“In the third quarter, adjusted EBITDA improved significantly relative to second quarter results due to accelerating cost reductions, a favorable revenue shift towards higher-margin offshore and aftermarket businesses, and positive project close-out variances,” commented Clay Williams, Chairman, President, and CEO. “While third quarter revenue was essentially flat with the prior quarter, margins improved as sales growth in international and offshore markets helped offset sequential declines from North American operations where our customers are reducing their spending.”
“We were also pleased to see NOV post its strongest cash flow quarter in more than three years, as our concerted efforts to more efficiently manage working capital are making an impact. Overall, NOV’s unique strategic position within oil and gas, including its broad geographic and product diversity, its market leadership, and its large installed base, contributed to its improving results in the third quarter. As our industry battles deep cyclicality and divergent market conditions, the Company remains committed to improving its financial returns while also helping our customers improve the efficiency, environmental performance, and safety of their operations.”
NOV had several significant achievements this quarter:
- NOV was awarded the equipment package and design orders for one of the world’s largest offshore wind turbine installation vessels by Shimizu Corporation in Japan.
- NOV announced a contract award by a joint venture between Shapoorji Palloonji Oil and Gas and Bumi Armada Berhad for the Company’s submerged turret production (STP™) system.
- NOV secured the first orders for the QuickLatch™ wireline wellhead connection systems from a major operator in China.
- NOV received an award from a drilling contractor in the Middle East to outfit 21 rigs with the Company’s VSM™ 300 shale shaker.
- NOV acquired Denali, Inc., a leader in fiberglass-reinforced plastic (FRP) products with more than 50 years of experience providing highly engineered, lightweight, corrosion-resistant equipment and services to the petroleum, chemical, power generation, and water markets.
- NOV introduced the Falcon™ series drill bit to Middle East and North Africa markets in Q3, with the design already seeing remarkable success in Saudi Arabia.
- NOV successfully deployed its VectorZIEL rotary steerable systems (RSS) tools into Latin America for the first time.
- NOV shipped its first managed-pressure-drilling (MPD) package into Egypt to an established customer.
- NOV’s SelectShift™ downhole adjustable motor helped a major independent operator improve drilling times and reduce bit repair costs in West Texas, proving the ability of the SelectShift™ motor to seamlessly shift between drilling modes can meaningfully extend bit life in the region.