* Adj Q2 earnings/share $1.46 vs $1.40 expected by Wall St
* Backlog grows 9 pct in Q2, driven by offshore
* Shares up 6.2 percent
July 26 National Oilwell Varco Inc, the
largest U.S. oilfield equipment maker, reported a 26 percent
rise in quarterly profit on Thursday as demand for new offshore
drilling equipment stays high, and its shares rose more than 6
The company's backlog for rig technology orders, of which 86
percent is for offshore rigs, rose 9 percent in the quarter to
$11.3 billion -- up 46 percent from a year earlier.
"The strong orders during the quarter support our view that
NOV's end markets remain very strong and that the company is in
the midst of a powerful earnings cycle," said analyst James
Crandell of Dahlman Rose and Co.
Rival Cameron International Corp also reported a
higher-than-expected profit on Thursday and noted plenty of
potential outside North America, particularly in deepwater.
NOV said a handful of offshore rig equipment packages for
Brazil had not yet been awarded.
The possibility of those orders, growing interest in hot
deepwater markets around Africa and recoveries in the Gulf of
Mexico, North Sea and Southeast Asia should help offset softness
in North American land this quarter, Chief Financial Officer
Clay Williams said.
NOV equipped five offshore rigs last quarter -- for a total
of 137 since 2005 -- and new orders included equipment packages
for six new deepwater rigs, including one in Brazil, and five
"The good news is every time we deliver a rig, we have to
support that rig for the next 25 years," Chief Executive Officer
Pete Miller said on a conference call.
Second-quarter net profit rose to $605 million, or $1.42 per
share, from $481 million, or $1.13 per share, a year earlier.
Excluding charges, earnings were $1.46 per share, while
analysts on average had expected $1.40, according to Thomson
Revenue increased 35 percent to $4.7 billion.
NOV shares were up 6.2 percent at $71.50 in morning trading.
The stock has now risen 5 percent so far in 2012, compared with
an effectively flat performance for the Philadelphia Stock
Exchange oil service index.