NOV reports losses but finds revenue in helping wind industry

Buried deep in this week’s financial earnings report for the first quarter 2020 by National Oilwell Varco, a Houston firm that operates in Oklahoma, is a note how the oil and gas firm is helping the wind industry.

Close to the bottom of its quarterly report, NOV explained it recently was awarded contracts from a major Japanese construction  company for the design and equipment package for an offshore wind turbine installation vessel. Delivery is scheduled for late 2022.

NOV stated that the jack-up vessel will be able to construction 10-12 MW class offshore wind power generation turbines and will be the third of its kind in the region, all of which have been designed by NOV.

NOV’s first quarter revenues totaled $1.88 billion, down from the $2.28 billion for the fourth quarter 2019 and $1.94 billion in the first quarter of 2019. Net loss for the first quarter was $2.05 billion.

Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) decreased $110 million sequentially to $178 million.

The company’s completion and production division generated $675 million in revenues for the first quarter this year, a 16 percent drop from the fourth quarter 2019 and a 16 percent decline from a year ago.


Deteriorating conditions in the North American completions market, seasonality and logistical disruptions from COVID-19-related restrictions contributed to the sequential decrease in results. Operating loss was $1,013 million and included $1,054 million in other items. Adjusted EBITDA was $71 million.

“NOV is persevering through a pandemic that is presenting historic and extraordinary challenges to the oil and gas industry on several fronts,” commented Clay Williams, Chairman, President, and CEO.   “The current COVID-19 crisis is driving a historic drop in global demand for oil, which has resulted in the collapse of prices and forced unprecedented well shut-ins. We expect this downturn to get much worse during the second quarter, so we are intensifying our cost-cutting efforts to position NOV appropriately for the challenges ahead.”

Source: National Oilwell Varco