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.
Land drillers Nabor Industries Ltd and Patterson-UTI Energy Inc reported a jump in revenue last week, helped by increased drilling activity.
"Looking forward, we are closely monitoring the potential impact of lower oil prices on our markets," Chief Executive Clay Williams said in a statement on Thursday.
Net income attributable to the company rose to $699 million, or $1.62 per share, in the third quarter ended Sept. 30 from $636 million, or $1.49 per share, a year earlier.
Revenue rose 17 percent to $5.59 billion.
The company reported an adjusted operating profit of $1.76 per share.
Analysts on average had estimated $1.54 per share, according to Thomson Reuters I/B/E/S.
Shares of the Houston, Texas-based company closed at $72.73 on the New York Stock Exchange on Wednesday.
Up to Wednesday's close, the shares had gained 1.5 percent, underperforming the 5 percent jump in the broader S&P 500 Oil & Gas Equipment Services Index.
Reporting by Narottam Medhora
