• “During the first quarter of 2018 NOV benefitted from growing demand for short-cycle consumables and services in North America as oilfield fundamentals continued to strengthen,” commented Clay Williams, Chairman, President, and CEO. “Unfortunately, however, the protracted budgeting cycle we saw early in the year led to a slower-than-anticipated start in our capital equipment businesses and softness in our Eastern Hemisphere operations. This more than offset North American improvements, snapping our six-quarter streak of steadily improving results.”
     
    “We expect to be back on track soon, though, as most of the capital equipment deliveries that were deferred by customers at the end of the quarter were received early in the second quarter, giving us confidence that the general upward trajectory of business will resume in the second quarter. Scarcity is returning to many corners of the oilfield, and we’ve seen good uptake on technologies we’ve been introducing through the downturn, all while the oil supply and demand picture continues to tighten.”
     
    NOV reported a first quarter 2018 net loss of $68 million. Revenues for the first quarter were $1.80 billion, a decrease of nine percent compared to the fourth quarter of 2017 and an increase of three percent from the first quarter of 2017. Operating loss for the first quarter of 2018 was $1 million, or 0.1 percent of sales, and Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) was $160 million, or 8.9 percent of sales. Other items were a net credit of $12 million, pre-tax, primarily from reversals of certain reserves and liabilities. 
     
    NOV had several significant achievements this quarter:
    • NOV won two OTC 2018 Spotlight on New Technology® awards, one for the NOVOS™ process-automation platform and one for the Seabox™ subsea water treatment system. The yearly award showcases the industry’s latest and most advanced technologies—ones that are poised to dramatically change offshore exploration and production and allow the industry to operate more safely, sustainably, and sufficiently.
    • NOV received multiple large orders for the Tolteq™ iSeries™ MWD products in Q1. Several of these orders include the new iSeries NXT directional module, and several orders include the iSeries near-bit measurement system.
    • NOV introduced and began delivery of its next-generation shale shaker, the Brandt™ SABRE™. The first of its kind, SABRE is a modular shaker system based upon a scalable platform.
    • NOV signed an agreement with Maersk to extend the existing condition-based monitoring (CBM) Partnership agreement from seven to a total of 18 rigs, expanding the list of equipment incorporated in the CBM Partnership from 400 to 800 pieces.
    • NOV introduced patent-pending TORC™ technology. TORC components incorporate a unique geometry to maximize engagement at predefined depths of cut to reduce over-engagement of cutters, significantly improving torsional stability, toolface control, and drilling efficiency during directional drilling operations.
    • Momentum in NOV’s eVolve™ optimization and automation service business continues to build in markets around the globe. NOV executed service contracts with major operators for projects in the North Sea and Barents Sea, both of which will begin this summer, and extended a contract with a major operator on Alaska’s North Slope.
    • NOV acquired Western Oiltools Ltd., a Calgary-based manufacturer of production pressure control equipment. Western Oiltools’ innovative product portfolio enhances operator economics by promoting the optimal performance of lift systems.
    • NOV continues to expand its scope of work on both the Statoil Johan Castberg and Statoil Johan Sverdrup II developments. The Company will supply separation, produced water, sand handling, and gas-dehydration packages for both Castberg and Johan Sverdrup II in 2018.
     
     

     

     

     

     

    Published Date: 2018-04-27
    Source: National Oilwell Varco