On Apr 25, 2016, Nabors Industries Ltd. NBR reported first-quarter 2016 adjusted loss from continuing operations of 29 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. The outperformance could be attributed to the effects of aggressive cost reduction.However, the company had reported adjusted profit of 20 cents in the year-ago quarter. Activity declines across all business lines following a steep drop in oil prices hampered the results. Following this, the company fell almost 10% on the NYSE.Total revenue of $430.8 million came below the Zacks Consensus Estimate of $633 million and fell almost 70% from $1,422.2 million in first-quarter 2015.During the quarter, Drilling and Rig Service revenues were down 43.3% year over year to $621.1 million. Moreover, the segment’s operating loss was $18.6 million, while the segment had reported profit of $195.1 million the year-ago period.Nabors’ U.S. operations recorded quarterly revenues of $148.7 million, down 67.2% from the year-ago level. What’s more, the unit recorded an operating loss of $47.6 million, against a profit of $77 million in the prior-year period.The Canadian market witnessed a year-over-year decline of 70% in revenues, recording sales of $17.5 million. Besides, the segment incurred a loss of $7.3 million, while it had reported operating profit of $6.4 million in the year-ago quarter. Lower rig activity caused the downfall.Nabors’ international operations also saw a decline in revenue generation (down 4% year over year to $401.1 million) and operating income moved down 32% from first-quarter 2015 to $46.9 million. Reduction in rig years caused the downside.Revenues at the Rig Services segment decreased 62.6% to $53.9 million from the prior-year quarter. The unit incurred loss of $10.6 million, while the segment had reported income of $12.9 million in the year-earlier quarter.Direct CostThe direct expenses related to operations came at $365 million, down 60.3% from the year-ago quarter.Balance SheetAs of Mar 31, 2016, the company had $221.5 million in cash and short-term investments and $3,584.4 million in long-term debt, with a debt-to-capitalization ratio of approximately 47.8%. Zacks RatingNabors Industries currently has a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.Some better-ranked players in the energy sector are PetroChina Co. Ltd. PTR, Vanguard Natural Resources, LLC VNR and World Point Terminals, LP WPT. Each of these stocks sports a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PETROCHINA ADR (PTR): Free Stock Analysis Report NABORS IND (NBR): Free Stock Analysis Report VANGUARD NATURL (VNR): Free Stock Analysis Report WORLD POINT TER (WPT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research