Nabors Industries Ltd. (NBR) saw its loss widen to $335.59 million, or $1.18 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $163.65 million, or $0.58 a share.
Revenue during the quarter dropped 22.27 percent to $539.21 million from $693.68 million in the previous year period. Gross margin for the quarter expanded 268 basis points over the previous year period to 38.51 percent. Operating margin for the quarter stood at negative 12.96 percent as compared to a negative 7.64 percent for the previous year period.
Operating loss for the quarter was $69.90 million, compared with an operating loss of $52.99 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $70.17 million compared to operating loss of $7.80 million in prior year period.
Anthony Petrello, Nabors' chairman and chief executive officer, commented, "2016 was a challenging year with the U.S. rig count reaching its lowest point since rig counts were first published. Nabors was proportionally impacted with our working U.S. land rig count declining as much as 81% from our late 2014 high. Our U.S. rig count bottomed in the second quarter while our international count appears to have done so at the end of 2016. We believe the fourth quarter should mark the low point in our financial results both in North America and internationally. These new technologies represent a game changer in the implementation of a high degree of automation of both surface and downhole drilling systems."
Working capital drops significantly
Nabors Industries Ltd. has witnessed a decline in the working capital over the last year. It stood at $333.90 million as at Dec. 31, 2016, down 28.87 percent or $135.49 million from $469.40 million on Dec. 31, 2015. Current ratio was at 1.41 as on Dec. 31, 2016, down from 1.47 on Dec. 31, 2015.
Debt comes down marginally
Nabors Industries Ltd. has recorded a decline in total debt over the last one year. It stood at $3,578.63 million as on Dec. 31, 2016, down 2.27 percent or $83.08 million from $3,661.71 million on Dec. 31, 2015. Total debt was 43.71 percent of total assets as on Dec. 31, 2016, compared with 38.39 percent on Dec. 31, 2015. Debt to equity ratio was at 1.10 as on Dec. 31, 2016, up from 0.85 as on Dec. 31, 2015.
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