NOV Q2 2020 Earnings Report
Key Takeaways
National Oilwell Varco reported a challenging second quarter in 2020, with revenues of $1.50 billion, a net loss of $93 million, and adjusted EBITDA of $84 million. The company is focused on cost reduction and cash flow management amidst the economic impact of the COVID-19 pandemic.
Second quarter 2020 revenues were $1.50 billion, down 21% sequentially and 30% year-over-year.
Net loss for the second quarter of 2020 was $93 million, or -6.2% of sales.
Adjusted EBITDA decreased $94 million sequentially to $84 million, or 5.6% of sales.
Generated $378 million in cash flow from operations.
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Forward Guidance
NOV is aggressively reducing its cost structure and boost cash flow through more efficient operations and better working capital management. NOV is determined to re-size the organization to fit lower levels of demand and continue to make good progress executing the numerous initiatives required to meet our objective.
Positive Outlook
- Exceeded cost reduction targets.
- Generated $378 million in cash flow from operations.
- Solidified balance sheet.
- Positioned well to capitalize on future opportunities.
- Gravitating to NOV as their supplier of choice.
Challenges Ahead
- Oil & gas industry is bearing the full brunt of the economic damage wrought by the COVID-19 pandemic.
- Driven drilling activity to record lows.
- Deteriorating conditions in the global completions market.
- Logistical disruptions from COVID-19-related restrictions.
- Declining global rig activity combined with COVID-19-related logistics issues