The company earned net income of US$ 619 million, compared to Q1 2014 net income of US$ 589 million.
On 30 May, the company completed the spin-off to its stockholders of its distribution business as an independent public company, NOW Inc. These results are presented as discontinued operations. This also marks the first quarter in which NOV has issued financial results based on its four new reporting segments.
Revenues and profit
Revenues for Q2 2014 were US$ 5.26 billion, an increase of 7% from Q1 2014 and an increase of 12% from Q2 2013. Operating profit for the quarter, excluding non-recurring items, was US$ 945 million, or 18% of sales. ECITDA for the quarter was US$ 1.14 billion, or 21.7% of sales, an increase of 12% on the previous quarter.
Backlog at the end of Q2 2014 was US$ 15.9 billion for the company’s Rig Systems segment and US$ 2.14 billion for NOV’s Completion & Production Solutions segment.
Commenting on the results, NOV Chairman, President and CEO, Clay Williams, said: “The second quarter of 2014 was a historic quarter for NOV. In addition to posting strong operating results, and securing US$ 3.4 billion in new capital equipment orders, we are very pleased to have created additional shareholder value by both successfully completing the spin-off of our distribution business, and increasing our regular dividend by over 75%.
“As we move through the second half of 2014, we look forward to continued demand for our drilling, completion and production equipment, and continued strong results from our four new segments.”
Q2 revenues for the Rig Systems segment were US$ 2.37 billion, an increase of 5% from the first quarter of 2014 and an increase of 14% from Q2 2013. Operating profit for this segment was US$ 501 million. EDITDA was US$ 523 million. Revenue out of backlog for the segment was at US$ 2.07 billion.
Second quarter revenues for the Rig Aftermarket segment were US$ 785 million, an increase of 5% from the first quarter of 2014 and an increase of 17% from the Q2 2013. Operating profit for this segment was US$ 217 million, while EBITDA was US$ 224 million.
Revenues for Q2 2014 of the Wellbore Technologies segment were US$ 1.45 billion, an increase of 13% from Q1 2014 and an increase of 18% from the Q2 2013. Operating profit for this segment was US$ 269 million; EBITDA was US$ 377 million.
Completion & Production Solutions
The Completion & Production Solutions segment generated revenues of US$ 1.13 billion, an increase of 12% from the first quarter of 2014 and an increase of 7% from the Q2 2013. Operating profit for this segment was US$ 158 million. EBITDA for this segment was US$ 211 million.
Backlog for capital equipment orders for the NOV’s Completion & Production Solutions segment at 30 June 2014 was US$ 2.14 billion. New orders during the quarter were US$ 1.12 billion.
Adapted from press release by Katie Woodward
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/29072014/nov-releases-q2-2014-results-1158/