National Oilwell Varco’s revenue growth
From 2Q15 to 2Q16, National Oilwell Varco’s (NOV) Rig Systems segment’s revenue fell 71%, the largest revenue drop among NOV’s operating segments. Its Completion & Production Solutions segment witnessed a ~38% revenue decline during the same period, the smallest decline among the segments.
Some developments that could drive NOV’s performance
- National Oilwell Varco signed a cooperation agreement with General Electric (GE) on July 7. The companies will work towards improving costs and the execution of FPSO (floating production, storage, and offloading) projects. The NOV and GE venture, if successful, is expected to simplify the supply chain, joint engineering, and costing of FPSO topside modules.
- National Oilwell Varco acquired Trican’s completion tool business in July. Through the acquisition, NOV added sliding sleeve and coil tubing frack technologies to its portfolio. NOV plans to expand completion tool sales in 67 countries.
- NOV plans to introduce a new rotating control device for managed pressure drilling in 2H16.
Next, we’ll look at how NOV’s management outlook has transpired in past quarters.