National Oilwell Varco Inc. and Cameron International Corp., the two largest U.S. oilfield equipment makers, rose the most in nearly a year as both reported earnings that beat analyst estimates because of increased orders for offshore rig equipment.
National Oilwell Varco, the largest maker of rigs, gear and tools used to produce oil and natural gas, rose 8.9 percent to $73.31 at 4:15 p.m., the most since Aug. 9. Cameron, the second-largest manufacturer, rose 11 percent to $49.91, the most since Nov. 13, 2008. Both companies are based in Houston.
“The market has finally realized that the deep-water business is not a boom-and-bust equipment cycle, but a sustainable market for years to come and NOV and CAM are clear winners in that market,” Brian Uhlmer, an analyst at Global Hunter Securites LLC in Houston, said today in an e-mail.
Third-quarter earnings at National Oilwell Varco, excluding certain transaction charges, were $1.46 per share, 6 cents better than the average of 23 analysts’ estimates compiled by Bloomberg. Backlog in the company’s rig technology segment, which makes drilling rigs and blowout preventers, climbed 46 percent from a year earlier to $11.3 billion, the company said.
Cameron reported adjusted earnings of 74 cents per share, 2 cents better than the average of 25 analyst estimates compiled by Bloomberg. The company booked $2.57 billion in new orders, the second highest quarterly total in its history.
Pete Miller, chief executive officer of National Oilwell Varco, told analysts and investors today on a conference call he doesn’t see a slow down in the number of new rigs being ordered. The company’s rig technology unit sold drilling packages for six new floating rigs and five shallow-water vessels in the quarter, Chief Financial Officer Clay Williams said on the call.