Houston-based National Oilwell Varco posted a $714 million quarterly loss to close 2016, although its loss shrunk from previous quarters.
The rig and equipment manufacturer saw its revenues grow slightly from the third quarter of last year as the company continued to lean more on its onshore business. In the past, NOV has focused more on the still-struggling offshore rig markets.
“For the first time in many years, the company’s total revenues from land markets exceeded its total revenue from offshore, driven by sharply rising demand in North America,” said NOV chairman and chief executive Clay Williams of the onshore rebound in drilling activity, especially in West Texas.
NOV’s big loss still compares favorably to a $1.52 billion loss to close 2015, as well as a $1.36 billion loss in the third quarter of 2016. For the full year, NOV recorded a $2.4 billion loss.
NOV’s revenues jumped slightly to $1.69 billion for the fourth quarter versus $1.65 billion in the third quarter, but that’s still well down from $2.72 billion at the end of 2015 before the worst of the two-year oil bust had sunk in.
Going into the fourth quarter, National Oilwell Varco had eliminated about 27,000 jobs worldwide, or 43 percent of its workforce, leaving an employee headcount of about 36,000 people. However, the company did not immediately provide a fourth-quarter jobs update.