Oil field services firm Nabors Industries Ltd. (NYSE: NBR) warned on second-quarter earnings after markets closed last night. The Bermuda-based firm said that it now projects operating income for the quarter in the range of $88 million to $91 million. In the first quarter of the year, Nabors’ income from continuing operations totaled $97.17 million, down from $149.6 million in the first quarter of 2012.

The company said that the income shortfall stems from problems in its two lines of business. Rig Services is seeing lower sales of capital equipment and less service and rental business. The company’s Completion and Production Services group has faced weather issues and intense competition, especially for pressure pumping services in North America.

The firm’s CEO said:

Efficiency gains appear to be consuming operator budgets more rapidly than anticipated and could result in year-end weakness absent favorable mid-year budget revisions. We remain particularly cautious in our outlook for pressure pumping. Although industry activity appears to be increasing slightly, the combination of improving pumping efficiency and increasing competitive intensity tempers our view.

Shares are down about 4.3% in premarket trading this morning, at $15.32 in a 52-week range of $12.75 to $18.24.

Larger competitors like Halliburton Co. (NYSE: HAL), Baker Hughes Inc. (NYSE: BHI) and Schlumberger Ltd. (NYSE: SLB) also are trading lower this morning.

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