- Revenue of $2.19 billion, up 4% sequentially and up 16%
year-over-year
- Operating Profit of $183 million, up $2 million sequentially
and up $128 million year-over-year
- Net Income of $114 million, down $41 million sequentially and
up $82 million year-over-year
- Fully diluted earnings per share of $0.29, down $0.10
sequentially and up $0.21 year-over-year
- Adjusted EBITDA* of $267 million, up $22 million sequentially
and up $72 million year-over-year
*Adjusted EBITDA is a non-GAAP measure, see “Non-GAAP Financial
Measures” and “Reconciliation of Adjusted EBITDA to Net Income”
below.
NOV Inc. (NYSE: NOV) today reported third quarter 2023 revenues
of $2.19 billion, an increase of four percent compared to the
second quarter of 2023 and an increase of 16 percent compared to
the third quarter of 2022. Net income for the third quarter of 2023
was $114 million, or 5.2 percent of sales. Operating profit was
$183 million, or 8.4 percent of sales. Under Other Items the
Company recorded a net pre-tax charge of $7 million (see Corporate
Information for additional details). Adjusted EBITDA increased
sequentially to $267 million, or 12.2 percent of sales.
“NOV’s third quarter results saw revenues and margins improve
both sequentially and year-over-year, as steadily strengthening
international and global offshore markets outpaced softening North
American land activity,” stated Clay Williams, Chairman, President,
and CEO. “NOV’s capital equipment orders grew five percent
sequentially due to rising international and offshore demand.
Encouragingly, we are securing improved pricing and margins in new
orders, which will help drive better profitability in future
periods.”
“As expected, inventory levels crested during the quarter as
deliveries from our suppliers increased following the
pandemic-driven supply chain disruptions of the past few years.
Additionally, the shift in our business toward international
markets elongated collections, which limited cash flow during the
quarter. We expect the Company’s working capital to begin to
normalize, leading to positive free cash flow in the fourth
quarter. Continuing normalization should position us to deliver
improved cash generation in 2024.”
“NOV’s investments through the past several years have armed us
with a powerful portfolio of new products and technologies that
will help our customers decarbonize and improve the safety and
efficiency of their oilfield operations. We are positioned well for
the accelerating international and offshore upcycle needed to
ensure global energy security in an increasingly dangerous world.
Rising demand, along with our actions to improve our cost
structure, should drive improved profitability, greater cash flow
and higher returns on capital employed through coming
quarters.”
“Today, we announced that, effective January 1, 2024, we will
consolidate our operating structure from three reporting segments
to two. The simplified structure will allow us to better utilize
and share our resources across the organization, accelerate
innovation, improve customer service, and deliver better financial
results, including helping us achieve our $75 million annual cost
savings target. I am grateful for Isaac Joseph’s and Kirk Shelton’s
many years of service here leading our segments, and I congratulate
Scott Livingston on his promotion to president of our new Energy
Products & Services segment, effective January 1."
“I am extremely excited about NOV’s outlook. As the cycle moves
out of the early innings, our customers must increase the rate of
investment in their asset base. Our market is improving, customers
are accelerating their adoption of our technically differentiated
products and we are taking actions to improve our cost structure,
all of which will drive improve profitability, greater cash flow
and higher returns on capital employed.”
Wellbore Technologies
Wellbore Technologies generated revenues of $799 million in the
third quarter of 2023, a decrease of one percent from the second
quarter of 2023 and an increase of eight percent from the third
quarter of 2022. Operating profit was $123 million, or 15.4 percent
of sales, and included $3 million in Other Items. Adjusted EBITDA
increased $2 million sequentially and increased $21 million from
the prior year to $166 million, or 20.8 percent of sales. The
revenue decline was driven by lower North American drilling
activity and lower drill pipe shipments during the quarter, which
were mostly offset by improvements in the international and
offshore markets.
Completion & Production Solutions
Completion & Production Solutions generated revenues of $760
million in the third quarter of 2023, an increase of one percent
from the second quarter of 2023 and an increase of 12 percent from
the third quarter of 2022. Operating profit was $47 million, or 6.2
percent of sales, and included $2 million in Other Items. Adjusted
EBITDA decreased $2 million sequentially and increased $11 million
from the prior year to $67 million, or 8.8 percent of sales.
Results reflect lower deliveries of equipment in North America,
more than offset by improving progress on offshore projects.
New orders booked during the quarter increased 18 percent and
totaled $530 million, representing a book-to-bill of 114 percent
when compared to the $466 million of orders shipped from backlog.
As of September 30, 2023, backlog for capital equipment orders for
Completion & Production Solutions was $1.63 billion, an
increase of $40 million from the second quarter of 2023 and an
increase of $148 million from the third quarter of 2022.
Rig Technologies
Rig Technologies generated revenues of $686 million in the third
quarter of 2023, an increase of 13 percent from the second quarter
of 2023 and an increase of 34 percent from the third quarter of
2022. Operating profit was $86 million, or 12.5 percent of sales,
and included a credit of $3 million from Other Items. Adjusted
EBITDA increased $29 million sequentially and increased $48 million
from the prior year to $100 million, or 14.6 percent of sales.
Results were driven primarily by improved execution and spare part
shipments from the Company’s aftermarket operations.
New capital equipment orders booked during the quarter totaled
$178 million, representing a book-to-bill of 72 percent when
compared to the $248 million of orders shipped from backlog. The
segment also recorded a positive $145 million adjustment to
backlog, primarily related to contractual inflationary price index
adjustments. As of September 30, 2023, backlog for capital
equipment orders for Rig Technologies totaled $2.97 billion, an
increase of $75 million from the second quarter of 2023 and an
increase of $187 million from the third quarter of 2022.
Corporate Information
NOV recorded $7 million in Other Items, primarily related to a
voluntary early retirement program (see Reconciliation of Adjusted
EBITDA to Net Income) during the third quarter.
As of September 30, 2023, the Company had total debt of $1.73
billion, with $2.00 billion available on its primary revolving
credit facility, and $513 million in cash and cash equivalents.
Significant Achievements
NOV continued to gain market traction with its rig automation
and robotic products that enhance wellsite safety while generating
significant performance benefits. During the quarter, NOV
successfully installed and commissioned the ATOM RTX Robotic System
on a drillship contracted with a European operator offshore Brazil,
the first deployment of this system offshore. Additionally, NOV
secured orders for complete automation packages for two
semisubmersibles in Europe and a jack-up rig in Southeast Asia.
After installation, these rigs will receive continuous support
through NOV’s Automation Lifecycle Management program that provides
24/7 support from NOV’s performance center.
NOV secured multiple project awards for its diverse portfolio of
fiberglass products that enhance corrosion resistance in critical
oilfield infrastructure. Drawing on our extensive experience with
Petrobras FPSO projects, NOV will provide glass-reinforced epoxy
ballast and seawater systems for FPSO vessels in the Buzios Field,
where our Bondstrand™ product line remains the preferred choice for
glass reinforced epoxy ballast and seawater systems. Additionally,
NOV has been selected as a key supplier for a significant call-off
contract, providing a range of reinforced thermoplastic pipe for
Petroleum Project Oman as part of its substantial field development
project. This sizeable order involves more than 200 km (124 miles)
of our Fiberspar™ LinePipe product currently in production, with
additional orders expected to follow.
NOV continued to play a pivotal role in returning the offshore
drilling industry’s assets back to work. During the quarter, NOV
completed eighteen reactivation and certification projects,
including 14 jack-ups rigs contracted to work in the Middle East,
the North Sea, and Gulf of Mexico, a semisubmersible rig contracted
in Australia, and three drillships. Additionally, NOV entered into
an agreement to upgrade a drillship in preparation for a contract
offshore Brazil. This comprehensive upgrade encompasses adding a
Crown Compensator and associated modifications to the derrick, an
upgrade of the drilling control system, the incorporation of NOV’s
advanced blowout preventer low force shear technology, and the
inclusion of improved handling tools.
NOV received an order for 25,000-horsepower of Ideal™ eFrac
stimulation equipment. The Ideal eFrac technology offers reduced
total cost of ownership, a straightforward design, and robust
performance, packing a significant amount of horsepower into a
compact footprint, making it suitable for both large West Texas
locations and smaller, more challenging sites like the Marcellus
region. Additionally, NOV received orders for its Ideal power pod
and power distribution equipment slated for delivery in 2024.
NOV successfully deployed its innovative threaded and coupled
connection technology, XCalibur, for a geothermal project in
California. XCalibur, a threaded and coupled connector featuring a
gas-tight metal-to-metal seal specifically designed for the most
demanding operating environments, is the latest addition to the XL
Systems family of large diameter casing and connector products.
NOV unveiled its PowerShift™ motor, the second generation of
SelectShift™ downhole adjustable motor technology. This innovative
tool features a depth-activated unlocking feature, enabling
real-time motor bend adjustments at specific depths, enabling
operators to optimize drilling practices and streamline operations,
saving trips, bits, and bottomhole assembly components during the
drilling process. Since its release, 25 successful runs have been
completed with the PowerShift motor. This groundbreaking drilling
motor technology seamlessly combines sections in various drilling
applications, from vertical to curve to lateral, reducing the need
for multiple BHAs while enhancing safety, saving time, and lowering
costs.
NOV introduced the Tolteq™ Switch unmanned measurement while
drilling (MWD) configuration, which was effectively used across
several drilling projects in the U.S. during the quarter. This
unique configuration integrates a patented automated battery
management system with the adaptable Hellfire Top-Mount Pulser,
streamlining the MWD tool assembly process at the rig site and
empowering unmanned or de-manned directional drilling operations.
In one notable deployment, a single Tolteq Switch MWD tool
facilitated the drilling of all 16-in. sections on an eight-well
pad in the Northeastern U.S. without requiring dedicated rig site
supervision. This accomplishment underscores the efficiency and
autonomy that this cutting-edge technology brings to drilling
operations, saving time and expense for operators.
NOV secured substantial orders for its Grant Prideco Completion
Workover Riser (CWOR) product line. CWORs play a pivotal role
offshore by serving as conduits linking the subsea tree to the
surface-floating vessel. This system of interconnected tubulars
facilitates rapid and secure connections and the efficient
installation and retrieval of subsea tree plugs, enabling the
passage of wireline tools or coiled tubing for limited-duration
wellbore workover operations. Drill pipe-based CWORs demonstrate
significantly enhanced total cost of ownership over the product’s
life cycle when compared to traditional OCTG offerings.
NOV’s Pegasus™ drill bit from ReedHycalog continues to enable
record-setting drilling performance in Saudi Arabia and the Asia
Pacific region. In Saudi Arabia, the 16-in. P66 Pegasus bit was
introduced to tackle challenging satellite gas applications, marked
by hard, interbedded formations that typically result in multiple
bit trips, low penetration rates, and twist-offs. On its first run,
the Pegasus bit set a rate of penetration (ROP) field record by
drilling the section in a single run. On its second run, it
accomplished the same feat, setting another ROP field record and
eliminating the need for a bit trip, showcasing the unmatched
stability, drilling efficiency, and consistency of the Pegasus
product line. In the Asia Pacific region, the 12¼-in. P66 Pegasus
bit outperformed the best offset by drilling 9% farther and
exhibited exceptional resilience when pulled with a great dull
condition after tackling an extremely tough interval. NOV’s BitIQ™
bit sensor, used in conjunction with the 12¼-in. P66, demonstrated
significantly reduced vibration, which mitigated damage to the
rotary steerable and other critical bottom hole assembly
components.
NOV’s ION+™ Fortis cutter continues to redefine the standards in
cutter technology. This advanced polycrystalline diamond compact
(PDC) cutter is precision-engineered to combine robustness with
outstanding thermal abrasion resistance, greatly enhancing its
durability. The 9⅞-in. TKC66-AA1 Tektonic™ design drilled 8,568 ft
at a rate exceeding 200 ft/hr in a West Texas well. This heightened
level of efficiency empowers customers to consistently reach total
depth with a single drill bit, even in the demanding, interbedded
formations of the Permian Basin. Additionally, NOV was awarded a
contract with a leading operator in the deep-water Gulf of Mexico
to handle all sub-salt sections in a Mississippi Canyon project,
utilizing its ION+ Fortis PDC in ReedHycalog’ s Anderreamer™ F5
Cutter Block design.
NOV secured an exclusive contract with a geothermal operator and
heating supplier to install 5,225 m of Tuboscope's TK™-Liner in a
large heating project in the Netherlands. Corrosion control is
paramount to ensure the longevity and efficiency of tubular
installations in geothermal operations. The TK-Liner, featuring
TK-Ring II technology, has established itself as a reliable and
cost-effective alternative to expensive corrosion-resistant alloys,
offering outstanding protection against corrosion, excellent
thermal insulation, and optimized flow efficiency. This project
encompasses three wells, including two equipped with TK-Liner's
glass-reinforced epoxy lining and one internally coated with TK
Coatings.
NOV’s Downhole Broadband Solutions technology continues to
enable significant operational efficiencies resulting in tangible
savings. During the quarter, NOV M/D Totco provided a comprehensive
suite of optimization services and visualization tools, including
wired drill pipe, downhole drilling equipment, and real-time
sensors along the string to enhance wellbore understanding for a
major operator on the Norwegian Continental Shelf. This package
enabled real-time, high-quality image logs to monitor formation
breakouts across weaker intervals along with distributed pressure
measurements that offered the operator the confidence that these
breakouts are induced within a safe operational window. This
consistent evolution of best practices has led the operator to
drill sections more rapidly than the technical limits established
prior to the project's inception. On the most recent well, the
drilling operation was successfully concluded in just 60 days,
compared to the budgeted 91 days, yielding estimated savings of
more than $15 million when considering conservative operational
spread rates.
Third Quarter Earnings Conference Call
NOV will hold a conference call to discuss its third quarter
2023 results on October 27, 2023 at 10:00 AM Central Time (11:00 AM
Eastern Time). The call will be broadcast simultaneously at
www.nov.com/investors. A replay will be available on the website
for 30 days.
About NOV
NOV (NYSE: NOV) delivers technology-driven solutions to empower
the global energy industry. For more than 150 years, NOV has
pioneered innovations that enable its customers to safely produce
abundant energy while minimizing environmental impact. The energy
industry depends on NOV’s deep expertise and technology to
continually improve oilfield operations and assist in efforts to
advance the energy transition towards a more sustainable future.
NOV powers the industry that powers the world.
Visit www.nov.com for more information.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures
that management believes are useful tools for internal use and the
investment community in evaluating NOV’s overall financial
performance. These non-GAAP financial measures are broadly used to
value and compare companies in the oilfield services and equipment
industry. Not all companies define these measures in the same way.
In addition, these non-GAAP financial measures are not a substitute
for financial measures prepared in accordance with GAAP and should
therefore be considered only as supplemental to such GAAP financial
measures. Please see the attached schedules for reconciliations of
the differences between the non-GAAP financial measures used in
this press release and the most directly comparable GAAP financial
measures.
Cautionary Statement for the Purpose of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform Act of
1995
Statements made in this press release that are forward-looking
in nature are intended to be “forward-looking statements” within
the meaning of Section 21E of the Securities Exchange Act of 1934
and may involve risks and uncertainties. These statements may
differ materially from the actual future events or results. Readers
are referred to documents filed by NOV with the Securities and
Exchange Commission, including the Annual Report on Form 10-K,
which identify significant risk factors which could cause actual
results to differ from those contained in the forward-looking
statements. These statements speak only as of the date of this
document, and we undertake no obligation to update or revise the
statements, except as may be required by law.
Certain prior period amounts have been reclassified in this
press release to be consistent with current period
presentation.
NOV INC.
CONSOLIDATED STATEMENTS OF
INCOME (Unaudited)
(In millions, except per share
data)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2023
2022
2023
2023
2022
Revenue:
Wellbore Technologies
$
799
$
741
$
804
$
2,348
$
2,015
Completion & Production Solutions
760
681
753
2,231
1,850
Rig Technologies
686
511
606
1,842
1,414
Eliminations
(60
)
(44
)
(70
)
(181
)
(115
)
Total revenue
2,185
1,889
2,093
6,240
5,164
Gross profit
468
368
457
1,336
891
Gross profit %
21.4
%
19.5
%
21.8
%
21.4
%
17.3
%
Selling, general, and administrative
285
313
276
846
789
Operating profit
183
55
181
490
102
Interest Expense, net
(18
)
(13
)
(13
)
(44
)
(45
)
Equity income in unconsolidated
affiliates
16
12
37
101
32
Other income (expense), net
(25
)
10
(29
)
(70
)
8
Net income before income taxes
156
64
176
477
97
Provision for income taxes
48
29
19
87
41
Net income
108
35
157
390
56
Net income (loss) attributable to
noncontrolling interests
(6
)
3
2
(5
)
5
Net income attributable to Company
$
114
$
32
$
155
$
395
$
51
Per share data:
Basic
$
0.29
$
0.08
$
0.39
$
1.01
$
0.13
Diluted
$
0.29
$
0.08
$
0.39
$
1.00
$
0.13
Weighted average shares outstanding:
Basic
393
391
393
393
389
Diluted
396
393
395
396
393
NOV INC.
CONSOLIDATED BALANCE
SHEETS
(In millions)
September 30,
December 31,
2023
2022
ASSETS
(Unaudited)
Current assets:
Cash and cash equivalents
$
513
$
1,069
Receivables, net
1,982
1,739
Inventories, net
2,277
1,813
Contract assets
675
685
Prepaid and other current assets
211
187
Total current assets
5,658
5,493
Property, plant and equipment, net
1,843
1,781
Lease right-of-use assets
545
517
Goodwill and intangibles, net
2,015
1,995
Other assets
437
349
Total assets
$
10,498
$
10,135
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
925
$
906
Accrued liabilities
818
959
Contract liabilities
488
444
Current portion of lease liabilities
93
87
Current portion of long-term debt
13
13
Accrued income taxes
32
28
Total current liabilities
2,369
2,437
Long-term debt
1,716
1,717
Lease liabilities
559
549
Other liabilities
287
298
Total liabilities
4,931
5,001
Total stockholders’ equity
5,567
5,134
Total liabilities and stockholders’
equity
$
10,498
$
10,135
NOV INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS (Unaudited)
(In millions)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2023
2023
2022
Cash flows from operating activities:
Net income
$
108
$
390
$
56
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization
77
225
225
Impairment and loss on assets held for
sale
4
4
125
Working capital and other operating items,
net
(149
)
(853
)
(739
)
Net cash provided by (used in) operating
activities
40
(234
)
(333
)
Cash flows from investing activities:
Purchases of property, plant and
equipment
(74
)
(207
)
(148
)
Other
(9
)
(4
)
(25
)
Net cash used in investing activities
(83
)
(211
)
(173
)
Cash flows from financing activities:
Borrowings against lines of credit and
other debt
20
22
16
Payments against lines of credit and other
debt
(20
)
(25
)
—
Cash dividends paid
(20
)
(60
)
(59
)
Other
(13
)
(43
)
(29
)
Net cash used in financing activities
(33
)
(106
)
(72
)
Effect of exchange rates on cash
(3
)
(5
)
(15
)
Decrease in cash and cash equivalents
(79
)
(556
)
(593
)
Cash and cash equivalents, beginning of
period
592
1,069
1,591
Cash and cash equivalents, end of
period
$
513
$
513
$
998
NOV INC.
RECONCILIATION OF ADJUSTED
EBITDA TO NET INCOME (Unaudited)
(In millions)
Presented below is a reconciliation of Net
Income to Adjusted EBITDA. The Company defines Adjusted EBITDA as
Operating Profit excluding Depreciation, Amortization, Gains and
Losses on Sales of Fixed Assets, and, when applicable, Other Items.
Management believes this is important information to provide
because it is used by management to evaluate the Company’s
operational performance and trends between periods and manage the
business. Management also believes this information may be useful
to investors and analysts to gain a better understanding of the
Company’s results of ongoing operations. Adjusted EBITDA is not
intended to replace GAAP financial measures, such as Net Income.
Other Items include impairment, restructure, severance, facility
closure costs and inventory charges and credits.
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
2023
2022
2023
2023
2022
Operating profit:
Wellbore Technologies
$
123
$
74
$
128
$
347
$
194
Completion & Production Solutions
47
21
53
144
19
Rig Technologies
86
22
64
203
64
Eliminations and corporate costs
(73
)
(62
)
(64
)
(204
)
(175
)
Total operating profit
$
183
$
55
$
181
$
490
$
102
Other items, net:
Wellbore Technologies
$
3
$
31
$
(1
)
$
2
$
61
Completion & Production Solutions
2
19
—
1
36
Rig Technologies
(3
)
13
(7
)
(13
)
11
Corporate
5
—
1
6
14
Total other items
$
7
$
63
$
(7
)
$
(4
)
$
122
(Gain)/Loss on Sales of Fixed Assets:
Wellbore Technologies
$
—
$
1
$
—
$
—
$
—
Completion & Production Solutions
1
—
—
(4
)
(4
)
Rig Technologies
—
(1
)
—
—
—
Corporate
(1
)
1
—
—
3
Total (gain)/loss on sales of fixed
assets
$
—
$
1
$
-
$
(4
)
$
(1
)
Depreciation & amortization:
Wellbore Technologies
$
40
$
39
$
37
$
114
$
113
Completion & Production Solutions
17
16
16
49
47
Rig Technologies
17
18
14
50
54
Corporate
3
3
4
12
11
Total depreciation & amortization
$
77
$
76
$
71
$
225
$
225
Adjusted EBITDA:
Wellbore Technologies
$
166
$
145
$
164
$
463
$
368
Completion & Production Solutions
67
56
69
190
98
Rig Technologies
100
52
71
240
129
Eliminations and corporate costs
(66
)
(58
)
(59
)
(186
)
(147
)
Total Adjusted EBITDA
$
267
$
195
$
245
$
707
$
448
Reconciliation of Adjusted EBITDA:
GAAP net income attributable to
Company
$
114
$
32
$
155
$
395
$
51
Noncontrolling interests
(6
)
3
2
(5
)
5
Provision for income taxes
48
29
19
87
41
Interest expense
23
19
21
65
57
Interest income
(5
)
(6
)
(8
)
(21
)
(12
)
Equity income in unconsolidated
affiliates
(16
)
(12
)
(37
)
(101
)
(32
)
Other (income) expense, net
25
(10
)
29
70
(8
)
(Gain)/Loss on Sales of Fixed Assets
—
1
—
(4
)
(1
)
Depreciation and amortization
77
76
71
225
225
Other items, net
7
63
(7
)
(4
)
122
Total Adjusted EBITDA
$
267
$
195
$
245
$
707
$
448
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231026812195/en/
Blake McCarthy Vice President, Corporate Development and
Investor Relations (713) 815-3535 Blake.McCarthy@nov.com
Grafico Azioni NOV (NYSE:NOV)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni NOV (NYSE:NOV)
Storico
Da Feb 2024 a Feb 2025
