Oil and gas driller Nabors Industries Ltd. posted a second-quarter loss Tuesday due in part to a recession-linked drop in energy prices and demand, but adjusted results beat Wall Street's expectations.
For the period ended June 30, the company posted a loss of $193 million, or 68 cents per share, compared with profit of $176.4 million, or 60 cents per share, in the year-ago period. Excluding certain one-time items, Nabors posted second-quarter profit of $90.9 million, or 32 cents per share.
Total revenue fell 33 percent to $878 million from $1.3 billion.
The results topped expectations of analysts polled by Thomson Reuters, who expected, on average, earnings of 26 cents per share on revenue of $923.2 million. Analysts typically exclude one-time charges.
Nabors owns more than 1,000 rigs for drilling natural gas and crude oil. As prices for those fuels dropped in the past year, so did demand for rigs and related equipment. That sharply ate into Nabors' profit.
Total costs and deductions rose 2 percent during the period to $1.09 billion, mostly due to higher interest, general and administrative, and depreciation charges.
"I believe that the third quarter will likely represent a bottom in all of our operations, although it remains difficult to predict the timing and pace of the eventual upturn in natural gas driven activity," Gene Isenberg, chairman and CEO, said in statement.
Shares rose 23 cents to $17.39 in aftermarket trading, having closed earlier down 13 cents at $17.16. The stock has traded between $8.25 and $43.97 in the past 52 weeks.
Source: AP
For the period ended June 30, the company posted a loss of $193 million, or 68 cents per share, compared with profit of $176.4 million, or 60 cents per share, in the year-ago period. Excluding certain one-time items, Nabors posted second-quarter profit of $90.9 million, or 32 cents per share.
Total revenue fell 33 percent to $878 million from $1.3 billion.
The results topped expectations of analysts polled by Thomson Reuters, who expected, on average, earnings of 26 cents per share on revenue of $923.2 million. Analysts typically exclude one-time charges.
Nabors owns more than 1,000 rigs for drilling natural gas and crude oil. As prices for those fuels dropped in the past year, so did demand for rigs and related equipment. That sharply ate into Nabors' profit.
Total costs and deductions rose 2 percent during the period to $1.09 billion, mostly due to higher interest, general and administrative, and depreciation charges.
"I believe that the third quarter will likely represent a bottom in all of our operations, although it remains difficult to predict the timing and pace of the eventual upturn in natural gas driven activity," Gene Isenberg, chairman and CEO, said in statement.
Shares rose 23 cents to $17.39 in aftermarket trading, having closed earlier down 13 cents at $17.16. The stock has traded between $8.25 and $43.97 in the past 52 weeks.
Source: AP
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