Comparing National Oilwell Varco’s Revenues with Its Peers

Schlumberger was the holdout

In this article, we’ll discuss how our four oilfield service (or OFS) companies fared in terms of revenue growth in 1Q17 over 1Q16.

Schlumberger (SLB) registered the highest revenue growth in the group. SLB recorded ~6% revenue growth in 1Q17 to ~$6.9 billion versus ~$6.5 billion in 1Q16. Higher upstream activity in North America, particularly in hydraulic fracturing and drilling services–related activities improved SLB’s revenues.

Comparing National Oilwell Varco’s Revenues with Its Peers

SLB comprises 0.49% of the iShares Core S&P 500 ETF (IVV). Please read Market Realist’s Schlumberger’s 1Q17 Earnings Met Estimates.

The laggards

Halliburton’s (HAL) 1Q17 revenues increased ~2% to $4.3 billion from ~$4.2 billion in 1Q16. Its revenues increased mostly due to strong improvement in the US onshore operations and higher US rig count.

Baker Hughes (BHI) recorded a 15% revenue decline in 1Q17 compared to 1Q16. Its 1Q17 revenues totaled ~$2.3 billion versus ~$2.7 billion a year earlier. Reduced upstream spending in international offshore projects, pricing weakness in BHI’s international sales and services, and revenue loss from its pressure pumping business affected the company’s revenues negatively.

National Oilwell Varco’s revenues

National Oilwell Varco (NOV) recorded a revenue decline of ~20% in 1Q17 compared to 1Q16. Its 1Q17 revenues totaled ~$1.7 billion versus ~$2.2 billion in 1Q16. With the exception of the Completion & Production Solutions segment, NOV’s other operating segments saw lower revenues in 1Q17. This trend resulted in the overall fall in revenues.

NOV comprises 0.06% of the SPDR S&P 500 ETF (SPY). SPY tracks the price and yield performance of the S&P 500 Index (SPX-INDEX), which holds 6.3% of its portfolio in the energy sector. The SPX-INDEX increased 13% in the past year versus a 3% fall in NOV’s stock price.

In the next part, we’ll look at the earnings growth figures of these companies.