Nabors Industries Ltd. (NBR) saw its loss narrow to $111.21 million, or $0.39 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $295.83 million, or $1.02 a share.
Revenue during the quarter plunged 38.68 percent to $519.73 million from $847.55 million in the previous year period. Gross margin for the quarter expanded 218 basis points over the previous year period to 41.04 percent.
However, the adjusted operating loss for the quarter stood at $71.97 million compared to operating profit of $7.52 million in prior year period.
Anthony Petrello, Nabors’ Chairman, President, and CEO, commented, "After a challenging downturn, we are experiencing significant utilization increases in our Lower 48 market, although spot market pricing continues to remain competitive. Similarly, our international markets are showing signs of impending activity increases. We are very encouraged by our customers’ acceptance of our newest rig, the PACE®-M800. We now have contracts for the first four PACE®-M800s, with two already deployed, and awards for two more.
Working capital drops significantly
Nabors Industries Ltd. has witnessed a decline in the working capital over the last year. It stood at $322.86 million as at Sep. 30, 2016, down 51.78 percent or $346.67 million from $669.52 million on Sep. 30, 2015. Current ratio was at 1.41 as on Sep. 30, 2016, down from 1.64 on Sep. 30, 2015.
Days sales outstanding went up to 125 days for the quarter compared with 97 days for the same period last year.
Debt comes down
Nabors Industries Ltd. has recorded a decline in total debt over the last one year. It stood at $3,476.10 million as on Sep. 30, 2016, down 7.22 percent or $270.66 million from $3,746.76 million on Sep. 30, 2015. Total debt was 41.26 percent of total assets as on Sep. 30, 2016, compared with 37.73 percent on Sep. 30, 2015. Debt to equity ratio was at 0.97 as on Sep. 30, 2016, up from 0.83 as on Sep. 30, 2015.
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