Nabors Industries Ltd. (NYSE: NBR) reported first-quarter 2016 results after markets closed Monday. For the quarter, the oilfield services company reported an adjusted diluted net loss per share of $1.41 on revenues of $430.8 million. In the same period a year ago, the company reported EPS of $0.33 on revenues of $1.42 billion. First-quarter results compare to the Thomson Reuters consensus estimates for net loss of $0.33 and $630.85 million in revenues.

Operating revenues totaled $597.6 million but were slashed b y $167.15 million in losses due to impairments to the carrying value of Nabors’ investment in C&J Energy Services and for prior quarter losses at G&J. Operating net loss totaled $1.12 per share.

CEO Anthony Petrello said:

Our first quarter results reflect the continued strain from low commodity prices.  In particular, the first quarter’s drop in oil prices below $30 led to sharp reductions in customer spending plans on a worldwide basis and had a corresponding adverse impact on our results.  In the U.S., our customers’ swift reaction to commodity price drops resulted in a roughly equal impact on both rig years and margins.  Internationally, a reduction of seven rig years combined with other unfavorable factors resulted in lower operating cash flows for the quarter.  Additionally, the Canada market’s typical seasonal uptick in the first quarter failed to materialize this year due to market conditions.  Despite these reductions in cash flows, we still modestly reduced net debt during the quarter while continuing to fund the innovative technological initiatives that will best position Nabors for the eventual upturn.

The firm’s CFO said:

Despite a recent upturn in the price of oil, at its current level, we anticipate further near-term reductions in rig count both internationally and in the U.S.  We also expect margins to deteriorate, particularly in the Lower 48 market.  Though low oil prices have had increasing spill-over effects on our international business, Nabors remains uniquely well positioned to weather the storm given our ongoing cash flow from international operations and strong liquidity.

The company did not offer other guidance but analysts expect a second-quarter net loss of $0.41 on revenues of $560.73 million. For the year analysts are looking for a net loss of $1.54 on revenues of $2.34 billion

Nabors stock closed at $10.37 on Monday, down about 4.3% for the day. Shares traded down about 5.7% after hours at $9.78. The stock’s 52-week range is $4.93 to $16.99. Thomson Reuters had a consensus analyst price target of $10.72 before today’s report.

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