NOV Warns Virus Fallout Could Hit Supply Chain
U.S. oilfield equipment supplier National Oilwell Varco on Friday called the coronavirus a "wildcard" in the oil industry's outlook, with an extended outbreak potentially hurting access to Chinese-make materials and foreign sales.The Houston-based company said further shutdowns at its Chinese suppliers could limit its production of certain products such as fiberglass resins and drilling pipe.For now, National Oilwell has the latitude to make up lost ground, executives added, noting it has a diversified supply chain."[There is] still a lot of uncertainty related to the extent to which this will impact operations…
NOV, GE to Provide Integrated Solutions for FPSOs
National Oilwell Varco, Inc. (NOV) and GE Oil & Gas has agreed to collaborate on delivering integrated solutions for Floating Production Storage and Offloading (FPSO) vessels. The agreement brings together the product offerings and engineering capabilities from the two companies to optimize engineering design and supply comprehensive topside solutions for FPSO projects. NOV engineers and manufactures advanced fluids pumping, treatment and processing systems; composite piping systems; cranes and deck machinery; and sophisticated, disconnectable turret mooring systems for FPSOs and related vessels.
NOV Acquires Trican Well Service’s Completion Tools Business
National Oilwell Varco, Inc. (NOV) announced today that it has entered into a definitive agreement to acquire the completion tools business of Trican Well Service Ltd. The business designs and sells a range of innovative and patented downhole tools for multi-stage fracturing and multi-zone completions in North America and select international markets. Closing of the transaction is expected on or around June 30, 2016 and is subject to customary regulatory approvals. Clay Williams, NOV’s Chairman…
National Oilwell Slashes Dividend
National Oilwell Varco Inc, the largest U.S. oilfield equipment maker, said it would cut its quarterly dividend to 5 cents per share from 46 cents, as it struggles to cope with a prolonged slump in oil prices. The company cut its quarterly dividend by 89 percent, saying that market conditions continued to deteriorate through the first quarter. A prolonged oil price slump, of more than 60 percent since its peak in 2014, has forced many companies to slash or scrap dividends, lay off employees and cut executive pay.
Barometer of Shale Oil Industry's Health Warns Agony to Worsen
The latest blow to the energy industry's collective psyche has been inflicted by National Oilwell Varco Inc, with the giant oilfield equipment maker warning the pace of drilling and fracking will only slow more as 2016 drags on. A 70 percent drop in crude prices since mid-2014 has affected not only NOV but dozens of others throughout North America's oil patches, prompting tens of thousands of layoffs, eroding profits, depleting state and local tax revenue and, in a handful of cases, causing bankruptcies.
National Oilwell Posts Q4 Loss
National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, reported a loss for the fourth quarter, compared with a profit a year earlier, as it took a $1.63 billion charge. Operating margins at the company's rig systems business, which accounted for nearly 40 percent of its total revenue, fell to 15.8 percent in the quarter ended Dec. 31, from 20 percent a year earlier. National Oilwell said the charge it recorded in the quarter included inventory write-downs, severance and facility closure costs.
National Oilwell Beats Street on Cost Cuts
National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, reported a higher-than-expected quarterly profit as cost cuts helped offset the impact of a fall in global drilling activity. The U.S. rig count has slumped to a five-year low as oil producers idle rigs due to a 50 percent drop in global oil prices since June last year. To cope with falling demand for oilfield services and equipment, National Oilwell, like its rivals, is cutting jobs and costs. The company said last month that it would cut its Norwegian workforce by 1,500 by the end of this year.
National Oilwell Seeks Bargains in Depressed Oilfield Market
National Oilwell Varco Inc is slowing down its share buyback program to preserve cash for acquisitions, driven by the need for consolidation in an industry beset by low crude prices. The largest U.S. oilfield equipment maker is in talks over several potential deals, its chief executive said on Tuesday, which would add to two acquisitions already completed this year. "We are currently slowing our share repurchases in view of the potential acquisition candidates coming into sharper focus," Clay Williams said on a conference call with analysts after the company reported first-quarter results.
Jacob Recognized as IADC Contractor of the Year
On November 14, 2014, at the International Association of Drilling Contractors’ (IADC) annual general meeting in New Orleans, Ed S. Jacob, III was elected chairman of the IADC by its board of directors. In addition, in recognition of his career and significant industry contributions, Jacob was recognized at the general meeting with the 2014 Contractor of the Year Award. The annual Contractor of the Year Award was established in 1988 to recognize an individual drilling contractor’s outstanding lifetime achievements in technical innovation, safety and economic efficiency within the drilling industry.
National Oilwell Profit Up on Rig Systems
National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, reported a 10 percent rise in quarterly profit as its rig systems business readied more oil and gas wells for production. Revenue in the business, which accounts for nearly half of the company's total revenue, rose 29 percent to $2.66 billion in the third quarter. The business manufactures land offshore rigs as well as drilling components. National Oilwell has benefited from the frantic drilling activity that accompanied the North American shale boom.
