Severe weather last month in Oklahoma and Texas hit NOV Inc. so hard that the Houston company announced it anticipates operational disruptions and softer-than-expected customer orders will cause first quarter 2021 operating results to fall below previous guidance.
“Unfortunately, the extreme winter weather across Texas and Oklahoma, the ongoing effects of COVID-19 lockdowns, and the continued spending austerity from our oilfield customers are combining to take a greater-than-expected toll on our first quarter results,” stated Clay Williams, Chairman, President and CEO.
He said the severe weather adversely affected the financial results of all three segments in the company. The company’s Completion & Production Solutions and Rig Technologies segments were hit by certain project delays, COVID-19 shutdowns in Southeast Asia and an acute global glass fiber supply shortage affecting the company’s Fiberglass Systems operations.
Within NOV’s Wellbore Technologies segment, recent improvements in North American drilling activity levels and incremental cost savings initiatives are expected to offset weather-related disruptions and allow for segment results that are in-line with prior guidance. The Company now forecasts consolidated first quarter 2021 revenues will be between $1.20 and $1.25 billion with an adjusted EBITDA loss of $15 to $25 million.
“While the first quarter result is disappointing, we expect the prospects for our business to improve through the remainder of the year,” added Williams. He said the combination of $60-plus oil and continued recovery in the North American rig county should result in better results in the second half of the year.
The company will announce first quarter results in a press release issued after market close on Tuesday, April 27, 2021 and will conduct a conference call on Wednesday, April 28, 2021 at 10 a.m. (Central Time).
Source: press release
