National Oilwell Expects Offshore Rig Demand to Slow

Posted by Eric Haun
Monday, April 28, 2014
courtesy of National Oilwell Varco

National Oilwell Varco Inc, the largest U.S. oilfield equipment provider, said orders fell by nearly a quarter in the first quarter and it expects demand for new offshore rigs to slow during the second half of the year.

The company's shares fell about 7 percent.

Demand for contract drilling is softening as rigs ordered during boom times are being delivered now. Large oil companies are tightening spending after a decade of double-digit increase in budgets as oil prices stagnate and project costs rise.

National Oilwell said on a conference call on Monday that its day rates had come under pressure with demand slowing.

Rival Diamond Offshore Drilling Inc warned last week that the next two years could be a tough environment for offshore drillers.

National Oilwell booked $2.33 billion in new orders for oilfield equipment in the first quarter, down from $3.04 billion a year earlier.

Barclays had expected capital equipment orders worth $3.5 billion for the company for the first quarter, while JP Morgan Securities had expected $2.59 billion.

National Oilwell's rig technology business, which makes equipment to automate well construction and management, accounts for half of its total revenue.

It also provides drill pipes and bits, pressure pumping gear, as well as procurement, inventory management and logistics services.

National Oilwell, which is spinning off its distribution business to shareholders, said it expects to complete the restructuring in the second quarter.

First-quarter revenue rose 9 percent to $5.78 billion. Analysts on average had expected $5.8 billion, according to Thomson Reuters I/B/E/S.

Adjusted profit of $1.40 per share beat the estimate of $1.38.

The Houston-based company's shares fell to $77.38 on Monday on the New York Stock Exchange. They have risen about 9.5 percent in the last three months to Friday's close.

(Reporting by Sayantani Ghosh and Sneha Banerjee in Bangalore; Editing by Don Sebastian)

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

AAPA Elects Quinn as Chairman of the Board

The American Association of Port Authorities (AAPA) elected Jim Quinn, president and CEO of New Brunswick, Canada’s Port Saint John, to serve as the international

Scorpio Bulkers Sells Three Newbuilds for $111m

Scorpio Bulkers Inc. announced that it has entered into agreements to sell three newbuild dry bulk vessels, including two Capesize ships and an Ultramax ship, for

EPA Promotes Green Initiatives at Port of Houston

U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy visited the Port of Houston April 24 to highlight grants aimed at improving air quality. The port will receive about $900,

Offshore

Intelligent Fender System Completes Offshore Trial

Strainstall, part of James Fisher and Sons plc, announced the completion of the world’s first Intelligent Fender System (IFS) trial with energy companies SSE and RWE at Suffolk-based wind farm,

Maritime Tension Dominates Southeast Asia Summit

Southeast Asian leaders edged closer to open criticism of China's land reclamation in the disputed South China Sea at a regional summit on Monday, as the Philippines

JSMEA Offers Access to Japan’s Offshore Suppliers

New website and brochure provide a comprehensive list of Japanese suppliers to the offshore industry The Japan Ship Machinery and Equipment Association (JSMEA)

Finance

Milaha Reports Improved Net Profit for Q1

Qatar Navigation (Milaha) Q.S.C. has announced its financial results for the three months ended March 31, 2015, in which it reported operating revenues of QR 786 million vs.

SFL Acquires Eight Bulk Carriers from Golden Ocean

Ship Finance International Limited (SFL) has entered an agreement to acquire eight Capesize dry-bulk carriers from subsidiaries of Golden Ocean Group Limited, the company announced today.

Truckers to Strike Four SoCal Shippers

Truckers who haul freight from the ports of Los Angeles and Long Beach will go on strike against four ground-shipment companies on Monday, a Teamsters union official said,

Energy

BHGI-designed ATB Unit Under Construction

Bristol Harbor Group, Inc. (BHGI) informs it is currently completing the detail design phase of a 399’ x 74’ x 30’ 80,000 BBL double hull oil tank barge and a 120’

Maritime Tension Dominates Southeast Asia Summit

Southeast Asian leaders edged closer to open criticism of China's land reclamation in the disputed South China Sea at a regional summit on Monday, as the Philippines

Lagos Port Drags on Africa's Top Economy

Ruling party reforms improved Apapa port; shippers still face delays and corruption. The road leading to the Lagos port, which handles nearly everything that Africa's biggest economy imports,

News

AAPA Elects Quinn as Chairman of the Board

The American Association of Port Authorities (AAPA) elected Jim Quinn, president and CEO of New Brunswick, Canada’s Port Saint John, to serve as the international

BHGI-designed ATB Unit Under Construction

Bristol Harbor Group, Inc. (BHGI) informs it is currently completing the detail design phase of a 399’ x 74’ x 30’ 80,000 BBL double hull oil tank barge and a 120’

Scorpio Bulkers Sells Three Newbuilds for $111m

Scorpio Bulkers Inc. announced that it has entered into agreements to sell three newbuild dry bulk vessels, including two Capesize ships and an Ultramax ship, for

Marine Equipment

Northrop Grumman Navigation Systems for Canadian Navy

Northrop Grumman Corporation's Sperry Marine business unit has been selected to design and supply gyrocompass navigation systems for 12  Kingston Class coastal

JSMEA Offers Access to Japan’s Offshore Suppliers

New website and brochure provide a comprehensive list of Japanese suppliers to the offshore industry The Japan Ship Machinery and Equipment Association (JSMEA)

DMA Announce New Requirements for Refresher Courses

On 1 January 2017, new regulations enter into force on refresher courses in the areas of maritime safety and fire-fighting. Therefore, the Danish Maritime Authority has issued a new order.

Offshore Energy

Intelligent Fender System Completes Offshore Trial

Strainstall, part of James Fisher and Sons plc, announced the completion of the world’s first Intelligent Fender System (IFS) trial with energy companies SSE and RWE at Suffolk-based wind farm,

Maritime Tension Dominates Southeast Asia Summit

Southeast Asian leaders edged closer to open criticism of China's land reclamation in the disputed South China Sea at a regional summit on Monday, as the Philippines

JSMEA Offers Access to Japan’s Offshore Suppliers

New website and brochure provide a comprehensive list of Japanese suppliers to the offshore industry The Japan Ship Machinery and Equipment Association (JSMEA)

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Electronics Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3288 sec (3 req/sec)