NOV - NOV Inc. (NOV) Q4 2023 Earnings Call Transcript
2024-02-02 13:58:08 ET
NOV Inc. (NOV)
Q4 2023 Earnings Conference Call
February 2, 2024 11:00 AM ET
Company Participants
Amie D'Ambrosio - Director, IR
Clay Williams - Chairman, President and CEO
Jose Bayardo - SVP and CFO
Conference Call Participants
Arun Jayaram - JPMorgan Securities
Jim Rollyson - Raymond James
Ati Modak - Goldman Sachs
Doug Becker - Capital One
Kurt Hallead - Benchmark
Stephen Gengaro - Stifel
Presentation
Operator
Good day, ladies and gentlemen, and welcome to the NOV Fourth Quarter and Full Year 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference is being recorded.
I would now like to introduce your host for today's conference, Ms. Amie D'Ambrosio, Director of Investor Relations. Ma'am, please begin.
Amie D'Ambrosio
Welcome, everyone, to NOV's fourth quarter and full year 2023 earnings conference call. With me today are Clay Williams, our Chairman, President and CEO; and Jose Bayardo, our Senior Vice President and CFO.
Before we begin, I would like to remind you that some of today's comments are forward-looking statements within the meaning of the federal securities laws. They involve risks and uncertainty, and actual results may differ materially. No one should assume these forward-looking statements remain valid later in the quarter or later in the year.
For a more detailed discussion of the major risk factors affecting our business, please refer to our latest forms 10-K and 10-Q filed with the Securities and Exchange Commission. Our comments also include non-GAAP measures. Reconciliations to the nearest corresponding GAAP measures are in our earnings release available on our website.
On a US GAAP basis, for the fourth quarter of 2023, NOV reported revenues of $2.34 billion and a net income of $598 million or $1.51 per fully diluted share. For the full year of 2023, revenues were $8.58 billion and net income was $993 million. Our use of the term EBITDA throughout this morning's call corresponds with the term adjusted EBITDA as defined in our earnings release.
Later in the call, we will host a question-and-answer session. Please limit yourself to one question and one follow-up to permit more participation. Now let me turn the call over to Clay.
Clay Williams
Thanks Amie. NOV continued its strong sales growth through the fourth quarter of 2023 with revenues of $2.3 billion, up 7% sequentially, completing a year in which the company generated $8.6 billion in sales.
Full year revenues increased 19% from 2023 versus 2022, driven by strong offshore and international demand, continued supply chain improvement and increasing uptake in the new technologies NOV has been introducing to its customers.
Fourth quarter EBITDA increased to $294 million or 12.5% of revenue, up 30 basis points from the prior quarter and up 140 basis points from the fourth quarter of last year. Despite the higher than expected sales for the fourth quarter, EBITDA leverage was lighter than expected at 17%, falling short of our forecast due in part to continuing activity declines in North America and in part to some unexpected charges....
NOV Inc. (NOV) Q4 2023 Earnings Call Transcript