Nabors takes a hit from pressure-pumping unit

By Luke Johnson Houston

 19 July 2012 22:59 GMT

US driller Nabors Industries has warned that it expects its second-quarter operating results to come in below Wall Street estimates, primarily due to a weak showing by its pressure-pumping business.

Companies such as Nabors and Halliburton have been hit hard in recent months by falling demand for pressure-pumping services, such as hydraulic fracturing and by high prices for commodities, particularly guar gum, a key ingredient in fracking fluid.

“This quarter’s shortfall is disappointing,” Nabors chief executive Tony Petrello said. “The largest component of the shortfall is attributable to the increasingly competitive spot market in pressure pumping, where pricing and utilisation continued to deteriorate while costs spiked in the quarter.”

Petrello said that despite the disappointments, Nabors should bring in between $70 million and…

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