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|National Oilwell Varco Reports Second Quarter 2018 Earnings|
“Our team executed well and delivered double-digit sequential sales
growth across all three of our business segments during the second
“Growing confidence in the sustainability of the ongoing recovery is resulting in strong North American activity coupled with improving activity and revenue growth in most international markets. Demand is accelerating for the technologies and products we’ve developed through the downturn that drive better safety and efficiency for our customers around the world. NOV is well-positioned to capitalize on an expanding global recovery.”
Wellbore Technologies generated revenues of
Completion & Production Solutions
Completion & Production Solutions generated revenues of
Backlog for capital equipment orders for Completion & Production
Rig Technologies generated revenues of
New orders booked during the quarter totaled
Other Corporate Items
Cash flow provided by operations for the second quarter of 2018 was
Significant Events and Achievements
NOV continued to expand its supply of directional measurement and
steerable technologies into new global markets in the second quarter.
NOV secured a large order for its Tolteq™ iSeries™
measurement-while-drilling (MWD) products, together with Vector™
drilling motors, from an operator in
NOV sold three complete 1,500-horsepower AC Ideal™ rigs to Argentinian
customers during the quarter. This sale also included the first NOVOS™
drilling process automation system in
NOV continues to advance its leadership position in high-performance
downhole technologies. In
NOV continues to see success in its bits, borehole enlargement, and
coring businesses in the
NOV introduced the Genesis™ line of coiled tubing units, which bring
together design ingenuity and advanced coiled tubing equipment and
technology, to its portfolio of intervention and stimulation equipment.
The new unit offers a high-visibility control cabin—providing the
operator with an expanded line-of-sight for spooling and a panoramic
view of the wellsite—as well as the option to install electric controls.
In addition, HMI displays can be configured as needed to satisfy
operator preference. After debuting the product line at the
NOV recently helped an operator in the SCOOP play of Oklahoma achieve numerous records by combining application-specific bit design with the latest ION and shaped cutter technology. NOV’s Seeker™ bits were run in Woodford laterals—challenging due to their high chert content—and achieved interval records for laterals with depths of 15,000, 17,000, and 20,000 ft. Bit runs of 4,856 and 4,233 ft represented improvements of 1,600 ft over the closest offset while an ensuing bit run of 7,230 ft improved the interval drilled by more than 2,000 ft. These improvements resulted in considerable savings for the operator.
NOV’s drill bit and cutter technologies also allowed a customer to set a state record in Oklahoma for the amount of footage drilled in one day. The 8¾-in. DSC616M-X18 bit, equipped with ION cutters in the Chainsaw configuration, drilled 6,071 ft in 24 hr for an average ROP of 253 ft/hr on a well in Grady County. The customer continues to drill one mile per day using NOV’s bits, a metric that has yet to be duplicated by other vendors.
NOV was awarded a significant contract for the supply of TK™
glass-reinforced epoxy (GRE) lining services for a major operator in
Second Quarter Earnings Conference Call
NOV will hold a conference call to discuss its second quarter 2018
Visit www.nov.com for more information.
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
Certain prior period amounts have been reclassified in this press release to be consistent with current period presentation.
The Company discloses Adjusted EBITDA (defined as Operating Profit
excluding Depreciation, Amortization and Other Items) in its periodic
earnings press releases and other public disclosures to provide
investors additional information about the results of ongoing
operations. The Company uses Adjusted EBITDA internally to evaluate and
manage the business. Adjusted EBITDA is not intended to replace GAAP
financial measures, such as Net Income. Other items in the three and six
National Oilwell Varco, Inc.