The following is a summary of the Nabors Industries Ltd. (NBR) Q3 2024 Earnings Call Transcript:
Financial Performance:
Nabors reported adjusted EBITDA of $222 million, in line with expectations for the third quarter of 2024.
The International segment's daily margins exceeded the $17,000 mark, with the company seeing growth driven by its International business and positive mix shift in the U.S.
U.S. Lower 48 daily rig margins maintained robust levels above the $15,000 mark, reflecting the resilient market for high-performance rigs.
Business Progress:
Nabors is integrating Parker Wellbore, which is expected to accelerate its strategy, especially in the Drilling Solutions segment. This acquisition aims to enhance growth prospects, particularly for Quail Tools.
Deployed the last of four rigs in Algeria and expects to start operations with two of three rigs previously awarded in Argentina, with significant Drilling Solutions content anticipated.
In Kuwait, the company began upgrading rigs for three awards, with deployments scheduled for early 2025.
Intensifying investment in technology and innovation, particularly in automation and enhanced software systems, Nabors continues to lead in rig technology advancements.
Opportunities:
International Drilling markets display strong growth potential, driving Nabors to selectively pursue the most attractive projects.
Increasing integration of advanced technology solutions across Nabors' client base internationally, especially after integrating Parker Wellbore.
Pursuing opportunities for deployment and growth in various regions including Latin America, MENA, and Asia.
Focus on enhancing Drilling Solutions and rig technologies to improve margins and efficiencies, while expanding the potential applications of Nabors' services.
Risks:
Operational adjustments, including rig suspensions informed by SANAD in Saudi Arabia, reflect shifts in market demand and geopolitical influences which can impact operational stability and financial performance.
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