DOW JONES NEWSWIRES
Nabors Industries Ltd.'s (NBR) first-quarter profit jumped 62%
on continued revenue growth in its continental U.S. drilling
business.
The stronger-than-expected results continue Nabors's streak of
improved core earnings, as U.S. oil-and-gas producers adopt
increasingly complex drilling techniques to access harder-to-reach
reserves, boosting the contractor's top line.
At the same time, Nabors is working to improve its operational
efficiency after the company acknowledged it strayed off target in
its exploration and production forays, which led it to miss growth
opportunities in the U.S. The company last month unveiled plans to
raise at least $800 million from selling oil and gas properties and
other noncore businesses, the latest in a series of
divestitures.
Heavy North American drilling activity also helped boost
earnings for rival Schlumberger Ltd. (SLB), which on Friday
reported a stronger-than-expected core profit.
Nabors posted a profit of $134.1 million, or 46 cents a share,
up from $82.8 million, or 28 cents a share, a year earlier.
Excluding impairment charges and other adjustments, per-share
earnings from continuing operations rose to 65 cents from 29 cents
as revenue jumped 32% to $1.84 billion.
Analysts polled by Thomson Reuters were looking for a 50-cent
per-share profit with $1.8 billion of revenue.
Operating earnings in Nabors's U.S.-lower-48 land-drilling
business, its largest segment, grew 31%, while its domestic
pressure-pumping business reported 54% higher earnings. Profit rose
17% in the smaller international business.
Shares were up 1.4% at $16.18 in light after-hours trading
Tuesday. The stock had declined 50% over the past year through
Tuesday's close.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com