NOV Reports Second Quarter 2024 Results

  • Revenue of $2.22 billion, an increase of 6% year-over-year
  • Net Income of $226 million, and $0.57 per share, up $71 million, or $0.18 per share, year-over-year
  • Adjusted EBITDA* of $281 million, an increase of $36 million year-over-year
  • Cash flow from operations of $432 million and free cash flow* of $350 million
  • Bookings of $977 million, representing a 177% book-to-bill
  • Repurchased 2.0 million shares of common stock for $37 million, at an average price of $18.50 per share

* Adjusted EBITDA and Free Cash Flow are non-GAAP measures, see “Non-GAAP Financial Measures,” “Reconciliation of Cash Flows from Operating Activities to Free Cash Flow” and “Reconciliation of Adjusted EBITDA to Net Income” below.


HOUSTON–(BUSINESS WIRE)–NOV Inc. (NYSE: NOV) today reported second quarter 2024 revenues of $2.22 billion, an increase of six percent compared to the second quarter of 2023. Net income was $226 million, or 10.2 percent of sales, an increase of $71 million compared to the second quarter of 2023. Operating profit was $313 million, or 14.1 percent of sales. The Company recorded a net credit of $118 million within Other Items (see Corporate Information for additional details). Adjusted EBITDA increased 15 percent year-over-year to $281 million, or 12.7 percent of sales.

NOV delivered solid results during the second quarter of 2024,” stated Clay Williams, Chairman, President, and CEO. “Our execution around delivering technologies that drive value for our customers, optimizing our cost structure and improving our working capital efficiency resulted in improved profitability and cash flow. Adjusted EBITDA margin of 12.7 percent was the highest since 2015, and free cash flow was up both sequentially and year-over-year to $350 million during the second quarter.

Rising adoption of NOV’s new technologies and gains in market share are driving strong growth internationally and offsetting declining activity in North America. Strong orders pushed our backlog to its highest level since 2015 and expected margins of projects in our backlog continued to improve through the second quarter.

We were pleased to accelerate our return of capital to shareholders to $67 million during the quarter, through a combination of share repurchases under our $1 billion share repurchase authorization and the 50 percent increase in our base dividend we announced recently. Strong financial results, orders and free cash flow during the second quarter highlight the strength we see in offshore and international markets and underpin our expectation of continued return of excess free cash flow to our shareholders in coming years.”

Energy Products and Services

Energy Products and Services generated revenues of $1,050 million in the second quarter of 2024, an increase of two percent from the second quarter of 2023. Operating profit decreased $28 million from the prior year to $128 million, or 12.2 percent of sales, and included $1 million in Other Items. Adjusted EBITDA decreased $14 million from the prior year to $184 million, or 17.5 percent of sales. Revenue improved from strong demand in international and offshore markets, which more than offset declining North American activity. A less favorable sales mix led to the lower level of profitability compared to the prior year.

Energy Equipment

Energy Equipment generated revenues of $1,204 million in the second quarter of 2024, an increase of eight percent from the second quarter of 2023. Operating profit increased $151 million from the prior year to $232 million, or 19.3 percent of sales, and included a $119 million net credit of Other Items. Adjusted EBITDA increased $43 million from the prior year to $142 million, or 11.8 percent of sales. Higher revenue and profitability, excluding the gain from the divestiture of its Pole Products business, were the result of improved demand for aftermarket products and services, strong execution on the segment’s improving capital equipment backlog, and cost savings initiatives.

New orders booked during the quarter totaled $977 million, an increase of $466 million when compared to the $511 million of new orders booked during the second quarter of 2023. Orders shipped from backlog in the second quarter of 2024 was $553 million, representing a book-to-bill of 177 percent, compared to $505 million orders shipped and a book-to-bill of 101 percent in the second quarter of 2023. As of June 30, 2024, backlog for capital equipment orders for Energy Equipment was $4,331 million, an increase of $472 million from the second quarter of 2023.

Q3 and Full Year 2024 Outlook

The Company is providing financial guidance for the third quarter of 2024 and full year 2024. Guidance is based on current outlook and plans and is subject to a number of known and unknown uncertainties and risks and constitutes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 as further described under the Cautionary Statement below. Actual results may differ materially from the guidance set forth below.

For the third quarter management expects year-over-year consolidated revenues to be flat to up in the low- single digit percent range and Adjusted EBITDA to be between $270 million and $305 million. For full year 2024, management anticipates consolidated company revenue growth in the low- to mid-single digit percent range and Adjusted EBITDA to be in the range of $1.10 billion to $1.18 billion.

Corporate Information

NOV repurchased 2.0 million shares of common stock at an average price of $18.50 per share and increased its base dividend by 50 percent during the second quarter. The Company expects to return at least 50 percent of Excess Free Cash Flow (defined as cash flow from operations less capital expenditures and other investments, including acquisitions), through a combination of steady, quarterly base dividends, opportunistic stock buybacks, and an annual supplemental dividend to true-up returns to shareholders on an annual basis.

During the second quarter of 2024, NOV recorded a $118 million net credit of Other Items, primarily related to gains from the divestiture of its Pole Products business (see Reconciliation of Adjusted EBITDA to Net Income).

As of June 30, 2024, the Company had total debt of $1.75 billion, with $2.00 billion available on its primary revolving credit facility, and $827 million in cash and cash equivalents.

Significant Achievements

NOV signed a framework agreement with a major Norwegian oil and gas operator associated with the two companies’ intent to deploy NOV’s Downhole Broadband Solutions (DBS) wired drill pipe technology and services across all of the operator’s rigs in the North Sea. NOV has been supporting the operator’s offshore drilling operations utilizing DBS wired drill pipe services to transmit real-time, broadband data from sensors across the bottom hole assembly, and along the drill string on a semisubmersible rig since 2019. The data has allowed the operator to make better informed decisions resulting in improved drilling performance, optimized well placement, reduced risks, and improved production. Under the new framework agreement, the operator will begin deploying NOV’s DBS technology on additional rigs in early 2025.

NOV’s Keystone Tower Systems operation received an order to produce 300 wind towers for a major wind turbine manufacturer. On achieving this significant milestone, NOV elected to buy out the remaining minority interest owners in the business, completing the transaction during the second quarter. The acquisition of the remaining stake will allow NOV to fully integrate the operation and leverage NOV’s capabilities to accelerate the commercialization of this proprietary manufacturing technology for the construction of wind towers.

NOV secured a follow-up order for its seventh proprietary NG-20000 wind turbine installation vessel (WTIV) design and jacking system for Europe’s largest owner of installation vessels in the offshore wind sector. This order reaffirms NOV’s position as the industry standard for global offshore wind installation solutions. The NG-20000 vessel is designed to support the installation of current-generation 15 MW offshore wind turbines and foundations, as well as larger, future 20+MW turbine models.

NOV’s WellSite Services team was awarded a significant project for its iNOVaTHERM™ system in Angola. NOV and the customer demonstrated to the Angolan Ministry of Environment that the iNOVaTHERM solution offers enhanced safety and environmental stewardship compared to traditional zero discharge methods. The system enables the safe disposal of cleaned and treated drill cuttings at the drilling site, lowering CO2 emissions and reducing HSE risks associated with waste transport back to shore. This award represents the iNOVaTHERM system’s initial deployment for a major operator and is expected to establish the technology as the industry standard in Angola.

NOV Completion Tools continued to deliver solutions that reduce non-productive time (NPT) and enhance decision-making in completions operations worldwide. NOV introduced the i-Opener™ TD-II toe initiation sleeve into North America, allowing customers to meet local pressure testing regulations without running a separate isolation plug. This toe sleeve eliminates costly operations that can delay completions if unsuccessful. NOV’s i-Con™ Monitoring Tool diagnosed issues with a challenging liner hanger installation in West Texas, leading to the design of a highly-effective completions program for the customer. The i-Con tool was also used by a European oil and gas producer to deliver critical data that enabled the successful installation of a linger hangar within a collapsed section of the producer’s deepest well. In the Middle East, NOV built and deployed a new Gravel Pack liner hanger solution on short notice for a National Oil Company, demonstrating NOV’s responsiveness as a trusted supplier of solutions for complex completion tool applications.

NOV deployed a bottomhole assembly (BHA) utilizing a full complement of its latest technologies to assist a producer in setting a new Bakken record for a 3-mile lateral well. The customer incorporated NOV’s Vector™ Series 55 drilling motor with an ERT™ power section, PosiTrack™ torsional vibration mitigation tool, Dual Agitator™ system for friction reduction, and ReedHycalog™ Tektonic™ drill bits in the BHA to drill the well 8 percent faster than the previous basin record.

NOV won an order to supply Bondstrand™ glass-reinforced epoxy piping for a Malaysian multinational oil and gas company’s Carbon Capture and Sequestration (CCS) platform in eastern Malaysia. NOV’s corrosion resistant tubulars will support critical components of the CCS system that will sequester emissions from the Company’s offshore gas production. The platform is scheduled to begin CO2 re-injection by the end of 2025.

NOV deployed its new TerraMAX™ coiled tubing BHA for the first time in the United States. This advanced BHA incorporates NOV’s proprietary TerraPULSE™ Rogue friction reduction technology, which facilitated the frac plug milling operation on an extended 3-mile lateral. The operation was completed 14 hours faster than two different competitor BHAs used in offset wells. By applying proven technology traditionally used in drilling operations, NOV enables greater efficiency in the completion of longer laterals.

NOV secured a multi-year contract to supply 20-in. XCalibur™ large diameter casing for a major operator in Azerbaijan. XCalibur casing, the latest addition to the XL Systems portfolio, was chosen for its superior technical features and gas-tight seal. This threaded and coupled connector includes an integral pin with double-start threads and a high-strength forged coupling, providing robust performance and 100 percent pipe body strength in challenging onshore and offshore critical service casing applications.

NOV’s PosiTrack™ torsional vibration mitigation tool was introduced across various regions this quarter. This expanded deployment includes horizontal drilling applications in diverse markets such as Kuwait, Mexico, Indonesia, West Texas, Canada, and Colombia. The tool successfully mitigates harmful levels of bottomhole assembly (BHA) vibration, enabling more aggressive drilling parameters and significantly increasing the rate of penetration (ROP).

NOV and Seismos announced an agreement to deploy Seismos Acoustic Friction Analysis (SAFA™) globally through the Max Completions™ data platform. The patented technology only requires surface sensors to output fluid and formation data in real-time without the need for costly downhole tools. SAFA can now leverage NOV’s Max Completions platform to integrate with NOV’s digital and hardware solutions. Combined, the system cost effectively provides a single contextualized data stream and real-time insights that can improve efficiencies and outcomes of hydraulic stimulation operations, resulting in lower costs and improve wellbore productivity.

Second Quarter Earnings Conference Call

NOV will hold a conference call to discuss its second quarter 2024 results on July 26, 2024 at 10:00 AM Central Time (11:00 AM Eastern Time). The call will be broadcast simultaneously at www.nov.com/investors. A replay will be available on the website for 30 days.

About NOV

NOV (NYSE: NOV) delivers technology-driven solutions to empower the global energy industry. For more than 150 years, NOV has pioneered innovations that enable its customers to safely produce abundant energy while minimizing environmental impact. The energy industry depends on NOV’s deep expertise and technology to continually improve oilfield operations and assist in efforts to advance the energy transition towards a more sustainable future. NOV powers the industry that powers the world.

Visit www.nov.com for more information.

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating NOV’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the oilfield services and equipment industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Additionally, free cash flow and Excess Free Cash Flow do not represent the Company’s residual cash flow available for discretionary expenditures, as the calculation of these measures does not account for certain debt service requirements or other non-discretionary expenditures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this press release and the most directly comparable GAAP financial measures.

This press release contains certain forward-looking non-GAAP financial measures, including Adjusted EBITDA. The Company has not provided a reconciliation of projected Adjusted EBITDA. Management cannot predict with a reasonable degree of accuracy certain of the necessary components of net income, such as other income (expense), which includes fluctuations in foreign currencies. As such, a reconciliation of projected Adjusted EBITDA to projected net income is not available without unreasonable effort. The actual amount of other income (expense), provision (benefit) for income taxes, equity income in unconsolidated affiliates, depreciation and amortization, and other amounts excluded from Adjusted EBITDA could have a significant impact on net income.

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 NOV 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. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.

Certain prior period amounts have been reclassified in this press release to be consistent with current period presentation.

NOV INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In millions, except per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2024

 

2023

 

2024

 

2024

 

2023

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

1,050

 

 

$

1,029

 

 

$

1,017

 

 

$

2,067

 

 

$

1,970

 

Energy Equipment

 

 

1,204

 

 

 

1,117

 

 

 

1,178

 

 

 

2,382

 

 

 

2,169

 

Eliminations

 

 

(38

)

 

 

(53

)

 

 

(40

)

 

 

(78

)

 

 

(84

)

Total revenue

 

 

2,216

 

 

 

2,093

 

 

 

2,155

 

 

 

4,371

 

 

 

4,055

 

Gross profit

 

 

590

 

 

 

457

 

 

 

458

 

 

 

1,048

 

 

 

868

 

Gross profit %

 

 

26.6

%

 

 

21.8

%

 

 

21.3

%

 

 

24.0

%

 

 

21.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

 

277

 

 

 

276

 

 

 

296

 

 

 

573

 

 

 

561

 

Operating profit

 

 

313

 

 

 

181

 

 

 

162

 

 

 

475

 

 

 

307

 

Interest expense, net

 

 

(14

)

 

 

(13

)

 

 

(16

)

 

 

(30

)

 

 

(26

)

Equity income in unconsolidated affiliates

 

 

8

 

 

 

37

 

 

 

29

 

 

 

37

 

 

 

85

 

Other expense, net

 

 

(14

)

 

 

(29

)

 

 

(10

)

 

 

(24

)

 

 

(45

)

Income before income taxes

 

 

293

 

 

 

176

 

 

 

165

 

 

 

458

 

 

 

321

 

Provision for income taxes

 

 

70

 

 

 

19

 

 

 

44

 

 

 

114

 

 

 

39

 

Net income

 

 

223

 

 

 

157

 

 

 

121

 

 

 

344

 

 

 

282

 

Net income (loss) attributable to noncontrolling interests

 

 

(3

)

 

 

2

 

 

 

2

 

 

 

(1

)

 

 

1

 

Net income attributable to Company

 

$

226

 

 

$

155

 

 

$

119

 

 

$

345

 

 

$

281

 

Per share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.57

 

 

$

0.39

 

 

$

0.30

 

 

$

0.88

 

 

$

0.72

 

Diluted

 

$

0.57

 

 

$

0.39

 

 

$

0.30

 

 

$

0.87

 

 

$

0.71

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

395

 

 

 

393

 

 

 

394

 

 

 

394

 

 

 

392

 

Diluted

 

 

397

 

 

 

395

 

 

 

397

 

 

 

398

 

 

 

396

 

NOV INC.

CONSOLIDATED BALANCE SHEETS

(In millions)

 

 

 

June 30,

 

 

December 31,

 

 

2024

 

 

2023

ASSETS

 

(Unaudited)

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

827

 

 

$

816

Receivables, net

 

 

1,854

 

 

 

1,905

Inventories, net

 

 

2,157

 

 

 

2,151

Contract assets

 

 

772

 

 

 

739

Prepaid and other current assets

 

 

234

 

 

 

229

Total current assets

 

 

5,844

 

 

 

5,840

 

 

 

 

 

 

Property, plant and equipment, net

 

 

1,882

 

 

 

1,865

Lease right-of-use assets

 

 

551

 

 

 

544

Goodwill and intangibles, net

 

 

2,116

 

 

 

2,012

Other assets

 

 

904

 

 

 

1,033

Total assets

 

$

11,297

 

 

$

11,294

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

809

 

 

$

904

Accrued liabilities

 

 

782

 

 

 

870

Contract liabilities

 

 

508

 

 

 

532

Current portion of lease liabilities

 

 

99

 

 

 

94

Current portion of long-term debt

 

 

24

 

 

 

13

Accrued income taxes

 

 

20

 

 

 

22

Total current liabilities

 

 

2,242

 

 

 

2,435

 

 

 

 

 

 

Long-term debt

 

 

1,724

 

 

 

1,712

Lease liabilities

 

 

553

 

 

 

558

Other liabilities

 

 

346

 

 

 

347

Total liabilities

 

 

4,865

 

 

 

5,052

 

 

 

 

 

 

Total stockholders’ equity

 

 

6,432

 

 

 

6,242

Total liabilities and stockholders’ equity

 

$

11,297

 

 

$

11,294

NOV INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2024

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

 

 

Net income

 

$

223

 

 

$

344

 

 

$

282

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

86

 

 

 

169

 

 

 

148

 

Working capital, net

 

 

89

 

 

 

(222

)

 

 

(673

)

Other operating items, net

 

 

34

 

 

 

63

 

 

 

(31

)

Net cash provided by (used in) operating activities

 

 

432

 

 

 

354

 

 

 

(274

)

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property, plant and equipment

 

 

(82

)

 

 

(151

)

 

 

(133

)

Business acquisitions, net of cash acquired

 

 

(9

)

 

 

(252

)

 

 

 

Business divestitures, net of cash disposed

 

 

176

 

 

 

176

 

 

 

 

Other

 

 

 

 

 

1

 

 

 

5

 

Net cash provided by (used in) investing activities

 

 

85

 

 

 

(226

)

 

 

(128

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Borrowings against lines of credit and other debt

 

 

86

 

 

 

419

 

 

 

2

 

Payments against lines of credit and other debt

 

 

(172

)

 

 

(422

)

 

 

(5

)

Cash dividends paid

 

 

(30

)

 

 

(50

)

 

 

(40

)

Share repurchases

 

 

(37

)

 

 

(37

)

 

 

 

Other

 

 

(3

)

 

 

(23

)

 

 

(30

)

Net cash used in financing activities

 

 

(156

)

 

 

(113

)

 

 

(73

)

Effect of exchange rates on cash

 

 

(2

)

 

 

(4

)

 

 

(2

)

Increase (decrease) in cash and cash equivalents

 

 

359

 

 

 

11

 

 

 

(477

)

Cash and cash equivalents, beginning of period

 

 

468

 

 

 

816

 

 

 

1,069

 

Cash and cash equivalents, end of period

 

$

827

 

 

$

827

 

 

$

592

 

NOV INC.

RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited)

(In millions)

 

Presented below is a reconciliation of cash flow from operating activities to “free cash flow”. The Company defines free cash flow as cash flow from operating activities less purchases of property, plant and equipment, or “capital expenditures”. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and manage the business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Free cash flow is not intended to replace GAAP financial measures.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

 

 

2024

 

2024

 

2023

 

 

 

 

 

 

 

 

 

 

Total cash flows provided by (used in) operating activities

 

$

432

 

 

$

354

 

 

$

(274

)

Capital expenditures

 

 

(82

)

 

 

(151

)

 

 

(133

)

Free cash flow

 

$

350

 

 

$

203

 

 

$

(407

)

NOV INC.

RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (Unaudited)

(In millions)

 

Presented below is a reconciliation of Net Income to Adjusted EBITDA. The Company defines Adjusted EBITDA as Operating Profit excluding Depreciation, Amortization, Gains and Losses on Sales of Fixed Assets, and, when applicable, Other Items. Adjusted EBITDA % is a ratio showing Adjusted EBITDA as a percentage of sales. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and manage the business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Adjusted EBITDA and Adjusted EBITDA % are not intended to replace GAAP financial measures, such as Net Income and Operating Profit %. Other Items include gain on business divestiture, impairment, restructure, severance, facility closure costs and inventory charges and credits.

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

March 31,

 

June 30,

 

 

2024

 

2023

 

2024

 

2024

 

2023

Operating profit:

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

128

 

 

$

156

 

 

$

121

 

 

$

249

 

 

$

268

 

Energy Equipment

 

 

232

 

 

 

81

 

 

 

95

 

 

 

327

 

 

 

152

 

Eliminations and corporate costs

 

 

(47

)

 

 

(56

)

 

 

(54

)

 

 

(101

)

 

 

(113

)

Total operating profit

 

$

313

 

 

$

181

 

 

$

162

 

 

$

475

 

 

$

307

 

 

 

 

 

 

 

 

 

 

 

 

Operating profit %:

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

 

12.2

%

 

 

15.2

%

 

 

11.9

%

 

 

12.0

%

 

 

13.6

%

Energy Equipment

 

 

19.3

%

 

 

7.3

%

 

 

8.1

%

 

 

13.7

%

 

 

7.0

%

Eliminations and corporate costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating profit %

 

 

14.1

%

 

 

8.6

%

 

 

7.5

%

 

 

10.9

%

 

 

7.6

%

 

 

 

 

 

 

 

 

 

 

 

Other items, net:

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

1

 

 

$

(1

)

 

$

 

 

$

1

 

 

$

(1

)

Energy Equipment

 

 

(119

)

 

 

(7

)

 

 

(4

)

 

 

(123

)

 

 

(11

)

Corporate

 

 

 

 

 

1

 

 

 

1

 

 

 

1

 

 

 

1

 

Total other items

 

$

(118

)

 

$

(7

)

 

$

(3

)

 

$

(121

)

 

$

(11

)

 

 

 

 

 

 

 

 

 

 

 

(Gain)/loss on sales of fixed assets:

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

 

 

$

 

 

$

(1

)

 

$

(1

)

 

$

(3

)

Energy Equipment

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(3

)

Corporate

 

 

 

 

 

1

 

 

 

 

 

 

 

 

 

2

 

Total (gain)/loss on sales of fixed assets

 

$

 

 

$

 

 

$

(1

)

 

$

(1

)

 

$

(4

)

 

 

 

 

 

 

 

 

 

 

 

Depreciation & amortization:

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

55

 

 

$

43

 

 

$

54

 

 

$

109

 

 

$

88

 

Energy Equipment

 

 

29

 

 

 

26

 

 

 

28

 

 

 

57

 

 

 

55

 

Corporate

 

 

2

 

 

 

2

 

 

 

1

 

 

 

3

 

 

 

5

 

Total depreciation & amortization

 

$

86

 

 

$

71

 

 

$

83

 

 

$

169

 

 

$

148

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

$

184

 

 

$

198

 

 

$

174

 

 

$

358

 

 

$

352

 

Energy Equipment

 

 

142

 

 

 

99

 

 

 

119

 

 

 

261

 

 

 

193

 

Eliminations and corporate costs

 

 

(45

)

 

 

(52

)

 

 

(52

)

 

 

(97

)

 

 

(105

)

Total Adjusted EBITDA

 

$

281

 

 

$

245

 

 

$

241

 

 

$

522

 

 

$

440

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA %:

 

 

 

 

 

 

 

 

 

 

Energy Products and Services

 

 

17.5

%

 

 

19.2

%

 

 

17.1

%

 

 

17.3

%

 

 

17.9

%

Energy Equipment

 

 

11.8

%

 

 

8.9

%

 

 

10.1

%

 

 

11.0

%

 

 

8.9

%

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Adjusted EBITDA %

 

 

12.7

%

 

 

11.7

%

 

 

11.2

%

 

 

11.9

%

 

 

10.9

%

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

GAAP net income attributable to Company

 

$

226

 

 

$

155

 

 

$

119

 

 

$

345

 

 

$

281

 

Noncontrolling interests

 

 

(3

)

 

 

2

 

 

 

2

 

 

 

(1

)

 

 

1

 

Provision for income taxes

 

 

70

 

 

 

19

 

 

 

44

 

 

 

114

 

 

 

39

 

Interest expense

 

 

22

 

 

 

21

 

 

 

24

 

 

 

46

 

 

 

42

 

Interest income

 

 

(8

)

 

 

(8

)

 

 

(8

)

 

 

(16

)

 

 

(16

)

Equity income in unconsolidated affiliates

 

 

(8

)

 

 

(37

)

 

 

(29

)

 

 

(37

)

 

 

(85

)

Other expense, net

 

 

14

 

 

 

29

 

 

 

10

 

 

 

24

 

 

 

45

 

(Gain)/loss on sales of fixed assets

 

 

 

 

 

 

 

 

(1

)

 

 

(1

)

 

 

(4

)

Depreciation and amortization

 

 

86

 

 

 

71

 

 

 

83

 

 

 

169

 

 

 

148

 

Other items, net

 

 

(118

)

 

 

(7

)

 

 

(3

)

 

 

(121

)

 

 

(11

)

Total Adjusted EBITDA

 

$

281

 

 

$

245

 

 

$

241

 

 

$

522

 

 

$

440

 

Contacts

Amie D’Ambrosio

Director, Investor Relations

(713) 375-3826

Amie.DAmbrosio@nov.com

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