DNOW Latest Report

Performance Review

As of December 31, 2024, DNOW's total operating revenue was $571 million, up approximately 2.88% from $555 million as of December 31, 2023. Although the growth is relatively small, it reflects the company's improved sales capabilities in the market.

Key Financial Data

1. In Q3 2024, DNOW's net income was $13 million, with revenue of $606 million, up 3.1% YoY.

2. DNOW's market demand is closely related to oil and gas prices and global drilling and completion activities, and despite the decrease in North American drilling rigs, the company remains optimistic about future global oil and gas demand.

3. The company launched several new products in 2024 aimed at enhancing market competitiveness and customer service.

4. DNOW made significant channel adjustments, targeting doubling energy transition sales to cope with market changes.

Peer Comparison

1. Industry-wide analysis: The overall industry experienced a certain recovery in 2024, leading to a general increase in operating revenue. Intensified competition forces companies to strive for higher sales to adapt to market changes.

2. Peer evaluation analysis: Compared with other companies in the industry, DNOW's total operating revenue growth is relatively small, indicating its relatively insufficient market strategy or execution. If industry peers can better grasp market opportunities, they may achieve higher revenue growth.

Summary

Overall, DNOW's operating revenue growth in 2024 is present but smaller than that of peers, indicating a lack of market strategy. The company has made progress in launching new products and channel adjustments, but further improvement in execution is needed to cope with industry competition.

Opportunities

1. The increase in global oil and gas demand may provide DNOW with continuous market opportunities.

2. The launch of new products may enhance market competitiveness and attract new customers.

3. The significant channel adjustment can effectively seize the market opportunities of energy transition.

Risks

1. Fluctuations in oil and gas prices may affect the stability of the company's revenue.

2. Economic uncertainty may negatively impact customer activities, which in turn affects market demand.

3. The improvement of competitors' performance may intensify market competition and affect DNOW's market share.