NOV posts $122 million loss with focus shifted onshore

Houston’s National Oilwell Varco saw its quarterly revenues grow from the end of 2016, but the rig and equipment manufacturer still reported a $122 million loss for the first three months of the year.

Once focused more on offshore markets, NOV is increasingly following the U.S. shale growth in West Texas, growing revenues by selling more equipment and services for hydraulic fracturing and more.

“Our businesses that serve the improving North American land market generated solid sequential improvements in profitability and are growing quickly,” said NOV Chairman and CEO Clay Williams, citing a global market that’s “slowly grinding higher” and still recovering from a two-year oil bust.

More than half of NOV’s revenues now come from onshore, Williams noted.

The $122 million loss comes almost equal to a $119 million loss during the first quarter of 2016, but much better than the $714 million loss at the end of 2016. NOV’s $1.74 billion in first-quarter revenues jumped slightly from the $1.69 billion in the final three months of last year, but less than $2.19 billion from a year ago.

Beginning this year, NOV had eliminated about 27,000 jobs worldwide, or 43 percent of its workforce, leaving an employee headcount of more than 36,000 people.