Nabors' 3Q net income up despite drilling slowdown
NEW YORK (AP) — Drilling contractor Nabors Industries Ltd. said Tuesday that its net income rose 2 percent in the third quarter despite slower drilling activity in U.S. and hurricane-related delays in the Gulf of Mexico.
For the quarter that ended Sept. 30, Nabors reported net income of $75.7 million, or 26 cents per share, compared with $74.3 million, or 25 cents per share, in the year-ago quarter.
Total revenue rose to $1.67 billion from $1.64 billion.
Excluding one-time items that included a pre-tax charge of $96.3 million or 20 cents per share, adjusted net income was $123.6 million, or 42 cents per share.
Analysts surveyed by FactSet, on average, predicted adjusted earnings of 36 cents per share on revenue of $1.72 billion.
Nabors Chairman and CEO Tony Petrello said the company saw an improvement in land-well servicing business in the U.S. and in international and Canadian operations. That was offset by a bigger-than-expected decline in U.S. land drilling, delays caused by Hurricane Isaac's push through the Gulf of Mexico during August and seasonal slowing in Alaska.
Petrello said he expects the fourth quarter to be "significantly weaker" because of a seasonal slowdown in well-servicing and pressure-pumping business as well as exit rates in U.S. land drilling activity.
He also predicted a modest improvement in the first quarter.
Shares of Nabors fell 27 cents, or 2 percent, to end at $14.25 before the release of the earnings report. They were unchanged in extended trading.