In my coverage universe, National Oilwell Varco
Of course, the specific numbers are relatively mercurial. At this time last year, NOV was reporting 44% top-line growth and a $7.2 billion backlog. This time around, revenue grew 21%, if you tack a full quarter's worth of Grant Prideco numbers onto each period. That acquisition was only completed part of the way into the quarter, and this adjusted basis is probably the best way to present things. On this combined basis, overall operating profit margins strengthened, while operating profit itself strengthened 30% before merger costs.
As for backlog, which rose to $10.8 billion, what can I say? A few things, actually.
For one, the deepwater trend remains intact. NOV booked seven floating rig orders in the quarter, each of which can add between $150 million and $290 million to the backlog, depending on the vessel type and configuration.
In case you were wondering why I'm talking about backlog like it's a good thing, consider the scale of these orders. Deepwater rigs don't get built in a matter of months. As noted in my recent look at drilling dynamo Noble
In addition to those deepwater kits, land drilling rigs are poised to increasingly pump up NOV's backlog, thanks in part to the robust economics and unique equipment demands of shale plays. Echoing what we've heard from enticing EnCana
In addition to domestic land rig demand, there are also international markets to consider. Russia, for one, is looking lucrative, with between 200 and 250 rigs expected over the next five years. Overall, the stars continue to appear aligned for this rig builder.