It has been about a month since the last earnings report for Nabors Industries (NBR) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Nabors due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.Nabors Q2 ...

Key Takeaways Nabors posted Q2 2025 revenues of $833M, up from $735M, driven by rigs and solutions growth.SANAD JV with Saudi Aramco adds rigs, ensuring multi-year earnings visibility and expansion.Parker Wellbore integration boosted EBITDA, with synergies ahead of the $40M target set for 2025.Nabors Industries Ltd. (NBR) is a global leader in drilling and drilling-related services for land-based and offshore oil and natural gas wells. Operating through four segments — U.S. Drilling, International Drilling, ...

Core Transaction Overview - Nabors Industries Ltd. has completed the sale of its subsidiary Quail Tools to Superior Energy Services for a total net consideration of $600 million, which includes $375 million in cash and a $250 million seller note [1][8] - The transaction establishes Superior Energy as Nabors' preferred supplier for rental drill pipe and related products [1] Financial Impact - The sale is projected to accelerate over five years of anticipated free cash flow from Nabors' combined business post Parker acquisition [2] - Quail Tools is expected to generate approximately $150 million in adjusted EBITDA in 2025 under Superior Energy's management [2] - Nabors anticipates a net debt reduction of over 25%, equating to $625 million, along with annual interest savings of $50 million [3] Strategic Focus - Post-sale, Nabors will retain its core portfolio, including drilling rigs and tubular running services, which are expected to contribute at least $55 million in annual EBITDA [4] - The combination of the Parker acquisition and the Quail Tools sale is expected to create a net positive impact for Nabors' legacy business, positioning it for sustained value creation [4] Industry Context - The transaction highlights ongoing consolidation in the oilfield services sector as companies aim to strengthen their balance sheets and prepare for long-term growth amid market volatility [6] - Leaders from both Nabors and Superior Energy expressed optimism about leveraging new synergies to enhance support for exploration and production customers globally [6] Benefits to Superior Energy - The acquisition of Quail Tools nearly doubles Superior Energy's tubular inventory and significantly expands its operational footprint in the U.S. land market [5] - The deal is expected to enhance service capabilities across major U.S. energy regions and support international expansion [5]

Shares of Nabors, one of the world’s biggest suppliers of land drilling rigs, jumped by the most in more than five months after announcing it was selling its drill pipe rental business Quail Tools to Superior https://t.co/D7pudyMG2X ...

Core Viewpoint - Nabors Industries has entered into a definitive agreement to sell its subsidiary Quail Tools for a total consideration of $600 million, which will significantly reduce its net debt by over 25% and enhance financial flexibility [1][5][6]. Financial Impact - The sale includes cash of $375 million and a seller note of $250 million, with expected cash taxes of approximately $5 million [1]. - Following the transaction, Nabors anticipates a reduction in net debt by $625 million, decreasing from $2.3 billion to approximately $1.675 billion [5][6]. - The transaction is expected to deliver annual interest savings exceeding $50 million [5]. Business Performance - Quail Tools is projected to generate adjusted EBITDA of around $150 million in 2025, excluding any synergies that may be realized by Superior Energy Services [3]. - The retained businesses from the Parker acquisition are expected to generate at least $55 million in adjusted EBITDA for the full year 2025 [6]. Strategic Rationale - The transaction is viewed as a win-win for both Nabors and Superior, with potential for significant synergies in the tubular rental space [4]. - The decision to sell Quail was challenging due to its strong performance and customer base, but the metrics of the transaction indicate substantial value creation for shareholders [6]. Market Position - Quail Tools is recognized as a leading provider of high-performance downhole tubulars in the U.S. oil and gas drilling market, while Superior also operates in both U.S. and international markets [2].

Summary of Key Points from the Conference Call Transcript Industry Overview - The focus is on the Energy Services & Equipment sector in North America, with particular attention to companies like GTLS (Chart Industries), NBR (Nabors Industries), NOV (National Oilwell Varco), and TS (Tenaris) [1][2][6]. Core Insights and Arguments - **Earnings Estimates Revision**: The 2025 and 2026 EBITDA estimates for GTLS, NBR, NOV, and TS have been lowered by 2% and 4% respectively, indicating a cautious outlook for these companies [4][19]. - **M&A Activity**: Baker Hughes (BKR) is reportedly preparing a bid to acquire GTLS, which would value GTLS at approximately $210 per share, a 22% premium over its recent closing price of $171.65. This acquisition could significantly impact GTLS's market position [5][19]. - **Market Sentiment**: The near-term outlook for GTLS and TS is constructive due to their exposure to gas and non-oil & gas sectors, while NBR is viewed cautiously due to declining activity in North America and Saudi Arabia [9][19]. - **Performance Metrics**: NOV's 2Q results showed a revenue increase of 2%, but EBITDA decreased by 4%, leading to expectations of a modestly negative market reaction. The guidance for 3Q indicates a revenue increase of 1% but a further EBITDA decline of 2% [9][13]. Additional Important Insights - **Tariff Impacts**: The potential impacts of tariffs on the companies' operations and pricing strategies are a key focus area, especially given the current geopolitical climate [9]. - **Capital Allocation**: Companies are expected to discuss their capital allocation plans, including updates on 2025 capex and shareholder returns, which are critical for investor confidence [9][13]. - **Market Conditions**: The overall market conditions for oilfield services (OFS) are soft, particularly in the US land, Saudi Arabia, Mexico, and offshore deepwater markets, which could affect pricing and activity levels [9][19]. - **Stock Ratings and Price Targets**: The current stock ratings and price targets for the companies are as follows: - GTLS: Overweight, PT $225.00 - NOV: Overweight, PT $15.00 - NBR: Overweight, PT $50.00 - TS: Underweight, PT $34.00 [10][19]. Conclusion - The Energy Services & Equipment sector is facing a mix of challenges and opportunities, with M&A activity potentially reshaping the landscape. Companies are navigating soft market conditions while focusing on strategic capital allocation and managing tariff impacts. The upcoming earnings reports will be critical in assessing the health and outlook of these firms.

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for June 30, 2025, and 2024, detailing financial position, performance, and cash flows, significantly influenced by the Parker acquisition Condensed Consolidated Balance Sheet Highlights (Unaudited) | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $1,196,891 | $999,537 | | **Total assets** | $5,038,663 | $4,504,301 | | **Total current liabilities** | $669,445 | $571,917 | | **Long-term debt** | $2,672,820 | $2,505,217 | | **Total liabilities** | $3,591,993 | $3,297,963 | | **Total equity** | $640,328 | $421,247 | Condensed Consolidated Statements of Income (Loss) Highlights (Unaudited) | (In thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Operating revenues** | $832,788 | $734,798 | $1,568,974 | $1,468,502 | | **Net income (loss)** | $(2,205) | $(13,029) | $54,974 | $(22,031) | | **Net income (loss) attributable to Nabors** | $(30,910) | $(32,255) | $2,078 | $(66,588) | | **Diluted EPS** | $(2.71) | $(4.29) | $(1.01) | $(8.83) | Condensed Consolidated Statements of Cash Flows Highlights (Unaudited) | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $239,545 | $288,898 | | **Net cash used for investing activities** | $(210,863) | $(227,098) | | **Net cash used for financing activities** | $(21,348) | $(636,339) | [Note 3: Parker Acquisition](index=15&type=section&id=Note%203%3A%20Parker%20Acquisition) Nabors acquired Parker Drilling Company for **$180.6 million** on March 11, 2025, resulting in a **$116.5 million** bargain purchase gain and significant post-acquisition revenue and net income contributions - The acquisition of Parker Drilling Company was completed on March 11, 2025, for total consideration of **$180.6 million** (**$0.6 million** cash and **4.8 million** shares)[33](index=33&type=chunk) - A bargain purchase gain of **$116.5 million** was recorded, resulting from the excess fair value of net assets acquired (**$297.1 million**) over the purchase price, primarily due to a decrease in Nabors' stock price from **$77.52** at signing to **$37.50** at closing[34](index=34&type=chunk)[35](index=35&type=chunk) - From the closing date through June 30, 2025, Parker contributed approximately **$177.4 million** in revenue and **$22.5 million** in net income to Nabors' consolidated results[39](index=39&type=chunk) [Note 6: Debt](index=21&type=section&id=Note%206%3A%20Debt) Total long-term debt increased to **$2.67 billion** by June 30, 2025, reflecting various senior notes and credit facility borrowings, alongside note repurchases and the repayment of the Parker Term Loan Debt Composition | (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Senior notes (various) | $2,525,196 | $2,539,609 | | 2024 Credit Agreement | $178,000 | $0 | | **Total Debt** | **$2,703,196** | **$2,539,609** | | Less: deferred financing costs | $30,376 | $34,392 | | **Long-term debt, net** | **$2,672,820** | **$2,505,217** | - Following the Parker acquisition, the outstanding balance of the Parker Term Loan (**$177.8 million**) was repaid on March 25, 2025, utilizing the company's credit agreement[56](index=56&type=chunk) - As of June 30, 2025, the company had borrowings of **$178.0 million** and **$78.8 million** of letters of credit outstanding under its 2024 Credit Agreement[60](index=60&type=chunk) [Note 12: Segment Information](index=34&type=section&id=Note%2012%3A%20Segment%20Information) The company operates four segments, with International Drilling leading in Q2 2025 revenue (**$385.0 million**) and Drilling Solutions in adjusted operating income (**$50.4 million**), significantly impacted by Parker's operations Segment Performance - Three Months Ended June 30, 2025 vs 2024 | Segment (In thousands) | Operating Revenues (Q2 2025) | Adjusted Operating Income (Q2 2025) | Operating Revenues (Q2 2024) | Adjusted Operating Income (Q2 2024) | | :--- | :--- | :--- | :--- | :--- | | U.S. Drilling | $255,438 | $39,788 | $259,723 | $45,085 | | International Drilling | $384,970 | $36,051 | $356,733 | $23,672 | | Drilling Solutions | $170,283 | $50,365 | $82,961 | $27,319 | | Rig Technologies | $36,527 | $1,721 | $49,546 | $4,860 | Total Segment Assets | Segment (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | U.S. Drilling | $1,070,216 | $1,049,650 | | International Drilling | $2,471,483 | $2,348,590 | | Drilling Solutions | $444,153 | $79,065 | | Rig Technologies | $180,229 | $215,225 | | **Total reportable segments** | **$4,166,081** | **$3,692,530** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2025 financial performance, noting a **$98.0 million** revenue increase driven by the Parker acquisition, cautious outlook, adequate liquidity of **$387.4 million**, and decreased operating cash flow [Outlook](index=47&type=section&id=Outlook) The market outlook remains volatile due to geopolitical factors, with cautious U.S. drilling activity expected to improve, while international markets anticipate expanded production capacity and increased oilfield activity - Demand is tied to volatile oil and gas prices, which are sensitive to supply/demand cycles and geopolitical uncertainties[124](index=124&type=chunk) - U.S. drilling activity slowed in response to market conditions, but this trend is expected to shift with anticipated higher natural gas demand[125](index=125&type=chunk) - International markets are generally expected to see an expansion of production capacity and increased oilfield activity[130](index=130&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) Q2 2025 operating revenues increased by **$98.0 million** to **$832.8 million**, primarily due to the Parker acquisition, which also drove a significant improvement in H1 2025 net income to **$2.1 million** from a prior-year loss Segment Revenue and Operating Income Changes (Q2 2025 vs Q2 2024) | Segment | Revenue Change (in millions) | % Change | Adj. Op. Income Change (in millions) | % Change | | :--- | :--- | :--- | :--- | :--- | | U.S. Drilling | ($4.3) | (2)% | ($5.3) | (12)% | | International Drilling | $28.2 | 8% | $12.4 | 52% | | Drilling Solutions | $87.3 | 105% | $23.0 | 84% | | Rig Technologies | ($13.0) | (26)% | ($3.1) | (65)% | - For the six months ended June 30, 2025, net income attributable to Nabors was **$2.1 million**, compared to a net loss of **$66.6 million** for the same period in 2024, primarily driven by a **$116.5 million** gain on bargain purchase from the Parker acquisition[145](index=145&type=chunk) - General and administrative expenses increased by **33%** in Q2 2025 and **22%** in H1 2025 year-over-year, reflecting costs from the Parker acquisition and inflation[134](index=134&type=chunk)[146](index=146&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains adequate liquidity from cash, credit facilities, and operating cash flow, with **$387.4 million** in cash and investments, compliance with debt covenants, and a decrease in operating cash flow to **$239.5 million** in H1 2025 - As of June 30, 2025, the company had cash and short-term investments of **$387.4 million** and working capital of **$527.4 million**[157](index=157&type=chunk) - The company was in compliance with all covenants under the 2024 Credit Agreement as of the report date, with an interest coverage ratio of **4.30:1.00** (requirement is **2.75:1.00**)[162](index=162&type=chunk) Cash Flow Summary (Six Months Ended June 30) | (In millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Net cash from operating activities** | $239.5 | $288.9 | | **Net cash from investing activities** | $(210.9) | $(227.1) | | **Net cash from financing activities** | $(21.3) | $(636.3) | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reported no material changes in its exposure to market risks during the six months ended June 30, 2025, compared to its 2024 Annual Report disclosures - There were no material changes in the company's exposure to market risk during the six months ended June 30, 2025[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[188](index=188&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter ended June 30, 2025[189](index=189&type=chunk) [PART II OTHER INFORMATION](index=63&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 for legal matters, highlighting a significant long-standing dispute in Algeria concerning foreign currency exchange controls with a potential loss of up to **$13.8 million** - The company is involved in a lawsuit in Algeria related to alleged violations of foreign currency exchange controls, with a potential loss of up to **$13.8 million** in excess of amounts already accrued[80](index=80&type=chunk) [Item 1A. Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) This section highlights new risk factors since the 2024 Annual Report, including potential limitations on shareholder influence due to Voting & Lock-Up Agreements and adverse impacts from evolving U.S. and international trade policies - A new risk factor relates to Voting & Lock-Up Agreements with certain former Parker shareholders, which require them to vote in favor of board-recommended director candidates and proposals, potentially limiting other shareholders' influence[193](index=193&type=chunk) - The company faces risks from significant changes in U.S. or other national trade policies, including tariffs and retaliatory measures, which could increase supply chain costs and adversely affect business operations[194](index=194&type=chunk)[195](index=195&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=65&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reports **$278.9 million** remaining authorized under its share repurchase program as of June 30, 2025, with no shares repurchased under the public program during the quarter - As of June 30, 2025, the company had **$278.9 million** remaining available under its authorized share repurchase program[199](index=199&type=chunk) - No shares were repurchased under the publicly announced program during the three months ended June 30, 2025[203](index=203&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) The company confirms no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter ended June 30, 2025 - During the quarter ended June 30, 2025, no directors or officers adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[204](index=204&type=chunk) [Item 6. Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications required by Sarbanes-Oxley Act and Inline XBRL data files for financial reporting - The filing includes required certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1) and Inline XBRL documents (Exhibit 101 series)[211](index=211&type=chunk)

Core Insights - Nabors Industries Ltd. (NBR) reported a second-quarter 2025 adjusted loss of $2.71 per share, which was wider than the Zacks Consensus Estimate of a loss of $2.05, but narrower than the prior-year loss of $4.29 per share [2][8] - The company's operating revenues reached $832.8 million, slightly exceeding the Zacks Consensus Estimate of $831 million and up from $734.8 million in the previous year [3][8] - Adjusted EBITDA increased to $248.5 million from $218.1 million year-over-year, although it fell short of the model estimate of $306.5 million [3] Segment Performance - U.S. Drilling generated operating revenues of $255.4 million, down 1.6% from $259.7 million a year ago, and missed the estimated $312.7 million [4] - International Drilling's operational revenues rose to $385 million from $356.7 million year-over-year, but also missed the estimate of $394.8 million [5] - Revenues from the Drilling Solutions segment surged 105.3% to $170.3 million from $83 million in the prior-year quarter, exceeding the estimate of $91.1 million [5] Financial Position - Total costs and expenses increased to $818 million from $740.5 million in the previous year, slightly above the prediction of $816.1 million [7] - As of June 30, 2025, the company had $387.4 million in cash and short-term investments, with long-term debt around $2.7 billion and a total debt-to-total capital ratio of 80.7% [9] Guidance - For Q3 2025, NBR anticipates a lower average rig count in U.S. Drilling, ranging between 57 and 59 rigs, with a daily adjusted gross margin of approximately $13,300 [10] - The company expects an average rig count of 87 to 88 rigs in its International operations, with a daily adjusted gross margin estimated at approximately $17,900 [11] - Capital expenditures for Q3 are projected to be between $200 million and $210 million, with a total expected for the year ranging from $700 million to $710 million [12]

Financial Data and Key Metrics Changes - Adjusted EBITDA for the second quarter totaled $248 million, reflecting a sequential increase driven by the Parker operations and improved U.S. drilling results [5][51] - Revenue from operations increased to $833 million, up 13% from the previous quarter, primarily due to the full quarter impact of the Parker acquisition [46] - Adjusted free cash flow improved to $41 million from a negative $61 million in the first quarter, driven by lower cash interest paid and contributions from Parker [60] Business Line Data and Key Metrics Changes - U.S. drilling revenue was $255 million, an 11% increase sequentially, supported by stronger organic activity and contributions from Parker [47] - International drilling segment revenue increased by 1% to $385 million, primarily due to Parker's contribution, despite rig count reductions in legacy operations [50] - Drilling Solutions revenue surged by 82.7% to $170.3 million, largely attributed to the full quarter impact of Parker Wellbore [50] Market Data and Key Metrics Changes - The Lower 48 average rig count increased by nearly two rigs to 62.4, with a current count of 60 rigs operating [48][54] - The international rig count increased slightly from 85 to 85.9 rigs, driven by new builds in Saudi Arabia and reactivated rigs in Kuwait [50][43] - The Baker Hughes weekly Lower 48 rig count declined by 7% from March to June, indicating a shift towards larger operators [20] Company Strategy and Development Direction - The company is focused on integrating Parker Wellbore to unlock additional benefits and achieve $40 million in cost synergies by the end of 2025 [44][5] - The strategic shift in Saudi Arabia from oil to natural gas drilling is noted, with a significant number of land rigs idled and new builds focused on gas basins [13][14] - The company aims to maintain operational expense control and align capital expenditures with activity levels in response to market conditions [32][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the global oil market and the resilience of natural gas demand, particularly driven by LNG exports [7][8] - The outlook for the third quarter indicates some pressure on pricing, with expectations for Lower 48 daily margins to decline to approximately $13,300 [55] - Management remains cautious about the U.S. Lower 48 drilling activity, particularly in oil basins, while anticipating continued recovery in natural gas drilling [41][42] Other Important Information - The company repurchased approximately $14 million in notes at a significant discount during the second quarter, emphasizing a priority on debt reduction [36] - Capital expenditures for the second quarter totaled $199 million, with expectations for 2025 capital expenditures to be between $700 million and $710 million, lower than previously communicated [62] - The transition of CFO William Restrepo is noted, with Miguel Rodriguez set to take over, highlighting the leadership continuity within the company [66] Q&A Session Summary Question: Growth prospects of new build rigs in Saudi Arabia - Management indicated that the fleet is well-suited for opportunities in the region, with potential for redeployment to other Middle Eastern countries if needed [76][78] Question: Clarification on adjusted free cash flow guidance - Management explained that while there are reductions in CapEx, the overall impact on cash flow is about $50 million, with adjustments made for various market uncertainties [79][80] Question: Risks to Nabors' legacy rigs in Saudi Arabia - Management noted that while some rigs have been idled, the company is well-positioned due to its relationship with Aramco and the focus on gas drilling [86][88] Question: Future of Lower 48 daily drilling costs - Management is focused on optimizing operations and believes there is stability in costs, with no significant inflation expected [112][114] Question: Collections in Mexico - Management highlighted ongoing negotiations with Pemex and the expectation of substantial collections in the third quarter due to government initiatives [106][107]

Financial Performance & Acquisition - Nabors reported adjusted EBITDA of $248.459 million for the three months ended June 30, 2025[86] - Nabors Drilling Solutions contributed 25% of total adjusted EBITDA from operations in 2Q[24] - Parker Wellbore acquisition is on track to deliver $40 million of synergies in 2025 and $60 million run-rate in 2026[18] - Parker Wellbore is expected to generate run-rate adjusted EBITDA plus synergies of $200 million, up from $190 million[18] - Adjusted EBITDA less CAPEX of $125 million is expected from Parker Wellbore, up from $110 million[19] Segment Performance - International Drilling daily adjusted gross margin was greater than $17,500 in 2Q[24] - Lower 48 rigs generated daily adjusted gross margin of approximately $13,900[24] - Nabors Drilling Solutions adjusted gross margin was approximately 53% in 2Q[24] International Expansion - Nabors has 52 active rigs in KSA (Kingdom of Saudi Arabia) operated by SANAD, a JV with Saudi Aramco[20] - The company deployed 2 rigs in Saudi Arabia and 2 rigs in Kuwait in 2Q, with additional deployments planned in 3Q in Saudi Arabia, Kuwait, and India, plus a restart in Colombia[24] - Nabors is actively pursuing multiple opportunities for additional international rigs through YE 2025[38] Rig Count & Utilization - As of June 30, 2025, Nabors had a total rig fleet of 310, with 159 rigs on revenue, resulting in a 51% utilization rate[84] - In the U S Lower-48, Nabors had 110 high-spec rigs, with 60 on revenue, resulting in a 55% utilization rate[84]