National Oilwell Varco Q3 Sales Up 17 Percent

The company set new records for operating profit, EBITDA, and earnings per share during the period on solid revenue gains from continuing operations.

Id 2447 National Oilwell Varco 300x300

HOUSTON ‚ÄĒ National Oilwell Varco, Inc. on Thursday reported that for its third quarter ended Sept. 30, it earned net income of $699 million, or $1.62 per fully diluted share, compared to second quarter's total of $619 million ‚ÄĒ a 12.9 percent increase.

Revenues for the third quarter of 2014 were $5.59 billion, an increase of six percent from Q2 and an increase of 17 percent from Q3 2013. Operating profit for the quarter, excluding non-recurring items, was $989 million, or 17.7 percent of sales. EBITDA for the quarter, excluding non-recurring items, was $1.21 billion, or 21.6 percent of sales, up six percent from the prior quarter.

Ending backlog for the third quarter of 2014 was $14.34 billion for the company‚Äôs Rig Systems segment and $2.09 billion for the company‚Äôs Completion & Production Solutions segment.

Clay Williams, Chairman, President and CEO of National Oilwell Varco, stated, ‚ÄúThanks to outstanding execution by our employees, the company posted strong results for its third quarter of 2014. We set new records for operating profit, EBITDA and earnings per share during the period on solid revenue gains from continuing operations. Looking forward, we are closely monitoring the potential impact of lower oil prices on our markets; nevertheless, our strong backlog, our growing aftermarket business supporting NOV equipment, our diverse product and service offering, our terrific team of employees and our strong balance sheet, all give us confidence in the bright long-term prospects for the company. This confidence led us to announce, in the third quarter, an authorization to repurchase $3 billion in stock.‚ÄĚ

Third quarter revenues for the Rig Systems segment were $2.66 billion, an increase of 12 percent from Q2 and an increase of 29.0 percent from Q3 2013. Operating profit for this segment was $533 million, or 20.0 percent of sales.

Backlog for capital equipment orders for the company‚Äôs Rig Systems segment at Sept.30, was $14.34 billion, down 6.8 percent from Q2, and up 2.0 percent from the end of Q3 2013. New orders during the quarter were $1.34 billion.

Third quarter revenues for the Rig Aftermarket segment were $837 million, an increase of seven percent from Q2 and an increase of 18.0 percent from Q3 2013. Operating profit for this segment was $229 million, or 27.4 percent of sales.

Revenues for the third quarter of the Wellbore Technologies segment were $1.47 billion, an increase of two percent from Q2 and an increase of 14.0 percent from Q3 2013. Operating profit for this segment was $278 million, or 18.9 percent of sales.

The Completion & Production Solutions segment generated revenues of $1.19 billion, an increase of six percent from Q2 and an increase of nine percent from Q3 2013. Operating profit for this segment was $184 million, or 15.4 percent of sales.

Backlog for capital equipment orders for the company‚Äôs Completion & Production Solutions segment at Sept. 30, was $2.09 billion, down 2.7 percent from Q2, and up 39.4 percent from the end of Q3 2013. New orders during the quarter were $609 million.

More in Economy