• "During 2018 our team delivered outstanding execution in a volatile operating environment by focusing on our customers' need for solutions that improve their operating efficiencies,” commented Clay Williams, Chairman, President, and CEO. “Each of our operating segments delivered double-digit percent revenue increases in 2018, contributing to a 16 percent increase in consolidated company revenue and a 49 percent increase in Adjusted EBITDA, year-over-year."

    "The sharp, fourth quarter pull-back in commodity prices heightened uncertainty surrounding 2019 capital budgets and led to an abrupt slowdown in orders, while some of our customers chose to accelerate deliveries prior to year-end. We anticipate that lower orders in December, combined with equipment sales that were pulled forward near year-end, will lead to lower sequential revenue during the first quarter 2019 in all three segments. However, encouraged by the recent uptick in oil prices, some of our customers have recently signaled their intent to increase activity, particularly in certain international and offshore markets. While the near-term outlook remains uncertain, NOV's portfolio of critical technologies to support the oil and gas industry, together with our track record of adapting quickly to changing market conditions, positions us well for any market environment."

    NOV reported fourth quarter 2018 revenues of $2.40 billion, an increase of 11 percent compared to the third quarter of 2018 and an increase of 22 percent from the fourth quarter of 2017. Operating profit for the fourth quarter of 2018 was $87 million, or 3.6 percent of sales, Adjusted EBITDA (operating profit excluding depreciation, amortization, and other items) was $279 million, or 11.6 percent of sales, and net income was $12 million.

    Revenues for the full year 2018 were $8.45 billion, operating profit was $211 million, and net loss was $31 million, or $0.08 per share. Adjusted EBITDA for the full year was $910 million, or 10.8 percent of sales.

    NOV had several significant achievements this quarter:

    NOV introduced and completed initial sales of its new TRUE-TAPER™ XR coiled tubing to several customers during the fourth quarter of 2019. The TRUE-TAPER XR design incorporates fewer and shorter tapered sections, which enables better weight and strength distribution, and fewer bias welds. More precise distribution provides the ability to place more weight and strength in vertical sections and less weight in laterals, resulting in better overall performance in extended-reach applications.

    NOV continued to expand the global footprint of its MWD and LWD product lines. An independent E&P operator awarded NOV a contract, associated with a four-well project in Northwest Africa, for a set of Tolteq™ iSeries™ MWD tools together with Vector™ series mud motors. Additionally, NOV saw the first use of its TruVertical™ tool in an international market.

    NOV was awarded a 5-year contract for the supply and operation of a state-of-the-art 4500 m³/day produced water treatment plant for a major multinational operator in the Vaca Muerta shale play. The supply of this first-of-its-kind water treatment plant in Argentina compliments existing service offerings in the region.

    NOV continues to see success with its Vector Series 50 SelectShift™ motor, an industry first that offers downhole adjustment of the motor bend setting. At the close of 2018, the motor has been used in 56,800 ft of drilling and approximately 675 drilling and circulating hours, with more than 148 straight mode shifts downhole.

    NOV's XL Systems business unit secured a record level of bookings in the fourth quarter and achieved six straight quarters of a book-to-bill ratio greater than 100 percent. On the project side, the business unit incorporated its XLC-S™ connectors into Aquaterra Energy's Sea Swift concept, eliminating the need for large-diameter forging and welding costs and helping enable economic delivery to operator DeNovo Energy in only 10 months.

    NOV successfully delivered an APL submerged swivel with yoke (SSY™) mooring and loading system to Centrais Elétricas de Sergipe S.A. (CELSE) in Brazil, where the system will be installed outside the city of Aracaju in the state of Sergipe.

    NOV continued to achieve outstanding performance with ReedHycalog drill bits across several key North American basins. In the Permian Basin, an operator used an 8½-in. Seeker™ bit with ION™ 3D cutters to achieve a record-breaking interval in the Wolfcamp formation, drilling 7,010 ft in 28 hr at an ROP of 246 ft/hr. An operator in West Texas used an 8¾-in. Seeker bit to drill several laterals at lengths exceeding 12,000 ft while achieving average ROP of 145 ft/hr—an almost 45 percent improvement over the closest competitor's performance.

    NOV's Rig Technologies segment demonstrated strong execution across its global operations during the fourth quarter by delivering two complete land rigs, eight cranes, the first DSGD-CX425 land rig drawworks, three mobile rig packages, and 10 NOVOS™ kits. The segment also completed its 70th NOVOS installation, including its first on an offshore rig. Results from the initial two offshore wells drilled have shown significant drilling improvements.

    NOV shipped an advanced MPowerD™ MPD choke manifold and MPD control system to an NOV extended-reach drilling land rig being built in Canada. This first-of-its-kind land rig will be delivered with an integrated MPD system operated from the NOV Amphion™ chair, giving the driller an unprecedented overview over the drilling process, including monitoring and control of key MPD parameters and setpoints.

    In association with a 16-well project in New Mexico, NOV's eVolve™ optimization and automation service successfully drilled an intermediate section with a wired rotary BHA, leveraging high-speed, high-quality data transmission of drilling mechanics to deliver exceptional drilling performance, including increased ROP, a reduction in failures, and improved bit reliability.

    NOV was awarded a significant contract for the supply of Tuboscope's proprietary internal coating systems for a major operator working in Iraq. The contract, which is for a period of 5 years, primarily involves applying the Company's TK™-70XT epoxy coating to the client's free-issue tubing and pup joints.

    NOV introduced the QuickLatch™ connector to its portfolio of Elmar™ wireline equipment and technologies. The QuickLatch is an integrated wireline pressure control equipment connector designed to minimize delays at the frac site while increasing the safety of site personnel.

    NOV's Delta™ drill pipe connection continued to expand its market penetration in Q4, with more than 25% of Grant Prideco revenue being generated through Delta products. Delta continues to demonstrate superior total-cost-of-ownership benefits in the field, with a recut rate of only 3% versus an industry average of between 10 to 15%.

    The full list of significant achievements can be read in our official press release.

    Published Date: 2019-02-07
    Source: National Oilwell Varco