NOV Reports Fourth Quarter and Full Year 2021 Results
Revenues for the full year 2021 were
“Improving oil, gas and offshore wind power activity helped fuel double-digit sequential revenue growth in all three of NOV’s operating segments during the fourth quarter,” stated
“As the world emerges from the pandemic and greater economic activity resumes, it is becoming increasingly evident that supply of petroleum is uncomfortably tight. Global activity needs to increase to meet growing demand while energy transition efforts accelerate. Against this backdrop, we are focused on improving margins through a combination of higher product pricing, growing revenue from NOV’s proprietary technologies, and better execution against ongoing supply chain challenges. The Company’s strong financial position, global reach, large installed base of oilfield and wind installation equipment, and growing portfolio of energy transition technologies position it well as we advance further into the emerging up-cycle.”
Wellbore Technologies
Wellbore Technologies generated revenues of
Completion & Production Solutions
Completion & Production Solutions generated revenues of
New orders booked during the quarter totaled
Rig Technologies
Rig Technologies generated revenues of
New orders booked during the quarter totaled
Corporate Information
During the fourth quarter, the Company recognized
As of
Significant Achievements
NOV successfully delivered a GustoMSC™ NG-16000X wind installation vessel for a customer in Continental Europe. The vessel includes the GustoMSC rack and pinion jacking system with a high-performance variable speed drive, a regenerative power option that significantly enhances fuel efficiency, and a 2,600-ton leg encircling crane that makes it installation-ready for the larger monopile foundations and wind turbines in future developments. Additionally, NOV supplied two fully electric FPSO crane packages designed for loading and unloading shipping vessels, and internal load handling.
NOV received an order for thirty additional NOVOS™ systems from a leading North American driller. The enhanced process execution and rig performance enabled by NOVOS has been a clear differentiator for this customer that has now outfitted the entirety of its active rig fleet with NOVOS automation systems.
NOV booked multiple FPSO topside module awards for the strengthening offshore
NOV's Tolteq™ measurement while drilling tools continued to expand its geographic scope in the fourth quarter, being deployed for the first time in three new markets –
NOV received an order for a completion and workover riser (“CWOR”) in
NOV WellSite Services has won a contract with a major operator in
NOV acquired a leading independent provider of managed pressure drilling (“MPD”) equipment, complete with a significant technology portfolio and engineering team. With a product suite ranging from rotating control devices targeting the
NOV was asked by the
NOV's VectorZIEL 600 Rotary Steerable System tool was deployed in the
NOV was awarded a three-year contract with a national oil company in the Far East for real-time data monitoring and management services, supporting 59 onshore rigs. This contract will utilize NOV’s RigSense™ wellsite data acquisition product along with its RMS and WellData cloud-based portal solutions, which enable real-time monitoring of drilling information anywhere in the world as if at the wellsite. With its feature-rich toolkit, users can seamlessly collaborate and share insights to reduce nonproductive time and improve operational efficiency by quickly identifying potential trouble spots, overseeing drilling efficiencies across a rig fleet, and comparing well production to offset wells.
Fourth Quarter Earnings Conference Call
NOV will hold a conference call to discuss its fourth quarter 2021 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.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating NOV’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the oilfield services and equipment industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this press release and the most directly comparable GAAP financial measures.
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 |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wellbore Technologies |
|
$ |
576 |
|
|
$ |
373 |
|
|
$ |
507 |
|
|
$ |
1,959 |
|
|
$ |
1,867 |
|
Completion & Production Solutions |
|
|
549 |
|
|
|
546 |
|
|
|
478 |
|
|
|
1,963 |
|
|
|
2,433 |
|
Rig Technologies |
|
|
431 |
|
|
|
437 |
|
|
|
390 |
|
|
|
1,739 |
|
|
|
1,919 |
|
Eliminations |
|
|
(39 |
) |
|
|
(29 |
) |
|
|
(34 |
) |
|
|
(137 |
) |
|
|
(129 |
) |
Total revenue |
|
|
1,517 |
|
|
|
1,327 |
|
|
|
1,341 |
|
|
|
5,524 |
|
|
|
6,090 |
|
Gross profit (loss) |
|
|
202 |
|
|
|
(66 |
) |
|
|
185 |
|
|
|
774 |
|
|
|
434 |
|
Gross profit (loss) % |
|
|
13.3 |
% |
|
|
(5.0 |
%) |
|
|
13.8 |
% |
|
|
14.0 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative |
|
|
217 |
|
|
|
235 |
|
|
|
228 |
|
|
|
908 |
|
|
|
968 |
|
Long-lived asset impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,891 |
|
Operating loss |
|
|
(15 |
) |
|
|
(301 |
) |
|
|
(43 |
) |
|
|
(134 |
) |
|
|
(2,425 |
) |
Interest and financial costs |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(19 |
) |
|
|
(77 |
) |
|
|
(84 |
) |
Interest income |
|
|
2 |
|
|
|
2 |
|
|
|
3 |
|
|
|
9 |
|
|
|
7 |
|
Equity income (loss) in unconsolidated affiliates |
|
|
1 |
|
|
|
(10 |
) |
|
|
(2 |
) |
|
|
(5 |
) |
|
|
(260 |
) |
Other income (expense), net |
|
|
2 |
|
|
|
2 |
|
|
|
1 |
|
|
|
(23 |
) |
|
|
(17 |
) |
Loss before income taxes |
|
|
(29 |
) |
|
|
(326 |
) |
|
|
(60 |
) |
|
|
(230 |
) |
|
|
(2,779 |
) |
Provision (benefit) for income taxes |
|
|
14 |
|
|
|
22 |
|
|
|
5 |
|
|
|
15 |
|
|
|
(242 |
) |
Net loss |
|
|
(43 |
) |
|
|
(348 |
) |
|
|
(65 |
) |
|
|
(245 |
) |
|
|
(2,537 |
) |
Net (income) loss attributable to noncontrolling interests |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
4 |
|
|
|
5 |
|
|
|
5 |
|
Net loss attributable to Company |
|
$ |
(40 |
) |
|
$ |
(347 |
) |
|
$ |
(69 |
) |
|
$ |
(250 |
) |
|
$ |
(2,542 |
) |
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.10 |
) |
|
$ |
(0.90 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.65 |
) |
|
$ |
(6.62 |
) |
Diluted |
|
$ |
(0.10 |
) |
|
$ |
(0.90 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.65 |
) |
|
$ |
(6.62 |
) |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
387 |
|
|
|
385 |
|
|
|
387 |
|
|
|
386 |
|
|
|
384 |
|
Diluted |
|
|
387 |
|
|
|
385 |
|
|
|
387 |
|
|
|
386 |
|
|
|
384 |
|
|
||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||
(In millions) |
||||||
|
|
|
||||
|
|
2021 |
|
2020 |
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,591 |
|
$ |
1,692 |
Receivables, net |
|
|
1,321 |
|
|
1,274 |
Inventories, net |
|
|
1,331 |
|
|
1,408 |
Contract assets |
|
|
461 |
|
|
611 |
Other current assets |
|
|
198 |
|
|
224 |
Total current assets |
|
|
4,902 |
|
|
5,209 |
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
|
1,823 |
|
|
1,927 |
Lease right-of-use assets |
|
|
537 |
|
|
566 |
|
|
|
2,030 |
|
|
2,020 |
Other assets |
|
|
258 |
|
|
207 |
Total assets |
|
$ |
9,550 |
|
$ |
9,929 |
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
612 |
|
$ |
489 |
Accrued liabilities |
|
|
778 |
|
|
863 |
Contract liabilities |
|
|
392 |
|
|
354 |
Current portion of lease liabilities |
|
|
99 |
|
|
110 |
Current portion of long-term debt |
|
|
5 |
|
|
— |
Accrued income taxes |
|
|
24 |
|
|
51 |
Total current liabilities |
|
|
1,910 |
|
|
1,867 |
|
|
|
|
|
|
|
Long-term debt |
|
|
1,708 |
|
|
1,834 |
Lease liabilities |
|
|
576 |
|
|
612 |
Other liabilities |
|
|
292 |
|
|
337 |
Total liabilities |
|
|
4,486 |
|
|
4,650 |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
|
5,064 |
|
|
5,279 |
Total liabilities and stockholders’ equity |
|
$ |
9,550 |
|
$ |
9,929 |
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
(In millions) |
||||||||
|
|
Years Ended |
|
|||||
|
|
|
|
|||||
|
|
2021 |
|
2020 |
||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
|
$ |
(245 |
) |
|
$ |
(2,537 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
306 |
|
|
|
352 |
|
|
|
|
— |
|
|
|
1,378 |
|
Long-lived asset impairment |
|
|
— |
|
|
|
513 |
|
Working capital and other operating items, net |
|
|
230 |
|
|
|
1,220 |
|
Net cash provided by operating activities |
|
|
291 |
|
|
|
926 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment |
|
|
(201 |
) |
|
|
(226 |
) |
Business acquisitions, net of cash acquired |
|
|
(52 |
) |
|
|
(14 |
) |
Other |
|
|
57 |
|
|
|
96 |
|
Net cash used in investing activities |
|
|
(196 |
) |
|
|
(144 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Borrowings against lines of credit and other debt |
|
|
60 |
|
|
|
36 |
|
Payments against lines of credit and other debt |
|
|
(183 |
) |
|
|
(217 |
) |
Cash dividends paid |
|
|
(20 |
) |
|
|
(19 |
) |
Other |
|
|
(46 |
) |
|
|
(59 |
) |
Net cash used in financing activities |
|
|
(189 |
) |
|
|
(259 |
) |
Effect of exchange rates on cash |
|
|
(7 |
) |
|
|
(2 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
(101 |
) |
|
|
521 |
|
Cash and cash equivalents, beginning of period |
|
|
1,692 |
|
|
|
1,171 |
|
Cash and cash equivalents, end of period |
|
$ |
1,591 |
|
|
$ |
1,692 |
|
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (LOSS) (Unaudited)
(In millions)
Presented below is a reconciliation of Net Income (Loss) to Adjusted EBITDA. The Company defines Adjusted EBITDA as Operating Profit excluding Depreciation, Amortization and, when applicable, Other Items. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and manage the business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Adjusted EBITDA is not intended to replace GAAP financial measures, such as Net Income. Other Items include impairment, restructure, severance, and facility closure costs and inventory charges and credits, and a post-warranty product modification.
|
|
Three Months Ended |
|
Years Ended |
||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
||||||||||
Operating profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
50 |
|
|
$ |
(78 |
) |
|
$ |
32 |
|
|
$ |
74 |
|
|
$ |
(858 |
) |
Completion & Production Solutions |
|
|
(16 |
) |
|
|
(31 |
) |
|
|
(26 |
) |
|
|
(65 |
) |
|
|
(977 |
) |
Rig Technologies |
|
|
1 |
|
|
|
(132 |
) |
|
|
1 |
|
|
|
43 |
|
|
|
(362 |
) |
Eliminations and corporate costs |
|
|
(50 |
) |
|
|
(60 |
) |
|
|
(50 |
) |
|
|
(186 |
) |
|
|
(228 |
) |
Total operating profit (loss) |
|
$ |
(15 |
) |
|
$ |
(301 |
) |
|
$ |
(43 |
) |
|
$ |
(134 |
) |
|
$ |
(2,425 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
(1 |
) |
|
$ |
46 |
|
|
$ |
7 |
|
|
$ |
30 |
|
|
$ |
849 |
|
Completion & Production Solutions |
|
|
2 |
|
|
|
43 |
|
|
|
6 |
|
|
|
— |
|
|
|
1,132 |
|
Rig Technologies |
|
|
3 |
|
|
|
132 |
|
|
|
6 |
|
|
|
20 |
|
|
|
402 |
|
Corporate |
|
|
5 |
|
|
|
15 |
|
|
|
5 |
|
|
|
7 |
|
|
|
40 |
|
Total Other Items |
|
$ |
9 |
|
|
$ |
236 |
|
|
$ |
24 |
|
|
$ |
57 |
|
|
$ |
2,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation & amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
39 |
|
|
$ |
44 |
|
|
$ |
38 |
|
|
$ |
158 |
|
|
$ |
187 |
|
Completion & Production Solutions |
|
|
16 |
|
|
|
16 |
|
|
|
15 |
|
|
|
62 |
|
|
|
75 |
|
Rig Technologies |
|
|
17 |
|
|
|
19 |
|
|
|
18 |
|
|
|
71 |
|
|
|
77 |
|
Corporate |
|
|
3 |
|
|
|
3 |
|
|
|
4 |
|
|
|
15 |
|
|
|
13 |
|
Total depreciation & amortization |
|
$ |
75 |
|
|
$ |
82 |
|
|
$ |
75 |
|
|
$ |
306 |
|
|
$ |
352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Wellbore Technologies |
|
$ |
88 |
|
|
$ |
12 |
|
|
$ |
77 |
|
|
$ |
262 |
|
|
$ |
178 |
|
Completion & Production Solutions |
|
|
2 |
|
|
|
28 |
|
|
|
(5 |
) |
|
|
(3 |
) |
|
|
230 |
|
Rig Technologies |
|
|
21 |
|
|
|
19 |
|
|
|
25 |
|
|
|
134 |
|
|
|
117 |
|
Eliminations and corporate costs |
|
|
(42 |
) |
|
|
(42 |
) |
|
|
(41 |
) |
|
|
(164 |
) |
|
|
(175 |
) |
Total Adjusted EBITDA |
|
$ |
69 |
|
|
$ |
17 |
|
|
$ |
56 |
|
|
$ |
229 |
|
|
$ |
350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
GAAP net income (loss) attributable to Company |
|
$ |
(40 |
) |
|
$ |
(347 |
) |
|
$ |
(69 |
) |
|
$ |
(250 |
) |
|
$ |
(2,542 |
) |
Noncontrolling interests |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
4 |
|
|
|
5 |
|
|
|
5 |
|
Provision (benefit) for income taxes |
|
|
14 |
|
|
|
22 |
|
|
|
5 |
|
|
|
15 |
|
|
|
(242 |
) |
Interest expense |
|
|
19 |
|
|
|
19 |
|
|
|
19 |
|
|
|
77 |
|
|
|
84 |
|
Interest income |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(7 |
) |
Equity loss in unconsolidated affiliate |
|
|
(1 |
) |
|
|
10 |
|
|
|
2 |
|
|
|
5 |
|
|
|
260 |
|
Other (income) expense, net |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
|
|
23 |
|
|
|
17 |
|
Depreciation and amortization |
|
|
75 |
|
|
|
82 |
|
|
|
75 |
|
|
|
306 |
|
|
|
352 |
|
Other Items |
|
|
9 |
|
|
|
236 |
|
|
|
24 |
|
|
|
57 |
|
|
|
2,423 |
|
Total Adjusted EBITDA |
|
$ |
69 |
|
|
$ |
17 |
|
|
$ |
56 |
|
|
$ |
229 |
|
|
$ |
350 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220203005667/en/
Vice President, Corporate Development and Investor Relations
(713) 815-3535
Blake.McCarthy@nov.com
Source: