NOV, Inc. (NYSE:NOV) Q3 2022 Earnings Conference Call October 28, 2022 11:00 AM ET

Company Participants

Blake McCarthy - VP, Corporate Development & IR

Clay Williams - Chairman, President & CEO

Jose Bayardo - SVP & CFO

Conference Call Participants

Scott Gruber - Citigroup

Marc Bianchi - Cowen and Company

Tom Curran - Seaport Research Partners

David Smith - Pickering Energy Partners

Stephen Gengaro - Stifel

Operator

Good day, ladies and gentlemen, and welcome to the NOV Third Quarter 2022 Earnings Conference Call [Operator Instructions] As a remainder, this conference is being recorded.

I would like to introduce your host for today's conference, Mr. Blake McCarthy, Vice President of Corporate Development and Investor Relations. Please go ahead, sir.

Blake McCarthy

Welcome, everyone, to NOV's third quarter 2022 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 U.S. GAAP basis for the third quarter of 2022, NOV reported revenues of $1.89 billion and a net income of $32 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

Thank you, Blake. For the third quarter of 2022, NOV's consolidated revenues grew 9% sequentially and 41% year-over-year, with all three segments posting solid double-digit year-over-year growth. Despite continuing supply chain friction and increased turmoil in the global economy, our teams were once again able to drive higher sequential EBITDA at 28% leverage on top line gains. The results demonstrate international offshore markets that are starting to gather momentum. Our early cycle rig count activity-driven businesses continued to trend positively on rising volumes and pricing recovery in North America and increasingly in international and offshore markets.