Business Analysis of National Oilwell Varco

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of National Oilwell Varco

NATIONAL OILWELL VARCO

Business Overview

National Oilwell Varco, Inc. designs, manufactures, and sells equipment and components used in oil and gas drilling, completion, and production operations; and provides oilfield services to the upstream oil and gas industry worldwide. It operates through four segments: Rig Systems, Rig Aftermarket, Wellbore Technologies, and Completion & Production Solutions. The Rig Systems segment offers land rigs; offshore drilling equipment packages; and drilling rig components. This segment provides substructures, derricks, and masts; cranes; pipe lifting, racking, rotating, and assembly systems; fluid transfer technologies, such as mud pumps; pressure control equipment; power transmission systems; and rig instrumentation and control systems. The Rig Aftermarket segment offers spare parts; and repair and rental services, as well as technical support, field and first well support, field engineering, and customer training services. The Wellbore Technologies segment designs, manufactures, rents, and sells various equipment and technologies. This segment also provides solids control and waste management equipment and services, drilling fluids, power generation equipment, drill and wired pipes, instruments, measuring and monitoring equipment, downhole and fishing tools, hole openers, and drill bits, as well as drilling optimization and automation, tubular inspection, repair and coating, rope access inspection, and instrumentation services. The Completion and Production Solutions segment offers pressure pumping trucks, blenders, sanders, hydration units, injection units, flowlines, manifolds, and wellheads; well intervention tools; onshore production, including composite pipes, surface transfer and progressive cavity pumps, reciprocating pumps, pressure vessels, and artificial lift systems; and offshore production comprising floating production systems, and subsea production technologies. The company was founded in 1862 and is based in Houston, Texas.

National Oilwell Varco

National Oilwell Varco


R&P Rank: 380
Sector: Oil & Gas
Industry:Oil & Gas Equipment and Services
H.Q Location:Texas
Website: www.nov.com
Company Address:
7909 PARKWOOD CIRCLE DR, HOUSTON TX 77036
Ph:713-375-3700

Business Analysis of National Oilwell Varco

The Oil & Gas Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how National Oilwell Varco compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by National Oilwell Varco to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of National Oilwell Varco with an interactive chart.

  1. Revenue Growth: National Oilwell Varco reported a revenue growth of -50.9% year-on-year during 2016. Oil & Gas Equipment and Services Industry grew at -33.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, National Oilwell Varco spent 101.4% of its total revenues on COGS. Oil & Gas Equipment and Services industry average (COGS share of revenue) in the same period was 82.2%
  3. R&D share of Revenues: National Oilwell Varco R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, National Oilwell Varco spent 18.5% of its total revenues on Sales, Marketing, and General Administration (SG&A). Oil & Gas Equipment and Services industry average SG&A spending in the same period was 8.3%
  5. Inventory share of Revenues: As a percentage of revenue, National Oilwell Varco spent 45.9% of its total revenues on Inventories. Oil & Gas Equipment and Services industry average Inventory spending in the same period was 16.1%
  6. Accounts Payable share of Revenues: As a percentage of revenue, National Oilwell Varco invested 5.7% of its total revenues on Accounts Payable (A/P) Oil & Gas Equipment and Services industry average Accounts Payable investment in the same period was 16.8%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, National Oilwell Varco invested 37.9% of its total revenues on Accounts Receivable (A/R). Oil & Gas Equipment and Services industry average Accounts Receivable investment in the same period was 26.6%
  8. PP&E share of Revenues: As a percentage of revenue, National Oilwell Varco invested 43.4% of its total revenues on Property, Plants, and Equipments (PP&E). Oil & Gas Equipment and Services industry average PPE investment in the same period was 127.7%
  9. Intangibles share of Revenues: As a percentage of revenue, National Oilwell Varco invested 132.4% of its total revenues on Intangibles. Oil & Gas Equipment and Services industry average Intangibles investment in the same period was 56.5%
  10. Net Margins: National Oilwell Varco Net Margins in the year 2016 were -33.3%. Oil & Gas Equipment and Services industry average Net Margins in the same period were -18.4%

Sector and Industry Association of National Oilwell Varco

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

National Oilwell Varco is associated with Oil & Gas Sector and Oil & Gas Equipment and Services Industry.

Oil & Gas sector is comprised of the following industries: Oil & Gas Production; Oil & Gas Distribution; Oil & Gas Equipment and Services; Alternative Energy. The definitions for each of the industries is as follows:

  • Oil & Gas Production industry includes companies primarily engaged in operating oil & gas properties. Key activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. It also includes companies engaged in crude petroleum refining and producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil.
  • Oil & Gas Distribution industry includes companies primarily engaged in the pipeline transportation of petroleum, natural gas, and other commodities. It also includes companies primarily engaged in the wholesale and retail distribution of petroleum and petroleum products.
  • Oil & Gas Equipment and Services industry includes companies primarily engaged in drilling wells for oil or gas field operations for others on a contract or fee basis. It also includes companies providing exploration services and machinery & equipment for oil and gas field operations.
  • Alternative Energy industry includes companies that develop or manufacture renewable energy equipment utilizing sources such as solar, wind, geothermal, hydro, and waves. It also includes companies that produce alternative fuels such as methanol, ethanol, hydrogen and biofuels that are mainly used to power vehicles.

Industry Ranking of National Oilwell Varco

With $7.3 billion revenues, National Oilwell Varco ranked number 4 of all the companies in the US Oil & Gas Equipment and Services industry. There were a total of 55 public companies in the US Oil & Gas Equipment and Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Oil & Gas Equipment and Services industry by revenues during 2016 were:

  1. Schlumberger ($27.8 billion)
  2. Halliburton ($15.9 billion)
  3. Baker Hughes ($9.8 billion)
  4. National Oilwell Varco ($7.3 billion)
  5. Weatherford International ($5.7 billion)
  6. Transocean ($4.2 billion)
  7. Ensco ($2.8 billion)
  8. McDermott International ($2.6 billion)
  9. Noble Corp ($2.3 billion)
  10. Oceaneering International ($2.3 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of National Oilwell Varcoand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of national-oilwell-varco

Schlumberger (SLB) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Schlumberger Limited with $28 billion revenues in the year 2016 was the number 1 Oil & Gas Equipment and Services company. Read this report to know the top competitors of Schlumberger and identify growth and cost optimization opportunities of Schlumberger

Halliburton (HAL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Halliburton Co with $16 billion revenues in the year 2016 was the number 2 Oil & Gas Equipment and Services company. Read this report to know the top competitors of Halliburton and identify growth and cost optimization opportunities of Halliburton

Baker Hughes (BHI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Baker Hughes Inc with $10 billion revenues in the year 2016 was the number 3 Oil & Gas Equipment and Services company. Read this report to know the top competitors of Baker Hughes and identify growth and cost optimization opportunities of Baker Hughes

Weatherford International (WFT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Weatherford International Plc with $6 billion revenues in the year 2016 was the number 5 Oil & Gas Equipment and Services company. Read this report to know the top competitors of Weatherford International and identify growth and cost optimization opportunities of Weatherford International

Transocean (RIG) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Transocean Ltd. with $4 billion revenues in the year 2016 was the number 6 Oil & Gas Equipment and Services company. Read this report to know the top competitors of Transocean and identify growth and cost optimization opportunities of Transocean

Ensco (ESV) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Ensco Plc with $3 billion revenues in the year 2016 was the number 7 Oil & Gas Equipment and Services company. Read this report to know the top competitors of Ensco and identify growth and cost optimization opportunities of Ensco

Revenues Analysis

National Oilwell Varco (NOV) Revenues And Revenue Growth From 2012 To...

This report provides the last five years revenues and revenue growth of National Oilwell Varco Inc (NOV) from 2012 to 2016. National Oilwell Varco generated a total of $7.3 billion revenues during 2016. National Oilwell Varco reported a revenue growth of -50.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

National Oilwell Varco (NOV) Revenues And Revenue Growth From 2002 To...

This report provides the last fifteen years revenues and revenue growth of National Oilwell Varco Inc (NOV) from 2002 to 2016. National Oilwell Varco generated a total of $7.3 billion revenues during 2016. National Oilwell Varco reported a revenue growth of -50.9% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

National Oilwell Varco (NOV) Revenue Growth Comparison With Industry Growth From...

This report provides a comparison of National Oilwell Varco Inc (NOV) revenue growth with Oil & Gas Equipment and Services industry growth during the last five years from 2012 to 2016. National Oilwell Varco reported a revenue growth of -50.9% year-over-year during 2016. The Oil & Gas Equipment and Services industry growth was -33.3% year-over-year during 2016. National Oilwell Varco growth was slower than the industry during 2016.