Losses continue to mount for Houston oil field service company National Oilwell Varco, which posted a nearly quarter billion dollar loss during the third quarter.
In a statement released after close of market on Monday, NOV reported a $244 million loss on $2.1 billion of revenue during the third quarter. The figures were down from the $1 million profit on $2.2 billion of revenue during the third quarter of 2018.
The third quarter figures translated into a loss per share of 64 cents, which was down from an earnings per share of zero cents during the same time period last year.
NOV missed Wall Street expectations of $2.17 billion of revenue and earnings per share of 12 cents.
The company blamed the loss on non-cash, pre-tax charges of $314 million for restructuring costs, mostly attributed to inventory reserves and severance packages for laid off employees.
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NOV posted a $5.4 billion loss during the second quarter where it enacted a voluntary early retirement plan designed to save the company $7 million. But executives estimate they can save $160 million a year by restructuring its workforce over the next year.
In a statement, CEO Clay Williams described the quarter as the “strongest cash flow quarter in more than three years.” Efforts to more efficiently manage working capital, he said, are beginning to make an impact.
“As our industry battles deep cyclicality and divergent market conditions, the company remains committed to improving its financial returns while also helping our customers improve the efficiency, environmental performance and safety of their operations,” Williams said.
With historical roots going back to 1862, NOV is headquartered in Houston and has more than 35,000 employees in 65 nations.
NOV reported a $31 million loss on $8.5 billion of revenue in 2018. The company has not made an annual profit since 2014.
