NOV reports increased 4Q earnings but still experienced losses over the year

A seven percent increase in earnings was reported by National Oilwell Varco, Inc. in the fourth quarter of 2019 compared to its third quarter financial earnings but the company also experienced a loss of $385 million.

The Houston company, a firm that operates in Oklahoma, said its fourth quarter revenues totaled $2.28 billion, up from the third quarter but also down five percent compared to the fourth quarter of 2018. The net loss of $385 million included non-cash, pre-tax charges of $537 million.

Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) increased $26 million sequentially to $288 million, or 12.6 percent of sales.

Revenues for the full year 2019 were $8.48 billion, operating loss was $6.28 billion, and net loss was $6.10 billion, or $15.96 per share. Adjusted EBITDA for the full year was $885 million, or 10.4 percent of sales.

“Our team executed well in a challenging market during 2019, successfully driving cost savings and efficiencies in working capital throughout our organization,” commented Clay Williams, Chairman, President, and CEO. “Thanks to their efforts we were able to significantly improve cash flow and strengthen our balance sheet, despite the financial charges that were necessary through the year.”

“The fourth quarter saw continued improvements in international and offshore markets, partially offset by another sequential decline in spending by our customers in North America. While this mix shift affects each of our segments differently, all three of our operating segments were able to deliver sequential improvements in adjusted EBITDA.”

“NOV remains focused on creating value for our shareholders by supporting our customers across all phases of oil and gas operations with products and services that enhance their returns, improve safety, and extend the life of equipment. Our technology, global footprint, portfolio of products and services, and large installed base make NOV a partner of choice across the global oilfield.”

Wellbore Technologies generated revenues of $764 million in the fourth quarter of 2019, a decrease of four percent from the third quarter of 2019 and a decrease of 14 percent from the fourth quarter of 2018. The decline in revenue resulted from lower drilling activity levels in North America that more than offset improving conditions in international and offshore markets.

Completion & Production Solutions generated revenues of $799 million in the fourth quarter of 2019, an increase of 10 percent from the third quarter of 2019 and an increase of one percent from the fourth quarter of 2018.


Rig Technologies generated revenues of $759 million in the fourth quarter of 2019, an increase of 17 percent from the third quarter of 2019 and a decrease of six percent from the fourth quarter of 2018.

Further declines in U.S. drilling activity levels and ongoing cost-cutting efforts led the Company to recognize $537 million in impairment and restructuring charges.

As of December 31, 2019, the Company had total debt of $1.99 billion, with $2.00 billion available on its revolving credit facility, and $1.17 billion in cash and cash equivalents.

Source: National Oilwell Varco