Houston-based National Oilwell Varco, Inc., the firm defending itself in a drilling rig accident that killed five workers last year in Oklahoma, reported third quarter 2019 revenues of $2.13 billion, same as the second quarter of the year. But the revenues were down from the $2.15 billion reported for the third quarter of 2018.
Net loss was $244. But the adjusted EBITDA increased $67 million sequentially to $262 million or 12.3 percent of sales.
“In the third quarter, adjusted EBITDA improved significantly relative to second quarter results due to accelerating cost reductions, a favorable revenue shift towards higher-margin offshore and aftermarket businesses, and positive project close-out variances,” commented Clay Williams, Chairman, President, and CEO. “While third quarter revenue was essentially flat with the prior quarter, margins improved as sales growth in international and offshore markets helped offset sequential declines from North American operations where our customers are reducing their spending.”
Williams said the company posted its strongest cash flow quarter in more than three years.
Wellbore Technologies generated revenues of $793 million in the third quarter of 2019, a decrease of seven percent from the second quarter of 2019 and a decrease of six percent from the third quarter of 2018. Softening demand for the segment’s short-cycle products and services in a contracting North American market, coupled with reduced drillpipe deliveries, drove the sequential revenue decline.
Completion & Production Solutions generated revenues of $728 million in the third quarter of 2019, an increase of 10 percent from the second quarter of 2019 and a decrease of one percent from the third quarter of 2018. The second straight quarter of double-digit top-line improvement was driven by increased shipments of fiberglass pipe, processing equipment, and subsea flexible pipe, predominantly for international and offshore markets.
New orders booked during the quarter totaled $535 million, representing a book-to-bill of 124 percent when compared to the $431 million of orders shipped from backlog.
Rig Technologies generated revenues of $649 million in the third quarter of 2019, a decrease of three percent from the second quarter of 2019 and an increase of two percent from the third quarter of 2018.
National Oilwell Varco has been fighting lawsuits filed over the 2018 tragic deaths of five workers at a rig site near Quinton, Oklahoma. As OK Energy Today reported, a judge in McAlester recently postponed the trial until 2020. Varco has attempted to learn details of a sealed settlement made by families of the victims with other firms originally sued after the incident.