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Mar 31, 2024
NOV Q1 2024 Earnings Report
NOV reported first quarter 2024 results with revenue increase and capital return framework.
Key Takeaways
NOV Inc. reported a solid start to 2024 with a 10% year-over-year revenue increase, driven by strong growth in international land and offshore markets. The company announced a plan to return at least 50% of Excess Free Cash Flow annually through dividends and share repurchases, with board authorization to repurchase up to $1.00 billion of shares. Net income was $119 million, a slight decrease compared to the previous year, while adjusted EBITDA increased by 24% to $241 million.
Revenue increased by 10% year-over-year to $2.16 billion, driven by international and offshore markets.
Operating profit rose to $162 million, a $36 million increase year-over-year.
Net income was $119 million, a decrease of $7 million year-over-year.
Adjusted EBITDA increased by 24% year-over-year to $241 million.
Revenue by Segment
Forward Guidance
For the second quarter of 2024, management expects year-over-year consolidated revenues to increase between one to five percent and Adjusted EBITDA to be in the range of $260 million to $280 million. For full year 2024, management anticipates consolidated company revenue growth in the mid-single percentage range and adjusted EBITDA to be in the range of $1.10 billion to $1.25 billion.
Positive Outlook
- Year-over-year consolidated revenues expected to increase between one to five percent for Q2 2024.
- Adjusted EBITDA to be in the range of $260 million to $280 million for Q2 2024.
- Consolidated company revenue growth in the mid-single percentage range for full year 2024.
- Adjusted EBITDA to be in the range of $1.10 billion to $1.25 billion for full year 2024.
- Expects rising oilfield demand for NOV’s products and technologies.
Challenges Ahead
- Guidance is subject to a number of known and unknown uncertainties and risks.
- Seasonal changes in working capital together with two strategic acquisitions drove a net use of cash during the first quarter of 2024.
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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