Business

Nov Inc (NYSE: NOV) Reports Revenues of $14 Billion in Second Quarter 2021

Nov Inc (NYSE: NOV) recently reported second-quarter revenues of $14.2 billion, a 13% increase from the first quarter of 2021 and a 5% decrease from a similar period in 2020. Net loss for the quarter was $26 million, equivalent to 1.8% of sales, including pre-tax net charges of $15 million. Adjusted operating profit excluding depreciation, amortization, and Other items (EBITDA) increased sequentially to 7.3% of sales ($104 million).

Stronger second quarter

According to Chairman, President, and CEO, Clay Williams, the rising demand in the oilfield and offshore wind markets stimulated stronger orders for NOV during the second quarter. As a result, rig technologies and Completion & Production Solutions segments both posted book-to-bill ratios north of 100%. Wellbore technologies continued to execute well on modestly higher oilfield activity in the second quarter in a series of double-digit revenue growth and leverage greater than 50%.

Williams added that while the company’s second-quarter financial results continued to emulate 2020’s historical decline in oilfield activity and orders, they are encouraged by rising inquiries and activity. In addition, he believes that the post-pandemic global recovery is on track and will spur further top-line growth. In the meantime, government-mandated shutdowns continue to affect the global supply chain, limit the availability of raw materials, and pose challenges to the company’s workforce. 

Nov improved in its approach to navigating these headwinds in the second quarter. At the same time, the company continued developing its leading-edge technology offerings for the renewables and oilfield markets. As a result, the company’s portfolio of newly developed technologies puts it in an excellent position to take advantage of what might seem like a multi-year growth market for both clean and conventional energy technologies.

Growth in Wellbore Technologies

Wellbore Technologies generated $463 million in the second quarter of 2021, a 12% increase from the first quarter and a 5% increase from a similar period in 2020. The increase was driven by increased North American activity and slight improvements in the international market. Operating profit was 1.3% of sales ( $6 million) and included $ 18 million of other items. Adjusted EBITDA increased $29 million sequentially to 13.6 percent of sales ($63 million).

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