National Oilwell Reports First Quarter Earnings

National-Oilwell, Inc. announced results for the first quarter of 2003, reporting net income of $19.2 million, or $0.23 per diluted share, an 11.6% increase over fourth quarter net income of $17.2 million, or $0.21 per diluted share. Revenues were $500.6 million for the period compared to fourth quarter revenues of $393.6 million.

Backlog of capital equipment orders increased to $368 million at March 31, 2003, compared to $364 million at Dec. 31, 2002. Revenues from backlog for the first quarter were $170 million, with order additions for the period of $174 million.

Pete Miller, president and CEO of National Oilwell, stated "We are extremely pleased with the growth in our backlog, the first increase since September 2001 that was not the result of an acquisition. The quarter saw strong shipping and order intake activity, including the successful attainment of the entire drilling suite and related engineering and design work for one of what we believe will be several large international projects awarded during 2003.

"Most of the revenue growth over the fourth quarter of last year is the result of our recent Hydralift and Mono Pump acquisitions, which also increased our fixed costs in the first quarter. These acquisitions have favorably positioned the company for future growth, with Hydralift further enhancing our ability to participate in large offshore projects. As we complete the integration of Hydralift into our other Norwegian operations in the second quarter, these fixed costs will decline.

"While we are encouraged by the increase in land drilling activity in the first quarter of 2003, our operating results will benefit as the trend broadens to the international, offshore and deeper drilling markets."