NOV Reports Fourth Quarter and Full Year 2020 Results
Revenues for the full year 2020 were
“Throughout a year in which the petroleum industry faced historic challenges, our team successfully generated
“During the fourth quarter, rising oilfield activity and revenues in
Wellbore Technologies
Wellbore Technologies generated revenues of
Completion & Production Solutions
Completion & Production Solutions generated revenues of
New orders booked improved 27 percent sequentially to
Rig Technologies
Rig Technologies generated revenues of
New orders booked during the quarter totaled
Other Corporate Items
During the fourth quarter, the Company recognized
As of
Significant Achievements
NOV continues to solidify its position as the market leader in the offshore wind turbine installation vessel market. In the fourth quarter, NOV secured awards for the design and jacking systems for the first
NOV recently completed the installation of TK™-Liner systems for two geothermal wells in
NOV continues to expand its digital presence in the global completions market with updates to its CTES™ Cerberus™ and OrionNET™ software systems. The market-leading solutions are used to model fatigue life, tubing forces, and hydraulics in coiled tubing, wireline and jointed pipe operations. Improved cloud functionality enables better use of real-time data from remote operations by engineers in the field as well as in the office, enhancing operational efficiencies and well productivity through improved analysis and decision making.
Adoption of NOV’s SelectShift™ drilling motor technology accelerated meaningfully in the fourth quarter. More customers are realizing the benefit of the tool’s ability to change bend settings quickly and reliably while downhole. NOV also recently introduced the SelectShift™ 1,000, which combines the versatility of SelectShift™ with an all-new ERT™ power section capable of delivering an industry-leading 1,000 horsepower to the drill bit.
NOV’s Vector™ Series 40 drilling motor with an ERT™ power section was used in combination with a rotary steerable system to drill a record lateral in
NOV secured an order for two 1,000-horsepower land rig packages to a customer in the
NOV’s Quality Tubing™ 2.625-inch ATP-130 coiled tubing string set a performance record in the
NOV successfully installed and commissioned a TruScope A/S™ inspection system for a leading materials research institution in
NOV won several orders for its glass-reinforced epoxy (“GRE”) products. NOV successfully signed a contract with a major shipbuilder in
Fourth Quarter Earnings Conference Call
NOV will hold a conference call to discuss its fourth quarter 2020 results on
About NOV
NOV (NYSE: NOV) delivers technology-driven solutions to empower the global energy industry. For more than 150 years, NOV has pioneered innovations that enable its customers to safely produce abundant energy while minimizing environmental impact. The energy industry depends on NOV’s deep expertise and technology to continually improve oilfield operations and assist in efforts to advance the energy transition towards a more sustainable future. NOV powers the industry that powers the world.
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 by NOV with the
Certain prior period amounts have been reclassified in this press release to be consistent with current period presentation.
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) |
||||||||||||||||||||
(In millions, except per share data) |
||||||||||||||||||||
|
|
Three Months Ended |
|
Years Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
373 |
|
|
$ |
764 |
|
|
$ |
361 |
|
|
$ |
1,867 |
|
|
$ |
3,214 |
|
Completion & Production Solutions |
|
|
546 |
|
|
|
799 |
|
|
|
601 |
|
|
|
2,433 |
|
|
|
2,771 |
|
Rig Technologies |
|
|
437 |
|
|
|
759 |
|
|
|
449 |
|
|
|
1,919 |
|
|
|
2,682 |
|
Eliminations |
|
|
(29 |
) |
|
|
(41 |
) |
|
|
(27 |
) |
|
|
(129 |
) |
|
|
(188 |
) |
Total revenue |
|
|
1,327 |
|
|
|
2,281 |
|
|
|
1,384 |
|
|
|
6,090 |
|
|
|
8,479 |
|
Gross profit (loss) |
|
|
(66 |
) |
|
|
376 |
|
|
|
139 |
|
|
|
434 |
|
|
|
845 |
|
Gross profit (loss) % |
|
|
-5.0 |
% |
|
|
16.5 |
% |
|
|
10.0 |
% |
|
|
7.1 |
% |
|
|
10.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selling, general, and administrative |
|
|
235 |
|
|
|
289 |
|
|
|
213 |
|
|
|
968 |
|
|
|
1,303 |
|
Long-lived asset impairment |
|
|
— |
|
|
|
436 |
|
|
|
— |
|
|
|
1,891 |
|
|
|
5,821 |
|
Operating loss |
|
|
(301 |
) |
|
|
(349 |
) |
|
|
(74 |
) |
|
|
(2,425 |
) |
|
|
(6,279 |
) |
Interest and financial costs |
|
|
(19 |
) |
|
|
(25 |
) |
|
|
(21 |
) |
|
|
(84 |
) |
|
|
(100 |
) |
Interest income |
|
|
2 |
|
|
|
4 |
|
|
|
— |
|
|
|
7 |
|
|
|
20 |
|
Equity loss in unconsolidated affiliates |
|
|
(10 |
) |
|
|
(7 |
) |
|
|
(11 |
) |
|
|
(260 |
) |
|
|
(13 |
) |
Other income (expense), net |
|
|
2 |
|
|
|
(54 |
) |
|
|
(8 |
) |
|
|
(17 |
) |
|
|
(90 |
) |
Loss before income taxes |
|
|
(326 |
) |
|
|
(431 |
) |
|
|
(114 |
) |
|
|
(2,779 |
) |
|
|
(6,462 |
) |
Provision (benefit) for income taxes |
|
|
22 |
|
|
|
(46 |
) |
|
|
(61 |
) |
|
|
(242 |
) |
|
|
(369 |
) |
Net loss |
|
|
(348 |
) |
|
|
(385 |
) |
|
|
(53 |
) |
|
|
(2,537 |
) |
|
|
(6,093 |
) |
Net (income) loss attributable to noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
|
|
2 |
|
Net loss attributable to Company |
|
$ |
(347 |
) |
|
$ |
(385 |
) |
|
$ |
(55 |
) |
|
$ |
(2,542 |
) |
|
$ |
(6,095 |
) |
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
$ |
(0.90 |
) |
|
$ |
(1.01 |
) |
|
$ |
(0.14 |
) |
|
$ |
(6.62 |
) |
|
$ |
(15.96 |
) |
Diluted |
|
$ |
(0.90 |
) |
|
$ |
(1.01 |
) |
|
$ |
(0.14 |
) |
|
$ |
(6.62 |
) |
|
$ |
(15.96 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
385 |
|
|
|
382 |
|
|
|
385 |
|
|
|
384 |
|
|
|
382 |
|
Diluted |
|
|
385 |
|
|
|
382 |
|
|
|
385 |
|
|
|
384 |
|
|
|
382 |
|
|
||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||
(In millions) |
||||||
|
|
|
||||
|
|
2020 |
|
2019 |
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,692 |
|
$ |
1,171 |
Receivables, net |
|
|
1,274 |
|
|
1,855 |
Inventories, net |
|
|
1,408 |
|
|
2,197 |
Contract assets |
|
|
611 |
|
|
643 |
Other current assets |
|
|
224 |
|
|
247 |
Total current assets |
|
|
5,209 |
|
|
6,113 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
1,927 |
|
|
2,354 |
Lease right-of-use assets |
|
|
566 |
|
|
674 |
|
|
|
2,020 |
|
|
3,659 |
Other assets |
|
|
207 |
|
|
349 |
Total assets |
|
$ |
9,929 |
|
$ |
13,149 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
489 |
|
$ |
715 |
Accrued liabilities |
|
|
863 |
|
|
949 |
Contract liabilities |
|
|
354 |
|
|
427 |
Current portion of lease liabilities |
|
|
110 |
|
|
114 |
Accrued income taxes |
|
|
51 |
|
|
42 |
Total current liabilities |
|
|
1,867 |
|
|
2,247 |
|
|
|
|
|
|
|
Long-term debt |
|
|
1,834 |
|
|
1,989 |
Lease liabilities |
|
|
612 |
|
|
674 |
Other liabilities |
|
|
337 |
|
|
393 |
Total liabilities |
|
|
4,650 |
|
|
5,303 |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
5,279 |
|
|
7,846 |
Total liabilities and stockholders’ equity |
|
$ |
9,929 |
|
$ |
13,149 |
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
(In millions) |
||||||||
|
|
Years Ended |
||||||
|
|
|
||||||
|
|
2020 |
|
2019 |
||||
Cash flows from operating activities: |
|
|
||||||
Net loss |
|
$ |
(2,537 |
) |
|
$ |
(6,093 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
352 |
|
|
|
533 |
|
|
|
|
1,378 |
|
|
|
3,612 |
|
Long-lived asset impairment |
|
|
513 |
|
|
|
2,209 |
|
Working capital and other operating items, net |
|
|
1,220 |
|
|
|
453 |
|
Net cash provided by operating activities |
|
|
926 |
|
|
|
714 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property, plant and equipment |
|
|
(226 |
) |
|
|
(233 |
) |
Business acquisitions, net of cash acquired |
|
|
(14 |
) |
|
|
(180 |
) |
Other |
|
|
96 |
|
|
|
98 |
|
Net cash used in investing activities |
|
|
(144 |
) |
|
|
(315 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Borrowings against lines of credit and other debt |
|
|
36 |
|
|
|
511 |
|
Payments against lines of credit and other debt |
|
|
(217 |
) |
|
|
(1,000 |
) |
Cash dividends paid |
|
|
(19 |
) |
|
|
(77 |
) |
Other |
|
|
(59 |
) |
|
|
(81 |
) |
Net cash used in financing activities |
|
|
(259 |
) |
|
|
(647 |
) |
Effect of exchange rates on cash |
|
|
(2 |
) |
|
|
(8 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
521 |
|
|
|
(256 |
) |
Cash and cash equivalents, beginning of period |
|
|
1,171 |
|
|
|
1,427 |
|
Cash and cash equivalents, end of period |
|
$ |
1,692 |
|
|
$ |
1,171 |
|
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) (Unaudited)
(In millions)
The Company discloses Adjusted EBITDA (defined as Operating Profit excluding Depreciation, Amortization and, when applicable, 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 include impairment charges, inventory charges and severance and other restructuring costs.
|
|
Three Months Ended |
|
Years Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2020 |
|
2019 |
||||||||||
Operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
(78 |
) |
|
$ |
(317 |
) |
|
$ |
(50 |
) |
|
$ |
(858 |
) |
|
$ |
(3,551 |
) |
Completion & Production Solutions |
|
|
(31 |
) |
|
|
57 |
|
|
|
25 |
|
|
|
(977 |
) |
|
|
(1,934 |
) |
Rig Technologies |
|
|
(132 |
) |
|
|
(23 |
) |
|
|
(3 |
) |
|
|
(362 |
) |
|
|
(524 |
) |
Eliminations and corporate costs |
|
|
(60 |
) |
|
|
(66 |
) |
|
|
(46 |
) |
|
|
(228 |
) |
|
|
(270 |
) |
Total operating profit (loss) |
|
$ |
(301 |
) |
|
$ |
(349 |
) |
|
$ |
(74 |
) |
|
$ |
(2,425 |
) |
|
$ |
(6,279 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
46 |
|
|
$ |
410 |
|
|
$ |
26 |
|
|
$ |
849 |
|
|
$ |
3,794 |
|
Completion & Production Solutions |
|
|
43 |
|
|
|
13 |
|
|
|
23 |
|
|
|
1,132 |
|
|
|
2,042 |
|
Rig Technologies |
|
|
132 |
|
|
|
114 |
|
|
|
12 |
|
|
|
402 |
|
|
|
784 |
|
Corporate |
|
|
15 |
|
|
|
— |
|
|
|
1 |
|
|
|
40 |
|
|
|
11 |
|
Total Other Items |
|
$ |
236 |
|
|
$ |
537 |
|
|
$ |
62 |
|
|
$ |
2,423 |
|
|
$ |
6,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation & amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
44 |
|
|
$ |
50 |
|
|
$ |
45 |
|
|
$ |
187 |
|
|
$ |
284 |
|
Completion & Production Solutions |
|
|
16 |
|
|
|
26 |
|
|
|
15 |
|
|
|
75 |
|
|
|
150 |
|
Rig Technologies |
|
|
19 |
|
|
|
21 |
|
|
|
19 |
|
|
|
77 |
|
|
|
87 |
|
Corporate |
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
13 |
|
|
|
12 |
|
Total depreciation & amortization |
|
$ |
82 |
|
|
$ |
100 |
|
|
$ |
83 |
|
|
$ |
352 |
|
|
$ |
533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
12 |
|
|
$ |
143 |
|
|
$ |
21 |
|
|
$ |
178 |
|
|
$ |
527 |
|
Completion & Production Solutions |
|
|
28 |
|
|
|
96 |
|
|
|
63 |
|
|
|
230 |
|
|
|
258 |
|
Rig Technologies |
|
|
19 |
|
|
|
112 |
|
|
|
28 |
|
|
|
117 |
|
|
|
347 |
|
Eliminations and corporate costs |
|
|
(42 |
) |
|
|
(63 |
) |
|
|
(41 |
) |
|
|
(175 |
) |
|
|
(247 |
) |
Total Adjusted EBITDA |
|
$ |
17 |
|
|
$ |
288 |
|
|
$ |
71 |
|
|
$ |
350 |
|
|
$ |
885 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP net income (loss) attributable to Company |
|
$ |
(347 |
) |
|
$ |
(385 |
) |
|
$ |
(55 |
) |
|
$ |
(2,542 |
) |
|
$ |
(6,095 |
) |
Noncontrolling interests |
|
|
(1 |
) |
|
|
— |
|
|
|
2 |
|
|
|
5 |
|
|
|
2 |
|
Provision (benefit) for income taxes |
|
|
22 |
|
|
|
(46 |
) |
|
|
(61 |
) |
|
|
(242 |
) |
|
|
(369 |
) |
Interest expense |
|
|
19 |
|
|
|
25 |
|
|
|
21 |
|
|
|
84 |
|
|
|
100 |
|
Interest income |
|
|
(2 |
) |
|
|
(4 |
) |
|
|
— |
|
|
|
(7 |
) |
|
|
(20 |
) |
Equity loss in unconsolidated affiliate |
|
|
10 |
|
|
|
7 |
|
|
|
11 |
|
|
|
260 |
|
|
|
13 |
|
Other (income) expense, net |
|
|
(2 |
) |
|
|
54 |
|
|
|
8 |
|
|
|
17 |
|
|
|
90 |
|
Depreciation and amortization |
|
|
82 |
|
|
|
100 |
|
|
|
83 |
|
|
|
352 |
|
|
|
533 |
|
Other Items |
|
|
236 |
|
|
|
537 |
|
|
|
62 |
|
|
|
2,423 |
|
|
|
6,631 |
|
Total Adjusted EBITDA |
|
$ |
17 |
|
|
$ |
288 |
|
|
$ |
71 |
|
|
$ |
350 |
|
|
$ |
885 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210204006147/en/
Vice President, Corporate Development and Investor Relations
(713) 815-3535
Blake.McCarthy@nov.com
Source: