Nabors Industries ( NYSE: NBR ) posted its highest close in eight months Wednesday, +6.8% , after reporting Q4 revenues rose 35% Y/Y to $769M and adjusted EBITDA reached its highest quarterly level since 2015.
Q4 net loss attributable to shareholders was $69M, or $7.87/share, compared to a net loss of $14M, or $1.80/share, in Q3.
Nabors ( NBR ) said Q4 results included a $36M charge, or $3.98/share, related to mark-to-market treatment of company warrants, and Q3 results included a gain for the warrants of $34M, or $3.74 per share.
Excluding the impact of the warrants on each quarter's results, the net loss improved Q/Q by $15 million, while Q4 adjusted EBITDA rose to $230M from $191M in the prior quarter.
Nabors ( NBR ) said U.S. Drilling drove most of the quarter's growth, highlighted by "unprecedented" daily margins in the Lower 48 market, while daily margin and adjusted EBITDA also improved in the International segment.
"In the Lower 48, we successfully repriced the majority of our rigs during the quarter," Chairman, CEO and President Anthony Petrello said. "As a result, daily rig revenue increased by more than $3,500. Almost all of that increase flowed through to daily gross margin, which improved by nearly $3,500, to $14,600, an all-time high."
"With spot and future prices for WTI in the current range, we believe the outlook for continued increases in drilling activity in the Lower 48 is still constructive," Petrello said on the post-earnings conference call . "We expect these increases to materialize as we move throughout the year."
Nabors Industries ( NBR ) shares have gained 32% so far this year and 66% during the past year .
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Nabors CEO sees strong drilling activity continuing this year