National Oilwell Varco Announces Changes in Reporting Segments; Expects Fourth Quarter 2017 Results to Be In-Line with Guidan...
January 19 2018 - 6:30AM
Business Wire
National Oilwell Varco, Inc. (NYSE: NOV) today announced it
combined its Rig Systems and Rig Aftermarket reporting segments
into a single segment called Rig Technologies during the fourth
quarter of 2017. The restructuring better aligns operations with
the current and anticipated market environments, reduces
administrative burden, and eliminates reported intercompany
transactions between Rig Technologies’ capital equipment and
aftermarket operations. The Company will report fourth quarter and
full-year results in the new format on February 5, 2018.
The table below conforms prior period Rig Systems and Rig
Aftermarket segment results to the new Rig Technologies segment
presentation:
SELECT RIG TECHNOLOGIES HISTORICAL
FINANCIAL INFORMATION (Unaudited)
(In millions) Three Months Ended
Years Ended December 31, March 31,
June 30, September 30, 2014
2015 2016 2017 2017 2017
Revenue: Rig Systems $ 9,848 $ 6,964 $ 2,386 $ 393 $ 346 $ 330 Rig
Aftermarket 3,222 2,515 1,416 321 341 311 Intercompany Eliminations
(1,272 ) (1,200 ) (692 ) (132 )
(141 ) (131 ) Rig Technologies $ 11,798 $ 8,279
$ 3,110 $ 582 $ 546 $ 510
Operating profit (loss): Rig Systems $ 2,118 $ 1,322 $ (969 ) $ 9 $
(7 ) $ 11 Rig Aftermarket 935 652 229 61 76 64 Intercompany
Eliminations (522 ) (473 ) (293 ) (57 )
(63 ) (57 ) Rig Technologies $ 2,531 $ 1,501
$ (1,033 ) $ 13 $ 6 $ 18
Adjusted EBITDA: Rig Systems $ 2,220 $ 1,518 $ 293 $ 33 $ 26 $ 28
Rig Aftermarket 968 687 316 71 83 69 Intercompany Eliminations
(522 ) (473 ) (293 ) (57 ) (63 )
(57 ) Rig Technologies $ 2,666 $ 1,732 $ 316
$ 47 $ 46 $ 40 Reconciliation of
Operating profit (loss) to Adjusted
EBITDA (Operating profit excluding other
items before depreciation & amortization):
Operating profit (loss) $ 2,531 $ 1,501 $ (1,033 ) $ 13 $ 6 $ 18
Other Items 23 124 1,255 12 17 - Depreciation and Amortization
112 107 94 22
23 22 Adjusted EBITDA $ 2,666
$ 1,732 $ 316 $ 47 $ 46 $ 40
The Company anticipates it will recognize between $120 and $140
million in pre-tax restructuring charges, including facility
closures, severance and inventory write-downs, and other charges
(collectively “other items”) during the fourth quarter of 2017.
Excluding the impact of other items, the Company expects
consolidated results for the fourth quarter of 2017 to be at or
above prior expectations. The Company anticipates Rig Technologies
will exceed prior guidance, Wellbore Technologies will be in-line
with expectations, and Completion and Production Solutions will
fall short of guidance. The shortfall in Completion and Production
Solutions is due primarily to engineering challenges and delivery
delays associated with a new product introduction in its Subsea
Flexible Pipe business and softer than anticipated orders in its
Process and Flow Technologies business.
Fourth Quarter and Full-Year 2017 Earnings Conference
Call
NOV will hold its fourth quarter and full-year 2017 conference
call on Tuesday, February 6 at 10 a.m. (Central Time). NOV will
issue a press release with the Company’s results after the market
closes for trading on Monday, February 5. 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.
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: http://www.businesswire.com/news/home/20180119005184/en/
National Oilwell Varco, Inc.Loren Singletary,
713-346-7807
NOV (NYSE:NOV)
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