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Mar 31, 2020
NOV Q1 2020 Earnings Report
Reported first quarter 2020 results with a net loss driven by significant non-cash charges, while navigating COVID-19 related challenges.
Key Takeaways
National Oilwell Varco reported first quarter 2020 revenues of $1.88 billion, a decrease compared to both the previous and prior year's first quarter. The company experienced a net loss of $2.05 billion, which included $2.25 billion in non-cash, pre-tax charges. Adjusted EBITDA decreased sequentially to $178 million.
First quarter 2020 revenues reached $1.88 billion, down from $2.28 billion in the fourth quarter of 2019 and $1.94 billion in the first quarter of 2019.
Net loss for the first quarter of 2020 was $2.05 billion, inclusive of $2.25 billion in non-cash, pre-tax charges.
Adjusted EBITDA decreased sequentially by $110 million to $178 million.
The company is intensifying cost-cutting efforts in response to the expected downturn during the second quarter.
Forward Guidance
NOV expects the downturn to get much worse during the second quarter and is intensifying its cost-cutting efforts to position NOV appropriately for the challenges ahead.
Positive Outlook
- Strong balance sheet
- Ample liquidity
- Focus on cost control
- Leading market positions
- Global footprint
Challenges Ahead
- Historic drop in global demand for oil
- Collapse of prices
- Forced unprecedented well shut-ins
- Likely to be one of the most severe downturns in our industry’s 161-year history
- Downturn to get much worse during the second quarter
Historical Earnings Impact
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Avg. Return Before/After Earnings
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