Nabors Industries Ltd. has reported first quarter 2023 net income of $49 million, or $4.11 per diluted share.

This compares to a loss of $69 million, or $7.87 per diluted share, in the fourth quarter.

Operating revenues were $779 million, an increase of 2.5 per cent, compared to operating revenues of $760 million in the fourth quarter of 2022.

The first quarter results included a gain, related to mark-to-market treatment of Nabors warrants, of $34 million, or $3.48 per diluted share.

The quarter also included a $25 million, or $2.06 per diluted share, gain on the redemption of debt. Results for the fourth quarter of 2022 included a mark-to-market charge of $36 million, or $3.98 per diluted share, for the warrants.

Excluding the impact of the Nabors warrants on each quarter's results and the debt redemption gain, the net loss improved sequentially by $28 million.

First quarter adjusted earnings before interest, taxes, depreciation and amortizaton was $240 million, compared to $230 million in the previous quarter.

Nabors provides advanced technology for the energy industry. In more than 20 countries, it has a global network of people, technology and equipment to deploy solutions aimed at safe, efficient and responsible energy production.

The company’s core competencies are in drilling, engineering, automation, data science and manufacturing.

Anthony G. Petrello, Nabors chairman, CEO and president, stated that the overall results for the first quarter were in line with expectations.

He said: “Total adjusted EBITDA increased, driven by growth in the US Drilling and Drilling Solutions segments. In US Drilling, adjusted daily gross margin in the Lower 48 market reached a new record. Drilling Solutions' growth was broad-based across service lines.

"In the Lower 48, we continued repricing our rigs upward. Daily rig revenue increased by more than $3,700. Daily gross margin increased by more than $2,000.“

The International segment benefited from a full quarter of the second newbuild rig in Saudi Arabia. The remaining three rigs of the initial five awards are expected to commence operations over the balance of 2023.

Construction of the second tranche of five units commenced during the quarter, with deployment expected to begin around the end of 2023.

Revenue and adjusted EBITDA in the Drilling Solutions segment was up by five per cent in the first quarter.

The Rig Technologies segment performed well with increased revenue and adjusted EBITDA from Energy Transition solutions, demonstrating the growing demand for the portfolio, the company said.

Installations of several of these solutions increased in the first quarter, demonstrating their rapid acceptance in the market.

Also during the quarter, the planned business combination between Nabors affiliate Nabors Energy Transition Corporation and Vast Pty Ltd was announced.

With its innovative technology, Vast is said to be positioned at the forefront of next-generation concentrated solar power.

Mr Petrello added: "Our first quarter results demonstrate the strength of our strategy. Our commitments to value-based rig pricing and disciplined capital spending, coupled with continued focus on growth of our advanced performance solutions and international operations, position us to make further progress on our financial goals in 2023."