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8-K - FORM 8-K - NABORS INDUSTRIES LTD | h83065e8vk.htm |
Exhibit 99.1
NEWS RELEASE |
Nabors expects 2Q2011 EBIT to be in the range of $165 $170 million
Hamilton, Bermuda, June 20, 2011 PRNewswire / FirstCall Nabors Industries Ltd. (NYSE:
NBR) today announced that it expects its second quarter operating income to be in the range of $165
to $170 million. This is primarily due to lower than expected results from its Pressure Pumping,
US Offshore, and International businesses, partially offset by better results in its US Lower 48
and Canadian operations. The company also indicated its current estimate for full-year operating
income results approaches $900 million.
Gene Isenberg, Nabors Chairman and CEO commented, The largest components of the shortfall in
second quarter and full year operating income are from our Pressure Pumping and International
segments. During the second quarter, Superior has been impacted more than we anticipated by the
protracted adverse weather in the Bakken and Marcellus areas, as well as by startup inefficiencies
associated with late deliveries of new equipment. We expect Superior to be back on track with our
expectations by the end of this year. In our International unit, delays in contract awards, most of
which require recertification and upgrades to multiple rigs, coupled with importation obstacles and
interruptions due to civil unrest in certain areas, are leading to significant slippage in the
timing of the prospective ramp-up in our International results. The primary areas affected are
Saudi Arabia and Iraq and, to a lesser extent, Yemen, Colombia and Mexico. These issues will
likely lead to a flat third quarter, however we still expect a meaningful increase in the fourth
quarter, which should approximate 90% of the income this unit posted in the fourth quarter of last
year. Permitting delays continue to plague our US Offshore operations, leading to the expectation
of a modest loss in the second quarter. This situation is gradually improving, and we anticipate
moderate profitability over the balance of the year and a return to more normal circumstances as we
enter 2012.
On the positive side, both our US Lower 48 and Canadian operations continue to meaningfully exceed
our expectations. We have secured six more new build contracts in the Lower 48 since the last
quarter, and we are preparing nine legacy rigs for work. The addition of these new builds brings
the total number of new rigs in process to 36 in the US Land segment and 40 worldwide, virtually
all of which have work commitments.
The Nabors companies own and operate approximately 551 land drilling and approximately 750 land
workover and well-servicing rigs in North America. Nabors actively marketed offshore fleet
consists of 38 platform rigs, 13 jackup units and 3 barge rigs in the United States and multiple
international markets. In addition, Nabors manufactures top drives and drilling instrumentation
systems and provides comprehensive oilfield hauling, engineering, civil construction, logistics and
facilities maintenance, and project management services. Nabors participates in most of the
significant oil and gas markets in the world.
The information above includes forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements are
subject to certain risks and uncertainties, as disclosed by Nabors from time to time in its filings
with the Securities and Exchange Commission. As a result of these factors, Nabors actual results
may differ materially from those indicated or implied by such forward-looking statements. The
projections contained in this
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NEWS RELEASE |
release reflect managements estimates as of the date of the release. Nabors does not
undertake to update these forward-looking statements.
The Company plans to release it second quarter results after the close of trading on the NYSE on
July 26, 2011. It also plans to host a conference to review the results and outlook the following
morning. For further information, please contact Dennis A. Smith, Director of Corporate Development
for Nabors Corporate Services, Inc., at 281-775-8038. To request investor materials, contact our
corporate headquarters in Hamilton, Bermuda at 441-292-1510 or via email at
mark.andrews@nabors.com.
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