Bermudian-based energy driller, Nabors Industries Ltd, has reported first quarter 2022 operating revenues of $569 million, an increase of approximately five per cent, compared with operating revenues of $544 million in the fourth quarter of 2021.

The net loss from continuing operations attributable to Nabors shareholders for the quarter was $184 million, or $22.51 per share.

This compares with a loss of $114 million, or $14.60 per share in the prior quarter. The first quarter results include a non-cash charge of $72 million, or $8.63 per share, related to mark-to-market treatment of Nabors’ warrants.

First quarter adjusted EBITDA was $131 million, compared with $132 million in the previous quarter.

Anthony G. Petrello, Nabors chairman, CEO and president, said: “Our first quarter financial results demonstrate the value of our technology-focused strategy.

“Drilling Solutions’ quarterly adjusted EBITDA marked another post-pandemic high, and we saw excellent sequential growth in the US drilling segment.

“In the Lower 48, our daily drilling adjusted gross margin reflects the strong pricing environment. Our average daily revenue of $23,000 represents an increase of nearly $1,300 versus the prior quarter. Leading-edge daily rates continue to increase sharply and are now at least $5,000 higher than the first quarter’s average daily revenue.

“Adjusted EBITDA from our Drilling Solutions segment grew sequentially, on top of the strong performance in the prior quarter.

“This segment’s contribution to the company’s total adjusted EBITDA exceeded 15 per cent, an all-time high.

“The first quarter marked significant exercises of our innovative equity warrants. We issued the warrants last June, as part of our strategy to de-lever. As a result, the reduction in face value of debt outstanding from these exercises exceeded $130 million.

“Oilfield activity in the Lower 48 market, and land drilling rig counts in particular, increased significantly during the quarter.

“With support from commodity prices that have risen markedly since the beginning of the year, we remain optimistic that drilling activity in the oil and gas industry will continue to increase over the balance of the year.

“We are also encouraged by the signals coming from certain of the key international markets, where planning and tendering for additional activity are also accelerating, setting up another potential driver of future growth.”

The US Drilling segment reported $74.3 million in adjusted EBITDA for the first quarter of 2022, a seven per cent increase from the prior quarter.

Nabors’ average Lower 48 rig count, at 83.4, increased by nearly nine rigs, or 12 per cent. Daily adjusted gross margins in the Lower 48 averaged $7,694, more than seven per cent higher than the prior quarter. The US Drilling segment’s rig count currently stands at 96, with 89 rigs working in the Lower 48.

International Drilling adjusted EBITDA totalled $71.2 million, a $1.9 million decrease from the fourth quarter of 2021.

Operations in Russia primarily accounted for this change. The International rig count averaged 72 rigs, a slight increase from the prior quarter. Daily adjusted gross margin averaged $13,134, in line with the prior quarter.

In Drilling Solutions, adjusted EBITDA increased slightly to $20 million reflecting increasing activity in the US Revenue grew sequentially by five per cent, driven by performance drilling software, managed pressure drilling, and wellbore placement.