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Excluding the impact of other items, $NOV expects consolidated results for 4Q17 to be at or above prior expectations. The company anticipates Rig Technologies will exceed prior guidance, Wellbore Technologies will be in-line with expectations, and Completion and Production Solutions will fall short of guidance.
$FTK closed on the sales of its Drilling Technologies and Production Technologies segments. As previously disclosed, the Drilling Technologies division has been sold to $NOV for final consideration of $17MM. The Production Technologies segment has been acquired for total consideration of $2.9MM by an undisclosed buyer, as of May 23, 2017.
$NOV broken ground on two manufacturing plants that will significantly strengthen the company's market-leading positions in providing composite pipe technologies and tubular coatings within Saudi Arabia. Both facilities will be located at MODON 3 near the city of Dammam.
$NOV stated that on inventory it had a draw-down in 1Q17 of about $71MM. The company believes it still has an overly large level of working capital across the company. $NOV looks at working capital is as a percentage of annualized revenue run rate and currently, the company is at about 56% of annualized run rate.
$NOV said that on the land rig new build outlook, the company is continuing to pursue those tenders in the Middle East. Lots of the NOCs in the Gulf States are discussing putting more land rigs to work, which would be a combination of existing rigs and new builds.
In 1Q17, $NOV's Rig Systems segment revenues fell 8% to $393MM. Backlog for capital equipment orders for Rig Systems at March 31, 2017 was $2.32Bil. Rig Aftermarket revenues slid 5% to $321MM. Wellbore Technologies revenues were $555MM, up 5%. Completion and Production Solutions revenues rose 8% to $648MM.
Revenues of $NOV dropped 20% to $1.74Bil in 1Q17, as it posted an increase in net attributable loss of $122MM from last year's $119MM. Net loss was flat at $0.32 per diluted share. Cash flow from operations for the quarter was $111MM. As of March 31, 2017, National Oilwell Varco had $1.48Bil in cash and cash equivalents and total debt of $3.21Bil.
For 1Q17, $NOV expects Rig Systems segment revenues to decline 10-12% as the amount of revenue generated from backlog slows to about $270MM. Rig Aftermarket segment revenue is expected to fall in the mid-single-digit percent range and Completion & Production Solutions segment revenue is projected to increase a couple hundred basis points.
In 4Q16, $NOV benefited from the rising momentum in North American shale plays, which the company expects to accelerate. International markets are expected to face headwinds for one or two quarters and offshore markets are expected to trend down.
$NOV reported a narrower 4Q16 loss driven by last year's goodwill and intangible asset impairment charges. Net loss narrowed to $714MM or $1.90 per share from $1.52Bil or $4.06 per share last year. Revenue dropped to $1.69Bil from $2.72Bil. Adjusted loss per share was $0.15 compared to a EPS of $0.23 a year ago.