Nabors Industries announces 2015 full year and fourth quarter results
Nabors Industries Ltd. (NYSE: NBR) today reported FY 2015 operating revenues of $3.86 billion, including $366 million which comprises first-quarter revenue from the Completion and Production Services segment (NCPS), a business line that merged with C&J Energy Services, Inc. (CJES) on March 24, 2015 and is no longer consolidated with Nabors. This compares to operating revenues of $6.80 billion in FY 2014, including $2.25 billion of revenue from NCPS. The Company's equity ownership in C&J Energy Services Ltd. is accounted for in the Company's consolidated financial results as an unconsolidated affiliate on a quarter-lag basis. Net income from continuing operations for the year was a loss of $329.5 million, or ($1.14) per diluted share, compared to a loss of $669.3 million, or ($2.28) per diluted share, in FY 2014. Included in net loss from continuing operations for FY 2015 were total impairments and other charges related to the current downturn of net $1.31 per diluted share. Also included in 2015 net income was a loss of net ($0.29) per diluted share on our proportional share of CJES earnings.
Revenue for the quarter of $739 million decreased by $109 million, or 13% sequentially. Net loss from continuing operations for the fourth quarter totaled $161.1 million, or ($0.57) per diluted share. The current results include $101.2 million in net after-tax charges, or $0.35 per diluted share, related to the impairment of certain assets. The quarter also includes a net loss of $45.4 million, or ($0.16) per diluted share, attributable to Nabors' equity share of CJES's third quarter results. These results compare to a loss of $250.9 million in the third quarter of 2015. The third quarter included after-tax charges of $206.0 million, or ($0.72) per diluted share.
Anthony Petrello, Nabors' Chairman and CEO, commented, '2015 has been a difficult year for the industry due to weak and volatile oil prices, as well as a declining rig count. Our fourth-quarter results reflect the magnitude of progress we have made in scaling the business in line with the industry's lowest U.S. rig count in 17 years. Quarter to quarter, we saw moderately lower revenues across our business units due to lower activity and increased exposure to depressed spot market pricing. From the year-end level, we expect additional decreases in drilling activity and rig count in the Lower 48 and Canada, at least through the second quarter of this year with more rigs converting to spot pricing. We remain resilient internationally; however, no region is immune to lower oil prices. Developing technological solutions to drive additional sales content through our rigs remains a core strategic focus and should be a key differentiator for Nabors in a future recovery.
'With the timing of a recovery still uncertain, our focus is primarily on continuing to exercise stringent control over our operating, support and capital spending in order to meet our goals of breakeven free cash flow and preserving more than adequate liquidity. During the fourth quarter, we continued to generate positive free cash flow and we continued to reduce our net debt. I am confident we will maintain a solid financial position, as we target positive free cash flow in 2016.'
Nabors Industries Ltd.
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