National Oilwell 3Q Profit Falls 30%; Results Top Estimates
DOW JONES NEWSWIRES
National Oilwell Varco Inc.'s (NOV) third-quarter profit fell 30% as weaker
revenue, though the company's results exceeded analysts' expectations.
The oilfield services sector has been seeing more signs of hope with giants
Halliburton Co. (HAL) and Schlumberger Ltd. (SLB) reporting signs the sector is
stabilizing.
National Oilwell's results have yet to reflect the kind of weakness plaguing
other companies reliant on brisk oil and gas output, though its order backlog
for equipment has been slipping. Results have been helped by acquisitions.
The oilfield equipment manufacturer and services provider reported a profit of
$385 million, or 92 cents a share, down from $548 million, or $1.31 a share, a
year earlier. Excluding items such as restructuring and acquisition costs,
earnings dropped to 95 cents from $1.44.
Revenue decreased 14% to $3.09 billion.
Analysts polled by Thomson Reuters most recently forecast earnings of 79 cents
on revenue of $2.89 billion.
Gross margin fell to 29.1% from 31.2%.
"While difficult credit market conditions have led to order rates below our
expectations so far this year, we continue to pursue new rig opportunities
aggressively, and seek and execute strategic internal growth and acquisition
opportunities," said Chairman and Chief Executive Pete Miller.
The company added $333 million of orders to its equipment backlog and removed
$72 million of discontinued orders on canceled projects and change orders.
Backlog for its rig technology segment - the company's biggest - was $7.3
billion at the end of the quarter, compared with $8.7 billion a quarter earlier
and $11.8 billion a year earlier.
At its rig technology business, revenue rose 3.8%. The company's petroleum
services and supply revenue declined by a third, and its distribution services
unit's revenue fell 39%.
Shares closed Friday at $46.89 and didn't trade premarket. The stock has
nearly doubled this year.
-By Tess Stynes and Nathan Becker, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com
(END) Dow Jones Newswires
10-26-090755ET
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