Nabors Posts Loss

Nabors Industries Ltd. posted a loss of $295.8 million for the third quarter, reflecting impairment charges during a prolonged downturn in the energy sector.

The contract driller posted a per-share loss of $1.02.

Nabors said results were "essentially in line," with sequential revenue improvement internationally offset by a decline in North America.

"Our view of the timing and shape of the recovery remains unchanged with an expectation of a protracted trough followed by a more gradual recovery than recent cycles," Nabors said.

Year-over-year comparisons are affected by the March deal that combined C&J Energy Services Inc. with the completion-and-production businesses of Nabors in the U.S. and Canada. In an unusual deal structure, C&J was the nominal buyer but Nabors owned 53% of C&J when the deal closed.

Nabors posted pretax charges of $250.9 million, or 79 cents a share, including $180.6 million of impairment charges for the company's stake in C&J.

The company said it has reduced costs and has helped its financial flexibility with moves including a $325 million term loan with favorable terms.

Revenue for the quarter ended Sept. 30 was $847.6 million. During the prior-year quarter, revenue totaled $1.81 billion, which included $612 million from completion and production services, which is no longer consolidated with Nabors.

In the latest quarter, revenue at the international segment was $516.2 million, compared with $458.5 million in the second quarter.

Loss from continuing operations was 86 cents a share, which included a total of 72 cents a share of items, impairments and other charges related to the downturn, and a loss of 12 cents a share from unconsolidated affiliates.

Analysts polled by Thomson Reuters expected a per-share loss of 14 cents and revenue of $767 million.

In after-hours trading, Nabors shares were down seven cents to $9.85.

Write to Josh Beckerman at [e-mail]

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(END) Dow Jones Newswires

October 27, 2015 20:55 ET (00:55 GMT)

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