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|National Oilwell Varco Reports First Quarter 2017 Results|
Revenues for the first quarter of 2017 were
“The Company posted its second consecutive quarter of rising revenues
and its third consecutive quarter of rising Adjusted EBITDA,” commented
“We continue to drive cost reductions and efficiencies and pivot toward the products and technologies we believe will benefit disproportionately through the upcycle. In a global market that is slowly grinding higher, our improving financial results demonstrate the extraordinary effort and execution from our team.”
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 & Production Solutions
Completion and Production Solutions generated revenues of
Backlog for capital equipment orders for Completion & Production
Significant Events and Achievements
NOV recently introduced the highest strength coiled tubing string commercially available today, the QT-1400™. QT-1400 coiled tubing has a specified minimum yield strength of 140,000 psi and greater resistance to low-cycle fatigue cracking at high pressure. The new coiled tubing improves customers’ operational efficiencies in completing and refracturing long laterals onshore and offshore with a 54% further reach capability, 28% stronger internal yield pressure, and 23% higher yield load capability, as compared to QT‐1100™ with a 2-in. OD.
NOV introduced two real-time condition-based monitoring (CBM) systems for intervention and stimulation equipment. The CTES™ CBM system maximizes uptime and reduces maintenance costs associated with personnel and inventory requirements through early identification of potential failures. This is accomplished by monitoring pump performance, filters, and engine health in addition to hydraulic systems, lubrication systems, and specific bearings on rotating machinery. The Texas Oil Tools™ Stack Monitor increases customer confidence of coiled tubing blowout preventer (BOP) performance by providing real-time data of the entire stack. Mounted in the control cabin, the Stack Monitor allows the customer to determine if the BOP rams are fully opened or closed from a safe distance from the operation.
NOV booked another 75,000 HHP hydraulic fracturing equipment order during the first quarter, bringing the Company’s total to 150,000 HHP for 2017. The most recent order includes 30 frac units, two blenders, one chemical unit, one hydration unit, and a data van.
NOV booked orders for 30 high-spec well servicing rigs for the US market. These rigs incorporate purpose-built components that optimize the rigs’ ability to be utilized in a variety of applications, including extended lateral completions.
NOV booked orders for 16 NOVOS™ rig operating systems, a key element of the Company’s automation initiative. NOVOS automates drilling activities and incorporates the ability to utilize applications and algorithms which leverage real-time drilling data to optimize drilling performance.
NOV introduced its new Vector™ Series 50 motor, a short bit-to-bend
downhole drilling motor with an ERT™ power section that delivers
extended operational hours, less aggressive rotation, and tighter curve
sections. Using the new motor, an independent operator in the Permian
drilled back-to-back record runs, including their fastest lateral
section. The tool delivered 32% and 58% ROP improvement over
Grant Prideco’s newest connection, Delta™, completed its first commercial run. An independent E&P company in the Permian basin used 5½-in. S-135 Delta 544 Grant Prideco™ drill pipe to drill one of their longest and fastest lateral wells in the area. The operator drilled a clean hole, eliminating casing run concerns and reducing the open hole friction factor from 0.34 to 0.24, a 30% reduction in torque and tension loads, to make it easier to reach total depth. The operator plans to continue using Grant Prideco 5½-in. drill pipe with Delta connections. With such strong initial performance, the Company anticipates broader adoption of 5½-in. drill pipe with Delta connections for horizontal land drilling.
An NOV customer set a record for the longest lateral drilled in the
8¾-in. section in
NOV Tuboscope’s tubular inspections now feature the latest ultrasonic phased array technology. Tuboscope can now identify any transverse, longitudinal, and oblique flaws within the pipe body of oil country tubular goods simultaneously. With this new technology, Tuboscope can provide higher-resolution inspections at faster speeds with improved operational flexibility.
NOV opened a new plant in
NOV received a multi-year integrated service contract to provide
drilling fluids, solids control, and waste management for
Other Corporate Items
First Quarter Earnings Conference Call
NOV will hold a conference call to discuss its first quarter 2017
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. 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, and these non-GAAP financial measures are not intended to replace GAAP financial measures. 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.
Note 2: The excluded Tax Items are primarily valuation allowances booked on foreign tax credits because the Company is in a three-year cumulative tax loss position.
National Oilwell Varco, Inc.