Sales were unsurprisingly down in all market segments, but impairments close to $1 billion were what plunged the company deep into the red.

The net loss was $1.36 billion as against a small profit a year earlier of $156 million and a loss of $217 million in the second quarter this year.

Revenues were $1.65 billion, well off the $3.31 billion taken a year ago and still shy of the $1.72 billion seen in the second quarter.

Goodwill and intangible asset impairments hit $972 million, with a further $116 million in other charges, mainly related to severance payouts, facility closures and write-offs on certain assets.

The rig systems market was the worst affected, with revenues slumping from $1.5 billion a year ago to just $470 million. However, NOV said it was encouraged by the early signs of recovery in the North American market, where the rig count in key unconventional basins is starting to climb.

Chief executive Clay Williams said: “We are encouraged by the early signs of a recovery in the North American marketplace. Our short cycle businesses within our wellbore technologies segment account for over 80% of total segment revenue.

“Within North America these posted sequential revenue growth of approximately 15%.

“Even though international, offshore and capital equipment markets remain challenging, we believe declining global production and improving commodity prices are setting the stage for a broader recovery in 2017.”

NOV said earlier that it had bought Fjord Processing from Norwegian oil services company Akastor for around $145 million.