NOV Inc. (NYSE:NOV) Q3 2023 Earnings Conference Call October 27, 2023 11:00 AM ET

Company Participants

Blake McCarthy - Vice President-Corporate Development & Investor Relations

Clay Williams - Chairman, President & Chief Executive Officer

Jose Bayardo - Senior Vice President & Chief Financial Officer

Conference Call Participants

James Rollyson - Raymond James

Arun Jayaram - JPMorgan Securities

Stephen Gengaro - Stifel

Marc Bianchi - TD Cowen

Kurt Hallead - Benchmark

Ati Modak - Goldman Sachs

Operator

Good day, ladies and gentlemen, and welcome to the NOV Third Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the 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, Mr. Blake McCarthy, Vice President of Corporate Development and Investor Relations. Sir, you may begin.

Blake McCarthy

Welcome, everyone, to NOV's Third Quarter 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 U.S. GAAP basis for the third quarter of 2023, NOV reported revenues of $2.19 billion and net income of $114 million or $0.29 per fully diluted share. 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. NOV's third quarter revenues of $2.185 billion were up 4% sequentially and up 16% compared to the third quarter of 2022. The company posted fully diluted earnings of $0.29 per share for the third quarter, up $0.21 year-over-year and EBITDA was $267 million. Both sequential and year-over-year EBITDA leverage was 24%, driving consolidated margins up 50 basis points sequentially and 190 basis points year-over-year to 12.2% in the third quarter.