Customer concentration
A few large customers account for a large share of operating revenue, limiting replacement options.
- Scope
- Saudi Aramco and other major contract drilling customers
- Materiality
- high
Nabors Industries Ltd
Nabors Industries Ltd. owns and operates a large fleet of land drilling rigs and also provides offshore platform rigs, drilling-related services, and rig technology products. The company combines drilling operations with automation software, tubular running services, managed pressure drilling, and equipment manufacturing to improve well construction performance and efficiency.
35,2 %
9,0 %
+8,7 %
1.56
1.47
| % | |
|---|---|
| Contract Drilling | 55% Operation of land rigs and offshore platform rigs under customer contracts. |
| Drilling Solutions | 20% Tubular running, managed pressure drilling, and other well-construction services. |
| Rig Technologies | 15% Manufacture and sale of rig components, downhole tools, and robotic systems. |
| Digital and Automation Software | 10% RigCLOUD, SmartNAV, SmartSLIDE, ROCKit and related automation tools. |
Nabors sells primarily to oil and gas exploration and production companies that need drilling capacity,...
- Large integrated and national oil companiesprimary
Buy long-term drilling capacity and integrated services for major field development programs.
- Independent E&P operatorsprimary
Contract land rigs and drilling services for shale and conventional programs.
- Middle East joint-venture customersprimary
Use Nabors rigs and services through SANAD and similar structures for large-scale drilling activity.
- Third-party rig operatorssecondary
Buy Rig Technologies equipment, automation, and aftermarket support to upgrade fleets.
- International drilling customerssecondary
Contract rigs and services in over 20 countries where local operating expertise matters.
Nabors operates in over 20 countries, with a core base in the United States and a meaningful international footprint...
- •United States is the core market for land drilling and offshore platform rigs
- •International drilling spans more than 20 countries
- •Saudi Arabia is strategically important through the SANAD joint venture
- •Rig Technologies serves domestic and international third-party customers
- •Geographic mix affects utilization, pricing, currency, and political risk
Nabors is focused on combining drilling hardware, software, and automation into integrated rig systems that improve...
01
Integrated rig technologymedium-term
Combining hardware, software, and automation improves rig performance and differentiation.
02
Automation and operational excellencemedium-term
Automation can reduce labor intensity, improve consistency, and support higher utilization.
03
Portfolio expansion through acquisitionsshort-term
Acquired operations can add scale, customer relationships, and cross-selling opportunities.
04
Lower-carbon and efficiency technologieslong-term
Emissions-reduction tools help meet customer and regulatory expectations and support pricing power.
Nabors is exposed to cyclical drilling demand, customer concentration, and intense price competition in a market with...
Commodity price volatility
Lower oil and gas prices reduce customer drilling budgets and rig utilization.
- Scope
- Drilling activity, dayrates, and cash flow
- Materiality
- high
Excess drilling capacity and price competition
Oversupply of rigs and bid-based contracting pressure pricing and utilization.
- Scope
- U.S. land drilling and international markets
- Materiality
- high
Asset impairment risk
Long-lived drilling assets may need write-downs if utilization or dayrates stay weak.
- Scope
- Rig fleet and drilling equipment
- Materiality
- high
International political and regulatory exposure
Operations in over 20 countries create exposure to instability, import/export controls, and anti-corruption laws.
- Scope
- Middle East and other international markets
- Materiality
- medium
Impairment of long-lived assets
Could materially affect operating income and asset values
Fair value of acquired assets and liabilities
Can change reported goodwill and future amortization/depreciation
Insurance reserves
A 10% reserve change was disclosed as having a measurable earnings effect
Depreciation from acquired assets
Affects operating profit and comparability across periods
Debt and interest expense
Directly reduces net income and cash available for investment
: 28.4.2026