RUS | ENG | All
Enter the email or login, that you used for registration.
If you do not remember your password, simply leave this field blank and you will receive a new, along with a link to activate.

Not registered yet?
Welcome!

2014-07-30 18:20:00

NOV: HISTORIC Q2 2014

NOV: HISTORIC Q2 2014

National Oilwell Varco, Inc. (NYSE: NOV) reported that for its second quarter ended June 30, 2014, it earned net income of $619 million, or $1.44 per fully diluted share, compared to first quarter ended March 31, 2014 net income of $589 million, or $1.37 per fully diluted share.

The second quarter 2014 fully diluted earnings per share includes: $0.02 per share for income from discontinued operations, ($0.05) per share for nonrecurring items and ($0.14) per share for the amortization of intangible assets. The first quarter of 2014 fully diluted earnings per share includes: $0.09 per share for income from discontinued operations, ($0.01) per share for nonrecurring items and ($0.14) per share for the amortization of intangible assets. Excluding these items, operating (non-GAAP) earnings per fully diluted share for the second quarter of 2014 were $1.61 per share, compared to $1.43 per share in the first quarter of 2014, an increase of 13 percent.

As previously announced, on May 30, 2014, the Company completed the spin-off to its stockholders of its distribution business as an independent public company, NOW Inc. These results are presented as discontinued operations. This also marks the first quarter in which the Company has issued financial results based on its four new reporting segments.

Revenues for the second quarter of 2014 were $5.26 billion, an increase of seven percent from the first quarter of 2014 and an increase of 12 percent from the second quarter of 2013. Operating profit for the quarter, excluding non-recurring items, was $945 million, or 18.0 percent of sales. EBITDA for the quarter, excluding non-recurring items, was $1.14 billion, or 21.7 percent of sales, up 12 percent from the prior quarter.

Ending backlog for the second quarter of 2014 was $15.39 billion for the Company's Rig Systems segment and $2.14 billion for the Company's Completion & Production Solutions segment.

Clay Williams, Chairman, President and CEO of National Oilwell Varco, stated, "The second quarter of 2014 was a historic quarter for NOV. In addition to posting strong operating results, and securing $3.4 billion in new capital equipment orders, we are very pleased to have created additional shareholder value by both successfully completing the spin-off of our distribution business, and increasing our regular dividend by over 75 percent. As we move through the second half of 2014, we look forward to continued demand for our drilling, completion and production equipment, and continued strong results from our four new segments."

NATIONAL OILWELL VARCO, INC.
CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
 
          June 30,       December 31,
          2014       2013
          (Unaudited)        
ASSETS                  
Current assets:                  
Cash and cash equivalents         $ 3,885       $ 3,436  
Receivables, net           4,427         4,896  
Inventories, net           5,198         5,603  
Costs in excess of billings           1,567         1,539  
Deferred income taxes           331         373  
Prepaid and other current assets           595         576  
Total current assets           16,003         16,423  
                   
Property, plant and equipment, net           3,440         3,408  
Deferred income taxes           472         372  
Goodwill           8,640         9,049  
Intangibles, net           4,808         5,055  
Investment in unconsolidated affiliates           351         390  
Other assets           113         115  
          $ 33,827       $ 34,812  
                   
LIABILITIES AND STOCKHOLDERS’ EQUITY                  
                   
Current liabilities:                  
Accounts payable         $ 1,178       $ 1,275  
Accrued liabilities           2,857         2,763  
Billings in excess of costs           2,176         1,771  
Current portion of long-term debt and short-term borrowings           -         1  
Accrued income taxes           260         556  
Deferred income taxes           444         312  
Total current liabilities           6,915         6,678  
                   
Long-term debt           3,148         3,149  
Deferred income taxes           2,002         2,292  
Other liabilities           344         363  
Total liabilities           12,409         12,482  
                   
Commitments and contingencies                  
                   
Stockholders’ equity:                  
Common stock – par value $.01; 1 billion shares authorized; 429,458,043 and 428,433,703                  
shares issued and outstanding at June 30, 2014 and December 31, 2013           4         4  
Additional paid-in capital           8,999         8,907  
Accumulated other comprehensive income (loss)           48         (4 )
Retained earnings           12,281         13,323  
Total Company stockholders’ equity           21,332         22,230  
Noncontrolling interests           86         100  
Total stockholders’ equity           21,418         22,330  
          $ 33,827       $ 34,812  
                         
                                           
NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In millions, except per share data)
                                           
          Three Months Ended       Six Months Ended
          June 30,       March 31,       June 30,
          2014       2013       2014       2014       2013
Revenue:                                          
Rig Systems         $ 2,372         $ 2,081         $ 2,256         $ 4,628         $ 3,992  
Rig Aftermarket           785           670           750           1,535           1,221  
Wellbore Technologies           1,446           1,222           1,278           2,724           2,445  
Completion & Production Solutions           1,127           1,057           1,002           2,129           2,059  
Eliminations           (475 )         (350 )         (397 )         (872 )         (661 )
Total revenue           5,255           4,680           4,889           10,144           9,056  
Gross profit           1,456           1,227           1,290           2,746           2,416  
Gross profit %           27.7 %         26.2 %         26.4 %         27.1 %         26.7 %
Selling, general, and administrative           511           457           473           984           889  
Nonrecurring items           32           57           18           50           130  
Operating profit           913           713           799           1,712           1,397  
Interest and financial costs           (27 )         (30 )         (26 )         (53 )         (58 )
Interest income           5           3           4           9           6  
Equity income in unconsolidated affiliates           23           15           10           33           34  
Other income (expense), net           (21 )         11           -           (21 )         (3 )
Income before income taxes           893           712           787           1,680           1,376  
Provision for income taxes           284           218           239           523           423  
Income from continuing operations           609           494           548           1,157           953  
Income from discontinued operations           11           37           41           52           78  
Net income           620           531           589           1,209           1,031  
Net income (loss) attributable to noncontrolling interests           1           -           -           1           (2 )
Net income attributable to Company         $ 619         $ 531         $ 589         $ 1,208         $ 1,033  
                                           
Per share data:                                          
Basic                                          
Income from continuing operations         $ 1.42         $ 1.16         $ 1.28         $ 2.70         $ 2.24  
Income from discontinued operations         $ 0.03         $ 0.09         $ 0.10         $ 0.12         $ 0.18  
Net income attributable to Company         $ 1.45         $ 1.25         $ 1.38         $ 2.82         $ 2.42  
Diluted                                          
Income from continuing operations         $ 1.42         $ 1.15         $ 1.28         $ 2.69         $ 2.23  
Income from discontinued operations         $ 0.02         $ 0.09         $ 0.09         $ 0.12         $ 0.18  
Net income attributable to Company         $ 1.44         $ 1.24         $ 1.37         $ 2.81         $ 2.41  
Weighted average shares outstanding:                                          
Basic           428           426           428           428           426  
Diluted           430           428           429           430           428  
                                           
                                           
NATIONAL OILWELL VARCO, INC.
OPERATING PROFIT – AS ADJUSTED SUPPLEMENTAL SCHEDULE (Unaudited)
(In millions)
                                           
          Three Months Ended       Six Months Ended
          June 30,       March 31,       June 30,
          2014       2013       2014       2014       2013
                                           
Revenue:                                          
Rig Systems         $ 2,372         $ 2,081         $ 2,256         $ 4,628         $ 3,992  
Rig Aftermarket           785           670           750           1,535           1,221  
Wellbore Technologies           1,446           1,222           1,278           2,724           2,445  
Completion & Production Solutions           1,127           1,057           1,002           2,129           2,059  
Eliminations           (475 )         (350 )         (397 )         (872 )         (661 )
Total revenue           5,255           4,680           4,889           10,144           9,056  
Operating profit:                                          
Rig Systems         $ 501         $ 393         $ 451         $ 952         $ 765  
Rig Aftermarket           217           189           191           408           331  
Wellbore Technologies           269           195           224           493           403  
Completion & Production Solutions           158           163           143           301           335  
Eliminations           (200 )         (170 )         (192 )         (392 )         (307 )
Total operating profit (before nonrecurring items)         $ 945         $ 770         $ 817         $ 1,762         $ 1,527  
Operating profit %:                                          
Rig Systems           21.1 %         18.9 %         20.0 %         20.6 %         19.2 %
Rig Aftermarket           27.6 %         28.2 %         25.5 %         26.6 %         27.1 %
Wellbore Technologies           18.6 %         16.0 %         17.5 %         18.1 %         16.5 %
Completion & Production Solutions           14.0 %         15.4 %         14.3 %         14.1 %         16.3 %
Total operating profit % (before nonrecurring items)           18.0 %         16.5 %         16.7 %         17.4 %         16.9 %
                                                               
                                           
NATIONAL OILWELL VARCO, INC.
AS ADJUSTED BEFORE DEPRECIATION & AMORTIZATION SUPPLEMENTAL SCHEDULE (Unaudited)
(In millions)
                                           
          Three Months Ended       Six Months Ended
          June 30,       March 31,       June 30,
          2014       2013       2014       2014       2013
Operating profit excluding nonrecurring items (Note 1):                                          
Rig Systems         $ 501         $ 393         $ 451         $ 952         $ 765  
Rig Aftermarket           217           189           191           408           331  
Wellbore Technologies           269           195           224           493           403  
Completion & Production Solutions           158           163           143           301           335  
Eliminations           (200 )         (170 )         (192 )         (392 )         (307 )
Total operating profit excluding nonrecurring items         $ 945         $ 770         $ 817         $ 1,762         $ 1,527  
                                                               
Depreciation & amortization:                                          
Rig Systems         $ 22         $ 22         $ 22         $ 44         $ 38  
Rig Aftermarket           7           6           6           13           12  
Wellbore Technologies           108           101           108           216           202  
Completion & Production Solutions           53           57           55           108           104  
Eliminations           -           -           -           -           -  
Total depreciation & amortization         $ 190         $ 186         $ 191         $ 381         $ 356  
                                                               
Segment EBITDA excluding nonrecurring items                                          
(Note 1):                                          
Rig Systems         $ 523         $ 415         $ 473         $ 996         $ 803  
Rig Aftermarket           224           195           197           421           343  
Wellbore Technologies           377           296           332           709           605  
Completion & Production Solutions           211           220           198           409           439  
Eliminations           (200 )         (170 )         (192 )         (392 )         (307 )
Total segment EBITDA excluding nonrecurring items         $ 1,135         $ 956         $ 1,008         $ 2,143         $ 1,883  
                                                               
Segment EBITDA % excluding nonrecurring items                                          
(Note 1):                                          
Rig Systems           22.0 %         19.9 %         21.0 %         21.5 %         20.1 %
Rig Aftermarket           28.5 %         29.1 %         26.3 %         27.4 %         28.1 %
Wellbore Technologies           26.1 %         24.2 %         26.0 %         26.0 %         24.7 %
Completion & Production Solutions           18.7 %         20.8 %         19.8 %         19.2 %         21.3 %
Total segment EBITDA % excluding nonrecurring items           21.6 %         20.4 %         20.6 %         21.1 %         20.8 %
                                                               
Total segment EBITDA excluding nonrecurring items         $ 1,135         $ 956         $ 1,008         $ 2,143         $ 1,883  
Nonrecurring items           (32 )         (57 )         (18 )         (50 )         (130 )
Interest income           5           3           4           9           6  
Equity income in unconsolidated affiliates           23           15           10           33           34  
Other income (expense), net           (21 )         11           -           (21 )         (3 )
Net income (loss) attributable to noncontrolling                                                              
interest           (1 )         -           -           (1 )         2  
EBITDA (Note 1)         $ 1,109         $ 928         $ 1,004         $ 2,113         $ 1,792  
                                           
Reconciliation of EBITDA (Note 1):                                          
GAAP net income attributable to Company         $ 619         $ 531         $ 589         $ 1,208         $ 1,033  
Income from discontinued operations           (11 )         (37 )         (41 )         (52 )         (78 )
Provision for income taxes           284           218           239           523           423  
Interest expense           27           30           26           53           58  
Depreciation and amortization           190           186           191           381           356  
EBITDA           1,109           928           1,004           2,113           1,792  
Nonrecurring items           32           57           18           50           130  
EBITDA excluding nonrecurring items (Note 1)         $ 1,141         $ 985         $ 1,022         $ 2,163         $ 1,922  
                                                               
 
NATIONAL OILWELL VARCO, INC.
OPERATING (NON-GAAP) DILUTED EARNINGS PER SHARE RECONCILIATION (Unaudited)
(In millions)
                                           
                                           
          Three Months Ended       Six Months Ended
          June 30,       March 31,       June 30,
          2014       2013       2014       2014       2013
                                           
Net income attributable to Company         $ 1.44         $ 1.24         $ 1.37         $ 2.81         $ 2.41  
Income from discontinued operations           (0.02 )         (0.09 )         (0.09 )         (0.12 )         (0.18 )
Income from continuing operations           1.42           1.15           1.28           2.69           2.23  
Nonrecurring items           0.05           0.09           0.01           0.07           0.21  
Amortization of intangible assets           0.14           0.15           0.14           0.29           0.27  
Operating (non-GAAP) earnings         $ 1.61         $ 1.39         $ 1.43         $ 3.05         $ 2.71  
                                           

nov.com

 

 

 

 

 

 

 

 

Tags: HALLIBURTON, FITCH, RAITING