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Mar 31, 2023

NOV Q1 2023 Earnings Report

Reported revenue of $1.96 billion and net income of $126 million.

Key Takeaways

NOV Inc. reported first quarter 2023 results with revenue of $1.96 billion, a 27% increase year-over-year. Net income was $126 million, and operating profit was also $126 million. The company experienced continued strong demand, with orders for capital equipment exceeding shipments by 9%.

Revenue increased 27% compared to Q1 2022.

Orders for capital equipment exceeded shipments out of backlog by 9%.

Offshore and international activity is building strong momentum.

Underlying performance across the business continued to improve.

Total Revenue
$1.96B
Previous year: $1.55B
+26.7%
EPS
$0.32
Previous year: -$0.01
-3300.0%
Gross Profit
$411M
Previous year: $214M
+92.1%
Cash and Equivalents
$774M
Previous year: $1.41B
-45.0%
Free Cash Flow
-$259M
Previous year: -$149M
+73.8%
Total Assets
$10.2B
Previous year: $9.55B
+6.5%

NOV

NOV

NOV Revenue by Segment

Forward Guidance

NOV anticipates rising demand in offshore and international markets to underpin steadily rising results for the organization as 2023 progresses.

Positive Outlook

  • Rising demand in offshore markets.
  • Rising demand in international markets.
  • Steady increase in tendering activity.
  • Steady increase in backlog.
  • Greater demand for new technologies.

Challenges Ahead

  • Decline in North American natural gas prices may be a near-term headwind.
  • Impact of seasonality.
  • Significant supply chain disruption within Wellbore Technologies segment.
  • Unexpected charges weighed on results.
  • Continued supply chain challenges disrupted the Segment’s drill pipe operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income