National Oilwell Varco has reported a fourth quarter 2016 net loss of $714 million, or $1.90 per share.
Excluding other items, net loss for the quarter was $57 million, or $0.15 per share. Other items totaled $706 million, pretax, and were primarily associated with inventory charges, facility closures, and severance.
Revenues for the fourth quarter of 2016 were $1.69 billion, an increase of three percent compared to the third quarter of 2016 and a decrease of 38 percent from the fourth quarter of 2015.
Operating loss for the fourth quarter was $766 million, or 45.3 percent of sales. Excluding other items, operating loss was $72 million, or 4.3 percent of sales. Adjusted EBITDA (operating profit excluding other items before depreciation and amortization) for the fourth quarter was $102 million, or 6.0 percent of sales, an increase of $34 million from the third quarter of 2016. Cash flow from operations for the fourth quarter was $153 million.
Revenues for the full year 2016 were $7.25 billion, operating loss was $2.41 billion, and net loss was $2.41 billion, or $6.41 per share. Excluding other items, net loss was $320 million, or $0.84 per share, and operating loss was $381 million. Adjusted EBITDA for the full year was $322 million, or 4.4 percent of sales, and cash flow from operations was $960 million.
“We are very encouraged by our results, as our fourth quarter consolidated revenues increased for the first time since the downturn began in late 2014,” said Clay Williams, chairman, president and CEO. “Three of our four reporting segments generated higher sequential revenues in the fourth quarter, and overall Adjusted EBITDA margins increased 190 basis points on strong incremental leverage. Our efforts to reduce costs and improve efficiencies through the past two years of this difficult downturn are driving improving performance, and I am grateful for the continued hard work and dedication of our employees.”
“For the first time in many years, the Company’s total revenues from land markets exceeded its total revenue from offshore, driven by sharply rising demand in North America. The Company has continued to enhance its portfolio of technologies that drive better economics for our customers, such as drilling automation and optimization, horizontal drilling tools, completion technologies and big-data analytics. The investments we have made and our continuous focus on optimizing the efficiency of the organization leave us well positioned to capitalize on improving industry fundamentals, and we look forward to a brighter year ahead.”