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Jun 30, 2021
NOV Q2 2021 Earnings Report
Reported second quarter 2021 results with increased revenues and adjusted EBITDA.
Key Takeaways
NOV Inc. reported second quarter 2021 revenues of $1.42 billion, a 13 percent increase compared to the first quarter of 2021 and a five percent decrease compared to the second quarter of 2020. The net loss for the quarter was $26 million, which included pre-tax net charges of $15 million. Adjusted EBITDA increased sequentially to $104 million, representing 7.3 percent of sales.
Rising demand in oilfield and offshore wind markets led to stronger orders for NOV during the second quarter.
Rig Technologies and Completion & Production Solutions segments posted book-to-bill ratios north of 100%.
Wellbore Technologies continued to execute well on modestly higher oilfield activity, generating its second quarter in a row of double-digit revenue growth with leverage greater than 50 percent.
NOV believes post-pandemic global economic recovery will spur further top-line growth.
Forward Guidance
NOV believes post-pandemic global economic recovery will spur further top-line growth. In the meantime, government-mandated shutdowns continue to disrupt global supply chains, limit raw material availability, and pose challenges for our workforce. NOV did a better job navigating these headwinds in the second quarter, while continuing to advance the Company’s leading-edge technology offerings for the oilfield and renewables markets. NOV’s portfolio of newly-developed technologies positions the Company well to take advantage of what we believe is the beginning of a multi-year growth market for both conventional and clean energy technologies.
Positive Outlook
- Rising demand in oilfield and offshore wind markets led to stronger orders.
- Rig Technologies and Completion & Production Solutions segments posted book-to-bill ratios north of 100%.
- Wellbore Technologies continued to execute well on modestly higher oilfield activity.
- Delivered first project integrating NOVOS drilling system and the MPowerD MPD system.
- Received contract award to supply a large submerged turret production (STP) system for a floating production storage and offloading (FPSO) vessel in the Barossa gas field offshore of Australia.
Challenges Ahead
- Financial results continued to reflect 2020’s historic decline in oilfield activity and orders.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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