National Oilwell Varco Expects Quarterly Revenue Below Expectations
April 16 2018 - 7:45AM
Dow Jones News
By Allison Prang
National Oilwell Varco Inc. (NOV) said it plans to report lower
revenue than expected because of a drop in sequential shipments and
"reduced progress on new offshore rig construction," among other
factors.
The company said it expects first-quarter revenue of $1.8
billion, below its prior expectation.
The new guidance was a result of "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," the company said in a news
release.
Its top line was also hurt from "lower sequential shipments of
subsea production equipment," it said.
Analysts polled by Thomson Reuters are expecting revenue of
$1.95 billion. The company reported total revenue in the first
quarter of 2017 of $1.74 billion.
Chief Executive Clay Williams said all three business segments
will report sequentially lower revenue, and the company expects to
report an operating loss of about $1 million on a consolidated
basis.
Mr. Williams said that "industry fundamentals continue to
improve" and that the company is optimistic for the rest of
2018.
"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," he
said.
NOV is scheduled to report its latest financial results April 26
after the market closes.
Shares of the company have risen 25% in the past year and 10%
year to date.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
April 16, 2018 07:30 ET (11:30 GMT)
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