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Jun 30, 2023
NOV Q2 2023 Earnings Report
Reported second quarter earnings with increased revenue and profitability.
Key Takeaways
NOV Inc. reported a strong second quarter in 2023, with revenues of $2.09 billion, up 21% year-over-year, and net income of $155 million. The company saw growth across its segments, driven by rising demand in offshore and international land markets. Adjusted EBITDA increased to $245 million, reflecting improved operational performance.
Revenue increased by 21% year-over-year to $2.09 billion.
Operating profit rose to $181 million, up $113 million year-over-year.
Net income reached $155 million, an increase of $86 million year-over-year.
Fully diluted earnings per share were $0.39, up $0.21 year-over-year.
NOV
NOV
NOV Revenue by Segment
Revenue by Segment
Energy Products & Svcs Revenue
CapyFin.comEnergy Equipment Revenue
CapyFin.com Forward Guidance
The company anticipates continued demand for its equipment and technologies, expecting improved profitability and sequentially improving free cash flow, particularly in the fourth quarter and continuing into 2024. Inventory balances are expected to remain elevated as supply chains normalize, before reversing out in the fourth quarter.
Positive Outlook
- Substantial backlog of oil and gas development projects across offshore and international land markets will continue to push oilfield service asset utilization higher.
- Anticipate continued demand for NOV’s critical equipment and technologies.
- Global supply chain is continuing to improve, which is positively impacting sales growth and profitability.
- Expect improved profitability as the pace of customer backlog conversion accelerates through the second half of the year.
- Expect sequentially improving free cash flow, particularly in the fourth quarter and continuing into 2024.
Challenges Ahead
- Economic uncertainty.
- Continued declines in North American rig activity.
- Compressing delivery times from most, but not all, of our vendors led to higher inventories in the second quarter.
- Higher inventories in the second quarter contributed to NOV’s working capital growth and cash draw.
- Expect inventory balances to remain elevated as supply chains normalize.
Revenue & Expenses
Visualization of income flow from segment revenue to net income