NOV(US:NOV)2024-04-26 13:01Financial Performance - First quarter 2024 revenues were $2.16 billion, a 10% increase year-over-year[3] - Net income for the first quarter was $119 million, or 5.5% of sales, a decrease of $7 million compared to the previous year[3] - Adjusted EBITDA increased 24% year-over-year to $241 million, representing 11.2% of sales[3] - NOV's total revenue for Q1 2024 was $2,155 million, an increase from $1,962 million in Q4 2023, representing a 9.8% quarter-over-quarter growth[40] - Gross profit for Q1 2024 was $458 million, with a gross profit margin of 21.3%, compared to $411 million and 20.9% in Q4 2023[40] - Operating profit for Q1 2024 was $162 million, up from $126 million in Q4 2023[40] - Total operating profit for Q1 2024 reached $162 million, up from $126 million in Q4 2023, reflecting a 28.6% increase[48] - Adjusted EBITDA for Q1 2024 was $241 million, compared to $195 million in Q4 2023, representing a 23.6% growth[48] - GAAP net income attributable to the company was $119 million in Q1 2024, slightly down from $126 million in Q4 2023[48] Cash Flow and Dividends - The company plans to return at least 50% of Excess Free Cash Flow annually through dividends and share repurchases[4] - A share repurchase program for up to $1.00 billion was authorized over a period of 36 months[4] - The base dividend is expected to increase by 50% to $0.075 per share starting in June 2024[14] - The company reported a free cash flow of $(147) million for Q1 2024, improving from $(259) million in Q1 2023[45] - Cash and cash equivalents decreased to $468 million as of March 31, 2024, down from $816 million at the end of 2023[42] Orders and Backlog - New orders booked during the quarter totaled $390 million, with a backlog for capital equipment orders at $3,955 million[10] - For Q2 2024, management expects consolidated revenues to increase by 1% to 5% and Adjusted EBITDA to be between $260 million and $280 million[12] Segment Performance - Energy Products and Services generated revenues of $1,017 million, an 8% increase from the prior year[8] - Energy Equipment revenues were $1,178 million, a 12% increase year-over-year, with an operating profit of $95 million[9] - Energy Products and Services operating profit margin remained stable at 11.9% for both Q1 2024 and Q4 2023, while Energy Equipment improved to 8.1% from 6.7%[48] - Energy Products and Services adjusted EBITDA margin increased to 17.1% in Q1 2024 from 16.4% in Q4 2023[48] Operational Changes - The company has transitioned non-operational personnel to a centralized hub in Houston, significantly reducing onsite personnel needs during fracturing jobs[30] - NOV's ReedHycalog business unit achieved a record drilling depth of 9,017 m (29,583 ft) in the Duvernay region, utilizing the TK53-O4 drilling technology[31] Other Financial Metrics - Total assets increased slightly to $11,305 million as of March 31, 2024, compared to $11,294 million at the end of 2023[42] - Total depreciation and amortization increased to $83 million in Q1 2024 from $77 million in both Q4 2023 and Q1 2023[48] - Corporate costs were reduced to $54 million in Q1 2024 from $57 million in Q4 2023[48] - Interest expense rose to $24 million in Q1 2024, compared to $21 million in Q4 2023[48] - Equity income in unconsolidated affiliates showed a loss of $29 million in Q1 2024, an improvement from a loss of $48 million in Q4 2023[48] Upcoming Events - NOV will hold its Q1 2024 earnings conference call on April 26, 2024, at 10:00 AM Central Time[32]