Key projects in Q1 and digital initiatives: In Q1 2023, NOV’s (NOV) innovative robotics and vision solutions and pipe-handling automation technology solutions were used in an ExxonMobil drillship fleet. It also received an order for the design license and jacking system in another European project. Among other key projects in Q3 were three purchase orders for subsea protection structures in the North Sea, its Hellfire Top Mount Pulser technology for Measurement While Drilling (MWD) tools, and the introduction of an all-electric Ideal processing plant for fracturing operations. On top of it, the company expanded its optimization services, visualization tools, downhole drilling equipment, and real-time downhole sensor offerings.
Fall in revenue and operating income across segments: While all the company’s revenues decreased quarter-over-quarter in Q1, the Rig Technologies segment saw the steepest fall (11% down), and the Wellbore Technologies segment saw the least (2% decline). Rig Technologies also witnessed the steepest operating income decline (34% down) from Q1 2022 to Q1 2023. A sharp seasonal decline in aftermarket operations and continued supply chain challenges in drill pipe operations lowered the company’s topline and operating profit.
Cash flow deterioration marked Q1: NOV’s cash flow from operations remained negative and deteriorated further in Q1 2023 compared to a year ago. Its FCF also fell year-over-year. Debt-to-equity (0.33x) remained nearly unchanged from a quarter ago. You may read more about the company in our previous article here.
Thanks for reading the NOV take three, designed to give you three critical takeaways from NOV’s earnings report. Soon we will present a second update on NOV earnings highlighting its current strategy, news, and notes we extracted from our deeper dive.
