Nabors Energy Transition Corp. II Reports Q1 2025 Financial Results with Decreased Net Income

Nabors Energy Transition Corp. II reported its financial results for the first quarter of 2025, revealing a net income of $876,496, a decrease from $3,796,892 in the same period of the previous year. The company generated interest income of $3,330,446 from cash and marketable securities held in its trust account, which was offset by general and administrative expenses totaling $2,453,950, significantly higher than the $265,478 reported in the first quarter of 2024. The increase in expenses reflects the company's ongoing efforts to prepare for its initial business combination and manage its public company obligations.

As of March 31, 2025, Nabors Energy Transition Corp. II held total assets of $336.7 million, a slight increase from $333.5 million at the end of 2024. The trust account contained $335.1 million, primarily in U.S. Treasury bills, which is designated for use in the company's planned business combination. The company’s cash balance decreased to $1.46 million from $1.60 million at the end of the previous year. Current liabilities rose to $539,539, up from $313,719, largely due to increased accounts payable and accrued expenses.

Strategically, the company is in the process of executing a business combination agreement with e2, which was announced on February 11, 2025. This merger is expected to enhance the company's position in the energy transition sector, focusing on technologies that reduce carbon emissions. The agreement is subject to shareholder approval and other customary closing conditions. The company has also established a wholly owned subsidiary, Liffey Merger Sub, LLC, to facilitate this transaction.

Operationally, Nabors Energy Transition Corp. II has not yet commenced revenue-generating activities, as it is still in the pre-business combination phase. The company has maintained a consistent number of shares outstanding, with 30.5 million Class A ordinary shares subject to possible redemption. The company’s management has indicated that it plans to utilize the funds in the trust account to complete the business combination and support the operations of the target business post-acquisition.

Looking ahead, the company faces a deadline of July 18, 2025, to complete its initial business combination, or it will be required to liquidate. Management has expressed confidence in its ability to finalize the merger with e2, which is anticipated to provide a pathway for future growth and operational revenue. However, the company acknowledges the risks associated with market conditions and the complexities of executing the business combination, which could impact its financial stability and operational plans.