|View printer-friendly version|
|National Oilwell Varco Reports Fourth Quarter and Full Year 2016 Results|
Revenues for the fourth quarter of 2016 were
Revenues for the full year 2016 were
“We are very encouraged by our results, as our fourth quarter
consolidated revenues increased for the first time since the downturn
began in late 2014,” commented
“For the first time in many years, the Company’s total revenues from
land markets exceeded its total revenue from offshore, driven by sharply
rising demand in
Rig Systems generated revenues of
Backlog for capital equipment orders for Rig Systems at
Rig Aftermarket generated revenues of
Wellbore Technologies generated revenues of
Completion and Production Solutions
Completion and Production Solutions generated revenues of
Backlog for capital equipment orders for Completion and Production
Significant Events and Achievements
NOV's eVolve™ automation and optimization services was awarded a project
NOV acquired a symmetric propagation wave resistivity logging while drilling (LWD) technology, which is being integrated into the Company’s directional drilling bottom hole assembly (BHA) platform. In addition to the new LWD technology, the platform will include advanced TolteqTM MWD tools, VectorTM Rotary Steerable System and Reed HycalogTM Drill Bits. NOV plans to provide customers with a complete suite of drilling and measurement tools that improve well placement and allow for more precise geosteering in horizontal drilling applications. Real-time broadband communication of the data captured from the advanced BHA will be enabled through IntelliServ wired drill pipe, and the system will be optimally configured to leverage the full capabilities of NOV’s NOVOS process automation drilling control system.
NOV ReedHycalog introduced its Reflektor™ 3D polished cutters, an impact and thermal resistant shaped cutter technology for harsh rock drilling. The cutting-edge geometry significantly improves drilling efficiency in medium to high strength formations. Customers using the new cutters on NOV’s Tektonic™ drill bits have averaged 20% improvements in rate of penetration.
NOV Grant PridecoTM introduced DeltaTM, its fourth-generation drill pipe connection. Delta delivers enhanced mechanical performance and improved total-cost-of-ownership relative to Grant Prideco’s XT® connection. The connection is easier to run in the field and provides wider field inspection tolerances to reduce repair frequencies, making it an ideal solution for horizontal land applications. Since its release, NOV has sold multiple strings of drill pipe with Delta connections for use in U.S. shale plays.
NOV booked an order from an independent U.S. service provider for 75,000 HHP of hydraulic fracture stimulation pumps and associated support equipment. The order is expected to be delivered over the first half of 2017.
NOV completed the acquisition of
NOV Tuboscope’s Zap-Lok™ coating was approved for gas flow line
applications by the technology board of the national oil company in
NOV's MPowerD™ rotating control drive (RCD) qualified for a five-year
managed pressure drilling (MPD) operation in the
NOV and Maersk Drilling entered a five-year partnership to improve maintenance cost predictability for NOV drilling equipment on seven of the driller's offshore floating rigs. Under the agreement, the driller is moving away from calendar-based maintenance to condition-based maintenance. Enabled by NOV’s remote connectivity services, continuous data collection and analysis, Maersk and NOV can carry out the right level of maintenance, at the right time, without interfering with drilling schedules.
In December, NOV set a field record for the most footage drilled in a
24-hour period with a single drill bit in the
NOV Grant Prideco released the industry’s first-ever welded 7-5/8” drill
pipe for use in offshore completion and intervention applications. The
7-5/8” intervention string with MaxIt™ connections was used by a major
operator in a Deepwater Gulf of
Other Corporate Items
Fourth Quarter and Full Year Earnings Conference Call
NOV will hold a conference call on
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
Note 1: In an effort to provide investors with additional information regarding our results as determined by GAAP, we disclose various non-GAAP financial measures in our quarterly earnings press releases and other public disclosures. The primary non-GAAP financial measures we focus on are: (i) revenue excluding other items, (ii) operating profit excluding other items, (iii) operating profit percentage excluding other items, (iv) Adjusted EBITDA (operating profit excluding other items before depreciation & amortization), (v) Adjusted EBITDA percentage, (vi) EBITDA, (vii) EBITDA excluding other items, (viii) Adjusted net income (loss), (ix) Adjusted operating earnings per fully diluted share, (x) Adjusted gross profit, and (xi) Adjusted selling, general, and administrative. Each of these financial measures excludes the impact of certain other items and therefore has not been calculated in accordance with GAAP. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is included here within.
We use these non-GAAP financial measures internally to evaluate and manage the Company’s operations because we believe it provides useful supplemental information regarding the Company’s on-going economic performance. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of operating results and as a means to emphasize the results of on-going operations.
National Oilwell Varco, Inc.