National Oilwell Varco, Inc. is a Houston-based firm with offices in Oklahoma City and reported fourth quarter 2018 revenues of $2.4 billion.
It was an eleven percent increase over the third quarter of 2018 and a 22 percent jump from the fourth quarter report of 2017. Operating profit for the fourth quarter was $87 million or 3.6 percent of sales.
The company’s adjusted earnings was $279 million and net income totaled $12 million. Varco’s operating profit increased 19 percent from the third quarter to the fourth quarter.
Revenues for the full year 2018 were $8.45 billion, operating profit was $211 million, and net loss was $31 million, or $0.08 per share. Adjusted EBITDA for the full year was $910 million, or 10.8 percent of sales.
“During 2018 our team delivered outstanding execution in a volatile operating environment by focusing on our customers’ need for solutions that improve their operating efficiencies,” commented Clay Williams, Chairman, President, and CEO. “Each of our operating segments delivered double-digit percent revenue increases in 2018, contributing to a 16 percent increase in consolidated company revenue and a 49 percent increase in Adjusted EBITDA, year-over-year.”
The pull-back in commodity prices in the fourth quarter of 2018 will likely lead to lower revenue in the first quarter of 2019 according to Williams.
” However, encouraged by the recent uptick in oil prices, some of our customers have recently signaled their intent to increase activity, particularly in certain international and offshore markets. While the near-term outlook remains uncertain, NOV’s portfolio of critical technologies to support the oil and gas industry, together with our track record of adapting quickly to changing market conditions, positions us well for any market environment.”