Nabors posts $37 million loss as rig demand declines

HOUSTON — U.S. land driller Nabors Industries said it had a net loss of $36.8 million in the second quarter as demand for its oil and gas rigs fell sharply.

Nabors’ loss of $36.8 million, or 13 cents a share, was down from a profit of $64.4 million in the same April-June period last year, before the oil-price decline began in earnest. Revenues fell from $1.6 billion to $863.4 million.

Nabors CEO Anthony Petrello said the current third quarter, running from July to the end of September, will likely bring another decline in earnings, but it might also mark the bottom of the market in regions outside of the United States.

Seasonal drilling activity in Alaska and Canada, Petrello said, should offset deeper cuts in daily drilling rates in the U.S. “as contracts continue to roll to lower spot-market pricing.”

“We believe it is likely that current market conditions will prevail for an extended period, particularly in North America,” Petrello said. “While our international markets will be more resilient, especially in the Middle East and North Africa, we will remain diligent in our cost-containment efforts.”

Nabors, which is based in Bermuda but has main offices in Houston, said it took severance charges of $6.3 million after it cut its workforce in the first quarter. The company had said it cut 5,500 jobs, or about 18 percent of its workforce, from the last week of 2014 through April.