Nabors(US:NBR)2025-02-13 02:01Financial Performance - Fourth quarter 2024 operating revenues were $730 million, slightly down from $732 million in the third quarter[2]. - The net loss attributable to Nabors shareholders for the quarter was $54 million, equating to a loss of $6.67 per diluted share, an improvement from a loss of $6.86 per diluted share in the previous quarter[2]. - Adjusted EBITDA for the fourth quarter was $221 million, compared to $222 million in the third quarter[2]. - Operating revenues for Q4 2024 were $729,819,000, a slight increase from $725,801,000 in Q4 2023[36]. - Net loss attributable to Nabors for Q4 2024 was $53,671,000, compared to a loss of $16,703,000 in Q4 2023[36]. - Adjusted EBITDA for the year ended December 31, 2024, was $881,335,000, down from $915,157,000 in 2023[36]. - Adjusted EBITDA for the three months ended December 31, 2024, was $220,545 thousand, a decrease from $230,103 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 $3,857 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) for the year ended December 31, 2023, indicating a significant decline[43]. Segment Performance - International Drilling adjusted EBITDA totaled $112 million, down from $116 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 $108.7 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 $51,494 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 $262,353 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 $40,108 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 $50 million collections shortfall in Mexico and higher capital expenditures of $241 million[12][13]. - Capital expenditures for 2025 are projected to be between $710 million and $720 million, with approximately $360 million allocated for SANAD newbuild construction[15][21]. - Adjusted free cash flow for Q4 2024 was negative at $(53,296) thousand, compared to positive $17,544 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 $5,277,965,000 a year earlier[38]. - Current liabilities were $571,917,000, a decrease from $1,213,981,000 in the previous year[38]. - Total liabilities stood at $3,297,963,000 as of December 31, 2024, compared to $3,996,880,000 a year prior[38]. - Total debt as of December 31, 2024, was $2,505,217 thousand, with net debt at $2,107,918 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 $37,865 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 $13,926,000 in Q4 2023[36]. - Research and engineering costs for Lower 48 - U.S. Drilling were $1,002 thousand in Q4 2024, down from $1,276 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 $49,938,000 in Q4 2023[36]. - The company's income tax expense for Q4 2024 was $15,231 thousand, compared to $19,244 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 $33 million and Rig Technologies adjusted EBITDA of approximately $5 million[17][18].