NOV announces Q1 2014 earnings and backlog

National Oilwell Varco, Inc. today reported that for its first quarter ended 31 March 2014, it earned net income of US$ 589 million, or US$ 1.37 per fully diluted share, compared to fourth quarter ended 31 December 2013 net income of US$ 658 million, or US$ 1.53 per fully diluted share. Excluding pre-tax transaction charges of US$ 19 million, earnings were US$ 602 million, or US$ 1.40 per fully diluted share.

Revenues for the first quarter of 2014 were US$ 5.78 billion, a decrease of 6% from the fourth quarter of 2013 and an increase of 9% from the first quarter of 2013. Operating profit for the quarter, excluding the transaction charges, was US$ 880 million, or 15.2% of sales. Sequentially, first quarter operating profit decreased 10%, while year-over-year first quarter operating profit increased 8%.

Rig technology

Backlog for capital equipment orders for the company’s Rig Technology segment at 31 March 2014 was an all-time record of US$ 16.35 billion, up 1% from the fourth quarter of 2013, and up 27% from the first quarter of 2013. New orders during the quarter were US$ 2.33 billion, reflecting continued healthy demand for oilfield equipment.

First quarter revenues for the Rig Technology segment were US$ 3.01 billion, a decrease of 9% from the fourth quarter of 2013 and an increase of 14% from the first quarter of 2013. Operating profit for this segment was US$ 635 million, or 21.1% of sales. Year-over-year operating profit flow-through (change in operating profit divided by the change in revenue) was 20%. Revenue out of backlog for the segment was at US$ 2.22 billion.

Petroleum Services & Supplies

Revenues for the first quarter of 2014 for the Petroleum Services & Supplies segment were US$ 1.79 billion, down 7% compared to fourth quarter 2013 results and up 5% from the first quarter of 2013. Operating profit was US$ 326 million, or 18.2% of revenue. Year-over-year operating profit flow-through was 17%.

Distribution & Transmission

The Distribution & Transmission segment generated first quarter revenues of US$ 1.28 billion, up 2% from the fourth quarter of 2013 and up 4% from the first quarter of 2013. First quarter operating profit was US$ 68 million, or 5.3% of sales. Year-over-year operating profit flow-through was 6%.

Adapted from press release by Cecilia Rehn

Read the article online at: https://www.oilfieldtechnology.com/exploration/30042014/nov_announces_q1_2014_earnings_and_backlog/