Nabors reports smaller-than-expected Q2 loss as costs fall

Nabors Q2 loss is blamed on an impairment to the carrying value of the company’s investment in C&J Energy Services. Company photo.

Nabors total revenue fell to $517.1M

Aug 2 (Reuters) – Contract driller Nabors Industries Ltd reported a smaller-than-expected quarterly loss as costs fell, sending its shares up 3.6 percent in extended trading.

The company said the near-term rig count would increase gradually only when oil prices stablilize at $50 per barrel.

Nabors averaged 159.1 rigs in the second quarter, down from 187.9 rigs in the first quarter.

Nabors added that it expected near-term volume and pricing to decline when U.S. term contracts expire and it adjusts to spot market prices.

The company also said it reduced debt by $87 million in the second quarter. Its long-term debt was $3.5 billion as of June 30.

Nabor’s total costs fell 11.2 percent to $744.85 million.

Net loss attributable to Nabors widened to $184.7 million, or 65 cents per share, in the second quarter ended June 30, from $36.8 million, or 13 cents per share, a year earlier.

The bigger loss was largely due to an impairment charge related to the company’s investment in C&J Energy Services Ltd .

Total revenue fell 40 percent to $517.1 million.

The company’s loss was 35 cents per share, excluding a gain of 9 cents related to renegotiation of two contracts as well as early termination revenue, smaller than the average analyst estimate of 45 cents, according to Thomson Reuters I/B/E/S.

Up to Tuesday’s close of $8.69, Nabors’ shares had fallen 24.6 percent over the last 12 months.

(Reporting by Vishaka George in Bengaluru; Editing by Sriraj Kalluvila and Don Sebastian)