National Oilwell Varco reported a drop in its fourth quarter 2020 revenues, falling four percent from the previous quarter and 42% from a year earlier.
The Houston-based company said its fourth quarter revenues were $1.33 billion and the net loss was $347 million or 26.1% of sales.
Its adjusted EBITDA fell $54 million to $17 million.
Full year 2020 revenues were $6.09 with an operating loss of $2.43 billion and a net loss of $2.54 billion or $6.62 a share.
Clay Williams, the company’s Chairman, President and CEO said despite facing historic challenges, the team managed to generate $700 million in free cash flow.
“Nevertheless, the operating environment remains extremely difficult as international and offshore oilfield activity declined steadily throughout 2020, pressuring our longer-cycle capital equipment business.”
He said rising oilfield activity in the fourth quarter was not enough to offset the declines in international and offshore markets as customers continued to defer purchases and project approvals.
But he sees some hope in the coming year.
“—while we expect the next two quarters will remain challenging, steadily improving commodity prices, rising North American drilling activity, encouraging news from global vaccination efforts, gradually reopening economies, and increasing interest in offshore wind energy should lead to rising orders for NOV as the year progresses. We are optimistic that the petroleum industry will realize a meaningful recovery in the second half of the year.”
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