American multinational National Oilwell Varco Inc has reported a $122million loss so far in 2017 as cost cutting and asset write downs as a result of the oil downturn continues to impact operations.
The Q1 results for the group show that severance, inventory charges, facility closures and ‘other’ costs for the first three months of the year amounted to some £27million.
Another $10million was due to fixed asset write-downs.
Excluding other items, net loss for the quarter was $63 million.
Clay Williams, chairman, president and chief executive officer, said: “We continue to drive cost reductions and efficiencies and pivot toward the products and technologies we believe will benefit disproportionately through the upcycle.
“In a global market that is slowly grinding higher, our improving financial results demonstrate the extraordinary effort and execution from our team.”
The company cut more than 6,000 jobs and shut more than 250 facilities since the downturn started.
Earlier this month the oil services giant announced it was cutting dozens of jobs in Montrose, in what was described as a “massive blow” for the area.
It is understood the group is consulting over shedding 67 jobs from a total workforce of around 140.
Revenues for the first quarter of 2017 were $1.74 billion, an increase of three percent compared to the fourth quarter of 2016 and a decrease of 20 percent from the first quarter of 2016.
Operating loss for the first quarter was $97 million.
Excluding other items, operating loss was $70 million.
Adjusted EBITDA for the first quarter was $105 million, an increase of $3 million from the fourth quarter of 2016.
Cash flow from operations for the first quarter was $111 million.
As of March 31, 2017, the Company had $1.48 billion in cash and cash equivalents and total debt of $3.21 billion.
NOV had $4.5 billion available on its revolving credit facility as of March 31, 2017.
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