HAMILTON, Bermuda, Oct. 29, 2019 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today
reported third quarter 2019 operating revenues of $758 million, compared to operating revenues of
$771 million in the second
quarter. Net income from continuing operations attributable
to Nabors common shareholders for the quarter was a loss of
$123 million, or $0.37 per share, compared to a loss of
$208 million, or $0.61 per share, in the prior quarter. The third
quarter's results included after-tax charges of $23.3 million, or $0.06 per share, related to a foreign tax
settlement and foreign exchange losses.
Anthony Petrello, Nabors
Chairman, CEO and President, commented, "I believe the strength of
our third-quarter results, in a weak U.S. market, is beginning to
illustrate the effectiveness and ultimate value creation potential
of the strategy we have implemented over the last several
years. We have, and continue to be, focused on providing our
customers the highest quality global rig fleet, crews and drilling
technologies.
"For the third quarter, our adjusted EBITDA grew by more than
4%, to $207 million, overcoming the
impact of the weak market environment in the U.S. Lower 48.
The $8.6 million sequential increase
principally arose from 10% growth in our International
results. Moderate improvements in our Drilling Solutions and
Canrig operations also contributed. These favorable
performances, more than offset a relatively modest 3% decline in
U.S. Drilling. This was attributable to fewer rigs operating
in our Lower 48 operations at slightly higher average daily revenue
and margin.
"In the U.S. Lower 48 the capability and quality of our
highest-spec rigs has resulted in better utilization and high
re-contracting rates with limited rate adjustments relative to
competitors. The year-to-date change in our rig count is less
than one-half that of the 24% that characterizes the full industry.
Notably, our highest-specification rigs have been averaging
approximately 90% utilization and represent 95% of our current rig
count.
"Our Rig Technologies and Drilling Solutions segments also
delivered some significant achievements during the third
quarter. In Rig Technologies, our Canrig subsidiary deployed
the first new generation Canrig®Sigma top
drive. This revolutionary new and simplified design, delivers
50% more capability with higher reliability, and lower cost of
ownership. We believe these features make it the most
cost-effective solution worldwide for the increasing number of
difficult and complex wells.
"Our Drilling Solutions segment continued to increase the
penetration of its advanced services. The most significant
elements are the new and existing software products that enhance
drilling performance, automate directional drilling and integrate
tubular running operations into the rig systems. The number
of installs for our NavigatorTM and ROCKit®
Pilot directional drilling automation software increased by 30%
sequentially. The majority of these installations are with
third-party directional drilling firms, which confirms the value of
these products."
Consolidated and Segment Results
The U.S. Drilling segment reported a $4
million reduction in adjusted EBITDA at $121 million. This consisted of a
$5 million decline in the Lower 48
operation, partially offset by a small improvement in the U.S.
Offshore. During the quarter, the Lower 48 rig count
decreased by seven rigs while average margins per rig day improved
slightly to $10,231. The
Company expects competitive pressures to compress daily margins by
a couple hundred dollars for the next quarter. This segment's
rig count currently stands at 107, with 99 rigs working in the
Lower 48. Based on the Company's current outlook, the fourth
quarter Lower 48 rig count should be around 100, and begin to
increase in the first quarter.
International Drilling adjusted EBITDA increased sequentially by
10%, to $95 million. The quarterly
average rig count declined by one to 88, while the average margin
per day improved by $1,130 to
$13,740. This improvement was a
result of progress from initiatives to improve operating costs and
favorable operating performance. The Company expects fourth
quarter results similar to the third quarter, with improved cash
flow generation. The anticipated incremental contribution
from recent and prospective rig startups will be offset by a
sequential decrease in non-cash deferred revenue, with the
expiration of contracts that included upfront customer
funding. These contracts have been renewed and are expected
to yield higher cash flow in aggregate.
Canada Drilling adjusted EBITDA improved nominally to
$1.5 million reflecting the beginning
of the customary seasonal upturn. The average daily gross
margin was essentially flat at $3,800, as was the number of rigs working during
the quarter. The company expects a moderate improvement in
rig count and daily margin in the fourth quarter.
In Drilling Solutions, adjusted EBITDA of $23 million was $1
million higher than the second quarter, despite the large
decrease in the industry rig count in the Lower 48. The 4.5%
sequential increase in adjusted EBITDA occurred in the face of a
3.6% decline in revenues. This was even more significant
considering the magnitude of lost revenue associated with the
idling of a high number of Lower 48 rigs on which NDS had been
providing services. An increase in higher margin international
activity, as well as integrated tubular running services (TRS) jobs
in the U.S. constituted the majority of the improvement. The
integrated approach reduces costs by incorporating TRS into the rig
operating systems. During the third quarter, integrated
TRS jobs were 41% of all jobs completed, up from less than 3% in
the first quarter this year.
In the Rig Technologies segment, third quarter adjusted EBITDA
was $2.2 million. Sequentially,
this reflects a decrease of less than $1
million on a $10 million
decrease in revenue, a result of lower capital equipment and spare
parts shipments during the quarter. Significant cost
reductions, the expansion of aftermarket repairs and
recertifications, and a favorable external/internal sales mix
substantially offset these revenue reductions.
Capital Expenditures and Liquidity
William Restrepo, Nabors Chief
Financial Officer, stated, "Quarterly free cash flow after
dividends reached $74 million, as
compared to $82 million in the prior
quarter. The third quarter results included approximately
$70 million in semiannual cash
interest payments as well as significant reductions in working
capital and capital expenditures.
"Capital expenditures were $87
million in the third quarter, $43
million less than the preceding quarter. We currently expect
full year 2019 capital expenditures in the range of $400 to $410
million. This implies another $35 to $45 million
reduction in capital expenditures in the fourth quarter. These
results reinforce our confidence in achieving our targeted
reduction in net debt of more than $200
million for the full year."
Mr. Petrello concluded, "Our short-term expectations remain
positive view for our international operations, with a more
cautious view in North America. We remain more universally
confident for all of our segments over the longer-term.
International demand for higher specification rigs supports
moderate growth in activity leading to improving pricing as the
availability of rigs tightens. In North America, we expect to
continue relative outperformance in both utilization and margins,
regardless of how the market develops. We also expect our
other segments to increase penetration with their technology and
service initiatives. Notwithstanding the potential for
near-term variances, over time we expect stable to improving
consolidated results.
"We maintain our intense focus on improving free cash flow after
dividends, returns on capital and debt reduction. Our third
quarter performance bolsters our confidence we can achieve these
objectives."
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 and cash equivalents. 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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
758,076
|
|
$
779,425
|
|
$
771,406
|
|
$
2,329,122
|
|
$
2,275,539
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
1
|
Investment income
(loss)
|
|
(1,437)
|
|
(1,342)
|
|
469
|
|
8,709
|
|
(4,041)
|
Total revenues and
other income
|
|
756,639
|
|
778,083
|
|
771,875
|
|
2,337,826
|
|
2,271,499
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
475,461
|
|
497,194
|
|
496,664
|
|
1,493,082
|
|
1,466,572
|
General and
administrative expenses
|
|
63,577
|
|
66,813
|
|
64,415
|
|
196,159
|
|
209,207
|
Research and
engineering
|
|
12,004
|
|
14,458
|
|
11,920
|
|
37,444
|
|
42,703
|
Depreciation and
amortization
|
|
221,557
|
|
208,517
|
|
218,319
|
|
650,267
|
|
640,227
|
Interest
expense
|
|
51,291
|
|
51,415
|
|
51,491
|
|
155,134
|
|
173,393
|
Impairments and other
charges
|
|
3,629
|
|
13,770
|
|
104,180
|
|
106,007
|
|
90,434
|
Other, net
|
|
5,005
|
|
9,137
|
|
6,289
|
|
30,598
|
|
24,163
|
Total costs and other
deductions
|
|
832,524
|
|
861,304
|
|
953,278
|
|
2,668,691
|
|
2,646,699
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(75,885)
|
|
(83,221)
|
|
(181,403)
|
|
(330,865)
|
|
(375,200)
|
Income tax expense
(benefit)
|
|
23,903
|
|
10,489
|
|
11,398
|
|
65,100
|
|
57,312
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(99,788)
|
|
(93,710)
|
|
(192,801)
|
|
(395,965)
|
|
(432,512)
|
Income (loss) from
discontinued operations, net of tax
|
|
157
|
|
(13,933)
|
|
(34)
|
|
(34)
|
|
(14,592)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(99,631)
|
|
(107,643)
|
|
(192,835)
|
|
(395,999)
|
|
(447,104)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(19,297)
|
|
(6,934)
|
|
(10,729)
|
|
(44,202)
|
|
(10,426)
|
Net income (loss)
attributable to Nabors
|
|
$
(118,928)
|
|
$
(114,577)
|
|
$
(203,564)
|
|
$
(440,201)
|
|
$
(457,530)
|
Less: Preferred stock
dividend
|
|
$
(4,310)
|
|
$
(4,313)
|
|
$
(4,312)
|
|
$
(12,935)
|
|
$
(7,993)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(123,238)
|
|
$
(118,890)
|
|
$
(207,876)
|
|
$
(453,136)
|
|
$
(465,523)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
(123,395)
|
|
$
(104,957)
|
|
$
(207,842)
|
|
$
(453,102)
|
|
$
(450,931)
|
Net income (loss)
from discontinued operations
|
|
157
|
|
(13,933)
|
|
(34)
|
|
(34)
|
|
(14,592)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(123,238)
|
|
$
(118,890)
|
|
$
(207,876)
|
|
$
(453,136)
|
|
$
(465,523)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$
(0.37)
|
|
$
(0.31)
|
|
$
(0.61)
|
|
$
(1.33)
|
|
$
(1.39)
|
Basic
from discontinued operations
|
|
-
|
|
(0.04)
|
|
-
|
|
-
|
|
(0.05)
|
Total
Basic
|
|
$
(0.37)
|
|
$
(0.35)
|
|
$
(0.61)
|
|
$
(1.33)
|
|
$
(1.44)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$
(0.37)
|
|
$
(0.31)
|
|
$
(0.61)
|
|
$
(1.33)
|
|
$
(1.39)
|
Diluted
from discontinued operations
|
|
-
|
|
(0.04)
|
|
-
|
|
-
|
|
(0.05)
|
Total
Diluted
|
|
$
(0.37)
|
|
$
(0.35)
|
|
$
(0.61)
|
|
$
(1.33)
|
|
$
(1.44)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
352,026
|
|
350,194
|
|
351,543
|
|
351,444
|
|
329,118
|
Diluted
|
|
352,026
|
|
350,194
|
|
351,543
|
|
351,444
|
|
329,118
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
207,034
|
|
$
200,960
|
|
$
198,407
|
|
$
602,437
|
|
$
557,057
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(14,523)
|
|
$
(7,557)
|
|
$
(19,912)
|
|
$
(47,830)
|
|
$
(83,170)
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
(In
thousands)
|
2019
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and short-term
investments
|
$
418,937
|
|
$
395,716
|
|
$
481,802
|
Accounts receivable,
net
|
613,527
|
|
737,353
|
|
756,320
|
Assets held for
sale
|
8,037
|
|
8,004
|
|
12,250
|
Other current
assets
|
339,847
|
|
325,606
|
|
343,191
|
Total current
assets
|
1,380,348
|
|
1,466,679
|
|
1,593,563
|
Property, plant and
equipment, net
|
5,152,236
|
|
5,301,252
|
|
5,467,870
|
Goodwill
|
90,543
|
|
90,645
|
|
183,914
|
Other long-term
assets
|
650,370
|
|
655,927
|
|
608,597
|
Total assets
|
$
7,273,497
|
|
$
7,514,503
|
|
$
7,853,944
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Current portion of
debt
|
$
1,058
|
|
$
790
|
|
$
561
|
Other current
liabilities
|
681,246
|
|
771,377
|
|
831,516
|
Total current
liabilities
|
682,304
|
|
772,167
|
|
832,077
|
Long-term
debt
|
3,516,592
|
|
3,550,577
|
|
3,585,884
|
Other long-term
liabilities
|
313,497
|
|
321,576
|
|
280,796
|
Total liabilities
|
4,512,393
|
|
4,644,320
|
|
4,698,757
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
420,217
|
|
415,042
|
|
404,861
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Shareholders'
equity
|
2,251,705
|
|
2,381,514
|
|
2,700,850
|
Noncontrolling
interest
|
89,182
|
|
73,627
|
|
49,476
|
Total equity
|
2,340,887
|
|
2,455,141
|
|
2,750,326
|
Total liabilities and
equity
|
$
7,273,497
|
|
$
7,514,503
|
|
$
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except rig activity)
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
$ 307,808
|
|
$ 273,996
|
|
$ 323,402
|
|
$
951,419
|
|
$
779,393
|
Canada
Drilling
|
12,191
|
|
26,645
|
|
11,389
|
|
48,895
|
|
75,974
|
International
Drilling
|
328,278
|
|
377,125
|
|
326,905
|
|
992,439
|
|
1,123,956
|
Drilling
Solutions
|
62,286
|
|
60,923
|
|
64,583
|
|
192,291
|
|
183,430
|
Rig Technologies
(1)
|
63,106
|
|
63,641
|
|
72,751
|
|
207,610
|
|
209,631
|
Other reconciling
items (2)
|
(15,593)
|
|
(22,905)
|
|
(27,624)
|
|
(63,532)
|
|
(96,845)
|
Total operating
revenues
|
$ 758,076
|
|
$ 779,425
|
|
$ 771,406
|
|
$
2,329,122
|
|
$
2,275,539
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
$ 120,936
|
|
$
99,353
|
|
$ 124,924
|
|
$
370,865
|
|
$
259,343
|
Canada
Drilling
|
1,466
|
|
7,294
|
|
1,069
|
|
9,981
|
|
21,556
|
International
Drilling
|
95,214
|
|
116,797
|
|
86,767
|
|
267,825
|
|
363,418
|
Drilling
Solutions
|
23,471
|
|
16,145
|
|
22,461
|
|
66,978
|
|
45,638
|
Rig Technologies
(1)
|
2,173
|
|
137
|
|
3,160
|
|
3,037
|
|
(8,101)
|
Other reconciling
items (4)
|
(36,226)
|
|
(38,766)
|
|
(39,974)
|
|
(116,249)
|
|
(124,797)
|
Total adjusted
EBITDA
|
$ 207,034
|
|
$ 200,960
|
|
$ 198,407
|
|
$
602,437
|
|
$
557,057
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
$
12,427
|
|
$
2,578
|
|
$
20,392
|
|
$
57,502
|
|
$
(30,275)
|
Canada
Drilling
|
(5,701)
|
|
(1,895)
|
|
(5,537)
|
|
(11,297)
|
|
(7,095)
|
International
Drilling
|
2,466
|
|
25,680
|
|
(6,884)
|
|
(10,055)
|
|
74,702
|
Drilling
Solutions
|
16,145
|
|
9,506
|
|
13,793
|
|
42,793
|
|
25,773
|
Rig Technologies
(1)
|
(641)
|
|
(4,141)
|
|
496
|
|
(5,293)
|
|
(20,550)
|
Other reconciling
items (4)
|
(39,219)
|
|
(39,285)
|
|
(42,172)
|
|
(121,480)
|
|
(125,725)
|
Total
adjusted operating income (loss)
|
$ (14,523)
|
|
$
(7,557)
|
|
$ (19,912)
|
|
$
(47,830)
|
|
$
(83,170)
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(6)
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
114.1
|
|
111.6
|
|
122.2
|
|
119.0
|
|
111.8
|
Canada
Drilling
|
7.7
|
|
17.9
|
|
7.4
|
|
10.4
|
|
16.4
|
International
Drilling
|
87.7
|
|
96.0
|
|
88.6
|
|
88.7
|
|
94.6
|
Total average rigs
working
|
209.5
|
|
225.5
|
|
218.2
|
|
218.1
|
|
222.8
|
|
|
(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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
(In
thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 207,034
|
|
$ 200,960
|
|
$
198,407
|
|
$
602,437
|
|
$
557,057
|
Depreciation and
amortization
|
|
(221,557)
|
|
(208,517)
|
|
(218,319)
|
|
(650,267)
|
|
(640,227)
|
Adjusted operating
income (loss)
|
|
(14,523)
|
|
(7,557)
|
|
(19,912)
|
|
(47,830)
|
|
(83,170)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
-
|
|
-
|
|
(5)
|
|
1
|
Investment income
(loss)
|
|
(1,437)
|
|
(1,342)
|
|
469
|
|
8,709
|
|
(4,041)
|
Interest
expense
|
|
(51,291)
|
|
(51,415)
|
|
(51,491)
|
|
(155,134)
|
|
(173,393)
|
Impairments and other
charges
|
|
(3,629)
|
|
(13,770)
|
|
(104,180)
|
|
(106,007)
|
|
(90,434)
|
Other, net
|
|
(5,005)
|
|
(9,137)
|
|
(6,289)
|
|
(30,598)
|
|
(24,163)
|
Income (loss) from
continuing operations before income taxes
|
|
$ (75,885)
|
|
$ (83,221)
|
|
$(181,403)
|
|
$(330,865)
|
|
$(375,200)
|
|
|
|
|
|
|
|
|
|
|
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
(In
thousands)
|
|
2019
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
1,058
|
|
$
790
|
|
$
561
|
Long-term
debt
|
|
3,516,592
|
|
3,550,577
|
|
3,585,884
|
Total Debt
|
|
3,517,650
|
|
3,551,367
|
|
3,586,445
|
Less: Cash and
short-term investments
|
|
418,937
|
|
395,716
|
|
481,802
|
Net Debt
|
|
$
3,098,713
|
|
$
3,155,651
|
|
$
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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
June
30,
|
|
September
30,
|
(In
thousands)
|
|
2019
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
157,192
|
|
$ 203,231
|
|
$
430,277
|
Less: Net cash used
for investing activities
|
|
(75,496)
|
|
(113,760)
|
|
(333,700)
|
Less: Dividends to
common and preferred shareholders
|
(7,938)
|
|
(7,940)
|
|
(41,643)
|
Free cash flow after
dividends
|
|
$
73,758
|
|
$
81,531
|
|
$
54,934
|
|
|
|
|
|
|
|
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-third-quarter-2019-results-300947654.html
SOURCE Nabors Industries Ltd.