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Mar 31, 2021
NOV Q1 2021 Earnings Report
Reported first quarter results, showing a decrease in revenue compared to the previous quarter and the same quarter last year, with a net loss.
Key Takeaways
NOV Inc. reported a challenging first quarter in 2021 with revenues of $1.25 billion, a decrease of six percent compared to the fourth quarter of 2020 and a decrease of 34 percent compared to the first quarter of 2020. The company experienced a net loss of $115 million. However, the company is encouraged by signs of an emerging global recovery for the industry and expects a meaningful improvement in financial results as the year progresses.
First quarter 2021 revenues were $1.25 billion, down 6% sequentially and 34% year-over-year.
Net loss for the first quarter of 2021 was $115 million.
Adjusted EBITDA decreased $17 million sequentially to $0.
New orders booked during the quarter totaled $112 million for Rig Technologies and $338 million for Completion & Production Solutions.
Revenue by Segment
Forward Guidance
NOV anticipates a meaningful improvement in financial results as the year progresses, driven by global economic growth, shrinking crude inventories, stronger oil and gas prices, and recovering oilfield activity.
Positive Outlook
- Higher rig activity in North America and certain international markets.
- Better volume and pricing for products and services tied to activity.
- Improving tendering activity is expected to drive additional capital equipment orders in the second half of 2021.
- Extraordinary cost reduction measures undertaken.
- Continued investment in next generation of products.
Challenges Ahead
- Extreme austerity in the oilfield following the economic shutdown of 2020.
- Oilfield service customers preserved cash by cannibalizing idle equipment rather than buying new.
- Severe winter weather in Texas and Oklahoma.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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