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Nabors Industries’ Management Estimates for 2017

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What does Nabors Industries’ management think?

Nabors Industries’ (NBR) management estimated that NBR’s international activity will become stronger in the remainder of 2017. In the 3Q17 earnings conference call, Nabors Industries’ chairman and CEO Anthony Petrello commented, “After the third quarter pause, we should resume rig activity increases in the fourth quarter for international. We are putting an offshore platform back to work in Mexico and two in India. Since the start of October, we now have a rig deployed in running in UAE and we are in advanced discussions for additional rig activity in Algeria and Russia.”

Petrello expects the joint venture with Saudi Arabia’s Saudi Aramco to benefit NBR’s rig count. In the 3Q17 conference call, he added, “Our JV with Saudi Aramco is expected to start operations in the very near future. Activity in earnings will be consolidated within our international segment. We expect that three rigs will be added to the fleet from Saudi Aramco upon initiation. Early in the first quarter, two more rigs are planned to join from the Saudi Aramco side.”

Nabors industries’ management estimates for 2017

  • In the US onshore segment, NBR’s management expects to maintain or slightly increase its average rig count in 4Q17.
  • In 4Q17, in international operations, NBR expects to add rigs.
  • The US onshore margin is expected to increase due to continued day rate increases and lower daily operating expenses.
  • NBR expects higher contract rates for the rigs that will see contracts expire in 4Q17

Next, we will discuss rig count and its effects on NBR’s performance.

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