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2018-10-26 12:01:00

NOV VARCO NET INCOME $1 MLN

NOV VARCO NET INCOME $1 MLN

NOV VARCONational Oilwell Varco, Inc. (NYSE: NOV)  reported third quarter 2018 revenues of $2.15 billion, an increase of two percent compared to the second quarter of 2018 and an increase of 17 percent from the third quarter of 2017. Operating profit for the third quarter of 2018 was $73 million, or 3.4 percent of sales, Adjusted EBITDA (operating profit excluding depreciation and amortization) was $245 million, or 11.4 percent of sales, and net income was $1 million. Operating profit increased 40 percent sequentially, and Adjusted EBITDA increased eight percent sequentially and 47 percent compared to the third quarter of 2017.

"Our revenues and Adjusted EBITDA continued to grow in the third quarter, underpinned by higher sequential demand for downhole tools, drill pipe, and wellsite services in support of drilling operations globally," commented Clay Williams, Chairman, President, and CEO. "However, the slowdown in North American completions activity late in the period led to lower sequential well-stimulation equipment sales. This together with weaker demand for offshore equipment offset some of our sequential revenue gains.

We believe the industry is poised to achieve higher levels of activity in 2019 as it works through near-term logistical challenges in North American unconventional basins, navigates end-of-year budget constraints, and sanctions more offshore projects. During the third quarter we saw rising demand for conductor pipe connections—a leading indicator of future offshore wells—as well as increased inquiries around offshore rig reactivations, pointing to more offshore activity ahead. We also see pockets of demand strengthening in certain international land markets, as operators respond to generally higher commodity prices. In the meantime, we continue to develop and deliver technology that helps lower the industry's marginal production costs, and position our business as a leading innovator and provider of critical well construction tools. National Oilwell Varco is well-positioned to capitalize on the opportunities that lie ahead."

Wellbore Technologies

Wellbore Technologies generated revenues of $847 million in the third quarter of 2018, an increase of seven percent from the second quarter of 2018 and an increase of 22 percent from the third quarter of 2017. The segment realized meaningful growth for the second consecutive quarter as domestic revenue outpaced the percentage growth in the U.S. rig count, and international operations capitalized on an increasing number of opportunities associated with the emerging recovery in the Eastern Hemisphere. Operating leverage was limited to four percent mostly due to higher steel and labor costs, which outpaced the segment's price increases. Operating profit was $40 million, or 4.7 percent of sales. Adjusted EBITDA increased two percent sequentially and 44 percent from the prior year to $135 million, or 15.9 percent of sales.

Completion & Production Solutions

Completion & Production Solutions generated revenues of $735 million in the third quarter of 2018, a decrease of $3 million from the second quarter of 2018 and an increase of eight percent from the third quarter of 2017. Slowing demand for pressure pumping equipment in North America and sharper-than-anticipated declines in offshore-focused businesses more than offset strong growth in demand for land production equipment. Operating profit was $46 million, or 6.3 percent of sales. Adjusted EBITDA increased five percent sequentially and two percent from the prior year to $99 million, or 13.5 percent of sales.

New orders booked during the quarter were $372 million, representing a book-to-bill of 85 percent when compared to the $439 million of orders shipped from backlog. Backlog for capital equipment orders for Completion & Production Solutions at September 30, 2018 was $880 million.

Rig Technologies

Rig Technologies generated revenues of $637 million in the third quarter of 2018, a decrease of two percent from the second quarter of 2018 and an increase of 25 percent from the third quarter of 2017. Improving aftermarket sales and better progress on offshore projects did not fully offset lower land rig sales from inventory. Operating profit was $58 million, or 9.1 percent of sales. Adjusted EBITDA decreased seven percent sequentially and increased 95 percent from the prior year to $78 million, or 12.2 percent of sales.

New orders booked during the quarter totaled $151 million, representing a book-to-bill of 59 percent when compared to the $256 million of orders shipped from backlog. At September 30, 2018, backlog for capital equipment orders for Rig Technologies was $3.40 billion.

Other Corporate Items

Revenue eliminations decreased $11 million sequentially due to a reduction in intersegment sales. This decrease, along with lower compensation and third-party service expenses, resulted in a $17 million reduction in eliminations and corporate costs.

Cash flow provided by operations for the third quarter of 2018 was $190 million. As of September 30, 2018, the Company had $1.3 billion in cash and cash equivalents, total debt of $2.7 billion and $3.0 billion available on its revolving credit facility.

 

NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)
(In $ millions, except per share data)
 
  Three Months Ended Nine Months Ended
  September 30, June 30, September 30,
  2018 2017 2018 2018 2017
Revenue:          
Wellbore Technologies 847 693 793 2,351 1,862
Completion & Production Solutions 735 682 738 2,143 1,982
Rig Technologies 637 510 651 1,771 1,638
Eliminations (65) (50) (76) (210) (147)
Total revenue 2,154 1,835 2,106 6,055 5,335
Gross profit 393 285 355 1,035 725
Gross profit % 18.2 15.5 16.9 17.1 13.6
           
Selling, general, and administrative 320 292 303 911 891
Operating profit (loss) 73 (7) 52 124 (166)
Interest and financial costs (24) (26) (23) (71) (77)
Interest income 6 11 5 18 19
Equity income (loss) in unconsolidated affiliates (2) (2) (1) (1) (4)
Other income (expense), net (20) (16) (3) (70) (36)
Income (loss) before income taxes 33 (40) 30 (264)
Provision (benefit) for income taxes 29 (13) 5 37 (43)
Net income (loss) 4 (27) 25 (37) (221)
Net (income) loss attributable to noncontrolling interests 3 (1) 1 6 2
Net income (loss) attributable to Company 1 (26) 24 (43) (223)
Per share data:          
Basic, $ 0.00 (0.07) 0.06 (0.11) (0.59)
Diluted, $ 0.00 (0.07) 0.06 (0.11) (0.59)
Weighted average shares outstanding:          
Basic 379 377 378 378 377
Diluted 383 377 381 378 377
           
NATIONAL OILWELL VARCO, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(In $ millions)
 
  September 30, December 31,
  2018 2017
ASSETS    
Current assets:    
Cash and cash equivalents 1,293 1,437
Receivables, net 2,005 2,015
Inventories, net 3,177 3,003
Contract assets 483 495
Other current assets 263 267
Total current assets 7,221 7,217
     
Property, plant and equipment, net 2,813 3,002
Goodwill and intangibles, net 9,411 9,528
Other assets 448 459
Total assets 19,893 20,206
     
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Current liabilities:    
Accounts payable 675 510
Accrued liabilities 1,023 1,238
Contract liabilities 570 519
Current portion of long-term debt and short-term borrowings 8 6
Accrued income taxes 81
Total current liabilities 2,276 2,354
     
Long-term debt 2,706 2,706
Other liabilities 935 986
Total liabilities 5,917 6,046
     
Total stockholders’ equity 13,976 14,160
Total liabilities and stockholders’ equity 19,893 20,206

 

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Earlier:

NOV VARCO NET INCOME $24 MLN
2018, July, 27, 12:01:00

NOV VARCO NET INCOME $24 MLN

NOV VARCO - National Oilwell Varco, Inc. (NYSE: NOV) reported second quarter 2018 net income of $24 million, or $0.06 per diluted share. Revenues for the second quarter were $2.11 billion, an increase of 17 percent compared to the first quarter of 2018 and an increase of 20 percent from the second quarter of 2017. Operating profit for the second quarter of 2018 was $52 million, or 2.5 percent of sales, and Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) was $226 million, or 10.7 percent of sales.

 
 NOV - ARAMCO COOPERATION
2018, June, 29, 10:00:00

NOV - ARAMCO COOPERATION

NOV - National Oilwell Varco, Inc. (NYSE: NOV) today announced the signing of an agreement with Saudi Aramco to form a joint venture in the Kingdom of Saudi Arabia. Through its state-of-the-art manufacturing and fabrication facilities in the Kingdom and NOV’s market-leading drilling technologies, the joint venture will provide high-specification land rigs, rig and drilling equipment and offer certain aftermarket services.

 NOV VARCO NET LOSS $68 MLN
2018, April, 27, 10:30:00

NOV VARCO NET LOSS $68 MLN

NOV - National Oilwell Varco, Inc. (NYSE: NOV) today reported a first quarter 2018 net loss of $68 million, or $0.18 per share. Revenues for the first quarter were $1.80 billion, a decrease of nine percent compared to the fourth quarter of 2017 and an increase of three percent from the first quarter of 2017. Operating loss for the first quarter of 2018 was $1 million, or 0.1 percent of sales, and Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) was $160 million, or 8.9 percent of sales. Other items were a net credit of $12 million, pre-tax, primarily from the reversal of certain accruals, partially offset by restructure charges and severance payments.

 NOV VARCO NET LOSS $237 MLN
2018, February, 7, 07:25:00

NOV VARCO NET LOSS $237 MLN

NOV - National Oilwell Varco, Inc. (NYSE: NOV) reported a fourth quarter 2017 net loss of $14 million, or $0.04 per share. Revenues for the fourth quarter were $1.97 billion, an increase of seven percent compared to the third quarter and an increase of 16 percent from the fourth quarter of 2016. Operating loss for the fourth quarter was $111 million, or 5.6 percent of sales. Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) for the fourth quarter was $197 million, or 10.0 percent of sales, an increase of $30 million from the third quarter. Other items were $133 million, pre-tax, and primarily consisted of charges for inventory write-downs, facility closures and severance. Cash flow from operations for the fourth quarter was $321 million.

 NOV VARCO NET LOSS $221 MLN
2017, October, 27, 19:10:00

NOV VARCO NET LOSS $221 MLN

National Oilwell Varco, Inc. (NYSE: NOV) reported a third quarter 2017 net loss of $26 million, or $0.07 per share. Revenues for the third quarter of 2017 were $1.84 billion, an increase of four percent compared to the second quarter of 2017 and an increase of eleven percent from the third quarter of 2016. Operating loss for the third quarter was $7 million, or 0.4 percent of sales. Adjusted EBITDA (operating profit excluding other items before depreciation and amortization) for the third quarter was $167 million, or 9.1 percent of sales, an increase of $25 million from the second quarter of 2017. Cash flow from operations for the third quarter was $232 million.

 NOV VARCO NET LOSS $75 MLN
2017, July, 31, 14:05:00

NOV VARCO NET LOSS $75 MLN

National Oilwell Varco, Inc. (NYSE: NOV) reported a second quarter 2017 net loss of $75 million, or $0.20 per share. Excluding other items, net loss for the quarter was $54 million, or $0.14 per share. Other items totaled $30 million, pretax, and primarily consisted of charges related to severance and facility closures.

 NOV VARCO NET LOSS $122 MLN
2017, April, 27, 18:30:00

NOV VARCO NET LOSS $122 MLN

Revenues for the first quarter of 2017 were $1.74 billion, an increase of three percent compared to the fourth quarter of 2016 and a decrease of 20 percent from the first quarter of 2016. Operating loss for the first quarter was $97 million, or 5.6 percent of sales. Excluding other items, operating loss was $70 million, or 4.0 percent of sales. Adjusted EBITDA (operating profit excluding other items before depreciation and amortization) for the first quarter was $105 million, or 6.0 percent of sales, an increase of $3 million from the fourth quarter of 2016. Cash flow from operations for the first quarter was $111 million.

 

Tags: NOV, VARCO