National Oilwell Varco : NOV Reported Fourth Quarter and Full-Year 2017 Results

HOUSTON--(BUSINESS WIRE)--Feb. 5, 2018

'Solid execution and success in our efforts to reposition the Company resulted in a $289 million improvement in Adjusted EBITDA on a $53 million increase in revenue in 2017,' commented Clay Williams, Chairman, President, and CEO. 'Our team continues to position the Company in the markets that matter most to our customers by investing in technologies that drive better economics for our clients.

'Our diverse global franchise that leverages capabilities across business lines is focused on developing improvements in drilling automation, multistage completions, predictive analytics and condition-based maintenance, and deepwater project economics. Advances on these and other initiatives have us well positioned to capitalize on improving industry fundamentals in 2018 and beyond.'

Revenues for the fourth quarter were $1.97 billion, an increase of 7% compared to the third quarter and an increase of 16% from the fourth quarter of 2016. Operating loss for the fourth quarter was $111 million, or 5.6% of sales. Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) for the fourth quarter was $197 million, or 10% of sales, an increase of $30 million from the third quarter. Cash flow from operations for the fourth quarter was $321 million.

Revenues for the full year 2017 were $7.30 billion, operating loss was $277 million, and net loss was $237 million. Adjusted EBITDA for the full year was $611 million, or 8.4% of sales, and cash flow from operations was $832 million.

NOV had several significant achievements this quarter:

• NOV introduced and booked several orders for its new DSGD-425 drawworks for land applications.
• NOV's optimization and automation solutions continued to gain traction in North America and the international market, with five simultaneous automation projects, including a recently deployed integrated automation project with a major operator in Alaska, run in the fourth quarter using eVolve™ optimization services.
• NOV sold two strings, a total of 50,000 feet, of IntelliServ™ wired drill pipe to a major North American land drilling contractor, the first sale of IntelliServ pipe to a land drilling contractor.
• NOV signed its first contract for the Seabox™ subsea water treatment system. The contract was signed with a major operator who will deploy the system at an offshore installation in the third quarter of 2018 for an extended test during the 2018/2019 winter season.
• NOV advanced its leadership position in shaped cutter technologies, introducing five new innovative geometries to the ION™ product line for implementation in wide ranges of vertical and directional applications and varying rock strengths.
• NOV was awarded a significant contract for the supply of several major topside packages for an FPSO redeployment in Malaysia, with fabrication taking place at NOV's facility in Batam, Indonesia.
• NOV acquired Remacut, a provider of offshore construction solutions, integrating the new business into the Marine & Construction business unit within the newly formed Rig Technologies operating segment.
• NOV's Tuboscope and Rig Technologies businesses collaborated to complete the first comprehensive offshore riser inspection, utilizing the Company's recently introduced phased-array tool, in the Gulf of Mexico.
• NOV continued to expand its drilling fluids business and gain market share in Argentina, receiving over $30 million in drilling fluids contracts that build on the Company's earlier success in the region.
• NOV ran its symmetric propagation wave resistivity (SPR) LWD tool for the first time in conjunction with the Tolteq™ iSeries MWD tool after developing an interface between the two that enables real-time data transmission. NOV also received its first orders for the Tolteq iSeries NXT top-mount pulser, the first of the modules from the new iSeries NXT platform.
• NOV successfully delivered an APL submerged SAL™ system with yoke (SSY™), the first of its kind, to a major LNG shipping company. The FPSO was hooked up on time as the world's first converted FLNG unit, operating offshore Cameroon.
• NOV secured two long-term contracts for condition-based maintenance (CBM) programs with major offshore drilling companies; one for BOPs and one for risers.

Published Date: 2018-02-06
Source: Business Wire