National Oilwell Varco Provides Operational Update for the First Quarter 2019
National Oilwell Varco, Inc. (NYSE: NOV) today announced that it expects to report first quarter 2019 revenues of $1.94 billion, which is below prior expectations.
“The severity of the decline in demand for oilfield equipment resulting from the sharp fall in oil prices during late 2018, further compounded by capital austerity that has taken hold in upstream oil and gas markets, was greater than we expected,” commented Clay Williams, Chairman, President and CEO. “Market weakness was particularly acute among our oilfield service company customers resulting in a disproportionate impact to our Completion & Production Solutions segment; however, all three operating segments will report results below prior expectations. On a consolidated basis we expect to report a GAAP operating loss of approximately $48 million and Adjusted EBITDA of approximately $140 million.”
“The price of oil has steadily improved since the beginning of 2019, slowly inspiring greater confidence among our North American customers, while international and offshore markets continue to exhibit steady signs of improvement. These dynamics translated into order intake that accelerated through the quarter and resulted in a sequential increase in bookings. Notwithstanding our expectations for market conditions and our financial results to improve as we progress through 2019, the outlook remains opaque. Therefore, we will be undertaking new initiatives throughout 2019 to align our cost structure with the current market environment.”
The Company is finalizing its financial close process for the first quarter 2019 and will provide complete results in a press release issued after the market closes on Thursday, April 25. NOV will hold its first quarter 2019 conference call on Friday, April 26 at 10 a.m. (Central Time). The call will be webcast live on www.nov.com/investors.
