NOV Inc. sees Q1 revenue, earnings below prior guidance

On a consolidated basis, the company currently expects to report revenues of $2.05B, operating profit of $47M, and Adjusted EBITDA of $177M. Revenue consensus is $2.06B. “The conflict in the Middle East created significant safety and logistical challenges during the first quarter, which adversely impacted revenue by an estimated $54M and Adjusted EBITDA by approximately $32M,” stated Jose Bayardo, Chairman, President, and CEO. “These challenges disproportionately affected quarter-end deliveries of capital equipment and products, including spare parts, in the region, while our more service-oriented offerings were less affected. Higher shipping and freight costs and reduced absorption in our manufacturing facilities further amplified decremental margins. We are actively managing the impact of the ongoing conflict in the Middle East, with the safety of our team as our top priority. While conditions in the region remain volatile, our facilities have not been damaged, and we are confident in our ability to navigate through near-term disruptions. Our team is responding quickly to support customers, reduce the impact of delays, and mitigate escalating costs. Despite challenges in the Middle East, our business remains solid throughout the rest of the world, and we believe the conflict will increase the urgency to advance projects that promote energy security and diversification over the mid-to-longer-term.” Shares are down 0.55% to $19.00 in early trading.