uploads///Backlog

How’s National Oilwell Varco’s Order Backlog Looking?

By

Updated

National Oilwell Varco’s order backlog

As of September 30, 2016, National Oilwell Varco’s (NOV) order backlog in the Completion and Production Solutions segment was $812 million—down 16% compared to the end of 4Q15. The Rig Systems segment’s order backlog was ~$2.8 billion on September 30—down 55% from the end of 4Q15. New order additions were similar in the Completion and Production Solutions segment at $184 million—compared to $185 million in the Rig Systems segment in 3Q16. A lower order backlog can reduce National Oilwell Varco’s revenues. It can weigh on the returns as well.

Article continues below advertisement

Revenue as percentage of the backlog

In 3Q16, the revenue as a percentage of the backlog rose to 46%—compared to 36% a year ago. In comparison, Schlumberger’s (SLB) revenue as percentage of the backlog was ~165% in 3Q16. National Oilwell Varco accounts for 5.4% of the iShares US Oil Equipment & Services ETF (IEZ). The oil and gas equipment and services industry accounts for 78.6% of IEZ.

Next, we’ll discuss National Oilwell Varco’s dividends and dividend yields.

Advertisement

More From Market Realist