By Angela Chen
National Oilwell Varco Inc. (NOV) said its third-quarter profit
grew 9.9%, driven by its rig segments.
The results beat Wall Street expectations.
The oilfield-service equipment manufacturer completed the
spinoff in May of its distribution segment, a move aimed at
creating two separate, publicly traded companies that are better
positioned to focus on their specific products and services.
Chief Executive Clay Williams said the company is closely
monitoring the potential impact of lower oil prices on markets.
National Oilwell reported a profit of $699 million, or $1.62 a
share, compared with a year-earlier profit of $636 million, or
$1.49 a share. Excluding nonrecurring items, per-share earnings
rose to $1.76 from $1.38 a year earlier.
Revenue climbed 17% to $5.59 billion.
Analysts polled by Thomson Reuters had projected a per-share
profit of $1.54 and revenue of $5.45 billion.
The company said the backlog for capital equipment orders at its
rig-technology business was $14.34 billion, up 2% from the prior
year, though down 6.8% from the previous quarter.
New orders in the segment, the company's biggest, were $1.34
billion. The segment reported a 29% increase in revenue to $2.66
billion, while the rig aftermarket segment's revenue grew 18% to
$837 million.
Meanwhile, wellbore technologies segment revenue climbed 14% to
$1.47 billion, and its completion and productions solutions
business posted a 9% revenue increase to $1.19 billion.
Write to Angela Chen at angela.chen@wsj.com
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