NOV Reports Third Quarter 2024 Results
NOV Inc. reported strong Q3 2024 results with revenues of $2.19 billion, a slight increase from Q3 2023. Net income rose 14% to $130 million ($0.33 per share), while operating profit increased 6% to $194 million. Adjusted EBITDA grew 7% to $286 million. The company achieved a 111% book-to-bill ratio with bookings of $627 million. Free cash flow reached $277 million, enabling $109 million return to shareholders through share repurchases ($80 million) and dividends ($29 million). Energy Equipment segment showed growth while Energy Products and Services saw a slight decline.
NOV Inc. ha riportato risultati solidi per il terzo trimestre del 2024 con ricavi di 2,19 miliardi di dollari, un leggero aumento rispetto al terzo trimestre del 2023. L'utile netto è aumentato del 14% a 130 milioni di dollari (0,33 dollari per azione), mentre l'utile operativo è cresciuto del 6% a 194 milioni di dollari. L'EBITDA rettificato è aumentato del 7% a 286 milioni di dollari. L'azienda ha raggiunto un rapporto book-to-bill del 111% con ordini pari a 627 milioni di dollari. Il flusso di cassa libero ha raggiunto 277 milioni di dollari, consentendo un ritorno ai soci di 109 milioni di dollari attraverso riacquisti di azioni (80 milioni) e dividendi (29 milioni). Il segmento delle attrezzature per l'energia ha mostrato crescita, mentre i prodotti e servizi energetici hanno registrato una leggera flessione.
NOV Inc. reportó sólidos resultados en el tercer trimestre de 2024 con ingresos de 2.19 mil millones de dólares, un ligero aumento en comparación con el tercer trimestre de 2023. La entrada neta creció un 14% a 130 millones de dólares (0,33 dólares por acción), mientras que el beneficio operativo aumentó un 6% a 194 millones de dólares. El EBITDA ajustado creció un 7% a 286 millones de dólares. La empresa logró una relación book-to-bill del 111% con pedidos de 627 millones de dólares. El flujo de caja libre alcanzó 277 millones de dólares, lo que permitió un retorno a los accionistas de 109 millones de dólares a través de recompras de acciones (80 millones) y dividendos (29 millones). El segmento de equipos de energía mostró crecimiento, mientras que los productos y servicios de energía vieron una ligera disminución.
NOV Inc.는 2024년 3분기 실적을 발표했으며, 매출은 21억 9천만 달러로 2023년 3분기와 비교해 소폭 증가했습니다. 순이익은 14% 증가하여 1억 3천만 달러 (주당 0.33달러)로 증가했으며, 운영 이익은 6% 증가하여 1억 9천4백만 달러에 달했습니다. 조정된 EBITDA는 7% 증가하여 2억 8천6백만 달러를 기록했습니다. 이 회사는 6억 2천7백만 달러의 수주를 통해 111%의 주문 수주 비율을 달성했습니다. 자유 현금 흐름은 2억 7천7백만 달러에 도달해 주식 매입 (8천만 달러) 및 배당금 (2천9백만 달러)을 통해 1억 9천만 달러를 주주들에게 반환할 수 있었습니다. 에너지 장비 부문은 성장을 보였지만, 에너지 제품 및 서비스 부문은 다소 감소했습니다.
NOV Inc. a rapporté de solides résultats pour le troisième trimestre 2024 avec un chiffre d'affaires de 2,19 milliards de dollars, soit une légère augmentation par rapport au troisième trimestre 2023. Le bénéfice net a augmenté de 14 % pour atteindre 130 millions de dollars (0,33 dollar par action), tandis que le bénéfice opérationnel a crû de 6 % à 194 millions de dollars. L'EBITDA ajusté a progressé de 7 % pour atteindre 286 millions de dollars. L'entreprise a réalisé un ratio de commandes à facturation de 111 % avec des commandes de 627 millions de dollars. Le flux de trésorerie libre a atteint 277 millions de dollars, permettant un retour de 109 millions de dollars aux actionnaires grâce aux rachats d'actions (80 millions de dollars) et aux dividendes (29 millions de dollars). Le segment des équipements énergétiques a montré une croissance, tandis que les produits et services énergétiques ont connu une légère diminution.
NOV Inc. berichtete über starke Ergebnisse für das dritte Quartal 2024 mit einem Umsatz von 2,19 Milliarden Dollar, was einem leichten Anstieg im Vergleich zum dritten Quartal 2023 entspricht. Der Nettogewinn stieg um 14 % auf 130 Millionen Dollar (0,33 Dollar pro Aktie), während der operative Gewinn um 6 % auf 194 Millionen Dollar anstieg. Das bereinigte EBITDA wuchs um 7 % auf 286 Millionen Dollar. Das Unternehmen erreichte ein Verhältnis von Buchungen zu Verkäufen von 111 % mit Aufträgen von 627 Millionen Dollar. Der freie Cashflow erreichte 277 Millionen Dollar, was eine Rückführung von 109 Millionen Dollar an die Aktionäre durch Aktienrückkäufe (80 Millionen Dollar) und Dividenden (29 Millionen Dollar) ermöglichte. Der Bereich Energieausrüstung zeigte Wachstum, während die Energienprodukte und -dienstleistungen einen leichten Rückgang verzeichneten.
- Net income increased 14% year-over-year to $130 million
- Adjusted EBITDA grew 7% to $286 million
- Strong free cash flow generation of $277 million
- Book-to-bill ratio of 111% indicates growing demand
- Energy Equipment backlog increased by $485 million year-over-year to $4,478 million
- Energy Products and Services revenue decreased 3% year-over-year
- Lower drilling activity levels in North America affected performance
- Management notes emerging near-term headwinds due to oil price uncertainty
Insights
Q3 2024 shows mixed results for NOV with several positive developments. Net income increased
Key positives include:
- Book-to-bill ratio of
111% indicates healthy order momentum - Backlog increased by
$485 million year-over-year to$4.48 billion - Strong shareholder returns with
$109 million distributed through buybacks and dividends
The offshore and international gas project momentum remains a key growth driver for NOV, despite broader market uncertainties. The
However, investors should note potential headwinds:
- Increasing oil price uncertainty affecting operator spending
- North American activity slowdown impacting Energy Products segment
- Geographic revenue mix shifting toward international markets
-
Net Income of
, or$130 million per share, up$0.33 , or$16 million per share, year-over-year$0.04 -
Adjusted EBITDA* of
, an increase of$286 million year-over-year$19 million -
Cash flow from operations of
and free cash flow* of$359 million $277 million -
Bookings of
, representing a$627 million 111% book-to-bill - Repurchased 4.6 million shares of common stock
* Adjusted EBITDA and Free Cash Flow are non-GAAP measures, see “Non-GAAP Financial Measures,” “Reconciliation of Cash Flows from Operating Activities to Free Cash Flow" and “Reconciliation of Adjusted EBITDA to Net Income” below.
“During the third quarter of 2024, NOV continued to improve cash flow, backlog, profitability and margins compared to the prior year,” stated Clay Williams, Chairman, President, and CEO. “Revenues improved modestly compared to the third quarter of 2023, with strong execution on our growing backlog, increasing demand for aftermarket parts and services, and greater business efficiency driving margins higher. Additionally, demand for our capital equipment continued to grow in support of long-cycle offshore and international projects with NOV achieving a book-to-bill of
“Solid results and steadily improving working capital efficiency enabled the Company to generate free cash flow of
“As we look to year-end and into 2025, we see operators taking an incrementally more cautious approach to their activities in view of greater oil price uncertainty. Despite some emerging near-term headwinds, most international and offshore gas projects continue to press ahead resolutely, and we are confident that NOV’s technologies will continue to underpin these critical energy projects around the globe. We are committed to prudently investing in new and better ways to help our customers drive safer, more-efficient and less-environmentally impactful operations, while returning meaningful capital to our shareholders.”
Energy Products and Services
Energy Products and Services generated revenues of
Energy Equipment
Energy Equipment generated revenues of
New orders totaled
Outlook
The Company is providing financial guidance for the fourth quarter of 2024 and full year 2024. Guidance is based on current outlook and plans and is subject to a number of known and unknown uncertainties and risks and constitutes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 as further described under the Cautionary Statement below. Actual results may differ materially from the guidance set forth below.
For the fourth quarter of 2024 management expects year-over-year consolidated revenues to be down three to five percent with Adjusted EBITDA between
Corporate Information
NOV repurchased 4.6 million shares of common stock for
During the third quarter of 2024, NOV recorded
On September 12, 2024, the Company replaced its existing credit facility with a new
As of September 30, 2024, the Company had total debt of
Significant Achievements
NOV signed a five-year strategic relationship agreement with a major North Sea operator to enhance drilling operations using NOV’s downhole broadband network and automation technology across the operator’s North Sea fleet. This agreement is in addition to the framework agreement signed in the second quarter to outfit the operator’s fleet with NOV’s wired drill pipe technology and services and further expands our relationship with this customer. The partnership will integrate NOV's Downhole Broadband Solutions wired drill pipe and NOVOS™ automation platform to improve rig performance, safety, environmental sustainability, and production potential.
NOV was awarded a contract to supply spread mooring tensioning systems for two floating production, storage, and offloading (FPSO) vessels in
NOV’s Subsea Flexible Pipe business was named the Best Supplier in the Flexible Pipe category at the 7th annual Best Suppliers Award competition during the Rio Oil and Gas conference, marking the business unit's second consecutive year to receive this recognition. The operation was also recently named the Foreign Company of the Year by the American Chamber of Commerce in
NOV’s ATOM™ RTX Robotics technology secured repeat orders for two additional systems destined for two land rigs. The robotics technology will jointly integrate into the customer's rig layouts for automated piped handling, stabbing, doping, and mud containment, thereby removing personnel from the red zone and enhancing safety.
NOV received two orders for higher capacity hookload upgrades to convert sixth generation assets into seventh generation technology rigs as clients continue to advance fleet capabilities and enhance the competitiveness of their ultra-deepwater assets. The upgrades include larger load path equipment, associated structural enhancements, and the latest rig controls and monitoring technology.
NOV's Fiber Glass Systems business unit has been named one of 13 Phase 1 winners of the US Department of Energy's MAKE IT Prize for NOV’s innovative double-wall composite pipes for hydrogen transport. The prize focuses on supporting facilities with the capabilities to manufacture critical energy transition infrastructure. The double-wall composite pipe concept aims to provide a safer, lower-cost, and more efficient method for transporting hydrogen. Leveraging decades of expertise and advanced technology, NOV is committed to driving the world's transition to more sustainable energy solutions.
NOV delivered 40,000 horsepower of its Ideal™ eFrac Fracturing Units to a leading North American oilfield service company, underscoring the ongoing customer interest in upgrading their assets to the latest technology. The shipment included NOV’s Power Pod solutions, which facilitate the integration of Ideal frac pumps with dual-fuel or conventional pumpers, enabling the creation of a hybrid fleet.
NOV’s Automation Performance Center service continues to gain momentum as customers benefit from record-setting drilling performance. Leveraging NOV’s unparalleled library of rig performance data, the Performance Center’s remote support team provides 24/7 assistance to optimize rig configurations and drilling methodologies. During the quarter, four drilling contractors in different regions realized new weight-to-weight records (the time between two drilled stands, which starts when the drill string is lifted off bottom and lasts until the string is on bottom again) using the Performance Center’s expertise.
After quarter end, NOV completed the acquisition of Fortress Downhole Tools, a leading provider of recyclable setting tools and services in
NOV secured orders for fourteen cranes for offshore projects across
NOV assisted in the deployment of the world’s deepest 16 by 18-5/8-inch expandable liner in
NOV further expanded its footprint in municipal water markets, securing two significant orders. A global EPC leader ordered 11,000 feet of F-Chem™ composite pipes and fittings to be used in a new water treatment center in
NOV was awarded a contract to supply 520,000 ft of 2 ⅞-in. to 4 ½-in. production tubing with Tuboscope’s TK™-236 internal plastic coating for Kuwait’s Wafra Zone. The harsh, sour environment in this zone has historically caused severe internal corrosion on uncoated tubulars, leading to costly downtime and reduced asset life. After extensive testing, the TK-236 coating was chosen for its reliable corrosion protection, flow efficiency, and effectiveness in high H2S environments.
NOV successfully deployed the first Max Completions™ ToolSight™ Remote Thru-Tubing Monitoring system for a
Third Quarter Earnings Conference Call
NOV will hold a conference call to discuss its third quarter 2024 results on October 25, 2024 at 10:00 AM Central Time (11:00 AM Eastern Time). The call will be broadcast simultaneously at www.nov.com/investors. A replay will be available on the website for 30 days.
About NOV
NOV (NYSE: NOV) delivers technology-driven solutions to empower the global energy industry. For more than 150 years, NOV has pioneered innovations that enable its customers to safely produce abundant energy while minimizing environmental impact. The energy industry depends on NOV’s deep expertise and technology to continually improve oilfield operations and assist in efforts to advance the energy transition towards a more sustainable future. NOV powers the industry that powers the world.
Visit www.nov.com for more information.
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures that management believes are useful tools for internal use and the investment community in evaluating NOV’s overall financial performance. These non-GAAP financial measures are broadly used to value and compare companies in the oilfield services and equipment industry. Not all companies define these measures in the same way. In addition, these non-GAAP financial measures are not a substitute for financial measures prepared in accordance with GAAP and should therefore be considered only as supplemental to such GAAP financial measures. Additionally, free cash flow and Excess Free Cash Flow do not represent the Company’s residual cash flow available for discretionary expenditures, as the calculation of these measures does not account for certain debt service requirements or other non-discretionary expenditures. Please see the attached schedules for reconciliations of the differences between the non-GAAP financial measures used in this press release and the most directly comparable GAAP financial measures.
This press release contains certain forward-looking non-GAAP financial measures, including Adjusted EBITDA. The Company has not provided a reconciliation of projected Adjusted EBITDA. Management cannot predict with a reasonable degree of accuracy certain of the necessary components of net income, such as other income (expense), which includes fluctuations in foreign currencies. As such, a reconciliation of projected Adjusted EBITDA to projected net income is not available without unreasonable effort. The actual amount of other income (expense), provision (benefit) for income taxes, equity income in unconsolidated affiliates, depreciation and amortization, and other amounts excluded from Adjusted EBITDA could have a significant impact on net income.
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 NOV 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. These statements speak only as of the date of this document, and we undertake no obligation to update or revise the statements, except as may be required by law.
Certain prior period amounts have been reclassified in this press release to be consistent with current period presentation.
NOV INC. |
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CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
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(In millions, except per share data) |
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|
|
|
|||||||||||||||
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Three Months Ended |
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Nine Months Ended |
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|
September 30, |
|
June 30, |
|
September 30, |
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|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Energy Products and Services |
|
$ |
1,003 |
|
|
$ |
1,034 |
|
|
$ |
1,050 |
|
|
$ |
3,070 |
|
|
$ |
3,004 |
|
Energy Equipment |
|
|
1,219 |
|
|
|
1,195 |
|
|
|
1,204 |
|
|
|
3,601 |
|
|
|
3,364 |
|
Eliminations |
|
|
(31 |
) |
|
|
(44 |
) |
|
|
(38 |
) |
|
|
(109 |
) |
|
|
(128 |
) |
Total revenue |
|
|
2,191 |
|
|
|
2,185 |
|
|
|
2,216 |
|
|
|
6,562 |
|
|
|
6,240 |
|
Gross profit |
|
|
469 |
|
|
|
468 |
|
|
|
590 |
|
|
|
1,517 |
|
|
|
1,336 |
|
Gross profit % |
|
|
21.4 |
% |
|
|
21.4 |
% |
|
|
26.6 |
% |
|
|
23.1 |
% |
|
|
21.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selling, general, and administrative |
|
|
275 |
|
|
|
285 |
|
|
|
277 |
|
|
|
848 |
|
|
|
846 |
|
Operating profit |
|
|
194 |
|
|
|
183 |
|
|
|
313 |
|
|
|
669 |
|
|
|
490 |
|
Interest expense, net |
|
|
(10 |
) |
|
|
(18 |
) |
|
|
(14 |
) |
|
|
(40 |
) |
|
|
(44 |
) |
Equity income in unconsolidated affiliates |
|
|
— |
|
|
|
16 |
|
|
|
8 |
|
|
|
37 |
|
|
|
101 |
|
Other expense, net |
|
|
(10 |
) |
|
|
(25 |
) |
|
|
(14 |
) |
|
|
(34 |
) |
|
|
(70 |
) |
Income before income taxes |
|
|
174 |
|
|
|
156 |
|
|
|
293 |
|
|
|
632 |
|
|
|
477 |
|
Provision for income taxes |
|
|
44 |
|
|
|
48 |
|
|
|
70 |
|
|
|
158 |
|
|
|
87 |
|
Net income |
|
|
130 |
|
|
|
108 |
|
|
|
223 |
|
|
|
474 |
|
|
|
390 |
|
Net loss attributable to noncontrolling interests |
|
|
— |
|
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(5 |
) |
Net income attributable to Company |
|
$ |
130 |
|
|
$ |
114 |
|
|
$ |
226 |
|
|
$ |
475 |
|
|
$ |
395 |
|
Per share data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
$ |
0.33 |
|
|
$ |
0.29 |
|
|
$ |
0.57 |
|
|
$ |
1.21 |
|
|
$ |
1.01 |
|
Diluted |
|
$ |
0.33 |
|
|
$ |
0.29 |
|
|
$ |
0.57 |
|
|
$ |
1.20 |
|
|
$ |
1.00 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
|
392 |
|
|
|
393 |
|
|
|
395 |
|
|
|
394 |
|
|
|
393 |
|
Diluted |
|
|
395 |
|
|
|
396 |
|
|
|
397 |
|
|
|
397 |
|
|
|
396 |
|
NOV INC. |
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CONSOLIDATED BALANCE SHEETS |
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(In millions) |
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|
|
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|
|
|
||
|
|
September 30, |
|
|
December 31, |
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|
|
2024 |
|
|
2023 |
||
ASSETS |
|
(Unaudited) |
|
|
|
||
Current assets: |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
985 |
|
|
$ |
816 |
Receivables, net |
|
|
1,896 |
|
|
|
1,905 |
Inventories, net |
|
|
2,123 |
|
|
|
2,151 |
Contract assets |
|
|
684 |
|
|
|
739 |
Prepaid and other current assets |
|
|
230 |
|
|
|
229 |
Total current assets |
|
|
5,918 |
|
|
|
5,840 |
|
|
|
|
|
|
||
Property, plant and equipment, net |
|
|
1,908 |
|
|
|
1,865 |
Lease right-of-use assets |
|
|
550 |
|
|
|
544 |
Goodwill and intangibles, net |
|
|
2,105 |
|
|
|
2,012 |
Other assets |
|
|
941 |
|
|
|
1,033 |
Total assets |
|
$ |
11,422 |
|
|
$ |
11,294 |
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
||
Accounts payable |
|
$ |
835 |
|
|
$ |
904 |
Accrued liabilities |
|
|
819 |
|
|
|
870 |
Contract liabilities |
|
|
495 |
|
|
|
532 |
Current portion of lease liabilities |
|
|
101 |
|
|
|
94 |
Current portion of long-term debt |
|
|
28 |
|
|
|
13 |
Accrued income taxes |
|
|
22 |
|
|
|
22 |
Total current liabilities |
|
|
2,300 |
|
|
|
2,435 |
|
|
|
|
|
|
||
Long-term debt |
|
|
1,721 |
|
|
|
1,712 |
Lease liabilities |
|
|
551 |
|
|
|
558 |
Other liabilities |
|
|
334 |
|
|
|
347 |
Total liabilities |
|
|
4,906 |
|
|
|
5,052 |
|
|
|
|
|
|
||
Total stockholders’ equity |
|
|
6,516 |
|
|
|
6,242 |
Total liabilities and stockholders’ equity |
|
$ |
11,422 |
|
|
$ |
11,294 |
NOV INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
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(In millions) |
||||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
2024 |
|
2023 |
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
||||||
Net income |
|
$ |
130 |
|
|
$ |
474 |
|
|
$ |
390 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
86 |
|
|
|
255 |
|
|
|
225 |
|
Working capital, net |
|
|
133 |
|
|
|
(89 |
) |
|
|
(784 |
) |
Other operating items, net |
|
|
10 |
|
|
|
73 |
|
|
|
(65 |
) |
Net cash provided by (used in) operating activities |
|
|
359 |
|
|
|
713 |
|
|
|
(234 |
) |
|
|
|
|
|
|
|
||||||
Cash flows from investing activities: |
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment |
|
|
(82 |
) |
|
|
(233 |
) |
|
|
(207 |
) |
Business acquisitions, net of cash acquired |
|
|
— |
|
|
|
(252 |
) |
|
|
(14 |
) |
Business divestitures, net of cash disposed |
|
|
— |
|
|
|
176 |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
1 |
|
|
|
10 |
|
Net cash used in investing activities |
|
|
(82 |
) |
|
|
(308 |
) |
|
|
(211 |
) |
|
|
|
|
|
|
|
||||||
Cash flows from financing activities: |
|
|
|
|
|
|
||||||
Borrowings against lines of credit and other debt |
|
|
— |
|
|
|
419 |
|
|
|
62 |
|
Payments against lines of credit and other debt |
|
|
— |
|
|
|
(422 |
) |
|
|
(65 |
) |
Cash dividends paid |
|
|
(29 |
) |
|
|
(79 |
) |
|
|
(60 |
) |
Share repurchases |
|
|
(80 |
) |
|
|
(117 |
) |
|
|
— |
|
Other |
|
|
(13 |
) |
|
|
(36 |
) |
|
|
(43 |
) |
Net cash used in financing activities |
|
|
(122 |
) |
|
|
(235 |
) |
|
|
(106 |
) |
Effect of exchange rates on cash |
|
|
3 |
|
|
|
(1 |
) |
|
|
(5 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
158 |
|
|
|
169 |
|
|
|
(556 |
) |
Cash and cash equivalents, beginning of period |
|
|
827 |
|
|
|
816 |
|
|
|
1,069 |
|
Cash and cash equivalents, end of period |
|
$ |
985 |
|
|
$ |
985 |
|
|
$ |
513 |
|
NOV INC.
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES TO FREE CASH FLOW (Unaudited)
(In millions)
Presented below is a reconciliation of cash flow from operating activities to “free cash flow”. The Company defines free cash flow as cash flow from operating activities less purchases of property, plant and equipment, or “capital expenditures”. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and manage the business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Free cash flow is not intended to replace GAAP financial measures.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
September 30, |
|
September 30, |
||||||||
|
|
2024 |
|
2024 |
|
2023 |
||||||
|
|
|
|
|
|
|
|
|
|
|||
Total cash flows provided by (used in) operating activities |
|
$ |
359 |
|
|
$ |
713 |
|
|
$ |
(234 |
) |
Capital expenditures |
|
|
(82 |
) |
|
|
(233 |
) |
|
|
(207 |
) |
Free cash flow |
|
$ |
277 |
|
|
$ |
480 |
|
|
$ |
(441 |
) |
NOV INC.
RECONCILIATION OF ADJUSTED EBITDA TO NET INCOME (Unaudited)
(In millions)
Presented below is a reconciliation of Net Income to Adjusted EBITDA. The Company defines Adjusted EBITDA as Operating Profit excluding Depreciation, Amortization, Gains and Losses on Sales of Fixed Assets, and, when applicable, Other Items. Adjusted EBITDA % is a ratio showing Adjusted EBITDA as a percentage of sales. Management believes this is important information to provide because it is used by management to evaluate the Company’s operational performance and trends between periods and manage the business. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company’s results of ongoing operations. Adjusted EBITDA and Adjusted EBITDA % are not intended to replace GAAP financial measures, such as Net Income and Operating Profit %. Other Items include gain on business divestiture, impairment, restructure, severance, facility closure costs and inventory charges and credits.
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
September 30, |
|
June 30, |
|
September 30, |
||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2024 |
|
2023 |
||||||||||
Operating profit: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy Products and Services |
|
$ |
114 |
|
|
$ |
145 |
|
|
$ |
128 |
|
|
$ |
363 |
|
|
$ |
413 |
|
Energy Equipment |
|
|
129 |
|
|
|
98 |
|
|
|
232 |
|
|
|
456 |
|
|
|
250 |
|
Eliminations and corporate costs |
|
|
(49 |
) |
|
|
(60 |
) |
|
|
(47 |
) |
|
|
(150 |
) |
|
|
(173 |
) |
Total operating profit |
|
$ |
194 |
|
|
$ |
183 |
|
|
$ |
313 |
|
|
$ |
669 |
|
|
$ |
490 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating profit %: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy Products and Services |
|
|
11.4 |
% |
|
|
14.0 |
% |
|
|
12.2 |
% |
|
|
11.8 |
% |
|
|
13.7 |
% |
Energy Equipment |
|
|
10.6 |
% |
|
|
8.2 |
% |
|
|
19.3 |
% |
|
|
12.7 |
% |
|
|
7.4 |
% |
Eliminations and corporate costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total operating profit % |
|
|
8.9 |
% |
|
|
8.4 |
% |
|
|
14.1 |
% |
|
|
10.2 |
% |
|
|
7.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other items, net: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy Products and Services |
|
$ |
3 |
|
|
$ |
4 |
|
|
$ |
1 |
|
|
$ |
4 |
|
|
$ |
3 |
|
Energy Equipment |
|
|
1 |
|
|
|
(2 |
) |
|
|
(119 |
) |
|
|
(122 |
) |
|
|
(13 |
) |
Corporate |
|
|
1 |
|
|
|
5 |
|
|
|
— |
|
|
|
2 |
|
|
|
6 |
|
Total other items |
|
$ |
5 |
|
|
$ |
7 |
|
|
$ |
(118 |
) |
|
$ |
(116 |
) |
|
$ |
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(Gain)/loss on sales of fixed assets: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy Products and Services |
|
$ |
1 |
|
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(2 |
) |
Energy Equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
Corporate |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Total (gain)/loss on sales of fixed assets |
|
$ |
1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(4 |
) |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation & amortization: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy Products and Services |
|
$ |
54 |
|
|
$ |
47 |
|
|
$ |
55 |
|
|
$ |
163 |
|
|
$ |
135 |
|
Energy Equipment |
|
|
29 |
|
|
|
28 |
|
|
|
29 |
|
|
|
86 |
|
|
|
83 |
|
Corporate |
|
|
3 |
|
|
|
2 |
|
|
|
2 |
|
|
|
6 |
|
|
|
7 |
|
Total depreciation & amortization |
|
$ |
86 |
|
|
$ |
77 |
|
|
$ |
86 |
|
|
$ |
255 |
|
|
$ |
225 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy Products and Services |
|
$ |
172 |
|
|
$ |
197 |
|
|
$ |
184 |
|
|
$ |
530 |
|
|
$ |
549 |
|
Energy Equipment |
|
|
159 |
|
|
|
124 |
|
|
|
142 |
|
|
|
420 |
|
|
|
317 |
|
Eliminations and corporate costs |
|
|
(45 |
) |
|
|
(54 |
) |
|
|
(45 |
) |
|
|
(142 |
) |
|
|
(159 |
) |
Total Adjusted EBITDA |
|
$ |
286 |
|
|
$ |
267 |
|
|
$ |
281 |
|
|
$ |
808 |
|
|
$ |
707 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted EBITDA %: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Energy Products and Services |
|
|
17.1 |
% |
|
|
19.1 |
% |
|
|
17.5 |
% |
|
|
17.3 |
% |
|
|
18.3 |
% |
Energy Equipment |
|
|
13.0 |
% |
|
|
10.4 |
% |
|
|
11.8 |
% |
|
|
11.7 |
% |
|
|
9.4 |
% |
Corporate |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total Adjusted EBITDA % |
|
|
13.1 |
% |
|
|
12.2 |
% |
|
|
12.7 |
% |
|
|
12.3 |
% |
|
|
11.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation of Adjusted EBITDA: |
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income attributable to Company |
|
$ |
130 |
|
|
$ |
114 |
|
|
$ |
226 |
|
|
$ |
475 |
|
|
$ |
395 |
|
Noncontrolling interests |
|
|
— |
|
|
|
(6 |
) |
|
|
(3 |
) |
|
|
(1 |
) |
|
|
(5 |
) |
Provision for income taxes |
|
|
44 |
|
|
|
48 |
|
|
|
70 |
|
|
|
158 |
|
|
|
87 |
|
Interest expense |
|
|
21 |
|
|
|
23 |
|
|
|
22 |
|
|
|
67 |
|
|
|
65 |
|
Interest income |
|
|
(11 |
) |
|
|
(5 |
) |
|
|
(8 |
) |
|
|
(27 |
) |
|
|
(21 |
) |
Equity income in unconsolidated affiliates |
|
|
— |
|
|
|
(16 |
) |
|
|
(8 |
) |
|
|
(37 |
) |
|
|
(101 |
) |
Other expense, net |
|
|
10 |
|
|
|
25 |
|
|
|
14 |
|
|
|
34 |
|
|
|
70 |
|
(Gain)/loss on sales of fixed assets |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
Depreciation and amortization |
|
|
86 |
|
|
|
77 |
|
|
|
86 |
|
|
|
255 |
|
|
|
225 |
|
Other items, net |
|
|
5 |
|
|
|
7 |
|
|
|
(118 |
) |
|
|
(116 |
) |
|
|
(4 |
) |
Total Adjusted EBITDA |
|
$ |
286 |
|
|
$ |
267 |
|
|
$ |
281 |
|
|
$ |
808 |
|
|
$ |
707 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241024762507/en/
Amie D'Ambrosio
Director, Investor Relations
(713) 375-3826
Amie.DAmbrosio@nov.com
Source: NOV Inc.
FAQ
What was NOV's revenue in Q3 2024?
How much free cash flow did NOV generate in Q3 2024?
What was NOV's book-to-bill ratio in Q3 2024?