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Analyzing Nabors Industries’ Segments in Q2 2018

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Segments’ revenues

Nabors Industries (NBR) released its second-quarter financial results on July 31. From the second quarter of 2017 to the second quarter of 2018, Nabors Industries’ Drilling Solutions segment’s revenues increased 88%. The US Drilling segment increased 41%, while the Rig Technologies segment increased 33%. The International Drilling segment was Nabors Industries’ highest revenue contributor at 47% followed by the US Drilling at 33% in the second quarter.

Schlumberger’s (SLB) revenues from international operations declined 1% in the second quarter, while Halliburton’s (HAL) revenues from international operations increased 5.7% during the same period.

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Operating income

By adjusted EBITDA, the US Drilling segment saw the strongest growth of 130% in the second quarter—compared to the second quarter of 2017. The Drilling Solutions segment saw its adjusted EBITDA increase ~94%. The International Drilling segment’s adjusted EBITDA fell 9% in the second quarter—compared to the second quarter of 2017.

Next, we’ll discuss Nabors Industries’ returns.

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