NOV VARCO DOWN 50%
NATIONAL OILWELL VARCO, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share data) |
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Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | March 31, | June 30, | |||||||||||||||||||||||
2015 | 2014 | 2015 | 2015 | 2014 | |||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||
Rig Systems | $ | 1,930 | $ | 2,372 | $ | 2,523 | $ | 4,453 | $ | 4,628 | |||||||||||||||
Rig Aftermarket | 657 | 785 | 719 | 1,376 | 1,535 | ||||||||||||||||||||
Wellbore Technologies | 956 | 1,446 | 1,171 | 2,127 | 2,724 | ||||||||||||||||||||
Completion & Production Solutions | 873 | 1,127 | 948 | 1,821 | 2,129 | ||||||||||||||||||||
Eliminations | (507 | ) | (475 | ) | (541 | ) | (1,048 | ) | (872 | ) | |||||||||||||||
Total revenue | 3,909 | 5,255 | 4,820 | 8,729 | 10,144 | ||||||||||||||||||||
Gross profit | 872 | 1,456 | 1,178 | 2,050 | 2,746 | ||||||||||||||||||||
Gross profit % | 22.3 | % | 27.7 | % | 24.4 | % | 23.5 | % | 27.1 | % | |||||||||||||||
Selling, general, and administrative | 417 | 511 | 486 | 903 | 984 | ||||||||||||||||||||
Other items | 17 | 32 | 122 | 139 | 50 | ||||||||||||||||||||
Operating profit | 438 | 913 | 570 | 1,008 | 1,712 | ||||||||||||||||||||
Interest and financial costs | (26 | ) | (27 | ) | (26 | ) | (52 | ) | (53 | ) | |||||||||||||||
Interest income | 2 | 5 | 5 | 7 | 9 | ||||||||||||||||||||
Equity income in unconsolidated affiliates | 7 | 23 | 9 | 16 | 33 | ||||||||||||||||||||
Other income (expense), net | (30 | ) | (21 | ) | (56 | ) | (86 | ) | (21 | ) | |||||||||||||||
Income before income taxes | 391 | 893 | 502 | 893 | 1,680 | ||||||||||||||||||||
Provision for income taxes | 105 | 284 | 189 | 294 | 523 | ||||||||||||||||||||
Income from continuing operations | 286 | 609 | 313 | 599 | 1,157 | ||||||||||||||||||||
Income from discontinued operations | - | 11 | - | - | 52 | ||||||||||||||||||||
Net income | 286 | 620 | 313 | 599 | 1,209 | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | (3 | ) | 1 | 3 | - | 1 | |||||||||||||||||||
Net income attributable to Company | $ | 289 | $ | 619 | $ | 310 | $ | 599 | $ | 1,208 |
National Oilwell Varco, Inc. (NYSE: NOV) today reported that for its second quarter ended June 30, 2015, it earned net income of $289 million, or $0.74 per fully diluted share, compared to first quarter ended March 31, 2015 net income of $310 million, or $0.76 per fully diluted share. Excluding other items and non-recurring charges from all periods, second quarter net income was $301 million, or $0.77 per fully diluted share, compared to $1.14 in the first quarter of 2015 and $1.47 in the second quarter of 2014. Second quarter 2015 other items were $17 million in pre-tax severance and facility closure charges.
Revenues for the second quarter of 2015 were $3.91 billion, a decrease of 19 percent from the first quarter of 2015 and a decrease of 26 percent from the second quarter of 2014. Operating profit for the quarter, excluding the other items, was $455 million, or 11.6 percent of sales. EBITDA, excluding other items, was $627 million, or 16.0 percent of sales, down 45 percent from the prior year.
During the second quarter of 2015, the Company repurchased and retired 8.6 million shares of its common stock at an average price of $51.73 per share for a total purchase price of $447 million. Since initiating a share buyback program in September 2014, the Company repurchased 44.7 million shares through the end of the second quarter, or 10.4 percent of its shares outstanding, at an average price of $57.12 per share.
Ending backlog for the second quarter of 2015 was $9.03 billion for the Company's Rig Systems segment and $1.19 billion for the Company's Completion & Production Solutions segment.
Clay C. Williams, Chairman, President and CEO of National Oilwell Varco, stated, "NOV achieved solid results this quarter in the face of the cyclical downturn which has impacted our business. The operating margins delivered by our segments this quarter reflect our focus on reducing costs to become more efficient. We continue to advance our long-term strategies and expect that the strength of our balance sheet will allow us to identify investment opportunities arising from this downturn. We are positioning the company to perform well through the downturn and to generate profitable growth in the inevitable upturn, and expect that while 2015 will continue to be challenging, it will afford us the opportunity to make great progress against our strategic plans."
Rig Systems
The Rig Systems segment generated revenues of $1.93 billion in the second quarter of 2015, a decrease of 24 percent from the first quarter of 2015 and a decrease of 19 percent from the second quarter of 2014. Operating profit for this segment was $395 million, or 20.5 percent of sales. EBITDA for this segment was $419 million, or 21.7 percent of sales. Revenue out of backlog for the segment was $1.70 billion.
Backlog for capital equipment orders for the Company's Rig Systems segment at June 30, 2015 was $9.03 billion, down 13 percent from the first quarter of 2015, and down 41 percent from the end of the second quarter of 2014. New orders during the quarter were $313 million.
Rig Aftermarket
The Rig Aftermarket segment generated revenues of $657 million in the second quarter of 2015, a decrease of nine percent from the first quarter of 2015 and a decrease of 16 percent from the second quarter of 2014. Operating profit for this segment was $145 million, or 22.1 percent of sales. EBITDA for this segment was $152 million, or 23.1 percent of sales.
Wellbore Technologies
The Wellbore Technologies segment generated revenues of $956 million in the second quarter of 2015, a decrease of 18 percent from the first quarter of 2015 and a decrease of 34 percent from the second quarter of 2014. Operating profit for this segment was $47 million, or 4.9 percent of sales. EBITDA for this segment was $146 million, or 15.3 percent of sales.
Completion & Production Solutions
The Completion & Production Solutions segment generated revenues of $873 million in the second quarter of 2015, a decrease of eight percent from the first quarter of 2015 and a decrease of 23 percent from the second quarter of 2014. Revenues out of backlog were $538 million. Operating profit for this segment was $81 million, or 9.3 percent of sales. EBITDA for this segment was $141 million, or 16.2 percent of sales.
Backlog for capital equipment orders for the Company's Completion & Production Solutions segment at June 30, 2015 was $1.19 billion, down 18 percent from the first quarter of 2015, and down 44 percent from the end of the second quarter of 2014. New orders during the quarter were $264 million.
nov.com
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