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Actionable news in NOV: NATIONAL OILWELL VARCO Inc,

National Oilwell Varco: Boom! No Backlog

Summary

NOV reported Q1 earnings this morning.

Revenue and EBITDA fell Q/Q by 20% and 61%, respectively. Land drilling segments were hard-hit as expected.

The backlog fell to $4.3B after a $2B write-off of the Sete Brasil drill ships package.

NOV has $1.7B in cash which pales in comparison to larger peers.

Avoid NOV.

National Oilwell Varco (NYSE:NOV) reported Q1 earnings this morning. The company reported revenue of $2.2 billion and a loss per share of $0.32. The company missed on its revenue estimate by about $50 million. I had the following takeaways on the quarter:

Slide In Rig Systems Less Pronounced

The company's largest operating segment, Rig Systems (42% of total revenue), sells land rigs, offshore drilling equipment and components. The segment has been hit hard by a dearth in new orders amid the oil & gas industry downturn.

Revenue from Rig Systems was off 9% sequentially, much less than the 32% decline last quarter. This is a good thing. If the company can...


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