National Oilwell Varco, the world's largest provider of oilfield equipment, said its second-quarter profit climbed 20% to $481 million, or $1.13 per share, from $401 million or 96 cents per share a year earlier as revenue increased 19% to $3.51 billion. On an adjusted basis, the company earned $1.14 a share. Analysts were expecting a profit of $1.01 on revenue of $3.24 billion.
Texas-based National Oilwell Varco (NOV) said its order backlog climbed 26% as high oil prices are prompting energy producers to put more rigs to work. NOV CEO Pete Miller said his company continues to evaluate acquisition opportunities. The company ended the second quarter with $3.4 billion in cash and cash equivalents.
Earlier this month, NOV announced it will purchase Ameron International for $772 million in cash to bolster its offerings of pipes used to move oil. That transaction could close as early as the fourth quarter. The company did not specifically identify potential acquisition candidates.
Revenue at NOV's rig technology unit rose 13% to $1.89 billion in the second quarter. Operating profit for this segment was $517 million, or 27.3% of sales, the company said in a statement. The unit booked $2.96 billion in new orders during the second quarter, the company said.