Nabors Industries reported first-quarter revenue and earnings from unconsolidated affiliates of $1.42 billion, compared to $1.78 billion in the fourth quarter of 2014 and $1.59 billion in the first quarter of last year.
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Revenue in the International segment was up 3% sequentially, while revenue for the U.S. and Canada drilling operations decreased by 17% and 34%, respectively. Completion and Production Services revenue fell by 39% partially reflecting the timing of the C&J Energy Services transaction, which closed on March 24.
Net income from continuing operations reported for the first quarter was $124.4 million or $0.43 per diluted share. Adjusted net income was $58.3 million, or $0.20 per share, after excluding a $61.9 million after-tax net gain from the C&J Energy Services transaction, tax benefits of $10.5 million, and $6.3 million in after-tax severance charges from workforce reductions.
This compares to adjusted net income from continuing operations of $96.3 million ($0.33 per share) in the fourth quarter and $49.0 million ($0.16 per share) in the same quarter of last year.
Adjusted net income for the fourth quarter of 2014 excludes the effect of asset impairments and other charges. The Company's financial results for the first quarter of 2015 include the Completion and Production Services business through March 23, 2015. For the first quarter up to the closing date, this business reported an operating loss of $58.5 million, representing a negative impact to earnings per share of approximately $0.15.
William Restrepo, Nabors chief financial officer, stated, "Although we have started to demonstrate the validity of our strategy based on global operations, highly capable, advanced rigs, and development of innovations in drilling technologies and solutions, we remain extremely focused on managing through this severe downtur.
"We have expanded our commercial efforts in marketing our drilling rigs, as well as cross-selling and seeking new opportunities for additional drilling-related services. We have rapidly aligned our direct costs with the current activity level
"We have implemented reductions in SG&A overhead and expect to deliver year-over-year reductions of at least $70 million dollars, while already reducing our total workforce by almost 5,500. We target 2015 capital expenditures below $1 billion, half our initial expectation." ■