National Oilwell Varco, Inc (NOV) saw its loss widen to $122 million, or $0.32 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $119 million, or $0.32 a share. On the other hand, adjusted net loss for the quarter widened to $63 million, or $0.17 a share from a loss of $21 million or $0.06 a share, a year ago.
Revenue during the quarter dropped 20.47 percent to $1,741 million from $2,189 million in the previous year period. Gross margin for the quarter expanded 86 basis points over the previous year period to 12 percent. Operating margin for the quarter stood at negative 5.57 percent as compared to a negative 8.63 percent for the previous year period.
Operating loss for the quarter was $97 million, compared with an operating loss of $189 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $105 million compared with $127 million in the prior year period. At the same time, adjusted EBITDA margin improved 23 basis points in the quarter to 6.03 percent from 5.80 percent in the last year period.
"The Company posted its second consecutive quarter of rising revenues and its third consecutive quarter of rising Adjusted EBITDA," commented Clay Williams, Chairman, President and CEO. "Our businesses that serve the improving North American land market generated solid sequential improvements in profitability and are growing quickly. This lifted NOV’s consolidated mix of land revenues to 57 percent during the first quarter of 2017."
Working capital drops significantly
National Oilwell Varco, Inc has witnessed a decline in the working capital over the last year. It stood at $4,892 million as at Mar. 31, 2017, down 26.02 percent or $1,721 million from $6,613 million on Mar. 31, 2016. Current ratio was at 2.72 as on Mar. 31, 2017, down from 2.93 on Mar. 31, 2016.
Days sales outstanding went up to 127 days for the quarter compared with 107 days for the same period last year.
Debt comes down marginally
National Oilwell Varco, Inc has recorded a decline in total debt over the last one year. It stood at $3,213 million as on Mar. 31, 2017, down 4.91 percent or $166 million from $3,379 million on Mar. 31, 2016. Total debt was 15.37 percent of total assets as on Mar. 31, 2017, compared with 13.65 percent on Mar. 31, 2016. Debt to equity ratio was at 0.23 as on Mar. 31, 2017, up from 0.21 as on Mar. 31, 2016.
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