National Oilwell Varco, Inc. (NYSE: NOV) today reported that for the fourth quarter ended December 31, 2013 it earned net income of $658 million, or $1.53 per fully diluted share. Earnings improved three percent compared to the third quarter of 2013, and were down two percent compared to the fourth quarter of 2012. Excluding $16 million in pre-tax transaction charges, net income was $670 million, or $1.56 per fully diluted share, up 16 percent from the third quarter of 2013, and up five percent from the fourth quarter of 2012, excluding transaction charges from all periods.
Revenues reported for the full year 2013 were $22.77 billion, and net income was $2.33 billion, or $5.44 per fully diluted share. Operating profit for the full year 2013 was $3.41 billion. Excluding $156 million in pre-tax transaction charges and $102 million in pre-tax gains resulting from the settlement of an outstanding legal claim, net income was $2.36 billion, or $5.52 per fully diluted share, and operating profit was $3.47 billion or 15.2 percent of sales, for the full year 2013.
Revenues for the fourth quarter increased nine percent sequentially to $6.17 billion. Operating profit for the fourth quarter, excluding transaction charges, was $973 million or 15.8 percent of sales, up 14 percent from the third quarter of 2013. Operating profit flow-through, or the change in operating profit divided by the change in revenue, was 25 percent from the third quarter of 2013 to the fourth quarter of 2013, and was four percent from the fourth quarter of 2012 to the fourth quarter of 2013, excluding transaction charges from all periods. The Company’s fourth quarter 2013 results included a record $1.5 billion in cash flow from operations, 50 percent greater than the previous record set in the third quarter of 2013.
Backlog for capital equipment orders for the Company’s Rig Technology segment at December 31, 2013 was a record at $16.24 billion, up seven percent from the third quarter of 2013 and up 37 percent from the end of the fourth quarter of 2012. New orders during the quarter were $3.61 billion, reflecting continued strong demand for oilfield equipment.
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