Would NOV benefit from Spinning Off Rig Technology?
Earnings came in today and appeared very solid overall with Book to Bill above 1. Rig Technology currently accounts for about 50% of the Revenues with Petroleum & Distribution Services accouting for about 37% and 13% respectively.
By spinning off into two divisions perhaps NOV can unlock some value roughly 63% of the operating income is coming from RIG Tech...but it's currently growing slower than the Services divisions...I would anticipate this being a solid dividend paying company as a standalone entity.
For the services division is a the high growth area 15-20% and perhaps no dividend or small dividend.
However, the arguement as a combined entity makes lots of sense as well...NOV weather the downturn fairly well while as standalone it could have suffered a worse fate.
Thoughts? Do you think this is a possibilty in the future?