NOV Q1 2020 Earnings Report
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.
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NOV Revenue by Segment
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