Nabors Industries Reports Q1 2025 Financial Results with Revenue of $736.2 Million and Net Income Turnaround

Nabors Industries Ltd. reported its financial results for the first quarter of 2025, revealing operating revenues of $736.2 million, a slight decrease of $2.5 million compared to $738.7 million in the same period of 2024. The company achieved a net income attributable to Nabors of $33.0 million, or $2.18 per diluted share, a significant turnaround from a net loss of $34.3 million, or $4.54 per diluted share, in the prior year. This improvement was largely driven by a $113.0 million gain on the bargain purchase from the acquisition of Parker Drilling Company, which was partially offset by $26.5 million in asset impairments related to operations in Russia and $17.2 million in transaction-related costs.

The company’s total assets increased to $5.05 billion as of March 31, 2025, up from $4.50 billion at the end of 2024. This growth was supported by a rise in accounts receivable, which increased to $549.6 million from $388.0 million, reflecting improved collection efforts and increased business activity. However, total liabilities also rose, reaching $3.60 billion, compared to $3.30 billion at the end of the previous fiscal year, primarily due to an increase in long-term debt associated with the Parker acquisition.

Nabors completed the acquisition of Parker Drilling on March 11, 2025, which has been integrated into its operations. The acquisition involved the issuance of 4.8 million shares of Nabors common stock and a cash payment of $0.6 million, valued at approximately $180.6 million. The merger is expected to enhance Nabors' service offerings and operational capabilities across global energy markets. The company reported that Parker contributed approximately $30 million in revenue during the period from March 12 to March 31, 2025.

Operationally, Nabors reported mixed results across its segments. The U.S. Drilling segment saw a revenue decline of 15% to $230.7 million, attributed to a decrease in rig activity. In contrast, the International Drilling segment experienced a 9% increase in revenue to $381.7 million, driven by a rise in the average number of rigs working. The Drilling Solutions segment also reported a 23% increase in revenue, while the Rig Technologies segment faced a 12% decline. The overall average number of rigs working decreased, reflecting the challenging market conditions.

Looking ahead, Nabors anticipates that the demand for its services will be influenced by fluctuations in oil and natural gas prices, which are subject to geopolitical uncertainties and market dynamics. The company remains focused on integrating Parker's operations and leveraging its enhanced capabilities to drive future growth. Nabors expects to maintain compliance with its financial covenants and continue to manage its capital expenditures prudently in response to market conditions.