NOV(US:NOV)2023-10-26 16:00Financial Performance - For Q3 2023, NOV generated revenues of $2.19 billion, a 4% increase from Q2 2023 and a 16% increase from Q3 2022[92]. - Net income for Q3 2023 was $114 million, representing 5.2% of sales, with Adjusted EBITDA at $267 million, or 12.2% of sales[92]. - Total revenue for the three months ended September 30, 2023, was $2,185 million, an increase of $296 million or 16 percent compared to $1,889 million for the same period in 2022[1]. - Total operating profit for the three months ended September 30, 2023, was $183 million, compared to $55 million for the same period in 2022, representing an increase of $128 million[1]. - Adjusted EBITDA for Q3 2023 reached $267 million, up from $195 million in Q3 2022, indicating a year-over-year increase of 37%[128]. Segment Performance - Wellbore Technologies segment revenues were $799 million, a 1% decrease from Q2 2023 but an 8% increase from Q3 2022, with an operating profit of $123 million[94]. - Completion & Production Solutions generated revenues of $760 million, a 1% increase from Q2 2023 and a 12% increase from Q3 2022, with an operating profit of $47 million[96]. - Rig Technologies revenues reached $686 million, a 13% increase from Q2 2023 and a 34% increase from Q3 2022, with an operating profit of $86 million[98]. - Wellbore Technologies revenue increased to $799 million for the three months ended September 30, 2023, up 8 percent from $741 million in the same period last year[114]. - Completion & Production Solutions revenue rose to $760 million for the three months ended September 30, 2023, reflecting a 12 percent increase from $681 million in the prior year[115]. - Rig Technologies revenue surged to $686 million for the three months ended September 30, 2023, marking a 34 percent increase from $511 million in the same period of 2022[119]. - Wellbore Technologies operating profit was $123 million for the three months ended September 30, 2023, up from $74 million in the same period last year[114]. - Completion & Production Solutions operating profit increased to $47 million for the three months ended September 30, 2023, compared to $21 million in the same period of 2022[116]. - Rig Technologies operating profit rose to $86 million for the three months ended September 30, 2023, compared to $22 million in the same period last year[119]. Orders and Backlog - New orders for Completion & Production Solutions increased by 18% to $530 million, resulting in a book-to-bill ratio of 114%[97]. - Rig Technologies recorded new capital equipment orders of $178 million, with a book-to-bill ratio of 72%[99]. - As of September 30, 2023, the backlog for Completion & Production Solutions was $1,626 million, and for Rig Technologies, it was $2,968 million[97][99]. - The capital equipment backlog for Completion & Production Solutions was $1,626 million at September 30, 2023, an increase of $148 million from $1,478 million at the same time last year[117]. - The capital equipment backlog for Rig Technologies was $2,968 million at September 30, 2023, up $187 million from $2,781 million at the same time in 2022[120]. Financial Position and Cash Flow - Cash and cash equivalents as of September 30, 2023, were $513 million, down from $1,069 million at the end of 2022, reflecting a decrease of 52%[129]. - Total debt as of September 30, 2023, was $1,729 million, slightly down from $1,730 million at the end of 2022[129]. - The company had a debt-to-capitalization ratio of 26.1% as of September 30, 2023, well below the maximum covenant limit of 60%[130]. - Capital expenditures for the first nine months of 2023 totaled $207 million, with cash flows used in operating activities amounting to $234 million[133]. - The company plans to fund future acquisitions primarily through cash flow from operations and borrowings, including the unborrowed portion of the revolving credit facility[135]. - The company has a revolving credit facility with a borrowing capacity of $2.0 billion, with $2.0 billion of available funds as of September 30, 2023[130]. Foreign Exchange and Risk Management - The company experienced a decrease of $5 million in cash flows due to changes in exchange rates for the first nine months of 2023[134]. - The company recorded a foreign exchange loss of $58 million in the first nine months of 2023, compared to a foreign exchange gain of $14 million in the same period of the prior year[140]. - As of September 30, 2023, the company had transactional exposures totaling $389 million and translation exposures totaling $345 million in foreign currencies[142]. - A hypothetical 10 percent movement in foreign currency exchange rates could affect net income by $31 million and Other Comprehensive Income by $34 million[142]. - The company aims to maintain a portion of its debt in variable rate borrowings for flexibility and lower overall costs compared to fixed-rate borrowings[143]. Strategic Initiatives - The company plans to consolidate its operational structure into two segments effective January 1, 2024, to enhance cost efficiencies[93]. - Management anticipates continued growth in energy transition projects, including wind energy and carbon sequestration, as part of its long-term strategy[105].