Nabors Industries Ltd. (NBR), a drilling company I have been covering since February, has reported a sharp drop in the 1Q20 revenue and operating income. However, revenue topped expectations of Wall Street, and the stock inched higher, also supported by hopes on the oil prices recovery amid economies' reopenings and declining supply.
The principal culprit of Nabors' Q1 revenue contraction was plummeting demand for drilling services precipitated by the capital expenditures reduction trend across the globe and especially across the U.S. shale plays where oil companies have been making strenuous efforts