|
743,528
|
|
756,320
|
Assets held for
sale
|
8,004
|
|
12,330
|
|
12,250
|
Other current
assets
|
325,606
|
|
330,328
|
|
343,191
|
Total current
assets
|
1,466,679
|
|
1,555,903
|
|
1,593,563
|
Property, plant and
equipment, net
|
5,301,252
|
|
5,399,514
|
|
5,467,870
|
Goodwill
|
90,645
|
|
184,104
|
|
183,914
|
Other long-term
assets
|
655,927
|
|
634,163
|
|
608,597
|
Total
assets
|
$
7,514,503
|
|
$
7,773,684
|
|
$
7,853,944
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current portion of
debt
|
$
790
|
|
$
850
|
|
$
561
|
Other current
liabilities
|
771,377
|
|
734,952
|
|
831,516
|
Total current
liabilities
|
772,167
|
|
735,802
|
|
832,077
|
Long-term
debt
|
3,550,577
|
|
3,677,580
|
|
3,585,884
|
Other long-term
liabilities
|
321,576
|
|
300,340
|
|
280,796
|
Total
liabilities
|
4,644,320
|
|
4,713,722
|
|
4,698,757
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
415,042
|
|
409,923
|
|
404,861
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Shareholders'
equity
|
2,381,514
|
|
2,586,335
|
|
2,700,850
|
Noncontrolling
interest
|
73,627
|
|
63,704
|
|
49,476
|
Total
equity
|
2,455,141
|
|
2,650,039
|
|
2,750,326
|
Total liabilities and
equity
|
$
7,514,503
|
|
$
7,773,684
|
|
$
7,853,944
|
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
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except rig activity)
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
$ 323,402
|
|
$ 264,395
|
|
$ 320,209
|
|
$
643,611
|
|
$
505,397
|
Canada
Drilling
|
11,389
|
|
17,442
|
|
25,315
|
|
36,704
|
|
49,329
|
International
Drilling
|
326,905
|
|
377,986
|
|
337,256
|
|
664,161
|
|
746,831
|
Drilling
Solutions
|
64,583
|
|
59,859
|
|
65,422
|
|
130,005
|
|
122,507
|
Rig Technologies
(1)
|
72,751
|
|
81,321
|
|
71,753
|
|
144,504
|
|
145,990
|
Other reconciling
items (2)
|
(27,624)
|
|
(39,083)
|
|
(20,315)
|
|
(47,939)
|
|
(73,940)
|
Total operating
revenues
|
$ 771,406
|
|
$ 761,920
|
|
$ 799,640
|
|
$
1,571,046
|
|
$
1,496,114
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
$ 124,924
|
|
$
86,923
|
|
$ 125,005
|
|
$
249,929
|
|
$
159,990
|
Canada
Drilling
|
1,069
|
|
4,963
|
|
7,446
|
|
8,515
|
|
14,262
|
International
Drilling
|
86,767
|
|
122,631
|
|
85,844
|
|
172,611
|
|
246,621
|
Drilling
Solutions
|
22,461
|
|
14,765
|
|
21,046
|
|
43,507
|
|
29,493
|
Rig Technologies
(1)
|
3,160
|
|
446
|
|
(2,296)
|
|
864
|
|
(8,238)
|
Other reconciling
items (4)
|
(39,974)
|
|
(42,045)
|
|
(40,049)
|
|
(80,023)
|
|
(86,031)
|
Total adjusted
EBITDA
|
$ 198,407
|
|
$ 187,683
|
|
$ 196,996
|
|
$
395,403
|
|
$
356,097
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
$
20,392
|
|
$ (13,107)
|
|
$
24,683
|
|
$
45,075
|
|
$
(32,853)
|
Canada
Drilling
|
(5,537)
|
|
(4,608)
|
|
(59)
|
|
(5,596)
|
|
(5,200)
|
International
Drilling
|
(6,884)
|
|
24,486
|
|
(5,637)
|
|
(12,521)
|
|
49,022
|
Drilling
Solutions
|
13,793
|
|
7,546
|
|
12,855
|
|
26,648
|
|
16,267
|
Rig Technologies
(1)
|
496
|
|
(3,433)
|
|
(5,148)
|
|
(4,652)
|
|
(16,409)
|
Other reconciling
items (4)
|
(42,172)
|
|
(41,463)
|
|
(40,089)
|
|
(82,261)
|
|
(86,440)
|
Total adjusted
operating income (loss)
|
$ (19,912)
|
|
$ (30,579)
|
|
$ (13,395)
|
|
$
(33,307)
|
|
$
(75,613)
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(6)
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
122.2
|
|
112.1
|
|
120.9
|
|
121.5
|
|
112.0
|
Canada
Drilling
|
7.4
|
|
10.2
|
|
16.3
|
|
11.8
|
|
15.6
|
International
Drilling
|
88.6
|
|
93.1
|
|
89.7
|
|
89.1
|
|
93.8
|
Total average rigs
working
|
218.2
|
|
215.4
|
|
226.9
|
|
222.4
|
|
221.4
|
|
|
(1)
|
Includes our oilfield
equipment manufacturing, automated systems, and downhole
tools.
|
|
|
(2)
|
Represents the
elimination of inter-segment transactions.
|
|
|
(3)
|
Adjusted EBITDA
represents income (loss) from continuing operations before income
taxes, interest expense, depreciation and amortization, earnings
(losses) from unconsolidated affiliates, investment income (loss),
impairments and other charges and other, net. 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 income (loss) from continuing operations before income
taxes, 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 Income (loss)
from Continuing Operations before Income Taxes".
|
|
|
(4)
|
Represents the
elimination of inter-segment transactions and unallocated corporate
expenses.
|
|
|
(5)
|
Adjusted operating
income (loss) represents income (loss) from continuing operations
before income taxes, interest expense, earnings (losses) from
unconsolidated affiliates, investment income (loss), impairments
and other charges 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
income (loss) from continuing operations before income taxes, 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 Income (loss) from Continuing
Operations before Income Taxes".
|
|
|
(6)
|
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.
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO
|
INCOME (LOSS) FROM
CONTINUING OPERATIONS BEFORE INCOME TAXES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
198,407
|
|
$
187,683
|
|
$ 196,996
|
|
$
395,403
|
|
$
356,097
|
Depreciation and
amortization
|
(218,319)
|
|
(218,262)
|
|
(210,391)
|
|
(428,710)
|
|
(431,710)
|
Adjusted operating
income (loss)
|
(19,912)
|
|
(30,579)
|
|
(13,395)
|
|
(33,307)
|
|
(75,613)
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
-
|
|
(1)
|
|
(5)
|
|
(5)
|
|
1
|
Investment income
(loss)
|
469
|
|
(3,164)
|
|
9,677
|
|
10,146
|
|
(2,699)
|
Interest
expense
|
(51,491)
|
|
(60,592)
|
|
(52,352)
|
|
(103,843)
|
|
(121,978)
|
Impairments and other
charges
|
(102,570)
|
|
(69,620)
|
|
2,667
|
|
(99,903)
|
|
(76,664)
|
Other, net
|
(7,899)
|
|
(7,981)
|
|
(20,169)
|
|
(28,068)
|
|
(15,026)
|
Income (loss) from
continuing operations before income taxes
|
$(181,403)
|
|
$(171,937)
|
|
$ (73,577)
|
|
$(254,980)
|
|
$(291,979)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
June
30,
|
|
March
31,
|
|
December
31,
|
(In
thousands)
|
2019
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
$
790
|
|
$
850
|
|
$
561
|
Long-term
debt
|
3,550,577
|
|
3,677,580
|
|
3,585,884
|
Total Debt
|
3,551,367
|
|
3,678,430
|
|
3,586,445
|
Less: Cash and
short-term investments
|
395,716
|
|
469,717
|
|
481,802
|
Net Debt
|
$
3,155,651
|
|
$
3,208,713
|
|
$
3,104,643
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
FREE CASH FLOW AFTER DIVIDENDS TO
|
NET CASH PROVIDED
BY OPERATING ACTIVITIES
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
|
(In
thousands)
|
2019
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$ 203,231
|
|
$
69,854
|
|
$
273,085
|
Less: Net cash used
for investing activities
|
(113,760)
|
|
(144,444)
|
|
(258,204)
|
Less: Dividends to
common and preferred shareholders
|
(7,940)
|
|
(25,765)
|
|
(33,705)
|
Free cash flow after
dividends
|
$
81,531
|
|
$(100,355)
|
|
$
(18,824)
|
|
Free cash flow after
dividends represents net cash provided by operating activities less
cash used for investing activities and cash paid for dividends.
Free cash flow is an indicator of our ability to generate cash flow
after required spending to maintain or expand our asset base and
pay dividends. Management believes that this non-GAAP measure is
useful information to investors when comparing our cash flows with
the cash flows of other companies. This non-GAAP measure 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 the consolidated
Company based on several criteria, including free cash flow after
dividends, because it believes that these financial measures
accurately reflect the Company's ongoing profitability and
performance.
|
View original
content:http://www.prnewswire.com/news-releases/nabors-announces-second-quarter-2019-results-300892710.html
SOURCE Nabors Industries Ltd.