Oilfield services company National Oilwell Varco, Inc. (NOV), Wednesday reported a decline in profit for the fourth quarter, reflecting lower revenues across segments. Nevertheless, both revenues and earnings for the quarter increased when compared to the preceding third quarter on better revenue and operating performance at the Petroleum services and Distribution services segments.
The Houston, Texas-based company's net income attributable to company for the fourth quarter was $394 million or $0.94 per share, compared to $585 million or $1.40 per share last year. Results for the quarter include transaction and restructuring charges of $14 million or $0.02 per share.
Net income excluding transaction and restructuring charges was $404 million or $0.96 per share for the quarter.
On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $0.77 per share. Analysts' estimates typically exclude special items. Total revenue for the quarter declined to $3.13 billion from $3.81 billion in the prior year quarter. Thirteen analysts estimated revenues of $2.86 billion.
In the preceding third quarter, the company's net income declined to $385 million or $0.92 per share from $548 million or $1.31 per share last year, hurt by pricing pressure and reduced purchasing by domestic customers. Revenues declined 15% to $3.09 billion from $3.61 billion in the previous year.
For the quarter under review, segment-wise, revenue from rig technology declined 5% to $1.98 billion from $2.09 billion last year. Revenue declined 1% from the preceding third quarter, while operating profit was $566 million or 28.6% of sales, down 2% from the third quarter of 2009. Revenue out of backlog for the segment declined 5% sequentially and increased 3% year-over-year, to $1,512 million for the fourth quarter of 2009.
Petroleum services and supplies revenue were $0.94 billion, up 6% from the third quarter and down 33% from a year ago. Operating profit was $107 million, or 11.4% of revenue, an increase of 24% from the third quarter of 2009.
Distribution services revenue declined to $331 million from $483 billion in the comparable quarter last year. Segment revenues increased 8% from the preceding quarter. Fourth-quarter operating profit was $8 million or 2.4% of sales.
Gross profit for the quarter was $0.98 billion or 31.3% of revenues, compared to $1.21 billion or 31.7% of revenues in the previous year.
Selling, general and administrative expenses rose to $358 million from $332 million a year ago.
During the fourth quarter of 2009, the company added $624 million of orders to its capital equipment backlog and removed $46 million of discontinued orders on canceled projects. Backlog for capital equipment orders for the company's Rig Technology segment was $6.4 billion at December 31, 2009 compared to $7.3 billion in the preceding quarter.
Pete Miller, chairman, president and chief executive officer of National Oilwell Varco, remarked, "We achieved solid results in 2009, despite the challenging market we faced throughout the year. We were able to use this time to make our businesses more efficient, while continuing to invest for future growth and better position ourselves for the inevitable recovery in drilling activity. We ended the year with $2.6 billion in cash, and cash flow remains a strength of our Company."
Among rivals, Smith International Inc. (SII), previously reported a steep decline in profit for the fourth quarter. Net income attributable to Smith was $20.1 million or $0.09 per share, compared to $199.2 million or $0.91 per share in the year-ago quarter. Quarterly revenues dropped to $1.98 billion from the previous year's $3.06 billion.
Swiss-based oilfield service company Weatherford International Ltd. (WFT) reported a loss for the fourth-quarter, reflecting lower revenues, loss for investigation and exit costs and and a tax provision. Loss from continuing operations attributable to Weatherford was $30.39 million or $0.04 per share, compared to a profit of $348.11 million or $0.50 per share a year ago. Net revenues for the quarter totaled $2.42 billion, compared to $2.63 billion a year earlier.
For the fiscal year 2009, net income attributable to the company declined to $1.47 billion or $3.52 per share from $1.95 billion or $4.90 per share in the previous year. On an adjusted basis, net income for the year was $1.62 billion or $3.89 per share. Total revenue for the year declined to $12.71 billion from $13.43 billion a year ago.
Analysts estimated revenues of $3.74 per share on revenues of $12.44 billion for the full year 2009.
NOV is currently trading at $44.70, up 2.05 or 4.81%, on a volume of 4.27 million shares on the NYSE. In the past 52-week period, the stock traded in a range between $23.79 to $50.17, on a 3-month average volume of 4.66 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.