National Energy Services Reunited (National Energy Services Reunited) Operating Income : $-43.3 Mil (TTM As of Dec. 2021)

View and export this data going back to 2017. Start your Free Trial

What is National Energy Services Reunited Operating Income?

National Energy Services Reunited's Operating Income for the three months ended in Dec. 2021 was $-81.5 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2021 was $-43.3 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. National Energy Services Reunited's Operating Income for the three months ended in Dec. 2021 was $-81.5 Mil. National Energy Services Reunited's Revenue for the three months ended in Dec. 2021 was $211.4 Mil. Therefore, National Energy Services Reunited's Operating Margin % for the quarter that ended in Dec. 2021 was -38.56%.

National Energy Services Reunited's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. National Energy Services Reunited's annualized ROC % for the quarter that ended in Dec. 2021 was -23.38%. National Energy Services Reunited's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 was -73.49%.

National Energy Services Reunited Operating Income Historical Data

The historical data trend for National Energy Services Reunited's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

National Energy Services Reunited Operating Income Chart

National Energy Services Reunited Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Operating Income

Get a 7-Day Free Trial

71.81

35.28

-43.33

-0.92

National Energy Services Reunited Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Dec22
Operating Income	Get a 7-Day Free Trial															15.96	14.12	8.10	-81.51	-

National Energy Services Reunited Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $-43.3 Mil.

National Energy Services Reunited (OTCPK:NESR) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

National Energy Services Reunited's annualized ROC % for the quarter that ended in Dec. 2021 is calculated as:

	ROC % (Q: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2021 )	+	Invested Capital (Q: Dec. 2021 ))	/ count )
=	-326.052 * ( 1 - 1.41% )	/	( (1441.151	+	1308.816)	/ 2 )
=	-321.4546668	/	1374.9835
=	-23.38 %

where

	Invested Capital		(Q: Sep. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1766.384	-	224.215	-	( 101.018	-	max(0, 368.939	-	533.498	+	101.018	))
=	1441.151

	Invested Capital		(Q: Dec. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1831.292	-	326.98	-	( 205.772	-	max(0, 431.872	-	627.368	+	205.772	))
=	1308.816

Note: The Operating Income data used here is four times the quarterly (Dec. 2021) data.

2. Joel Greenblatt's definition of Return on Capital:

National Energy Services Reunited's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2021 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2021 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2021		Q: Dec. 2021
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	-327.848	/	( ( (466.732 + max(-2.833, 0))	+	(425.506 + max(-66.935, 0)) )	/	2 )
=	-327.848	/	( ( 466.732	+	425.506 )	/	2 )
=	-327.848	/	446.119
=	-73.49 %

where Working Capital is:

	Working Capital		(Q: Sep. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(98.223	+	100.757	+	70.658)	-	(224.215	+	0	+	48.256)
=	-2.833

	Working Capital		(Q: Dec. 2021 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(130.415	+	93.864	+	53.584)	-	(326.98	+	0	+	17.818)
=	-66.935

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2021) EBIT data.

3. Operating Income is also linked to Operating Margin %:

National Energy Services Reunited's Operating Margin % for the quarter that ended in Dec. 2021 is calculated as:

Operating Margin %	=	Operating Income (Q: Dec. 2021 )	/	Revenue (Q: Dec. 2021 )
	=	-81.513	/	211.384
	=	-38.56 %

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

National Energy Services Reunited Operating Income Related Terms

Thank you for viewing the detailed overview of National Energy Services Reunited's Operating Income provided by GuruFocus.com. Please click on the following links to see related term pages.

National Energy Services Reunited (National Energy Services Reunited) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » National Energy Services Reunited Corp (OTCPK:NESR) » Definitions » Operating Income

Comparable Companies

Traded in Other Exchanges

N/A

Address

777 Post Oak Boulevard, Suite 730, Houston, TX, USA, 77056

Website

https://www.nesr.com

National Energy Services Reunited Corp is a British Virgin Islands-based company engaged in providing products and services to the oil and gas industry in the Middle East and North Africa and the Asia Pacific regions. The company has two reportable segments: Production Services including coil tubing, stimulation, and pumping, nitrogen services, completions, pipelines, cementing, laboratory services and filtration services; and Drilling and Evaluation Services including drilling and workover rigs, rig services, services, and well-testing services among others. Revenues are majorly derived from production services of an oil or natural gas well.

Executives

Melissa Cougle	officer: Chief Financial Officer	777 POST OAK BLVD., 7TH FLOOR, HOUSTON TX 77056
Adnan Ghabris	director	PO BOX 346036 DUBAI C0 00000
Al Noaimi Salem Rashed Abdulla Ali	director	AERCAP HOUSE, 65 ST. STEPHEN'S GREEN, DUBLIN L2 2
Capital Pjsc Waha	10 percent owner	LEVEL 42, TOWER 3, ETIHAD TOWERS PO BOX 28922 ABU DHABI C0 00000
Thomas D Wood	director, 10 percent owner, officer: CFO	NATIONAL ENERGY SERVICES REUNITED CORP., 777 POST OAK BLVD, HOUSTON TX 77056
Campo Mejia Antonio J	director	NATIONAL ENERGY SERVICES REUNITED CORP. 777 POST OAK BLVD. HOUSTON TX 77056
Waha Energy Ltd	10 percent owner	C/O MAPLES CORPORATE SERVICES LIMITED PO BOX 309, UGLAND HOUSE GRAND CAYMAN E9 KY1-1104
Nesr Spv Ltd	10 percent owner	C/O MAPLES CORPORATE SERVICES LIMITED PO BOX 309, UGLAND HOUSE GRAND CAYMAN E9 KY1-1104
Olayan Saudi Holding Co	10 percent owner	P.O. BOX 8772, OLAYAN CENTER, AHSAA STREET RIYADH T0 11492
Olayan Financing Co Ltd.	10 percent owner	P.O. BOX 8772, OLAYAN CENTER, AHSAA STREET RIYADH T0 11492
Christine J Morris	officer: Chief Financial Officer	NATIONAL ENERGY SERVICES REUNITED CORP. 777 POST OAK BLVD., 7TH FLOOR HOUSTON TX 77056
Olayan International Ltd	10 percent owner	C/O 111 POSEIDONOS AVE., GLYFADA ATHENS J3 166 10
Olayan Investments Co Establishment	10 percent owner	111 POSEIDONOS AVENUE GLYFADA ATHENS J3 166 10
Sherif Foda	director, 10 percent owner, officer: CEO	C/O SCHLUMBERGER LIMITED, 5599 SAN FELIPE, 17TH FLOOR, HOUSTON TX 77056
Nesr Holdings Ltd.	10 percent owner	RITTER HOUSE WICKHAMS CAY II, ROAD TOWN TORTOLA D8 VG1110