Home NOV – National-Oilwell Varco, Inc. finally returns to profitability

NOV – National-Oilwell Varco, Inc. finally returns to profitability

30 July 2018 to 00: 07
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NOVNational-Oilwell Varco, Inc. Finally returns to profitability
NOVNational-Oilwell Varco, Inc. Finally returns to profitability

National Oilwell Varco – NOV shows good recovery in the oil market, which is taking root, thus becoming evident in the results of the second quarter of this year.

The oilfield equipment company's revenue soared to improve demand, which finally allowed it to turn a profit. Those results should continue to improve from here as the recovery is still in its early innings. National Oilwell Varco revenue was up 20% from the year-ago quarter to $2,11 billion, which was also up 17% from the first quarter. Additionally, the company reported $24 million, or $0,06 per share, of net income, which reversed a steady string of losses.

The rig technology segment stood out as revenue grew 35% sequentially and 19% year-over-year, which beat forecasts, driven by progress in building new offshore drilling rigs, delivery of two onshore platforms and the aftermarket. sales. The company also booked $2,03 billion in new orders during the quarter, including $1,8 billion associated with a recently signed joint venture with Saudi Aramco, bringing the backlog to $3,51 billion.

Well technologies segment revenues also increased sharply in the quarter, up 12% above average and 29% year-over-year, driven by the continued recovery in US drilling activities and a seasonal recovery in the Eastern Hemisphere. Meanwhile, sales in the Finishing and Production Solutions segment increased 10% QoQ and 13% YoY, thanks to an increase in the capital equipment market in North America and an increase in demand for pressure pumping equipment and composite pipes. National Oilwell Varco booked $398 million in new orders during the period, ending up with an order backlog of $995 million.

just the beginning

National Oilwell Varco's second quarter results were the best in some time. However, they appear to be just the beginning of a significant recovery in revenue and profitability, driven by the ongoing recovery in the oil market. Shares in the company – already one of the best performing energy stocks in 2018 – could have much more upside ahead.

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