• "Our team executed well and delivered double-digit sequential sales growth across all three of our business segments during the second quarter," commented Clay Williams, Chairman, President, and CEO. "We achieved several notable milestones during the quarter, including securing the largest land rig order ever placed, which was associated with the creation of our previously announced drilling equipment joint venture with Saudi Aramco."

    "Growing confidence in the sustainability of the ongoing recovery is resulting in strong North American activity coupled with improving activity and revenue growth in most international markets. Demand is accelerating for the technologies and products we’ve developed through the downturn that drive better safety and efficiency for our customers around the world. NOV is well-positioned to capitalize on an expanding global recovery."

    NOV reported second quarter 2018 net income of $24 million. Revenues for the second quarter were $2.11 billion, an increase of 17 percent compared to the first quarter of 2018 and an increase of 20 percent from the second quarter of 2017. Operating profit for the second quarter of 2018 was $52 million, or 2.5 percent of sales, and Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) was $226 million, or 10.7 percent of sales.

    NOV had several significant achievements this quarter:

    • NOV continued to expand its supply of directional measurement and steerable technologies into new global markets. This included a large order for Tolteq™ iSeries™ MWD products and Vector™ drilling motors to an operator in Turkey; the first package sale of the VectorZIEL™ RSS, as well as iSeries MWD, SPR LWD, and iNBS tools, to multiple customers in China; and the introduction of FloDrift™ technology to an independent service company that was struggling to execute wells for a major Indian operator.
    • NOV sold three complete 1,500-horsepower AC Ideal™ rigs to Argentinian customers during the quarter. This sale also included the first NOVOS™ drilling process automation system in Latin America.
    • NOV provided a major operator in Russia with Agitator™HE systems for directional applications, allowing the customer to drill the longest interval of the 8⅝-in. liner section in one run and set a new record in the Timano-Pechora region. In a Haynesville Shale extended-reach well, an Agitator system was added to the last BHA in the challenging 6¾-in. lateral section to drive significantly improved drilling performance, increasing ROP over the previous run by 56.5%.
    • NOV continues to see success in its bits, borehole enlargement, and coring businesses in the Middle East. The Company was recently awarded a four-year coring contract with a one-year extension and achieved outstanding performance runs using bits outfitted with ION™ 3D PDC cutter technology in the Chainsaw configuration. Deployment of the dogleg reamer also continues, with the technology becoming a standard part of the BHA.
    • NOV introduced the Genesis™ line of coiled tubing units, which bring together design ingenuity and advanced coiled tubing equipment and technology, to its portfolio of intervention and stimulation equipment. After debuting the product line at the SPE ICoTA Coiled Tubing and Well Intervention Conference, the Company has already received eight orders for new Genesis units.
    • NOV recently helped an operator in the SCOOP play of Oklahoma achieve numerous records in Woodford laterals using Seeker™ bits and ION shaped cutter technology.
    • NOV’s drill bit and cutter technologies also allowed a customer to set a state record in Oklahoma for the amount of footage drilled in one day. A bit equipped with ION cutters in the Chainsaw configuration drilled 6,071 ft in 24 hours on a well in Grady County. The customer continues to drill one mile per day using NOV’s bits, a metric that has yet to be duplicated by other vendors.
    • NOV was awarded a significant contract for the supply of TK™ glass-reinforced epoxy (GRE) lining services for a major operator in Iraq. The contract is for the installation of GRE lined tubing over a projected 90-well program. This contract also includes a requirement for NOV to provide practical hands-on training to the customer’s operations and technical team.

    You can view the full press release here.

    Published Date: 2018-07-29
    Source: National Oilwell Varco