NBR's Short-Term Outlook Is Weak
In an environment when the energy market looks fragile and the U.S. onshore utilization and day rates have been keeping low, Nabors Industries (NBR) persisted with its policy of operating the super-spec AC rigs while diversifying its revenues base away from the U.S., thus protecting from the onshore market weakness.
However, since the global pandemic has hit the international energy demand, NBR's performance will reflect the on-going dip in activity in the short term. To offset the margin erosion and increase free cash flow, it has initiated various