HAMILTON, Bermuda - Nabors Industries Ltd. (NYSE: NYSE:NBR), a global provider of advanced technology for the energy sector, has announced its preliminary operating results for the second quarter ended June 30, 2024. The company, which operates in over 20 countries, disclosed that its revenue and EBITDA for the quarter are in line with expectations, with adjusted free cash flow performing better than anticipated.
According to the preliminary data, Nabors expects to report operating revenue of approximately $735 million and an adjusted EBITDA of around $218 million. The company's income before income taxes is estimated to be between a loss of $5 million and a gain of $5 million. Adjusted free cash flow is projected to be between $55 million and $60 million.
During the quarter, Nabors maintained an average of 68.7 rigs in the Lower 48 states with an average gross margin of $15,598 per rig day. Internationally, the company averaged 84.4 rigs with a gross margin of $16,050 per rig day, demonstrating its continued international expansion and stable activity in the U.S. markets.
These preliminary results are based on current estimates and are subject to the completion of financial and operating closing procedures. Nabors has cautioned that the final figures may differ materially from the preliminary estimates, and even if they align, they may not be indicative of future results.
Nabors plans to release its complete financial results for the second quarter after the market closes on July 23, 2024, with an earnings conference call scheduled for the following day.
The company's preliminary figures include non-GAAP financial measures such as adjusted EBITDA and adjusted free cash flow, which exclude certain expenses and provide a view of the company's ability to generate cash after reinvestment. Nabors believes these measures reflect its ongoing profitability and are used by management, securities analysts, and investors to analyze the company's performance.
Nabors' forward-looking statements regarding its preliminary results are subject to risks and uncertainties, and there is no assurance that the final results will be within the provided ranges. The company does not intend to update these forward-looking statements and advises that they reflect management's estimates as of the date of the press release.
This article is based on a press release statement from Nabors Industries Ltd.
In other recent news, Nabors Industries Ltd. has been making significant strides in its operations. The company's indirect wholly-owned subsidiary, Nabors Industries, Inc., has launched a $550 million offering of senior guaranteed notes due in 2031. This offering aims to generate funds for Nabors to redeem its 7.25% senior guaranteed notes due in 2026, with any remaining proceeds to be allocated for general corporate purposes.
On the earnings front, Nabors Industries reported a strong start to 2024 with its total adjusted EBITDA surpassing expectations in the first quarter. The company's international market performance was particularly robust, with significant rig deployments in Algeria and new contracts in Argentina and the Middle East. Nabors Industries' technology segment, NDS, saw revenue growth both domestically and internationally.
Analysts have noted the company's commitment to sustainability and reducing net debt to improve credit ratings. The company is prioritizing net debt reduction and has projected capital expenditures of $190 million for Q2 and $590 million for the full year. These are among the recent developments for Nabors Industries, which continues to navigate a challenging market with a strategic focus on international expansion and technological advancements.
InvestingPro Insights
As Nabors Industries Ltd. (NYSE: NBR) prepares to finalize its second quarter results, real-time data and insights from InvestingPro offer a deeper look into the company's financial health and stock performance.
With a market capitalization of $815.21 million, the company's financial standing shows a complex picture. Despite a challenging market, Nabors has reported a significant return over the last month, with a 38.29% price total return, indicating a strong short-term performance that investors may find encouraging.
InvestingPro data also highlights that the company's revenue for the last twelve months as of Q1 2024 stands at $2.96 billion, with a gross profit margin of 40.38%. This suggests that while Nabors is managing to maintain a solid profit on its services, the company's P/E Ratio is currently negative at -5.84, reflecting analysts' expectations that Nabors will not be profitable this year. Furthermore, the company's liquid assets exceed its short-term obligations, showcasing a level of financial stability in terms of liquidity.
Investors should note that Nabors' stock price movements have been quite volatile, as indicated by an InvestingPro Tip, which may be a point of consideration for those with a lower risk tolerance. Moreover, Nabors does not pay dividends to shareholders, which could influence the investment strategies of income-focused investors.
For those interested in further analysis, there are more InvestingPro Tips available, which can be accessed along with additional metrics at https://www.investing.com/pro/NBR. As a special offer, readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
These insights can serve as valuable tools for investors and analysts following Nabors Industries Ltd., especially as the company navigates the dynamic energy sector and works towards achieving profitability.
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