National Oilwell Varco Big Upside - Analyst Blog
National-Oilwell Varco (NOV) reported strong third-quarter 2008 results, driven by continued robust demand for its drilling equipment, particularly for international offshore rigs. Revenue for the quarter was up 9% sequentially and 40% year over year to $3.61 billion.
Despite the credit crisis, new orders of $2.4 billion during the quarter brought the total backlog to a record $11.8 billion, highlighting a very high level of earnings visibility going forward. Approximately 90% of the total backlog pertains to international markets, while about 85% of the total relates to offshore equipment.
The improving outlook for the domestic onshore market further adds to the company's favorable prospects. The merger with Grant Prideco has transformed National-Oilwell Varco into an oilfield machinery powerhouse enjoying a very strong cyclical leverage.
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