VARCO NET LOSS $119 MLN
HOUSTON--Apr. 28, 2016-- National Oilwell Varco, Inc. (NYSE:NOV) today reported a first quarter 2016 net loss of $21 million, or $0.06 per share, excluding other items. Other items included $147 million in pre-tax charges primarily associated with severance and facility closure costs. GAAP net loss for the quarter was $119 million, or $0.32 per share.
Revenues for the first quarter of 2016 were $2.19 billion, a decrease of 20 percent compared to the fourth quarter of 2015 and a decrease of 55 percent from the first quarter of 2015. Adjusted EBITDA (as defined below) for the first quarter was $127 million, or 5.8 percent of sales. Decremental Adjusted EBITDA margin (the change in Adjusted EBITDA as a percent of the change in revenue) from the fourth quarter of 2015 to the first quarter of 2016 was 37 percent. Operating loss, excluding other items, was $48 million.
"Oil prices and oilfield activity continued to plummet during the first quarter of 2016, causing our customers to cut spending to bare minimum levels," stated Clay C. Williams, Chairman, President and CEO of National Oilwell Varco. "The fifth quarter of this extraordinary downcycle saw our revenues decline sharply once again, leading us to intensify our cost reduction efforts. While this market has been very tough on our business, I am grateful for the leadership and perseverance demonstrated by National Oilwell Varco's tremendous employees. Better days lie ahead. Our strong financial resources enable us to continue to invest in new technologies, products and acquisitions that better position us for the inevitable upturn."
|NATIONAL OILWELL VARCO, INC.|
|CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)|
|(In millions, except per share data)|
|Three Months Ended|
|Completion & Production Solutions||558||948||746|
|Gross profit %||13.7||%||24.4||%||19.1||%|
|Selling, general, and administrative||348||486||379|
|Operating profit (loss)||(189||)||570||(1,632||)|
|Interest and financial costs||(25||)||(26||)||(27||)|
|Equity income (loss) in unconsolidated affiliates||(6||)||9||(3||)|
|Other income (expense), net||(21||)||(56||)||(17||)|
|Income (loss) before income taxes||(236||)||502||(1,674||)|
|Provision for income taxes||(118||)||189||(152||)|
|Net income (loss)||(118||)||313||(1,522||)|
|Net income attributable to noncontrolling interests||1||3||1|
|Net income (loss) attributable to Company||$||(119||)||$||310||$||(1,523||)|
|Per share data:|
|Weighted average shares outstanding:|
|November, 17, 19:55:00|
|November, 17, 19:50:00|
|November, 17, 19:45:00|
|November, 17, 19:40:00|
|November, 17, 19:35:00|
|November, 17, 19:30:00|
REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.