National Oilwell Varco, Inc. (NYSE:NOV) today reported a second quarter
2016 net loss of $217 million, or $0.58 per share. Excluding other
items, net loss for the quarter was $114 million, or $0.30 per share.
Other items included $143 million in pre-tax charges ($103 million net
of tax) primarily associated with severance, facility closure costs, and
write-off of certain fixed assets.
Revenues for the second quarter of 2016 were $1.72 billion, a decrease
of 21 percent compared to the first quarter of 2016 and a decrease of 56
percent from the second quarter of 2015. Operating loss for the second
quarter was $270 million, 15.7 percent of sales. Excluding other items,
operating loss was $153 million, or 8.9 percent of sales. Adjusted
EBITDA (operating profit excluding other items before depreciation and
amortization) for the second quarter was $25 million, or 1.5 percent of
sales. Decremental Adjusted EBITDA leverage (the change in Adjusted
EBITDA as a percent of the change in revenue) from the first quarter of
2016 to the second quarter of 2016 was 22 percent.
“Our second quarter results reflect further declines, as global oilfield
spending again fell sharply following the crude oil price bottom we saw
in February,” stated Clay Williams, Chairman, President and CEO. “We are
responding by aggressively reducing costs and restructuring our
operations to match this market reality. I am grateful for our
experienced team, which continues to focus relentlessly on costs and
efficiencies.
Importantly, our team also continues to invest in our future, leveraging
our global resources and installed base of equipment to expand our
considerable technology portfolio. National Oilwell Varco has a long
history of delivering innovative solutions and crisp execution to the
oil and gas industry. We will continue to help drive our industry to
better economic returns and a brighter future.”
Rig Systems
Rig Systems generated revenues of $564 million in the second quarter of
2016, a decrease of 39 percent from the first quarter of 2016 and a
decrease of 71 percent from the second quarter of 2015. Operating profit
was $7 million, or 1.2 percent of sales. Adjusted EBITDA was $49
million, or 8.7 percent of sales, down 64 percent sequentially and down
89 percent from the prior year.
Backlog for capital equipment orders for Rig Systems at June 30, 2016
was $2.94 billion. New orders during the quarter were $66 million,
representing a book-to-bill of 15 percent when compared to the $441
million shipped out of backlog.
Rig Aftermarket
Rig Aftermarket generated revenues of $364 million, down 7 percent from
the first quarter of 2016 and down 45 percent from the second quarter of
2015. Operating profit was $62 million, or 17.0 percent of sales.
Adjusted EBITDA was $73 million, or 20.1 percent of sales, down 11
percent sequentially and down 55 percent from the prior year.
Wellbore Technologies
Wellbore Technologies generated revenues of $511 million, down 19
percent from the first quarter of 2016 and down 47 percent from the
second quarter of 2015. The segment reported an operating loss of $146
million, or 28.6 percent of sales. Adjusted EBITDA was $1 million, or
0.2 percent of sales, down 98 percent sequentially and down 99 percent
from the prior year.
Completion and Production Solutions
Completion and Production Solutions generated revenues of $538 million,
down 4 percent from the first quarter of 2016 and down 38 percent from
the second quarter of 2015. The segment reported an operating loss of
$33 million, or 6.1 percent of sales. Adjusted EBITDA was $57 million,
or 10.6 percent of sales, an increase of 19 percent sequentially and a
decrease of 61 percent from the prior year.
Backlog for capital equipment orders for Completion and Production
Solutions at June 30, 2016 was $947 million, down 5 percent from the
first quarter of 2016, and down 20 percent from the end of the second
quarter of 2015. Revenues out of backlog during the quarter were $333
million. New orders were $269 million, achieving a book-to-bill of 81
percent, and the effect of foreign currency adjustments was $17 million.
Significant Events and Achievements
NOV continues to develop and introduce technology that improves the
performance and reliability of its industry-leading subsea blowout
preventers (BOPs). NOV’s new RCX Low Shock SPM valves dramatically
reduce the hydraulic shock in the BOP system for improved reliability of
stack components, in addition to being designed for longer life and
reduced potential for incorrect assembly. Additionally, our RIGSENTRY™
BOP monitoring service, introduced last quarter, identified potential
failure of subsea regulators before it occurred on four separate
occasions, allowing our drilling contractor customers to address these
issues during planned out of service intervals and maximize up time.
NOV’s eVolve™ optimization and closed loop drilling automation services
continue to gain traction in the marketplace, signing an additional
contract for downhole drilling automation with a large independent E&P
customer in the Permian Basin.
NOV’s recently acquired completion tools business won a significant
five-year contract for completions work in the Norwegian North Sea from
a large independent E&P. The company's advanced sliding sleeve
technology enables horizontal multi-stage production in one of the most
demanding offshore environments.
NOV’s recently introduced Horizontal Gun Barrel separators offer a new
direction for saltwater disposal, replacing outdated and inefficient
vertical gun barrels and tanks frequently used for Saltwater Disposal
(SWD) facilities. This new process lowers power consumption, improves
worker safety, and reduces environmental hazards. The horizontal Gun
Barrel recovers more oil at higher quality, so our customers can sell
pipeline quality oil rather than accepting a discounted price for
typical SWD oil that requires further treatment.
NOV reached a definitive agreement to acquire the subsea production
product portfolio from Kongsberg Oil & Gas Technologies AS, a subsidiary
of Kongsberg Gruppen ASA (OSE: KOG). The acquired technology fits
broadly into two categories: tie-in and structures and process and
controls, and will be highly complementary to NOV’s existing solutions
in Subsea Umbilicals, Risers, and Flowlines (SURF) and subsea
infrastructure.
NOV completed the acquisition of Geological Rentals and Services (GRS),
a provider of gas detection equipment and geological software. The
company’s GEOgas Analyzer™ is the first patented Fourier Transform
Infrared Spectrometer analyzer specifically designed for wellsite gas
sampling. The DDS Geological Services group, which delivers remote
geosteering and logging services, can use the gas analyzer to provide
real-time gas ratio analysis for formation hydrocarbons identification
that helps maximize contact with the desired pay zone and minimize
wellsite personnel.
NOV completed the acquisition of DJ Oilfield Services Co., Ltd., which
offers OCTG inspection and tubular maintenance services in Thailand and
the Gulf of Thailand. The acquisition further solidifies NOV’s presence
in Southeast Asia, and combined with NOV’s existing premium tubular and
services offering provides a platform to enhance lifecycle and asset
management for operators and service companies.
NOV began supplying proprietary composite corrosion-resistant products
at its newly inaugurated Resin Infusion Composite Engineering facility
in Plymouth, UK, expanding its offering beyond jointed and spoolable
fiberglass pipe and into non-tubular composite corrosion resistance with
potential applications in floating production vessels and subsea
structures.
Other Corporate Items
As of June 30, 2016, the Company had $1.66 billion in cash and cash
equivalents and total debt of $3.28 billion, a decrease of $99 million
from March 31, 2016. NOV had $4.39 billion available on its revolving
credit facility as of June 30, 2016. The unsecured facility, which
matures in September of 2018, is subject to one primary covenant which
is a maximum debt-to-capitalization ratio of 60 percent. As of June 30,
2016, NOV had a debt-to-capitalization ratio of 16.8% percent.
Second Quarter Earnings Conference Call
NOV will hold a conference call on Thursday, July 28, 2016 at 8:00 a.m.
(Central Time) to discuss results for the second quarter of 2016.
Participants may join the conference call by dialing (844) 464-3148
within North America or (574) 990-9849 outside of North America five to
ten minutes prior to the scheduled start time and by asking for the
“National Oilwell Varco Conference Call.” The call will be broadcast
simultaneously at www.nov.com/investors
on a listen-only basis. A replay will be available on the website for 30
days.
About National Oilwell Varco
National Oilwell Varco (NYSE: NOV) is a worldwide leader in the design,
manufacture and sale of equipment and components used in oil and gas
drilling and production operations and in the provision of oilfield
services to the upstream oil and gas industry.
Cautionary Statement for the Purpose of the “Safe Harbor” Provisions
of the Private Securities Litigation Reform Act of 1995
Statements made in this press release that are forward-looking in nature
are intended to be “forward-looking statements” within the meaning of
Section 21E of the Securities Exchange Act of 1934 and may involve risks
and uncertainties. These statements may differ materially from the
actual future events or results. Readers are referred to documents filed
by National Oilwell Varco with the Securities and Exchange Commission,
including the Annual Report on Form 10-K, which identify significant
risk factors which could cause actual results to differ from those
contained in the forward-looking statements.
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)
(In millions, except per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
564
|
|
|
$
|
1,930
|
|
|
$
|
926
|
|
|
$
|
1,490
|
|
|
$
|
4,453
|
|
Rig Aftermarket
|
|
|
364
|
|
|
|
657
|
|
|
|
391
|
|
|
|
755
|
|
|
|
1,376
|
|
Wellbore Technologies
|
|
|
511
|
|
|
|
956
|
|
|
|
631
|
|
|
|
1,142
|
|
|
|
2,127
|
|
Completion & Production Solutions
|
|
|
538
|
|
|
|
873
|
|
|
|
558
|
|
|
|
1,096
|
|
|
|
1,821
|
|
Eliminations
|
|
|
(253
|
)
|
|
|
(507
|
)
|
|
|
(317
|
)
|
|
|
(570
|
)
|
|
|
(1,048
|
)
|
Total revenue
|
|
|
1,724
|
|
|
|
3,909
|
|
|
|
2,189
|
|
|
|
3,913
|
|
|
|
8,729
|
|
Gross profit
|
|
|
139
|
|
|
|
872
|
|
|
|
300
|
|
|
|
439
|
|
|
|
2,050
|
|
Gross profit %
|
|
|
8.1
|
%
|
|
|
22.3
|
%
|
|
|
13.7
|
%
|
|
|
11.2
|
%
|
|
|
23.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and administrative
|
|
|
292
|
|
|
|
417
|
|
|
|
348
|
|
|
|
640
|
|
|
|
903
|
|
Other items
|
|
|
117
|
|
|
|
17
|
|
|
|
141
|
|
|
|
258
|
|
|
|
139
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss)
|
|
|
(270
|
)
|
|
|
438
|
|
|
|
(189
|
)
|
|
|
(459
|
)
|
|
|
1,008
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financial costs
|
|
|
(30
|
)
|
|
|
(26
|
)
|
|
|
(25
|
)
|
|
|
(55
|
)
|
|
|
(52
|
)
|
Interest income
|
|
|
3
|
|
|
|
2
|
|
|
|
5
|
|
|
|
8
|
|
|
|
7
|
|
Equity income (loss) in unconsolidated affiliates
|
|
|
(7
|
)
|
|
|
7
|
|
|
|
(6
|
)
|
|
|
(13
|
)
|
|
|
16
|
|
Other income (expense), net
|
|
|
(34
|
)
|
|
|
(30
|
)
|
|
|
(21
|
)
|
|
|
(55
|
)
|
|
|
(86
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
(338
|
)
|
|
|
391
|
|
|
|
(236
|
)
|
|
|
(574
|
)
|
|
|
893
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
(121
|
)
|
|
|
105
|
|
|
|
(118
|
)
|
|
|
(239
|
)
|
|
|
294
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
(217
|
)
|
|
|
286
|
|
|
|
(118
|
)
|
|
|
(335
|
)
|
|
|
599
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to noncontrolling interests
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
1
|
|
|
|
1
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Company
|
|
$
|
(217
|
)
|
|
$
|
289
|
|
|
$
|
(119
|
)
|
|
$
|
(336
|
)
|
|
$
|
599
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share data:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.58
|
)
|
|
$
|
0.75
|
|
|
$
|
(0.32
|
)
|
|
$
|
(0.90
|
)
|
|
$
|
1.51
|
|
Diluted
|
|
$
|
(0.58
|
)
|
|
$
|
0.74
|
|
|
$
|
(0.32
|
)
|
|
$
|
(0.90
|
)
|
|
$
|
1.51
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
375
|
|
|
|
387
|
|
|
|
375
|
|
|
|
375
|
|
|
|
397
|
|
Diluted
|
|
|
375
|
|
|
|
388
|
|
|
|
375
|
|
|
|
375
|
|
|
|
398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
CONSOLIDATED BALANCE SHEETS
(In millions)
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2016
|
|
2015
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,661
|
|
$
|
2,080
|
Receivables, net
|
|
|
2,044
|
|
|
2,926
|
Inventories, net
|
|
|
4,287
|
|
|
4,678
|
Costs in excess of billings
|
|
|
790
|
|
|
1,250
|
Other current assets
|
|
|
422
|
|
|
491
|
Total current assets
|
|
|
9,204
|
|
|
11,425
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
3,277
|
|
|
3,124
|
Goodwill and intangibles, net
|
|
|
10,695
|
|
|
10,829
|
Other assets
|
|
|
608
|
|
|
592
|
Total assets
|
|
$
|
23,784
|
|
$
|
25,970
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
434
|
|
$
|
623
|
Accrued liabilities
|
|
|
1,774
|
|
|
2,284
|
Billings in excess of costs
|
|
|
653
|
|
|
785
|
Current portion of long-term debt and short-term borrowings
|
|
|
12
|
|
|
2
|
Accrued income taxes
|
|
|
74
|
|
|
264
|
Total current liabilities
|
|
|
2,947
|
|
|
3,958
|
|
|
|
|
|
Long-term debt
|
|
|
3,268
|
|
|
3,907
|
Other liabilities
|
|
|
1,383
|
|
|
1,645
|
Total liabilities
|
|
|
7,598
|
|
|
9,510
|
|
|
|
|
|
Total stockholders’ equity
|
|
|
16,186
|
|
|
16,460
|
Total liabilities and stockholders’ equity
|
|
$
|
23,784
|
|
$
|
25,970
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
OPERATING PROFIT – AS ADJUSTED SUPPLEMENTAL SCHEDULE (Unaudited)
(In millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
564
|
|
|
$
|
1,930
|
|
|
$
|
926
|
|
|
$
|
1,490
|
|
|
$
|
4,453
|
|
Rig Aftermarket
|
|
|
364
|
|
|
|
657
|
|
|
|
391
|
|
|
|
755
|
|
|
|
1,376
|
|
Wellbore Technologies
|
|
|
511
|
|
|
|
956
|
|
|
|
631
|
|
|
|
1,142
|
|
|
|
2,127
|
|
Completion & Production Solutions
|
|
|
538
|
|
|
|
873
|
|
|
|
558
|
|
|
|
1,096
|
|
|
|
1,821
|
|
Eliminations
|
|
|
(253
|
)
|
|
|
(507
|
)
|
|
|
(317
|
)
|
|
|
(570
|
)
|
|
|
(1,048
|
)
|
Total revenue
|
|
$
|
1,724
|
|
|
$
|
3,909
|
|
|
$
|
2,189
|
|
|
$
|
3,913
|
|
|
$
|
8,729
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss):
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
7
|
|
|
$
|
421
|
|
|
$
|
67
|
|
|
$
|
74
|
|
|
$
|
898
|
|
Rig Aftermarket
|
|
|
62
|
|
|
|
153
|
|
|
|
69
|
|
|
|
131
|
|
|
|
357
|
|
Wellbore Technologies
|
|
|
(146
|
)
|
|
|
48
|
|
|
|
(91
|
)
|
|
|
(237
|
)
|
|
|
143
|
|
Completion & Production Solutions
|
|
|
(33
|
)
|
|
|
85
|
|
|
|
(38
|
)
|
|
|
(71
|
)
|
|
|
173
|
|
Eliminations and corporate costs
|
|
|
(160
|
)
|
|
|
(269
|
)
|
|
|
(196
|
)
|
|
|
(356
|
)
|
|
|
(563
|
)
|
Total operating profit (loss)
|
|
$
|
(270
|
)
|
|
$
|
438
|
|
|
$
|
(189
|
)
|
|
$
|
(459
|
)
|
|
$
|
1,008
|
|
|
|
|
|
|
|
|
|
|
|
|
Other items:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
23
|
|
|
$
|
3
|
|
|
$
|
52
|
|
|
$
|
75
|
|
|
$
|
43
|
|
Rig Aftermarket
|
|
|
5
|
|
|
|
2
|
|
|
|
8
|
|
|
|
13
|
|
|
|
10
|
|
Wellbore Technologies
|
|
|
50
|
|
|
|
9
|
|
|
|
38
|
|
|
|
88
|
|
|
|
54
|
|
Completion & Production Solutions
|
|
|
38
|
|
|
|
3
|
|
|
|
34
|
|
|
|
72
|
|
|
|
32
|
|
Eliminations and corporate costs
|
|
|
1
|
|
|
|
-
|
|
|
|
9
|
|
|
|
10
|
|
|
|
-
|
|
Total other items
|
|
$
|
117
|
|
|
$
|
17
|
|
|
$
|
141
|
|
|
$
|
258
|
|
|
$
|
139
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit (loss) excluding other items:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
30
|
|
|
$
|
424
|
|
|
$
|
119
|
|
|
$
|
149
|
|
|
$
|
941
|
|
Rig Aftermarket
|
|
|
67
|
|
|
|
155
|
|
|
|
77
|
|
|
|
144
|
|
|
|
367
|
|
Wellbore Technologies
|
|
|
(96
|
)
|
|
|
57
|
|
|
|
(53
|
)
|
|
|
(149
|
)
|
|
|
197
|
|
Completion & Production Solutions
|
|
|
5
|
|
|
|
88
|
|
|
|
(4
|
)
|
|
|
1
|
|
|
|
205
|
|
Eliminations and corporate costs
|
|
|
(159
|
)
|
|
|
(269
|
)
|
|
|
(187
|
)
|
|
|
(346
|
)
|
|
|
(563
|
)
|
Total operating profit (loss) excluding other items
|
|
$
|
(153
|
)
|
|
$
|
455
|
|
|
$
|
(48
|
)
|
|
$
|
(201
|
)
|
|
$
|
1,147
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
AS ADJUSTED BEFORE DEPRECIATION & AMORTIZATION SUPPLEMENTAL
SCHEDULE (Unaudited)
(In millions)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
Operating profit (loss) excluding other items:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
30
|
|
|
$
|
424
|
|
|
$
|
119
|
|
|
$
|
149
|
|
|
$
|
941
|
|
Rig Aftermarket
|
|
|
67
|
|
|
|
155
|
|
|
|
77
|
|
|
|
144
|
|
|
|
367
|
|
Wellbore Technologies
|
|
|
(96
|
)
|
|
|
57
|
|
|
|
(53
|
)
|
|
|
(149
|
)
|
|
|
197
|
|
Completion & Production Solutions
|
|
|
5
|
|
|
|
88
|
|
|
|
(4
|
)
|
|
|
1
|
|
|
|
205
|
|
Eliminations and corporate costs
|
|
|
(159
|
)
|
|
|
(269
|
)
|
|
|
(187
|
)
|
|
|
(346
|
)
|
|
|
(563
|
)
|
Total operating profit (loss) excluding other items
|
|
$
|
(153
|
)
|
|
$
|
455
|
|
|
$
|
(48
|
)
|
|
$
|
(201
|
)
|
|
$
|
1,147
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & amortization:
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
19
|
|
|
$
|
21
|
|
|
$
|
18
|
|
|
$
|
37
|
|
|
$
|
42
|
|
Rig Aftermarket
|
|
|
6
|
|
|
|
6
|
|
|
|
5
|
|
|
|
11
|
|
|
|
11
|
|
Wellbore Technologies
|
|
|
97
|
|
|
|
100
|
|
|
|
96
|
|
|
|
193
|
|
|
|
205
|
|
Completion & Production Solutions
|
|
|
52
|
|
|
|
60
|
|
|
|
52
|
|
|
|
104
|
|
|
|
116
|
|
Eliminations and corporate costs
|
|
|
4
|
|
|
|
3
|
|
|
|
4
|
|
|
|
8
|
|
|
|
6
|
|
Total depreciation & amortization
|
|
$
|
178
|
|
|
$
|
190
|
|
|
$
|
175
|
|
|
$
|
353
|
|
|
$
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Operating profit excluding other
|
|
|
|
|
|
|
|
|
|
|
items before depreciation & amortization) (Note 1):
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
$
|
49
|
|
|
$
|
445
|
|
|
$
|
137
|
|
|
$
|
186
|
|
|
$
|
983
|
|
Rig Aftermarket
|
|
|
73
|
|
|
|
161
|
|
|
|
82
|
|
|
|
155
|
|
|
|
378
|
|
Wellbore Technologies
|
|
|
1
|
|
|
|
157
|
|
|
|
43
|
|
|
|
44
|
|
|
|
402
|
|
Completion & Production Solutions
|
|
|
57
|
|
|
|
148
|
|
|
|
48
|
|
|
|
105
|
|
|
|
321
|
|
Eliminations and corporate costs
|
|
|
(155
|
)
|
|
|
(266
|
)
|
|
|
(183
|
)
|
|
|
(338
|
)
|
|
|
(557
|
)
|
Total Adjusted EBITDA
|
|
$
|
25
|
|
|
$
|
645
|
|
|
$
|
127
|
|
|
$
|
152
|
|
|
$
|
1,527
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA % (Note 1):
|
|
|
|
|
|
|
|
|
|
|
Rig Systems
|
|
|
8.7
|
%
|
|
|
23.1
|
%
|
|
|
14.8
|
%
|
|
|
12.5
|
%
|
|
|
22.1
|
%
|
Rig Aftermarket
|
|
|
20.1
|
%
|
|
|
24.5
|
%
|
|
|
21.0
|
%
|
|
|
20.5
|
%
|
|
|
27.5
|
%
|
Wellbore Technologies
|
|
|
0.2
|
%
|
|
|
16.4
|
%
|
|
|
6.8
|
%
|
|
|
3.9
|
%
|
|
|
18.9
|
%
|
Completion & Production Solutions
|
|
|
10.6
|
%
|
|
|
17.0
|
%
|
|
|
8.6
|
%
|
|
|
9.6
|
%
|
|
|
17.6
|
%
|
Total Adjusted EBITDA %
|
|
|
1.5
|
%
|
|
|
16.5
|
%
|
|
|
5.8
|
%
|
|
|
3.9
|
%
|
|
|
17.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted EBITDA:
|
|
$
|
25
|
|
|
$
|
645
|
|
|
$
|
127
|
|
|
$
|
152
|
|
|
$
|
1,527
|
|
Other items in operating profit
|
|
|
(117
|
)
|
|
|
(17
|
)
|
|
|
(141
|
)
|
|
|
(258
|
)
|
|
|
(139
|
)
|
Interest income
|
|
|
3
|
|
|
|
2
|
|
|
|
5
|
|
|
|
8
|
|
|
|
7
|
|
Equity income (loss) in unconsolidated affiliates
|
|
|
(7
|
)
|
|
|
7
|
|
|
|
(6
|
)
|
|
|
(13
|
)
|
|
|
16
|
|
Other income (expense), net
|
|
|
(34
|
)
|
|
|
(30
|
)
|
|
|
(21
|
)
|
|
|
(55
|
)
|
|
|
(86
|
)
|
Net (income) loss attributable to noncontrolling interest
|
|
|
-
|
|
|
|
3
|
|
|
|
(1
|
)
|
|
|
(1
|
)
|
|
|
-
|
|
EBITDA (Note 1)
|
|
$
|
(130
|
)
|
|
$
|
610
|
|
|
$
|
(37
|
)
|
|
$
|
(167
|
)
|
|
$
|
1,325
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA (Note 1):
|
|
|
|
|
|
|
|
|
|
|
GAAP net income (loss) attributable to Company
|
|
$
|
(217
|
)
|
|
$
|
289
|
|
|
$
|
(119
|
)
|
|
$
|
(336
|
)
|
|
$
|
599
|
|
Provision for income taxes
|
|
|
(121
|
)
|
|
|
105
|
|
|
|
(118
|
)
|
|
|
(239
|
)
|
|
|
294
|
|
Interest expense
|
|
|
30
|
|
|
|
26
|
|
|
|
25
|
|
|
|
55
|
|
|
|
52
|
|
Depreciation & amortization
|
|
|
178
|
|
|
|
190
|
|
|
|
175
|
|
|
|
353
|
|
|
|
380
|
|
EBITDA
|
|
|
(130
|
)
|
|
|
610
|
|
|
|
(37
|
)
|
|
|
(167
|
)
|
|
|
1,325
|
|
Other items in operating profit
|
|
|
117
|
|
|
|
17
|
|
|
|
141
|
|
|
|
258
|
|
|
|
139
|
|
Other items in other income (expense), net
|
|
|
26
|
|
|
|
-
|
|
|
|
6
|
|
|
|
32
|
|
|
|
9
|
|
EBITDA excluding other items (Note 1)
|
|
$
|
13
|
|
|
$
|
627
|
|
|
$
|
110
|
|
|
$
|
123
|
|
|
$
|
1,473
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATIONAL OILWELL VARCO, INC.
OPERATING (NON-GAAP) DILUTED EARNINGS PER SHARE RECONCILIATION
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
|
2016
|
|
|
2015
|
|
2016
|
|
2016
|
|
2015
|
Net income (loss) attributable to Company
|
|
$
|
(0.58
|
)
|
|
$
|
0.74
|
|
$
|
(0.32
|
)
|
|
$
|
(0.90
|
)
|
|
$
|
1.51
|
Other items
|
|
|
0.23
|
|
|
|
0.03
|
|
|
0.25
|
|
|
|
0.48
|
|
|
|
0.22
|
Fixed asset write-down
|
|
|
0.05
|
|
|
|
-
|
|
|
0.01
|
|
|
|
0.06
|
|
|
|
-
|
Argentina/Venezuela asset write-down
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
0.02
|
Tax items
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
-
|
|
|
|
0.17
|
Operating (non-GAAP) (Note 1)
|
|
$
|
(0.30
|
)
|
|
$
|
0.77
|
|
$
|
(0.06
|
)
|
|
$
|
(0.36
|
)
|
|
$
|
1.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note 1: In an effort to provide investors with additional
information regarding our results as determined by GAAP, we disclose
various non-GAAP financial measures in our quarterly earnings press
releases and other public disclosures. The primary non-GAAP financial
measures we focus on are: (i) revenue excluding other items, (ii)
operating profit excluding other items, (iii) operating profit
percentage excluding other items, (iv) Adjusted EBITDA (operating profit
excluding other items before depreciation & amortization), (v) Adjusted
EBITDA percentage, (vi) EBITDA (vii) EBITDA excluding other items and
(viii) Operating (non-GAAP) per fully diluted share. Each of these
financial measures excludes the impact of certain other items and
therefore has not been calculated in accordance with GAAP. A
reconciliation of each of these non-GAAP financial measures to its most
comparable GAAP financial measure is included here within.
We use these non-GAAP financial measures internally to evaluate and
manage the Company’s operations because we believe it provides useful
supplemental information regarding the Company’s on-going economic
performance. We have chosen to provide this information to investors to
enable them to perform more meaningful comparisons of operating results
and as a means to emphasize the results of on-going operations.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728005525/en/
Copyright Business Wire 2016