NOV Ends 2009 with $2.6B in Cash
National Oilwell Varco, Inc. (NOV) reported that for its fourth quarter ended December 31, 2009 it earned net income of $394 million, or $0.94 per fully diluted share, compared to third quarter ended September 30, 2009 net income of $385 million, or $0.92 per fully diluted share. Transaction and restructuring charges for the fourth quarter of 2009 were $14 million pre-tax or $0.02 per share after-tax. Net income for the fourth quarter of 2009 excluding transaction and restructuring charges was $404 million, or $0.96 per fully diluted share.
Revenues reported for the full year 2009 were $12,712 million, and net income was $1,469 million, or $3.52 per fully diluted share. Operating profit for the full year 2009 was $2,315 million. Excluding all reported transaction, restructuring, voluntary retirement and intangible asset impairment charges in 2009, net income was $1,624 million, or $3.89 per fully diluted share, and operating profit was $2,549 million, for the full year 2009.
Revenues for the fourth quarter increased 2 percent sequentially to $3,134 million. Operating profit for the fourth quarter, excluding transaction and restructuring charges, was $622 million, up slightly from the third quarter of 2009.
During the fourth quarter of 2009, the Company added $624 million of orders to its capital equipment backlog, and removed $46 million of discontinued orders on cancelled projects. Backlog for capital equipment orders for the Company's Rig Technology segment was $6.4 billion at December 31, 2009 compared to $7.3 billion at September 30, 2009.
Pete Miller, Chairman, President and CEO of National Oilwell Varco, remarked, "We achieved solid results in 2009, despite the challenging market we faced throughout the year. We were able to use this time to make our businesses more efficient, while continuing to invest for future growth and better position ourselves for the inevitable recovery in drilling activity. We ended the year with $2.6 billion in cash, and cash flow remains a strength of our Company. I would like to thank all of our dedicated employees for their continued hard work.
"While market conditions remain challenging, we enter 2010 with a solid backlog of equipment and technology to deliver to our customers, strong financial resources and positive cash flow. We believe that the oil and gas industry will continue to need to upgrade the world's rig fleet, and we look forward to continuing to help our customers retool their rigs to improve safety, reduce environmental impact, and drive higher efficiency."
Fourth quarter revenues for the Rig Technology segment were $1,977 million, a decrease of 1 percent from the third quarter of 2009 and a decrease of 5 percent from the fourth quarter of 2008. Operating profit for this segment was $566 million, or 28.6 percent of sales, a decrease of 2 percent from the third quarter of 2009. Revenue out of backlog for the segment declined 5 percent sequentially and increased 3 percent year-over-year, to $1,512 million for the fourth quarter of 2009.
Petroleum Services & Supplies
Revenues for the fourth quarter of 2009 for the Petroleum Services & Supplies segment were $936 million, up 6 percent compared to third quarter 2009 results and down 33 percent compared to fourth quarter 2008 results. Operating profit was $107 million, or 11.4 percent of revenue, an increase of 24 percent from the third quarter of 2009.
Fourth quarter revenues for the Distribution Services segment were $331 million, up 8 percent from the third quarter of 2009. Fourth quarter operating profit was $8 million or 2.4 percent of sales.
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