National Oilwell Varco Is A Dangerous Perform
2 pages
English

National Oilwell Varco Is A Dangerous Perform

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2 pages
English
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Description

nationwide oilwell varco is a Summary Countrywide Oilwell Varco announced very poor outcomes for the 2nd quarter. Its sales and earnings are slipping on declining oil costs. Its backlog is slipping on muted market place fundamentals. Oil costs are likely to continue being risky in the coming days. It is a not a good inventory to acquire. Countrywide Oilwell Varco (NYSE:NOV)announced bad final results for the 2nd quarter of fiscal 2015. The company was exposed to a number of headwinds, like slipping oil charges and declining E&P investments. In addition, its margins are declining on sluggish need combined with sturdy competitiveness. In the second quarter, the firm posted unfavorable sales growth of 19% on a sequential basis. In addition, its sales declined 26% to $three.ninety one billion vs. the same quarter of the preceding yr. Additionally, it is business segments created adverse expansion in the 2nd quarter on volatility in strength rates. The company's rig techniques, which is its greatest revenue contributing segment, declined 24% to $1.93 billion in the 2nd quarter of 2015. The rig aftermarket phase also declined 9% to $657 million on a sequential basis. In addition, this segment created damaging revenue progress of sixteen% in comparison with the identical quarter of the previous 12 months. On the other hand, its wellbore technologies and completion and creation options segments ended up also falling on muted industry fundamentals.

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Publié le 31 juillet 2015
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nationwide oilwell varco is a
Summary Countrywide Oilwell Varco announced very poor outcomes for the 2nd quarter. Its sales and earnings are slipping on declining oil costs. Its backlog is slipping on muted market place fundamentals. Oil costs are likely to continue being risky in the coming days. It is a not a good inventory to acquire. Countrywide Oilwell Varco (NYSE:NOV)announced bad final results for the 2nd quarter of fiscal 2015. The company was exposed to a number of headwinds, like slipping oil charges and declining E&ampP investments. In addition, its margins are declining on sluggish need combined with sturdy competitiveness. In the second quarter, the firm posted unfavorable sales growth of 19% on a sequential basis. In addition, its sales declined 26% to $three.ninety one billion vs. the same quarter of the preceding yr. Additionally, it is business segments created adverse expansion in the 2nd quarter on volatility in strength rates. The company's rig techniques, which is its greatest revenue contributing segment, declined 24% to $1.93 billion in the 2nd quarter of 2015. The rig aftermarket phase also declined 9% to $657 million on a sequential basis. In addition, this segment created damaging revenue progress of sixteen% in comparison with the identical quarter of the previous 12 months. On the other hand, its wellbore technologies and completion and creation options segments ended up also falling on muted industry fundamentals. In the second quarter, wellbore systems declined eighteen% and completion and creation answers decreased 8% on a sequential basis. Moreover, the organization posted a diminished backlog for these segments. Backlog for rig programs declined thirteen% to $nine.03 billion in the 2nd quarter. In addition, it booked only $313 million in new orders in the course of the next quarter of this 12 months. Likewise, the backlog for the completion and generation answers segment declined 44% from the same quarter of the prior year. Above the past two quarters, I have been advising investors to sell the stock on muted market fundamentals. A sharp decrease in its share value, adverse product sales growth, and a slipping backlog validated my view. The predicted drop of 35% in E&ampP investments in North The us and fifteen% in intercontinental markets could damage its economic efficiency. Moreover, this situation will produce sturdy opposition amid oilfield organizations and could result in low charges for their items and services. Oil rates are slipping on a slump in China's equity marketplaces along with the liquidity scenario in Greece. Iran's most recent nuclear deal is also making volatility in oil charges, as Iran has an believed 30 million barrels of crude in storage. Lender of America predicted that oil could remain below $fifty/ barrel in Q3 2015 on falling demand and escalating offer. I also have a comparable opinion on oil prices, as Arab international locations are growing their creation in spite of an imbalance in supply and desire. In addition, oilfield providers corporations have a hard yr in advance as producers squeeze them for deeper special discounts. Summary I am not observing a bounce back from oil costs in the short expression. With reduce E&ampP
investments, NOV is likely to put up damaging results in the coming days. In addition, the company's dividends are also at risk on a slipping cash placement. In the second quarter, its money and cash equivalents declined by $1B on sequential basis. In addition, the firm's free of charge cash flows are not covering dividend payments. In Q2, NOV created operating funds stream of $194 million, when funds requirements stood at around $104 million. Therefore, its free money flows of $90 million are not covering dividend payments of $178 million. I believe that National Oilwell Varco may well lower its dividends if this circumstance persists in the subsequent quarters. Therefore, I suggest that defensive buyers remain absent from this stock offered the muted market place fundamentals. tsuen wan mini storage
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