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Nabors Industries Ltd. downgraded to “sell”

Alexander Richter Alexander Richter 23 Jan 2009

As reported by Zacks, "Barbados-based Nabors Industries Ltd. (NYSE:NBR) conducts oil, gas and geothermal land drilling operations, and is the largest land-drilling contractor in the world. It is also one of the largest land well servicing companies and workover contractors in the U.S.

As reported by Zacks, “Barbados-based Nabors Industries Ltd. (NYSE:NBR) conducts oil, gas and geothermal land drilling operations, and is the largest land-drilling contractor in the world. It is also one of the largest land well servicing companies and workover contractors in the U.S.

We are downgrading Nabors Industries shares to Sell from Hold to reflect the weak outlook for the North American onshore drilling market. The expected drop off in drilling activities, in response to a combination of commodity-price weakness and credit market tightness, will weigh on the fortunes of all oilfield service players.

Being the largest onshore driller, Nabors remains particularly exposed to this uncertain macro backdrop. This, coupled with the company’s relatively weak balance sheet in an environment of continued credit market turmoil, account for our downgrade”, so Zacks.

Nabors Drilling USA, the drilling arm of Nabors Industries, provides a range of drilling and related services, and is one of the largest contract drillers in the lower 48 states. Through strategic acquisitions and internal investments, the company has built up its operating fleet to about 300 land drilling rigs. Nabors Drilling USA also provides well control equipment rental, equipment engineering, technical support and other rig-related services.

This might be interesting news for the geothermal sector and bring down drilling cost.

Source: Zacks Investment Research

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