National Oilwell Varco Provides Operational Update for the First Quarter 2018
April 16 2018 - 6:30AM
Business Wire
National Oilwell Varco, Inc. (NYSE: NOV) today announced it
expects to report first quarter 2018 revenues of $1.80 billion,
which is below prior expectations. The revenue shortfall is
primarily due to:
- Reduced progress on new offshore rig
construction and customer-delayed deliveries of drilling, well
servicing, and stimulation equipment, causing revenue to slip into
later periods, and;
- Lower sequential shipments of subsea
production equipment at quarter-end.
“Following an unusually protracted 2018 budgeting cycle, we’ve
seen certain customers defer deliveries for existing capital
equipment orders into the second quarter and delay making new order
commitments until late into the first quarter,” commented Clay
Williams, Chairman, President, and CEO. “Unfortunately, all three
segments will report sequentially lower revenues and, on a
consolidated basis, we expect to report a GAAP operating loss of
approximately $1 million and Adjusted EBITDA of approximately $160
million.”
“Nevertheless, industry fundamentals continue to improve, and we
remain optimistic regarding the second quarter and the remainder of
the year. With oil prices continuing to trend upward, and the U.S.
rig count topping one thousand, we expect demand for NOV’s critical
products and services to resume growth as the year progresses.”
The Company is finalizing its financial close process for the
first quarter 2018 and will provide complete results in a press
release issued after the market closes on Thursday, April 26. NOV
will hold its first quarter 2018 conference call on Friday, April
27 at 10 a.m. (Central Time). The call will be webcast live on
www.nov.com/investors.
About NOV
National Oilwell Varco (NYSE: NOV) is a leading provider of
technology, equipment, and services to the global oil and gas
industry that supports customers’ full-field drilling, completion,
and production needs. Since 1862, NOV has pioneered innovations
that improve the cost-effectiveness, efficiency, safety, and
environmental impact of oil and gas operations. NOV powers the
industry that powers the world. Visit www.nov.com for more
information.
Adjusted EBITDA is operating loss of approximately $1 million,
plus depreciation and amortization of $173 million, minus other
credits of $12 million. The Company discloses Adjusted EBITDA in
its periodic earnings press releases and other public disclosures
to provide investors additional information about the results of
ongoing operations and uses it internally to evaluate and manage
the business. Adjusted EBITDA is not intended to replace 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 National Oilwell Varco with the
Securities and Exchange Commission, including the Annual Report on
Form 10-K, which identify significant risk factors which could
cause actual results to differ from those contained in the
forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20180416005397/en/
National Oilwell Varco, Inc.Loren Singletary,
713-346-7807
NOV (NYSE:NOV)
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