National Oilwell Beats Analysts' Expectations

Despite reporting a 34 percent fourth-quarter decline in earnings on lower activity, National Oilwell Varco Inc. exceeded analysts' expectations by 17 cents a share.

The Houston drilling company posted net income of $394 million, or 94 cents per share, on revenue of $3.1 billion, for the three months ended Dec. 31, 2009. That compared with net income of $585 million, or $1.40 per share, on revenue of $3.8 billion, for the same quarter in 2008.

The 2009 fourth quarter results included a 2009 fourth quarter pre-tax charge of $14 million, or 2 cents per share, for transaction and restructuring charges.

But National Oilwell Varco (NYSE: NOV) still came in well above analysts’ estimates, provided by Thomson Reuters, of 77 cents per share.

For the year, net income was down nearly 25 percent to $1.5 billion, or $3.52 per share, compared with net income of $1.9 billion, or $4.90 per share, in 2008. Revenue was down slightly for the year to $12.7 billion from $13.4 billion the year prior.

Pete Miller, chairman, president and chief executive officer of National Oilwell Varco, said the company was able to position itself better to take advantage of a recovery in the drilling sector.

“While market conditions remain challenging, we enter 2010 with a solid backlog of equipment and technology to deliver to our customers, strong financial resources and positive cash flow,” he said. “We believe that the oil and gas industry will continue to need to upgrade the world’s rig fleet.”

Copyright 2009. Houston business journal. All rights reserved.