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Dec 31, 2023

NOV Q4 2023 Earnings Report

Reported fourth quarter and full year earnings, showing revenue increase and significant net income driven by deferred tax asset release.

Key Takeaways

NOV Inc. reported a strong fourth quarter in 2023, with revenues of $2.34 billion, up 13% year-over-year, and net income of $598 million, which included a $485 million release of valuation allowances on deferred tax assets. The company's full-year revenue was $8.58 billion, with a net income of $993 million.

Fourth quarter revenue reached $2.34 billion, a 13% increase year-over-year.

Net income for the fourth quarter was $598 million, including a $485 million release of valuation allowances on deferred tax assets.

Operating profit for the fourth quarter was $161 million, representing 6.9% of sales.

Full-year 2023 revenue totaled $8.58 billion, with net income at $993 million.

Total Revenue
$2.34B
Previous year: $2.07B
+13.0%
EPS
$1.51
Previous year: $0.26
+480.8%
Gross Profit
$491M
Previous year: $443M
+10.8%
Cash and Equivalents
$816M
Previous year: $1.07B
-23.7%
Free Cash Flow
$301M
Previous year: $88M
+242.0%
Total Assets
$11.3B
Previous year: $10.1B
+11.4%

NOV

NOV

NOV Revenue by Segment

Forward Guidance

The company expects that growing adoption of advanced technologies and growth in international and offshore markets should more than offset declining demand from North America during 2024. They also expect for improving working capital efficiencies and profitability to drive robust cash flow during the year.

Positive Outlook

  • Growing adoption of NOV’s advanced technologies.
  • Continued growth in international and offshore markets.
  • Improving working capital efficiencies.
  • Improving profitability.
  • Robust cash flow during the year.

Challenges Ahead

  • Geopolitical risks remain elevated.
  • Economic risks remain elevated.
  • Capital discipline remains a focus in the energy complex.
  • Declining demand from North America.
  • Unspecified risks associated with reliance on secure, reliable, clean, and low-cost sources of energy.

Revenue & Expenses

Visualization of income flow from segment revenue to net income