National Oilwell Varco swings to loss

Image: NOV
Image: NOV

U.S. oilfield equipment provider National Oilwell Varco (NOV) has suffered a net loss in the first quarter of 2016, as well as a sharp decline in revenues. 

The company on Thursday reported a first quarter 2016 net loss of $21 million, excluding other items. Other items included $147 million in pre-tax charges primarily associated with severance and facility closure costs. GAAP net loss for the quarter was $119 million, compared to a profit of $310 million in the same period last year.

NOV’s revenues for the first quarter of 2016 were $2.19 billion, a decrease of 20 percent compared to the fourth quarter of 2015, and a decrease of 55 percent from the first quarter of 2015 and revenues of $4.8 billion.

The company’s operating loss, excluding other items, was $48 million.

 

‘Better days lie ahead’

 

In the 1Q 2016 results report, Clay C. Williams, Chairman, President and CEO of National Oilwell Varco, said: “Oil prices and oilfield activity continued to plummet during the first quarter of 2016, causing our customers to cut spending to bare minimum levels.”

Williams added: “The fifth quarter of this extraordinary downcycle saw our revenues decline sharply once again, leading us to intensify our cost reduction efforts. While this market has been very tough on our business, I am grateful for the leadership and perseverance demonstrated by National Oilwell Varco’s tremendous employees. Better days lie ahead. Our strong financial resources enable us to continue to invest in new technologies, products and acquisitions that better position us for the inevitable upturn.”

When it comes to cost cuts, the company reduced its workforce in Norway twice, in June 2015, when 1,500 jobs were cut, and earlier in April with 520 employees affected.

Offshore Energy Today Staff

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