Nabors Industries, the Bermuda-based oil services provider, said its second-quarter results will be lower-than-expected, citing weak demand for its pressure pump services and weakness in its U.S. offshore and international businesses. The stock fell almost 2% on nearly double the average daily volume on the news.
Nabors (NBR) forecast income before interest and taxes of $165 million to $170 million, well below the $187 million analysts were expecting. The company also said it expects full-year operating income of $900 million, also below the consensus estimate of $934.5 million.
The company's international operation has dealt with rig upgrades, recertification efforts and civil unrest that delayed contract awards while bad weather affected land-based operations in the U.S., including those covering the Bakken and Marcellus shale deposits, according to the Associated Press.
Nabors said delays in permit approvals are hampering its U.S. offshore business, though the company noted it is seeing some improvements on that front and that it expects a return to more normal circumstances towards the end of this year.