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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.
NOV
NOV
NOV Revenue by Segment
Revenue by Segment
Energy Products & Svcs Revenue
CapyFin.comEnergy Equipment Revenue
CapyFin.com 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.
- Actual results may differ materially from the guidance set forth.
- The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices and other considerations.
- The declaration and payment of any future dividend is subject to the sole discretion of the Company’s board of directors and will depend on our earnings, financial condition, capital requirements, level of indebtedness, applicable statutory and contractual restrictions and other considerations that the board of directors deems relevant.
Revenue & Expenses
Visualization of income flow from segment revenue to net income