The largest land driller in the world, Nabors Industries reported a loss for the second quarter on the back of a decline in rig counts in North America.
Nabors reported a loss attributable to common shareholders of $202 million for the second quarter, compared with a loss of $144 million in the previous quarter. The total rig count for the company was about 6 percent lower than the first quarter, with U.S. gains offset by a reduction in Canada.
Chairman and CEO Anthony Petrello highlighted the U.S. shale oil and gas sector as a standout for performance.
"With our inventory of readily available rigs internationally and upgradable rigs in the Lower 48, this should translate into a high success rate," he said in a statement.
Middle East services provider ADES International Holding spent $83 million in June to acquire three offshore rigs from driller Nabors in the Persian Gulf. ADES reported its revenue of $41.2 million marked a 15 percent decrease year-on-year as it charged less to lease its rigs.
When the price of oil collapsed below $30 per barrel in early 2016, rig companies turned to lower lease rates to improve financial performance. Based on gross margin per rig, Nabors improved 14 percent.
Last week's rig count from drilling services provider Baker Hughes showed gains in the United States and Canada, but declines internationally.
"We continued to make significant progress in all of our segments, with especially strong results in U.S. drilling," Petrollo said. "The main highlights of the quarter were numerous rate increases in the Lower 48, as contracts rolled over."
The latest drilling productivity report from the U.S. Energy Information Administration forecasts a 2 percent increase for oil from July and a 1.5 percent increase for natural gas.
