NOV Reports Fourth Quarter and Full Year 2023 Earnings

Core Insights - NOV Inc. reported fourth quarter 2023 revenues of $2.34 billion, a 7% increase from Q3 2023 and a 13% increase from Q4 2022, with net income of $598 million [1][2] - The company achieved full year 2023 revenues of $8.58 billion, up $1.34 billion from 2022, and net income of $993 million, significantly higher than $155 million in the previous year [2][3] - The CEO highlighted a 19% sales growth for the year compared to 2022, with improved profitability across all operating segments and the highest adjusted EBITDA and margin since 2015 [3][4] Financial Performance - Fourth quarter operating profit was $161 million, representing 6.9% of sales, while adjusted EBITDA increased 10% sequentially to $294 million, or 12.5% of sales [1][2] - For the full year 2023, operating profit rose 147% to $651 million, or 7.6% of sales, and adjusted EBITDA increased 47% to $1.0 billion, or 11.7% of sales [2][3] Segment Performance - Wellbore Technologies generated revenues of $824 million in Q4 2023, up 3% from Q3 2023 and 8% from Q4 2022, with an operating profit of $76 million [5] - Completion & Production Solutions reported revenues of $803 million in Q4 2023, a 6% increase from Q3 2023 and a 9% increase from Q4 2022, with an operating profit of $44 million [6] - Rig Technologies achieved revenues of $766 million in Q4 2023, a 12% increase from Q3 2023 and a 24% increase from Q4 2022, with an operating profit of $111 million [8][9] Order Backlog and Market Outlook - New orders booked in Q4 2023 increased by 28% to $676 million, resulting in a book-to-bill ratio of 132% [7] - The backlog for capital equipment orders in Completion & Production Solutions was $1.82 billion, up $196 million from Q3 2023 [7] - The backlog for Rig Technologies was $2.87 billion, a decrease of $100 million from Q3 2023 but an increase of $75 million from Q4 2022 [9] Strategic Developments - NOV secured a contract for a CO2 dehydration package for a major Carbon Capture and Storage project, aiming to capture 800,000 tons of CO2 annually [11] - The company also won a contract for a large interconnector cable-lay system and subsea crane, reflecting its leadership in energy transition infrastructure projects [12] - Subsequent to the quarter, NOV completed the acquisition of Extract, enhancing its capabilities in artificial lift technologies [12] Cash Flow and Financial Position - The company reported a net cash provided by operating activities of $377 million in Q4 2023, with free cash flow of $301 million [33][34] - As of December 31, 2023, NOV had total debt of $1.73 billion and $816 million in cash and cash equivalents [10]