Nabors Profit Down but Above Street Views

The driller beats Wall Street earnings estimates.
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Nabors Industries

(NBR) - Get Report

reported first-quarter earnings Tuesday that beat analyst estimates.

Shares were flat after hours after finishing higher by $1.18, or 8.8% to $14.59 in regular trading.

Net income before charges was $184.4 million or 65 cents per diluted share compared with $212 million or 74 cents in the first quarter of 2008. Revenue in the quarter was $1.14 billion, compared with $1.32 billion in the year-ago quarter. After charges, EPS was 44 cents a share.

Analysts polled by Thomson Reuters were expecting 56 cents a share on revenue of $1.2 billion before charges.

The Hamilton, Bermuda-based company's results, reported after the market close, were impacted by a noncash, pretax adjustment of $75 million "related to the ceiling test applied to the value of the reserves of one its oil and gas joint ventures using commodity prices on March 31, 2009."

"Our first quarter results were better than expected led by a strong International showing and solid performance from Alaska, US Offshore and our Other Operating Segments," said Gene Isenberg, chairman and CEO. "Our US Land business performed relatively well due to the high number of term contracts covering not only our new PACE rigs, but also other premium rigs which constitute two-thirds of our fleet.

"The largest increase in year-over-year quarterly operating income came from our International business, which was up 14% to $103.0 million. Our US Offshore business was up $10.4 million, posting $16.8 million in the quarter. Our Other Operating Segments, our Alaska business and even our US Lower 48 land drilling unit all posted smaller but meaningful increases over their respective prior year quarterly results."