Energy equipment maker National Oilwell Varco Inc. (NOV – Free Report) reported second-quarter 2017 loss per share (excluding one-time items) of 14 cents which was in line with the Zacks Consensus Estimate. However, the bottom line compared favorably with the year-ago quarter adjusted loss of 30 cents.
Aggressive cost cutting-initiatives and improved efficiencies along with an uptick of activities in the North American land market led to better results
Second-quarter revenues of $1,759 million increased from $1,724 million a year ago but narrowly missed the Zacks Consensus Estimate of $1,760 million.
National Oilwell Varco, Inc. Price, Consensus and EPS Surprise
National Oilwell Varco, Inc. Price, Consensus and EPS Surprise | NOV
Segmental Performance
Rig Systems: Revenues came in at $346 million, down 39% from the year-ago quarter. Moreover, the unit incurred an operating loss of $7 million as against a profit of $7 million in the year ago quarter. Declining backlog and suspension of capital equipment deliveries to the third quarter dampened results, which were partly offset by cost cuts.
Rig Aftermarket: The segment generated revenues of $341 million, down 6.3% from the year-ago period. However, operating profit increased 22.5% from the second quarter of 2016 to $76 million. Increased focus on efficiency and favorable mix of products drove the operating margin.
Wellbore Technologies: The segment’s revenues were up 20.2% year over year to $614 million. Further, the unit’s operating loss narrowed by 83.5% to $24 million during second-quarter 2017. Rising momentum in the U.S. markets and modest improvement in international markets along with increased consumer demand for the segment’s products/services led to the improved results.
Completion & Production Solutions: Revenues for the segment were recorded at $652 million, up 21.2% from $538 million in the year-ago quarter. The unit recorded operating profit of $27 million, turning around from an operating loss of $33 million in the corresponding period last year. Improvements in the segment’s land-oriented operations resulted in increased revenues. Strong execution of projects and cost containment efforts led to the operating profit.
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