HAMILTON, Bermuda, Oct. 30, 2018 /PRNewswire/ -- Nabors
Industries Ltd. ("Nabors" or the "Company") (NYSE: NBR) today
reported third quarter 2018 operating revenues of $779 million, compared to operating revenues of
$762 million in the second quarter, a
2% increase. Net income from continuing operations
attributable to Nabors common shareholders for the quarter was a
loss of $105 million, or $0.31 per share, compared to a loss of
$202 million, or $0.61 per share, in the prior
quarter. Results for the third quarter included a loss of
$10 million, or $0.02 per share in premiums paid to redeem the
Company's 9.25% notes due early next year. The second
quarter included charges of $69.6
million or $0.22 per share
principally from the sale of three Middle
East jackups, and other minor transaction charges.
Anthony Petrello, Nabors
Chairman, CEO and President, commented, "The U.S. Drilling segment
was the highlight of the third quarter, primarily attributable to
the strong performance of the Lower 48 drilling operation. Average
daily rig margins in that operation exceeded $8,700 – a $1,300
per day sequential increase – due to the combination of increasing
rates and a decline in operating costs. In our other drilling
segments, results improved seasonally in Canada, but declined in the International
segment due primarily to the divestiture of our jackups and higher
operational and reactivation expenses.
"During the quarter, we redeemed the $303
million outstanding of our 9.25% notes, which were due in
early 2019. Our next debt maturity is not until late 2020. After
the quarter ended, we amended our existing revolving credit
facility, and added a new $1.27
billion revolving five-year facility providing us with good
long-term liquidity.
"We also signed contracts for nine incremental rigs globally and
received another four awards in the U.S. Lower 48. Four of
the signed contracts are for upgraded rigs for multiple operators
in the U.S., deploying by the end of 2018. The four new awards are
for M750 upgrades and will deploy in the first half of 2019.
The other five contracts are for incremental rigs in our
International operations where we are also negotiating with
customers for additional rigs. Demand for high-performance
rigs is increasing across most of our global operations. We are
encouraged by the positive reception of our rig upgrade
configuration and the number of prospects for additional upgraded
rigs with multiple operators, particularly in the Lower 48.
We believe we are well positioned to secure a
disproportionate share of future awards.
"Effective September 1, 2018,
SANAD, our joint venture with Saudi Aramco, contracted 25 existing
rigs with Aramco for four-year terms at improved rates. The
renewal of the rigs will lead to a considerable increase in free
cash flow. Twenty of these rigs are being leased from Nabors, while
the other five represent the second tranche of Nabors rigs
contributed to SANAD".
Consolidated and Segment Results
Adjusted operating income for the Company was a loss of
$8 million during the quarter,
compared to a loss of $31 million in
the second quarter. Third quarter consolidated adjusted
EBITDA increased to $201 million
compared to $188 million in the
previous quarter, a 7% increase. During the third quarter,
the Company averaged 226 rigs operating at an average gross margin
of $12,028 per rig day. This
compares to 215 rigs at $12,262 per
rig day in the second quarter. The increase in rig count
primarily reflects the usual seasonal improvement in activity in
Canada as well as three additional
rigs in the International segment.
The U.S. Drilling segment reported a 14% sequential increase in
adjusted EBITDA, to $99
million. All of the increase is attributable to the
Lower 48 operation. A sequential increment of $1,300 in average daily gross margin reflected
both higher dayrates and lower costs. Although the rig
count was only up fractionally, it should increase meaningfully in
the near future as multiple upgraded rigs commence
operations.
International Drilling adjusted EBITDA decreased sequentially by
$5.8 million, to $117 million. The quarterly rig count
increased by three to 96. Additional operating rigs in
Latin America and Russia more than offset the impact on the rig
count from the sale of three jackup rigs in the Middle East in early June. The average
margin per day decreased from approximately $16,350 to $15,000
due to the loss of contribution from some higher margin land rigs
and the jackup sale, as well as incremental costs in Saudi Arabia and Mexico
Canada Drilling operations posted a seasonal increase with
adjusted EBITDA of $7.3 million, up
from $5.0 million in the second
quarter. Daily gross margin declined to $5,352 due primarily to the addition of
lower-specification rigs as activity increased.
In Drilling Solutions, adjusted EBITDA of $16.1 million represents an increase of 9% from
$14.8 million in the prior quarter.
The improved results were spread across the Tubular Services
and Performance Software service lines. During the
quarter, this operation continued to make good progress on its
post-acquisition Tesco integration. The Company expects all
Drilling Solutions lines to contribute towards continued strong
growth in the fourth quarter. Nonetheless, given operational
challenges in wellbore placement, Nabors now expects Drilling
Solutions to close the year by generating adjusted EBITDA in the
low $20 million range during the
fourth quarter.
In the Rig Technologies segment, third-quarter adjusted EBITDA
of $0.1 million was essentially flat
with the second quarter, despite a significant decline in revenue.
The segment benefited from a favorable revenue mix. Costs also
improved due to ongoing capture of Tesco synergies.
Capital Expenditures and Liquidity
During the quarter, the Company restructured its credit
facilities to provide it with a $1.27
billion new revolving credit facility expiring in
October 2023, while the existing
revolver, which expires in July 2020,
was amended to reduce commitments to $666
million. The new five-year facility incorporates enhanced
credit protection for lenders including subsidiary guarantees and
an additional covenant. The original facility is essentially
unchanged except for the reduced amount.
Net debt increased by $167 million
in the third quarter. This deficit was expected to be offset by a
net payment from Saudi Aramco of $157
million in late September, which was not received until
October 4, 2018. The net
payment related to the contribution in the third quarter of five
rigs to SANAD from Nabors and one from Aramco. The increase
in net debt also resulted in part from semiannual interest payments
on the debt and the premium incurred with the redemption of the
2019 notes in July. In addition, the Company consumed some
$60 million more than anticipated in
working capital due mainly to a reduction in previously accrued
payables largely consisting of incremental payments that are not
expected to recur in the fourth quarter.
Capital expenditures for the third quarter totaled $120 million. The Company anticipates total
capital expenditures for 2018 to be approximately $500 million, which implies fourth quarter
expenditures of $170 million. The
majority of this capex is expected to occur late in the quarter
with actual payments slipping into 2019.
William Restrepo, Nabors Chief
Financial Officer, stated, "Our recently restructured credit
facilities, following our equity issue in the second quarter,
provide us with significant liquidity over the next five years, in
an amount more in accordance with our potential requirements. At
the beginning of the quarter, we redeemed the remaining
$303 million of our 9.25% senior
notes outstanding. We now have no additional senior notes
maturing until September 2020.
For the balance of 2018, we expect that operating results,
limited interest expenses, low capex payments and the Aramco cash
inflow should help us meet our target of stable net debt for the
year, excluding the impact of our equity issuance last May."
Mr. Petrello concluded, "As illustrated by its results, our U.S.
Drilling business is unlocking the value held in its operations. We
are optimistic that demand in this market will continue to
strengthen, providing opportunities to employ additional upgraded
assets. Beyond the U.S., momentum is beginning to pick up, as
shown by our rig deployments. We expect utilization of our global
fleet to increase significantly over the next several
quarters. We continue to make steady progress on our
initiatives to integrate selected services and implement rig
automation. This should drive continued growth in our
Drilling Solutions and Rig Technologies segments."
About Nabors
Nabors (NYSE: NBR) owns and operates one of the
world's largest land-based drilling rig fleets and is a provider of
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) 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 and short-term investments. 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), and net debt, 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. A reconciliation of adjusted EBITDA and
adjusted operating income (loss) to income (loss) from continuing
operations before income taxes and net debt to total debt, 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, Vice President of Corporate Development &
Investor Relations, +1 281-775-8038 or William 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 at 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)
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
779,425
|
|
$
662,103
|
|
$
761,920
|
|
$
2,275,539
|
|
$
1,856,008
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
4
|
|
(1)
|
|
1
|
|
6
|
Investment income
(loss)
|
|
(1,342)
|
|
373
|
|
(3,164)
|
|
(4,041)
|
|
208
|
Total revenues and
other income
|
|
778,083
|
|
662,480
|
|
758,755
|
|
2,271,499
|
|
1,856,222
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
497,194
|
|
441,263
|
|
493,975
|
|
1,466,572
|
|
1,246,428
|
General and
administrative expenses
|
|
66,813
|
|
65,010
|
|
67,823
|
|
209,207
|
|
192,114
|
Research and
engineering
|
|
14,458
|
|
12,960
|
|
12,439
|
|
42,703
|
|
36,060
|
Depreciation and
amortization
|
|
208,517
|
|
217,075
|
|
218,262
|
|
640,227
|
|
628,837
|
Interest
expense
|
|
51,415
|
|
54,607
|
|
60,592
|
|
173,393
|
|
165,813
|
Other, net
|
|
22,907
|
|
5,559
|
|
77,601
|
|
114,597
|
|
29,173
|
Total costs and other
deductions
|
|
861,304
|
|
796,474
|
|
930,692
|
|
2,646,699
|
|
2,298,425
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(83,221)
|
|
(133,994)
|
|
(171,937)
|
|
(375,200)
|
|
(442,203)
|
Income tax expense
(benefit)
|
|
10,489
|
|
(14,709)
|
|
23,278
|
|
57,312
|
|
(59,814)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(93,710)
|
|
(119,285)
|
|
(195,215)
|
|
(432,512)
|
|
(382,389)
|
Income (loss) from
discontinued operations, net of tax
|
|
(13,933)
|
|
(27,134)
|
|
(584)
|
|
(14,592)
|
|
(43,077)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(107,643)
|
|
(146,419)
|
|
(195,799)
|
|
(447,104)
|
|
(425,466)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(6,934)
|
|
(2,113)
|
|
(2,953)
|
|
(10,426)
|
|
(5,001)
|
Net income (loss)
attributable to Nabors
|
|
$
(114,577)
|
|
$
(148,532)
|
|
$
(198,752)
|
|
$
(457,530)
|
|
$
(430,467)
|
Less: Preferred stock
dividend
|
|
$
(4,313)
|
|
$
-
|
|
$
(3,680)
|
|
$
(7,993)
|
|
$
-
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(118,890)
|
|
$
(148,532)
|
|
$
(202,432)
|
|
$
(465,523)
|
|
$
(430,467)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
(104,957)
|
|
$
(121,398)
|
|
$(201,848)
|
|
$
(450,931)
|
|
$
(387,390)
|
Net income (loss)
from discontinued operations
|
|
(13,933)
|
|
(27,134)
|
|
(584)
|
|
(14,592)
|
|
(43,077)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(118,890)
|
|
$
(148,532)
|
|
$(202,432)
|
|
$
(465,523)
|
|
$
(430,467)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$
(0.31)
|
|
$
(0.42)
|
|
$
(0.61)
|
|
$
(1.39)
|
|
$
(1.35)
|
Basic
from discontinued operations
|
|
(0.04)
|
|
(0.10)
|
|
-
|
|
(0.05)
|
|
(0.16)
|
Total
Basic
|
|
$
(0.35)
|
|
$
(0.52)
|
|
$
(0.61)
|
|
$
(1.44)
|
|
$
(1.51)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$
(0.31)
|
|
$
(0.42)
|
|
$
(0.61)
|
|
$
(1.39)
|
|
$
(1.35)
|
Diluted
from discontinued operations
|
|
(0.04)
|
|
(0.10)
|
|
-
|
|
(0.05)
|
|
(0.16)
|
Total
Diluted
|
|
$
(0.35)
|
|
$
(0.52)
|
|
$
(0.61)
|
|
$
(1.44)
|
|
$
(1.51)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
350,194
|
|
279,313
|
|
328,372
|
|
329,118
|
|
278,670
|
Diluted
|
|
350,194
|
|
279,313
|
|
328,372
|
|
329,118
|
|
278,670
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
200,960
|
|
$
142,870
|
|
$
187,683
|
|
$
557,057
|
|
$
381,406
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(7,557)
|
|
$
(74,205)
|
|
$
(30,579)
|
|
$
(83,170)
|
|
$
(247,431)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
(In
thousands)
|
|
2018
|
|
2018
|
|
2017
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
388,558
|
|
$
636,546
|
|
$
365,366
|
Accounts receivable,
net
|
|
775,137
|
|
780,247
|
|
698,477
|
Assets held for
sale
|
|
20,289
|
|
35,963
|
|
37,052
|
Other current
assets
|
|
355,056
|
|
329,715
|
|
346,441
|
Total current
assets
|
|
1,539,040
|
|
1,782,471
|
|
1,447,336
|
Property, plant and
equipment, net
|
|
5,608,948
|
|
5,709,895
|
|
6,109,565
|
Goodwill
|
|
172,976
|
|
172,817
|
|
173,226
|
Other long-term
assets
|
|
639,583
|
|
635,105
|
|
671,857
|
Total assets
|
|
$
7,960,547
|
|
$
8,300,288
|
|
$
8,401,984
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
433
|
|
$
243
|
|
$
181
|
Other current
liabilities
|
|
751,959
|
|
873,539
|
|
919,295
|
Total current
liabilities
|
|
752,392
|
|
873,782
|
|
919,476
|
Long-term
debt
|
|
3,737,273
|
|
3,818,613
|
|
4,027,766
|
Other long-term
liabilities
|
|
296,389
|
|
310,726
|
|
311,971
|
Total liabilities
|
|
4,786,054
|
|
5,003,121
|
|
5,259,213
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
210,665
|
|
208,519
|
|
203,998
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
Shareholders'
equity
|
|
2,931,222
|
|
3,063,034
|
|
2,911,816
|
Noncontrolling
interest
|
|
32,606
|
|
25,614
|
|
26,957
|
Total equity
|
|
2,963,828
|
|
3,088,648
|
|
2,938,773
|
Total liabilities and
equity
|
|
$
7,960,547
|
|
$
8,300,288
|
|
$
8,401,984
|
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)
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$ 273,996
|
|
$ 222,747
|
|
$ 264,395
|
|
$
779,393
|
|
$
572,025
|
Canada
Drilling
|
|
26,645
|
|
18,073
|
|
17,442
|
|
75,974
|
|
63,002
|
International
Drilling
|
|
377,125
|
|
374,106
|
|
377,986
|
|
1,123,956
|
|
1,092,667
|
Drilling
Solutions
|
|
60,923
|
|
37,506
|
|
59,859
|
|
183,430
|
|
96,700
|
Rig Technologies
(1)
|
|
63,641
|
|
50,032
|
|
81,321
|
|
209,631
|
|
155,293
|
Other reconciling
items (2)
|
|
(22,905)
|
|
(40,361)
|
|
(39,083)
|
|
(96,845)
|
|
(123,679)
|
Total operating
revenues
|
|
$ 779,425
|
|
$ 662,103
|
|
$ 761,920
|
|
$
2,275,539
|
|
$
1,856,008
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
99,353
|
|
$
43,256
|
|
$
86,923
|
|
$
259,343
|
|
$
107,676
|
Canada
Drilling
|
|
7,294
|
|
2,570
|
|
4,963
|
|
21,556
|
|
13,082
|
International
Drilling
|
|
116,797
|
|
136,839
|
|
122,631
|
|
363,418
|
|
380,279
|
Drilling
Solutions
|
|
16,145
|
|
9,761
|
|
14,765
|
|
45,638
|
|
20,330
|
Rig Technologies
(1)
|
|
137
|
|
(7,938)
|
|
446
|
|
(8,101)
|
|
(15,142)
|
Other reconciling
items (4)
|
|
(38,766)
|
|
(41,618)
|
|
(42,045)
|
|
(124,797)
|
|
(124,819)
|
Total adjusted
EBITDA
|
|
$ 200,960
|
|
$ 142,870
|
|
$ 187,683
|
|
$
557,057
|
|
$
381,406
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
2,578
|
|
$ (53,536)
|
|
$ (13,107)
|
|
$
(30,275)
|
|
$
(172,797)
|
Canada
Drilling
|
|
(1,895)
|
|
(7,494)
|
|
(4,608)
|
|
(7,095)
|
|
(16,519)
|
International
Drilling
|
|
25,680
|
|
32,316
|
|
24,486
|
|
74,702
|
|
80,464
|
Drilling
Solutions
|
|
9,506
|
|
5,864
|
|
7,546
|
|
25,773
|
|
8,658
|
Rig Technologies
(1)
|
|
(4,141)
|
|
(10,535)
|
|
(3,433)
|
|
(20,550)
|
|
(23,706)
|
Other reconciling
items (4)
|
|
(39,285)
|
|
(40,820)
|
|
(41,463)
|
|
(125,725)
|
|
(123,531)
|
Total adjusted
operating income (loss)
|
|
$
(7,557)
|
|
$ (74,205)
|
|
$ (30,579)
|
|
$
(83,170)
|
|
$
(247,431)
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(6)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
111.6
|
|
107.2
|
|
112.1
|
|
111.8
|
|
98.9
|
Canada
Drilling
|
|
17.9
|
|
13.5
|
|
10.2
|
|
16.4
|
|
15.9
|
International
Drilling
|
|
96.0
|
|
91.3
|
|
93.1
|
|
94.6
|
|
91.3
|
Total average rigs
working
|
|
225.5
|
|
212.0
|
|
215.4
|
|
222.8
|
|
206.1
|
|
|
(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)
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) 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)
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 200,960
|
|
$
142,870
|
|
$
187,683
|
|
$
557,057
|
|
$
381,406
|
Depreciation and
amortization
|
|
(208,517)
|
|
(217,075)
|
|
(218,262)
|
|
(640,227)
|
|
(628,837)
|
Adjusted operating
income (loss)
|
|
(7,557)
|
|
(74,205)
|
|
(30,579)
|
|
(83,170)
|
|
(247,431)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
4
|
|
(1)
|
|
1
|
|
6
|
Investment income
(loss)
|
|
(1,342)
|
|
373
|
|
(3,164)
|
|
(4,041)
|
|
208
|
Interest
expense
|
|
(51,415)
|
|
(54,607)
|
|
(60,592)
|
|
(173,393)
|
|
(165,813)
|
Other, net
|
|
(22,907)
|
|
(5,559)
|
|
(77,601)
|
|
(114,597)
|
|
(29,173)
|
Income (loss) from
continuing operations before income taxes
|
|
$ (83,221)
|
|
$(133,994)
|
|
$(171,937)
|
|
$(375,200)
|
|
$(442,203)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
433
|
|
$
243
|
|
$
181
|
|
Long-term
debt
|
|
3,737,273
|
|
3,818,613
|
|
4,027,766
|
|
Total Debt
|
|
3,737,706
|
|
3,818,856
|
|
4,027,947
|
|
Less: Cash and
short-term investments
|
|
388,558
|
|
636,546
|
|
365,366
|
|
Net Debt
|
|
$
3,349,148
|
|
$
3,182,310
|
|
$
3,662,581
|
|
View original
content:http://www.prnewswire.com/news-releases/nabors-announces-third-quarter-results-300740841.html
SOURCE Nabors Industries Ltd.