Commodities & Metals
Outlook Sinks for Oil Field Services Firm Nabors Industries
Published:
Last Updated:
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.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
