Nabors 3Q Profit Down 85 Percent

NEW YORK (AP) — Petroleum driller Nabors Industries Ltd. said Tuesday the oil business has started to pick up after a woeful third quarter that saw U.S. crude and natural gas stockpiles grow as Americans' thirst for energy waned.

The Bermuda-based company said its income plunged 85 percent in the three months that ended Sept. 30. Nabors earned $29.5 million, or 10 cents per share, for the quarter compared with $194 million, or 67 cents a share, in the same period last year.

"Nonetheless we are confident the upturn will soon be felt," Gene Isenberg, Nabors' chairman and CEO, said in a statement. "One reason for our optimism is the higher forward prices for crude and gas which currently are over $85 and $7 respectively in 2011."

Isenberg also said that drilling activity has picked up, with more than 20 of its rigs returning to work since August. The company also said that next year's contract backlog already exceeds its list for 2009.

The July-September quarter was especially rough on the petroleum industry. Companies will be comparing year-over-year results with the third quarter of 2008, when oil prices soared above $147 a barrel.