HAMILTON, Bermuda, Feb. 26, 2019 /PRNewswire/ -- Nabors Industries
Ltd. ("Nabors" or the "Company") (NYSE: NBR) today reported
fourth quarter 2018 operating revenues of $782 million, compared to operating revenues of
$779 million in the third
quarter. Net income from continuing operations attributable to
Nabors common shareholders for the quarter was a loss of
$188 million, or $0.55 per share, compared to loss of $105 million, or $0.31 per share, in the prior
quarter. Results for the fourth quarter included net
impairments and other charges of $52
million, or $0.15 per share
after tax, and a separate non-cash income tax charge of
$52 million, or $0.15 per share, related to the establishment of
a reserve on our deferred tax asset in Canada. 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 2019.
Adjusted operating income for the Company was a loss of
$25 million during the quarter,
compared to a loss of $8 million in
the third quarter. Fourth-quarter consolidated adjusted EBITDA
increased to $202 million compared to
$201 million in the previous
quarter. During the fourth quarter, the Company averaged 224
rigs operating at an average gross margin of $11,851 per day. This compares to 226 rigs at
$12,028 per rig day in the third
quarter. The decrease in rig count primarily reflects the sale
of workover rigs in Argentina and
a reduction in Venezuela rig
count, which offset the sequential increase in activity in the U.S.
The sale had a negligible impact on the quarter's adjusted
EBITDA.
Anthony G. Petrello, Nabors
Chairman, CEO and President, commented, "The U.S. Drilling segment
was once again the highlight of the quarter, demonstrated by
further improvement in the Lower 48 drilling operations. In
addition to higher rig count, average daily rig margins in the
Lower 48 exceeded $9,400 – a
sequential increase of nearly $700 –
due primarily to increased revenue per rig as day rates continued
to increase during the quarter.
We also benefitted from higher offshore activity in the
Gulf of Mexico, as well as a
significant increase in our Drilling Solutions results. Our
International results were somewhat lower than expected as
uncertainty in Venezuela resulted
in the temporary idling of our fleet there. Although our customers
in Venezuela will experience
disruptions in coming quarters, three of our five rigs are
currently working. In addition, Rig Technologies' activity was
adversely impacted by customer concerns as a result of the
volatility in oil prices.
Finally, during the quarter, we completed the acquisition of
PetroMar, a company that designs and operates a suite of downhole
tools targeting the reservoir evaluation market. These tools will
complement our other downhole products."
Consolidated and Segment Results
The U.S. Drilling segment reported a 15% sequential increase in
adjusted EBITDA, to $114
million. The increase is attributable to the Lower 48
and U.S. Gulf of Mexico
operations. Average rig count in the Lower 48 increased by
five rigs, reflecting operational commencement of multiple upgraded
rigs.
International Drilling adjusted EBITDA decreased sequentially by
19% to $94 million reflecting the
expiration of multiple high-margin contracts in the Middle East, as well as the temporary idling
of four rigs in Venezuela for a
portion of the fourth quarter. The quarterly average rig count
decreased by eight to 88, primarily reflecting a reduction from the
sale of the Argentina workover
rigs in addition to the drop in Venezuela. The average margin
per day decreased from approximately $15,000 to $13,500,
due to the high-margin contract expirations and to the activity
disruptions in Venezuela. These
reductions were somewhat offset by the sale of the low margin
workover rigs.
Canada Drilling operations posted a seasonal increase with
adjusted EBITDA of $9.5 million, up
from $7.3 million in the third
quarter. Daily gross margin increased sequentially to nearly
$6,500.
In Drilling Solutions, adjusted EBITDA of $23.0 million increased by more than 40% from
$16.1 million in the prior
quarter. The improved results were spread across all major
service lines.
In the Rig Technologies segment, fourth-quarter adjusted EBITDA
experienced a loss of $1.3 million,
compared to profit of $0.1 million in
the third quarter. The results for this segment include the burden
for two pre-commercial technology initiatives for our rotary
steerable system and robotic drilling systems. Within this segment,
our Canrig and Tesco businesses continue to be EBITDA
positive.
Capital Expenditures and Liquidity
During the fourth quarter, net debt decreased by $245 million. This improvement includes, among
other things, the net payments from Saudi Aramco of $157 million for the contribution of five more
rigs into the SANAD joint venture, as well as the $21 million net expenditure for the acquisition
of PetroMar.
Capital expenditures for the fourth quarter totaled $122 million. Total capital expenditures for 2018
were $453 million.
William Restrepo, Nabors Chief
Financial Officer, stated, "In the fourth quarter we generated
significant free cash flow and we continued to reduce debt. As we
had communicated earlier, we delivered breakeven cash flow for the
full year, before the impact of our equity issue in May of last
year. For 2019, we will remain focused on generating cash flow and
have taken several steps to strengthen our liquidity, including a
reduction in our quarterly dividend on our common shares, a
substantial cut in planned capital expenditures and further
reductions in our overhead expenses. Based on assumptions for our
operating results and expectation of low capital spending, we are
aiming to reduce net debt by an additional $200 to $250
million during 2019."
Mr. Petrello concluded, "Rig count in the Lower 48 has held up
much better than industry observers expected. Although more
operators than usual did not renew expired contracts at the
beginning of the year, the rigs were rapidly picked up by other
customers. As a result, essentially all of our superspec rigs
remain contracted, albeit with some short periods of idle time
between contracts. In addition, spot pricing remains firm at the
peak levels attained during the fourth quarter. We expect average
daily margins to continue improving in the Lower 48. In
international markets, we expect higher rig count to offset
somewhat lower margins, as almost all of our fleet has now rolled
into contracts with lower pricing than at the last activity peak.
We expect consolidated adjusted EBITDA for the first quarter of
2019 in line with the fourth quarter."
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), 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 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 consolidated 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
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Revenues and other
income:
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
|
$
782,080
|
|
$
708,277
|
|
$
779,425
|
|
$
3,057,619
|
|
$
2,564,285
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
1
|
|
-
|
|
1
|
|
7
|
Investment income
(loss)
|
|
(5,458)
|
|
986
|
|
(1,342)
|
|
(9,499)
|
|
1,194
|
Total revenues and
other income
|
|
776,622
|
|
709,264
|
|
778,083
|
|
3,048,121
|
|
2,565,486
|
|
|
|
|
|
|
|
|
|
|
|
Costs and other
deductions:
|
|
|
|
|
|
|
|
|
|
|
Direct
costs
|
|
510,402
|
|
471,641
|
|
497,194
|
|
1,976,974
|
|
1,718,069
|
General and
administrative expenses
|
|
56,615
|
|
59,070
|
|
66,813
|
|
265,822
|
|
251,184
|
Research and
engineering
|
|
13,444
|
|
15,009
|
|
14,458
|
|
56,147
|
|
51,069
|
Depreciation and
amortization
|
|
226,643
|
|
214,106
|
|
208,517
|
|
866,870
|
|
842,943
|
Interest
expense
|
|
53,731
|
|
57,076
|
|
51,415
|
|
227,124
|
|
222,889
|
Impairments and other
charges
|
|
54,012
|
|
23,416
|
|
13,770
|
|
144,446
|
|
44,536
|
Other, net
|
|
5,369
|
|
6,827
|
|
9,137
|
|
29,532
|
|
14,880
|
Total costs and other
deductions
|
|
920,216
|
|
847,145
|
|
861,304
|
|
3,566,915
|
|
3,145,570
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
(143,594)
|
|
(137,881)
|
|
(83,221)
|
|
(518,794)
|
|
(580,084)
|
Income tax expense
(benefit)
|
|
21,957
|
|
(23,156)
|
|
10,489
|
|
79,269
|
|
(82,970)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations, net of tax
|
|
(165,551)
|
|
(114,725)
|
|
(93,710)
|
|
(598,063)
|
|
(497,114)
|
Income (loss) from
discontinued operations, net of tax
|
|
(71)
|
|
(442)
|
|
(13,933)
|
|
(14,663)
|
|
(43,519)
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
(165,622)
|
|
(115,167)
|
|
(107,643)
|
|
(612,726)
|
|
(540,633)
|
Less: Net (income) loss
attributable to noncontrolling interest
|
|
(17,796)
|
|
(1,177)
|
|
(6,934)
|
|
(28,222)
|
|
(6,178)
|
Net income (loss)
attributable to Nabors
|
|
$
(183,418)
|
|
$
(116,344)
|
|
$
(114,577)
|
|
$
(640,948)
|
|
$
(546,811)
|
Less: Preferred stock
dividend
|
|
$
(4,312)
|
|
$
-
|
|
$
(4,313)
|
|
$
(12,305)
|
|
$
-
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(187,730)
|
|
$
(116,344)
|
|
$
(118,890)
|
|
$
(653,253)
|
|
$
(546,811)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts attributable
to Nabors common shareholders:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations
|
|
$
(187,659)
|
|
$
(115,902)
|
|
$
(104,957)
|
|
$
(638,590)
|
|
$
(503,292)
|
Net income (loss)
from discontinued operations
|
|
(71)
|
|
(442)
|
|
(13,933)
|
|
(14,663)
|
|
(43,519)
|
Net income (loss)
attributable to Nabors common shareholders
|
|
$
(187,730)
|
|
$
(116,344)
|
|
$
(118,890)
|
|
$
(653,253)
|
|
$
(546,811)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses) per
share:
|
|
|
|
|
|
|
|
|
|
|
Basic
from continuing operations
|
|
$
(0.55)
|
|
$
(0.40)
|
|
$
(0.31)
|
|
$
(1.95)
|
|
$
(1.75)
|
Basic
from discontinued operations
|
|
-
|
|
-
|
|
(0.04)
|
|
(0.04)
|
|
(0.15)
|
Total
Basic
|
|
$
(0.55)
|
|
$
(0.40)
|
|
$
(0.35)
|
|
$
(1.99)
|
|
$
(1.90)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
from continuing operations
|
|
$
(0.55)
|
|
$
(0.40)
|
|
$
(0.31)
|
|
$
(1.95)
|
|
$
(1.75)
|
Diluted
from discontinued operations
|
|
-
|
|
-
|
|
(0.04)
|
|
(0.04)
|
|
(0.15)
|
Total
Diluted
|
|
$
(0.55)
|
|
$
(0.40)
|
|
$
(0.35)
|
|
$
(1.99)
|
|
$
(1.90)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
350,236
|
|
286,603
|
|
350,194
|
|
334,397
|
|
280,653
|
Diluted
|
|
350,236
|
|
286,603
|
|
350,194
|
|
334,397
|
|
280,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
201,619
|
|
$
162,557
|
|
$
200,960
|
|
$
758,676
|
|
$
543,963
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss)
|
|
$
(25,024)
|
|
$
(51,549)
|
|
$
(7,557)
|
|
$
(108,194)
|
|
$
(298,980)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and short-term
investments
|
|
$
481,802
|
|
$
388,558
|
|
$
365,366
|
|
Accounts receivable,
net
|
|
756,320
|
|
775,137
|
|
698,477
|
|
Assets held for
sale
|
|
12,250
|
|
20,289
|
|
37,052
|
|
Other current
assets
|
|
343,191
|
|
355,056
|
|
346,441
|
|
Total current
assets
|
|
1,593,563
|
|
1,539,040
|
|
1,447,336
|
|
Property, plant and
equipment, net
|
|
5,467,870
|
|
5,608,948
|
|
6,109,565
|
|
Goodwill
|
|
183,914
|
|
172,976
|
|
173,226
|
|
Other long-term
assets
|
|
608,597
|
|
639,583
|
|
671,857
|
|
Total assets
|
|
$
7,853,944
|
|
$
7,960,547
|
|
$
8,401,984
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
561
|
|
$
433
|
|
$
181
|
|
Other current
liabilities
|
|
831,516
|
|
751,959
|
|
919,295
|
|
Total current
liabilities
|
|
832,077
|
|
752,392
|
|
919,476
|
|
Long-term
debt
|
|
3,585,884
|
|
3,737,273
|
|
4,027,766
|
|
Other long-term
liabilities
|
|
280,796
|
|
296,389
|
|
311,971
|
|
Total liabilities
|
|
4,698,757
|
|
4,786,054
|
|
5,259,213
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interest in subsidiary
|
|
404,861
|
|
210,665
|
|
203,998
|
|
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
2,700,850
|
|
2,931,222
|
|
2,911,816
|
|
Noncontrolling
interest
|
|
49,476
|
|
32,606
|
|
26,957
|
|
Total equity
|
|
2,750,326
|
|
2,963,828
|
|
2,938,773
|
|
Total liabilities and
equity
|
|
$
7,853,944
|
|
$
7,960,547
|
|
$
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
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except rig activity)
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues:
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$ 303,834
|
|
$ 233,198
|
|
$
273,996
|
|
$
1,083,227
|
|
$
805,223
|
Canada
Drilling
|
|
29,026
|
|
19,927
|
|
26,645
|
|
105,000
|
|
82,929
|
International
Drilling
|
|
345,082
|
|
381,393
|
|
377,125
|
|
1,469,038
|
|
1,474,060
|
Drilling
Solutions
|
|
66,812
|
|
44,001
|
|
60,923
|
|
250,242
|
|
140,701
|
Rig Technologies
(1)
|
|
61,357
|
|
79,249
|
|
63,641
|
|
270,988
|
|
234,542
|
Other reconciling
items (2)
|
|
(24,031)
|
|
(49,491)
|
|
(22,905)
|
|
(120,876)
|
|
(173,170)
|
Total operating
revenues
|
|
$ 782,080
|
|
$ 708,277
|
|
$
779,425
|
|
$
3,057,619
|
|
$
2,564,285
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA:
(3)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$ 113,945
|
|
$
53,618
|
|
$
99,353
|
|
$
373,288
|
|
$
161,294
|
Canada
Drilling
|
|
9,450
|
|
4,253
|
|
7,294
|
|
31,006
|
|
17,335
|
International
Drilling
|
|
94,030
|
|
128,902
|
|
116,797
|
|
457,448
|
|
509,181
|
Drilling
Solutions
|
|
23,025
|
|
12,596
|
|
16,145
|
|
68,663
|
|
32,926
|
Rig Technologies
(1)
|
|
(1,274)
|
|
(4,292)
|
|
137
|
|
(9,375)
|
|
(19,434)
|
Other reconciling
items (4)
|
|
(37,557)
|
|
(32,520)
|
|
(38,766)
|
|
(162,354)
|
|
(157,339)
|
Total adjusted
EBITDA
|
|
$ 201,619
|
|
$ 162,557
|
|
$
200,960
|
|
$
758,676
|
|
$
543,963
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
income (loss): (5)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
$
8,977
|
|
$ (41,080)
|
|
$
2,578
|
|
$
(21,298)
|
|
$
(213,877)
|
Canada
Drilling
|
|
929
|
|
(5,743)
|
|
(1,895)
|
|
(6,166)
|
|
(22,262)
|
International
Drilling
|
|
(481)
|
|
27,964
|
|
25,680
|
|
74,221
|
|
108,428
|
Drilling
Solutions
|
|
11,853
|
|
8,080
|
|
9,506
|
|
37,626
|
|
16,738
|
Rig Technologies
(1)
|
|
(5,212)
|
|
(7,258)
|
|
(4,141)
|
|
(25,762)
|
|
(30,964)
|
Other reconciling
items (4)
|
|
(41,090)
|
|
(33,512)
|
|
(39,285)
|
|
(166,815)
|
|
(157,043)
|
Total adjusted
operating income (loss)
|
|
$ (25,024)
|
|
$ (51,549)
|
|
$
(7,557)
|
|
$
(108,194)
|
|
$
(298,980)
|
|
|
|
|
|
|
|
|
|
|
|
Rig
activity:
|
|
|
|
|
|
|
|
|
|
|
Average Rigs Working:
(6)
|
|
|
|
|
|
|
|
|
|
|
U.S.
Drilling
|
|
117.3
|
|
106.3
|
|
111.6
|
|
113.2
|
|
100.8
|
Canada
Drilling
|
|
18.3
|
|
13.8
|
|
17.9
|
|
16.9
|
|
15.4
|
International
Drilling
|
|
88.0
|
|
90.7
|
|
96.0
|
|
92.9
|
|
91.1
|
Total average rigs
working
|
|
223.6
|
|
210.8
|
|
225.5
|
|
223.0
|
|
207.3
|
|
|
(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
|
|
Year
Ended
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
2018
|
|
2017
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
201,619
|
|
$
162,557
|
|
$
200,960
|
|
$
758,676
|
|
$
543,963
|
Depreciation and
amortization
|
|
(226,643)
|
|
(214,106)
|
|
(208,517)
|
|
(866,870)
|
|
(842,943)
|
Adjusted operating
income (loss)
|
|
(25,024)
|
|
(51,549)
|
|
(7,557)
|
|
(108,194)
|
|
(298,980)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (losses)
from unconsolidated affiliates
|
|
-
|
|
1
|
|
-
|
|
1
|
|
7
|
Investment income
(loss)
|
|
(5,458)
|
|
986
|
|
(1,342)
|
|
(9,499)
|
|
1,194
|
Interest
expense
|
|
(53,731)
|
|
(57,076)
|
|
(51,415)
|
|
(227,124)
|
|
(222,889)
|
Impairments and other
charges
|
|
(54,012)
|
|
(23,416)
|
|
(13,770)
|
|
(144,446)
|
|
(44,536)
|
Other, net
|
|
(5,369)
|
|
(6,827)
|
|
(9,137)
|
|
(29,532)
|
|
(14,880)
|
Income (loss) from
continuing operations before income taxes
|
|
$(143,594)
|
|
$(137,881)
|
|
$
(83,221)
|
|
$(518,794)
|
|
$(580,084)
|
NABORS INDUSTRIES
LTD. AND SUBSIDIARIES
|
RECONCILIATION OF
NET DEBT TO TOTAL DEBT
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
(In
thousands)
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
debt
|
|
$
561
|
|
$
433
|
|
$
181
|
|
Long-term
debt
|
|
3,585,884
|
|
3,737,273
|
|
4,027,766
|
|
Total Debt
|
|
3,586,445
|
|
3,737,706
|
|
4,027,947
|
|
Less: Cash and
short-term investments
|
|
481,802
|
|
388,558
|
|
365,366
|
|
Net Debt
|
|
$
3,104,643
|
|
$
3,349,148
|
|
$
3,662,581
|
|
View original
content:http://www.prnewswire.com/news-releases/nabors-announces-fourth-quarter-results-300802790.html
SOURCE Nabors Industries Ltd.