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Nabors(NBR) - 2024 Q4 - Annual Results
NBRNabors(NBR)2025-02-13 02:01

Financial Performance - Fourth quarter 2024 operating revenues were 730million,slightlydownfrom730 million, slightly down from 732 million in the third quarter[2]. - The net loss attributable to Nabors shareholders for the quarter was 54million,equatingtoalossof54 million, equating to a loss of 6.67 per diluted share, an improvement from a loss of 6.86perdilutedshareinthepreviousquarter[2].−AdjustedEBITDAforthefourthquarterwas6.86 per diluted share in the previous quarter[2]. - Adjusted EBITDA for the fourth quarter was 221 million, compared to 222millioninthethirdquarter[2].−OperatingrevenuesforQ42024were222 million in the third quarter[2]. - Operating revenues for Q4 2024 were 729,819,000, a slight increase from 725,801,000inQ42023[36].−NetlossattributabletoNaborsforQ42024was725,801,000 in Q4 2023[36]. - Net loss attributable to Nabors for Q4 2024 was 53,671,000, compared to a loss of 16,703,000inQ42023[36].−AdjustedEBITDAfortheyearendedDecember31,2024,was16,703,000 in Q4 2023[36]. - Adjusted EBITDA for the year ended December 31, 2024, was 881,335,000, down from 915,157,000in2023[36].−AdjustedEBITDAforthethreemonthsendedDecember31,2024,was915,157,000 in 2023[36]. - Adjusted EBITDA for the three months ended December 31, 2024, was 220,545 thousand, a decrease from 230,103thousandinthesameperiodof2023,representingadeclineofapproximately4230,103 thousand in the same period of 2023, representing a decline of approximately 4%[44]. - The company's net income for Q4 2024 was a loss of 32,869 thousand, compared to a profit of 3,857thousandinQ42023,indicatingasignificantdecline[46].−TotalbasicearningspersharefortheyearendedDecember31,2024,was3,857 thousand in Q4 2023, indicating a significant decline[46]. - Total basic earnings per share for the year ended December 31, 2024, was (22.37), compared to (5.49)fortheyearendedDecember31,2023,indicatingasignificantdecline[43].SegmentPerformance−InternationalDrillingadjustedEBITDAtotaled(5.49) for the year ended December 31, 2023, indicating a significant decline[43]. Segment Performance - International Drilling adjusted EBITDA totaled 112 million, down from 116millioninthethirdquarter,withanaveragerigcountof85[9].−U.S.DrillingsegmentreportedadjustedEBITDAof116 million in the third quarter, with an average rig count of 85[9]. - U.S. Drilling segment reported adjusted EBITDA of 105.8 million, compared to 108.7millioninthepreviousquarter,withaLower48averagerigcountof66[10].−TheadjustedoperatingincomefortheU.S.Drillingsegmentwas108.7 million in the previous quarter, with a Lower 48 average rig count of 66[10]. - The adjusted operating income for the U.S. Drilling segment was 38,973 thousand for the three months ended December 31, 2024, down from 51,494thousandinthesameperiodof2023,reflectingadecreaseofabout2451,494 thousand in the same period of 2023, reflecting a decrease of about 24%[44]. - The company reported an adjusted operating income of 176,281 thousand for the U.S. Drilling segment for the year ended December 31, 2024, compared to 262,353thousandfortheyearendedDecember31,2023,adeclineofabout33262,353 thousand for the year ended December 31, 2023, a decline of about 33%[44]. - Adjusted operating income for Lower 48 - U.S. Drilling was 27,354 thousand for Q4 2024, down from 40,108thousandinQ42023,representingadecreaseof31.540,108 thousand in Q4 2023, representing a decrease of 31.5%[45]. Cash Flow and Expenditures - Consolidated adjusted free cash flow in the fourth quarter was a use of 53 million, impacted by a 50millioncollectionsshortfallinMexicoandhighercapitalexpendituresof50 million collections shortfall in Mexico and higher capital expenditures of 241 million[12][13]. - Capital expenditures for 2025 are projected to be between 710millionand710 million and 720 million, with approximately 360millionallocatedforSANADnewbuildconstruction[15][21].−AdjustedfreecashflowforQ42024wasnegativeat360 million allocated for SANAD newbuild construction[15][21]. - Adjusted free cash flow for Q4 2024 was negative at (53,296) thousand, compared to positive 17,544thousandinQ32024,indicatingacashflowchallenge[51].AssetsandLiabilities−Totalassetsdecreasedto17,544 thousand in Q3 2024, indicating a cash flow challenge[51]. Assets and Liabilities - Total assets decreased to 4,504,301,000 as of December 31, 2024, from 5,277,965,000ayearearlier[38].−Currentliabilitieswere5,277,965,000 a year earlier[38]. - Current liabilities were 571,917,000, a decrease from 1,213,981,000inthepreviousyear[38].−Totalliabilitiesstoodat1,213,981,000 in the previous year[38]. - Total liabilities stood at 3,297,963,000 as of December 31, 2024, compared to 3,996,880,000ayearprior[38].−TotaldebtasofDecember31,2024,was3,996,880,000 a year prior[38]. - Total debt as of December 31, 2024, was 2,505,217 thousand, with net debt at 2,107,918thousandafteraccountingforcashandshort−terminvestments[49].OperationalMetrics−AveragerigsworkinginU.S.Drillingdecreasedto72.7inQ42024from76.3inQ42023[40].−DailyrigrevenueforU.S.Drillingwas2,107,918 thousand after accounting for cash and short-term investments[49]. Operational Metrics - Average rigs working in U.S. Drilling decreased to 72.7 in Q4 2024 from 76.3 in Q4 2023[40]. - Daily rig revenue for U.S. Drilling was 36,137 in Q4 2024, down from 37,865inQ42023[40].−Theaveragerigsworkingduringthequartercanbecalculatedasrigrevenuedaysdividedbythenumberofcalendardaysintheperiod,indicatingoperationalefficiency[6].−Dailyrigrevenueforthequarterisderivedfromoperatingrevenuedividedbythetotalnumberofrevenuedays,providinginsightintorevenuegenerationcapabilities[8].ResearchandEngineering−ResearchandengineeringexpensesforQ42024were37,865 in Q4 2023[40]. - The average rigs working during the quarter can be calculated as rig revenue days divided by the number of calendar days in the period, indicating operational efficiency[6]. - Daily rig revenue for the quarter is derived from operating revenue divided by the total number of revenue days, providing insight into revenue generation capabilities[8]. Research and Engineering - Research and engineering expenses for Q4 2024 were 14,434,000, compared to 13,926,000inQ42023[36].−ResearchandengineeringcostsforLower48−U.S.Drillingwere13,926,000 in Q4 2023[36]. - Research and engineering costs for Lower 48 - U.S. Drilling were 1,002 thousand in Q4 2024, down from 1,276thousandinQ42023,adecreaseof21.41,276 thousand in Q4 2023, a decrease of 21.4%[45]. Interest and Tax Expenses - Interest expense increased to 53,642,000 in Q4 2024 from 49,938,000inQ42023[36].−Thecompany′sincometaxexpenseforQ42024was49,938,000 in Q4 2023[36]. - The company's income tax expense for Q4 2024 was 15,231 thousand, compared to 19,244thousandinQ42023,showingareductionof21.019,244 thousand in Q4 2023, showing a reduction of 21.0%[46]. Future Outlook - The merger with Parker Wellbore is expected to close in the first quarter of 2025, pending regulatory approvals, and is anticipated to provide incremental free cash flow of 35 million[6][17]. - SANAD's working newbuild fleet is projected to double its contribution to adjusted EBITDA in 2025 compared to 2024[9]. - For the first quarter of 2025, Nabors expects U.S. Drilling adjusted EBITDA of approximately 33millionandRigTechnologiesadjustedEBITDAofapproximately33 million and Rig Technologies adjusted EBITDA of approximately 5 million[17][18].