National Oilwell Varco Announces Changes in Reporting Segments; Expects Fourth Quarter 2017 Results to Be In-Line with Guidance, Excluding Charges
The table below conforms prior period Rig Systems and Rig Aftermarket segment results to the new Rig Technologies segment presentation:
SELECT RIG TECHNOLOGIES HISTORICAL FINANCIAL INFORMATION (Unaudited) |
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(In millions) | ||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||
Years Ended December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2017 | 2017 | |||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||||||
Rig Systems | $ | 9,848 | $ | 6,964 | $ | 2,386 | $ | 393 | $ | 346 | $ | 330 | ||||||||||||||||||||||||
Rig Aftermarket | 3,222 | 2,515 | 1,416 | 321 | 341 | 311 | ||||||||||||||||||||||||||||||
Intercompany Eliminations | (1,272 | ) | (1,200 | ) | (692 | ) | (132 | ) | (141 | ) | (131 | ) | ||||||||||||||||||||||||
Rig Technologies | $ | 11,798 | $ | 8,279 | $ | 3,110 | $ | 582 | $ | 546 | $ | 510 | ||||||||||||||||||||||||
Operating profit (loss): | ||||||||||||||||||||||||||||||||||||
Rig Systems | $ | 2,118 | $ | 1,322 | $ | (969 | ) | $ | 9 | $ | (7 | ) | $ | 11 | ||||||||||||||||||||||
Rig Aftermarket | 935 | 652 | 229 | 61 | 76 | 64 | ||||||||||||||||||||||||||||||
Intercompany Eliminations | (522 | ) | (473 | ) | (293 | ) | (57 | ) | (63 | ) | (57 | ) | ||||||||||||||||||||||||
Rig Technologies | $ | 2,531 | $ | 1,501 | $ | (1,033 | ) | $ | 13 | $ | 6 | $ | 18 | |||||||||||||||||||||||
Adjusted EBITDA: | ||||||||||||||||||||||||||||||||||||
Rig Systems | $ | 2,220 | $ | 1,518 | $ | 293 | $ | 33 | $ | 26 | $ | 28 | ||||||||||||||||||||||||
Rig Aftermarket | 968 | 687 | 316 | 71 | 83 | 69 | ||||||||||||||||||||||||||||||
Intercompany Eliminations | (522 | ) | (473 | ) | (293 | ) | (57 | ) | (63 | ) | (57 | ) | ||||||||||||||||||||||||
Rig Technologies | $ | 2,666 | $ | 1,732 | $ | 316 | $ | 47 | $ | 46 | $ | 40 | ||||||||||||||||||||||||
Reconciliation of Operating profit (loss) to Adjusted | ||||||||||||||||||||||||||||||||||||
EBITDA (Operating profit excluding other items before depreciation & amortization): |
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Operating profit (loss) | $ | 2,531 | $ | 1,501 | $ | (1,033 | ) | $ | 13 | $ | 6 | $ | 18 | |||||||||||||||||||||||
Other Items | 23 | 124 | 1,255 | 12 | 17 | - | ||||||||||||||||||||||||||||||
Depreciation and Amortization | 112 | 107 | 94 | 22 | 23 | 22 | ||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 2,666 | $ | 1,732 | $ | 316 | $ | 47 | $ | 46 | $ | 40 | ||||||||||||||||||||||||
The Company anticipates it will recognize between
Excluding the impact of other items, the Company expects consolidated results for the fourth quarter of 2017 to be at or above prior expectations. The Company anticipates Rig Technologies will exceed prior guidance, Wellbore Technologies will be in-line with expectations, and Completion and Production Solutions will fall short of guidance. The shortfall in Completion and Production Solutions is due primarily to engineering challenges and delivery delays associated with a new product introduction in its Subsea Flexible Pipe business and softer than anticipated orders in its Process and Flow Technologies business.
Fourth Quarter and Full-Year 2017 Earnings Conference Call
NOV will hold its fourth quarter and full-year 2017 conference call on
About NOV
Cautionary Statement for the Purpose of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995
Statements made in this press release that are forward-looking in nature
are intended to be “forward-looking statements” within the meaning of
Section 21E of the Securities Exchange Act of 1934 and may involve risks
and uncertainties. These statements may differ materially from the
actual future events or results. Readers are referred to documents filed
by
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Source:
National Oilwell Varco, Inc.
Loren Singletary, 713-346-7807