Nabors Industries Straggles in its Second Quarter Posting Major Losses

Posted on 08/03/2020


On July 28, 2020, Texas-based drilling giant Nabors Industries (ticker: NBR) released its highly-anticipated second quarter earnings report. Sell-side analysts discovered reasons for suspicion surrounding Nabors’ stock as Morgan Stanley and AltaCorp downgraded NBR to “Sell” earlier in July. While there is strong investor consensus that Nabors will post large losses from the chaotic Q2 ravaged by COVID-19 lockdowns – for investors – the devil is in the details. Hearing company CEO Anthony Petrello’s take on the specifics of the company’s cash flow statement, balance sheet, and other structural developments, is crucial in whether investors stick with Nabors.

Some positive signs for Nabors’ includes its operating revenue, which just barely fell short of the projected US$ 537 million at approximately US$ 534 million and that this operating revenue is US$ 184 million lower than this time last year. Nabors’ Rig Technologies segment reportedly clocked-in their best-ever EBITDA even during a pandemic.

Some of the largest institutional investor shareholders of Nabor Industries are Parametric Portfolio Associates LLC, Rhumbline Advisers, and BlackRock Inc.

Keywords: Nabors Industries Ltd.

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