On a U.S. GAAP basis for the first quarter of 2021, NOV reported revenues of $1.25 billion and a net loss of $115 million.
2020 is 1-2 punch of an oil supply price war, followed closely by an oil demand crushing global pandemic led to a sharp decline in demand for oilfield equipment and consumables through the year.
As we reported in our operational update on March 16, the quarter was further impacted by other factors: severe winter weather and power outages in Texas and Oklahoma led to 63 NOV facilities being shuttered for a week or more.
Nevertheless, the first quarter sequential decline in capital equipment revenues reflect the pummeling our backlog took in 2020, which led to consolidated revenue declines of 6%.
By year-end, more than 100 North American oil and gas companies had filed for Chapter 11 bankruptcy protection with a combined debt of over $100 billion.
Were not for a couple of large projects that were awarded before the lockdown, FIDs for offshore projects in 2020 would have marked the lowest since 1960.
Although the recovery has begun taking hold in many markets, average first quarter rig counts were down 46% for North America land, 36% for international land and down 31% for offshore year-over-year.
Consequently, NOV's oilfield backlogs fell throughout the year and first quarter annualized revenue run rate is down 45% from just five quarters ago.
160 years of oilfield history demonstrates that this dynamic is always temporary.
For instance, the G10 plus China passed more than $20 trillion of stimulus in the aggregate.
The U.S. M2 is up 27% year-over-year, as an example.
Throughout this historic period, NOV has been steadfast in: one, reducing our costs, which are down $12.6 billion since 2014, including approximately $2 billion in annual fixed cost reductions; two, improving our cash flow, which has delevered our balance sheet; and three, investing in the next-generation of technologies, both for the oilfield as well as emerging renewables opportunities.
Drilling motor demand is also increasing and downhole friction reduction tools are completely sold out in certain North American markets as revenues were up more than 30% sequentially.
In our international markets, we expect our wired drill pipe jobs to increase over 25% in the second quarter.
And despite continuing day rate pressure on drilling contractors, Grant Prideco posted a book-to-bill greater than 100% as operators are requiring larger 5.5-inch drill pipe to accommodate better hydraulic performance, leading drilling contractors to purchase this pipe with our proprietary Delta premium connections.
However, the CAPS segment saw its book-to-bill for new capital equipment orders above 100% for the first time since the fourth quarter of 2019, an indication of better results to come.
North American production chokes backlog popped 30% and our reciprocating pump backlog grew 69% sequentially.
And healing for our capital equipment businesses always begins with rising orders, which we started to see in many businesses for the first time in 1.5 years.
NOV's consolidated revenue fell $78 million or 6% sequentially to $1.25 billion during the first quarter of 2021.
Ongoing cost-out initiatives, a higher-margin revenue mix and better pricing, limited sequential decremental margins to 22%.
During Q1, we realized $52 million in annualized cost savings and identified an additional $31 million in opportunities, bringing the total we expect to achieve in 2021 to $106 million.
During the first quarter, our operations used $27 million in cash and capital expenditures totaled $49 million.
We ended the first quarter with $1.61 billion in cash and $1.85 billion in gross debt or net debt of $244 million.
Following the end of the quarter, we fully redeemed the remaining $183 million of our senior notes due in December 2022 with cash on hand.
As a result, our next bond maturity does not occur until December 2029, and interest expense should decline roughly $1 million per quarter.
Our Wellbore Technologies segment generated $413 million in revenue during the first quarter, an increase of $40 million or 11% sequentially.
Cost cutting, improved absorption in our manufacturing plants, a more favorable sales mix and better pricing drove 55% incremental margins and a $22 million increase in EBITDA to $34 million or 8.2% of sales.
Our ReedHycalog drill bit business achieved 20% revenue growth with strong improvements across the Western Hemisphere.
Share gains, improved absorption, better pricing and cost-cutting drove incremental margins of almost 50%.
Our Downhole Tool business realized a 13% sequential improvement in revenue, led by sales growth that meaningfully outpaced the increase in drilling activity in the Western Hemisphere, partially offset by seasonal declines in the Eastern Hemisphere.
A more favorable sales mix, higher volumes, improved operational efficiencies and better pricing allowed the business to deliver 50% incremental margins during the quarter.
Our WellSite Services business realized a 16% sequential increase in revenue, primarily from improving results in its solid control operations.
Our Tuboscope pipe coating and inspection business posted a 10% sequential increase in revenue.
Demand for inspection services improved globally and was particularly strong in the U.S., where piece counts from steel mills and outside processors improved 43%.
The business unit achieved a 104% book-to-bill, which should allow for another sequential improvement in Q2.
31% of our orders came from North America, the highest percentage in quite a while.
As Clay mentioned, we saw strong demand for 5.5-inch pipe driven by operators seeking greater hydraulic efficiencies consistent with the driver we're seeing for our high flow rate drilling tools at a time when there continues to be ample supplies of 4.5- and 5-inch customer-owned drill pipe in the U.S. For our Wellbore Technologies segment, we expect activity gains in the U.S. and Latin America to moderate and activity in the Eastern Hemisphere to recover, resulting in sequential revenue growth of 8% to 10% during the second quarter.
We also expect continued improvement in the segment's cost structure and better pricing, which should allow incremental EBITDA margins near 50%.
Our Completion & Production Solutions segment generated $439 million in revenue during the first quarter, a decrease of $107 million or 20% sequentially.
Efforts to reduce costs and improve operational efficiencies limited decremental margins to 30% and EBITDA declined $32 million to a loss of $4 million.
Orders for the segment improved $57 million sequentially to $338 million, resulting in a book-to-bill of 127%; the segment's first book-to-bill greater than 100% since the fourth quarter of 2019.
Excluding this addition, our book-to-bill would have been 115%.
Our Fiber Glass Systems business realized a 25% sequential decline in revenue.
We anticipated absorption challenges resulting from five straight quarters with a book-to-bill below 1, but severe COVID-19 and weather-related disruptions also impacted operations.
A significant pickup in orders in March for our fuel handling products allowed the unit to post a book-to-bill north of 100%.
Despite continued weakness in the North American market, the segment achieved its second straight quarter with a book-to-bill greater than 1.
During Q1, we booked an order to convert 16 Tier two frac pumps to new Tier four DGB dual fuel units that can run on a combination of diesel fuel and natural gas, lowering operating costs and emissions.
Additionally, we're seeing growing interest in our ideal e-frac stimulation equipment, which recently finished its first field trial where our pump completed more than 200 stages at rates up to 22 barrels per minute, nearly 3 times that of a traditional 2,500 horsepower unit.
Our XL Systems conductor pipe business experienced a sharp sequential decline in revenue during the quarter, resulting from a backlog that was depleted after eight straight quarters with a book-to-bill of less than 1.
Our team limited decremental margins to only 17%, and we achieved a 143% book-to-bill indicative of improving market conditions.
Fortunately, our technological and quality differentiation allows us to win a sufficient number of projects that are not entirely driven by pricing, such as the award we received associated with the industry's first 20,000-psi well development project.
For the second quarter of 2021, we anticipate revenue from our Completion & Production Solutions segment will improve between 15% to 25% sequentially, with incremental margins in the mid-20% range.
Our Rig Technologies segment generated revenues of $431 million in the first quarter, a decrease of $6 million or 1% sequentially.
A less favorable revenue mix and weather-related disruptions resulted in a $6 million decline in EBITDA to $13 million or 3% of sales.
Orders for the segment declined $78 million sequentially to $112 million, yielding a book-to-bill of 59%; the segment's sixth quarter out of the last seven with a book-to-bill of less than 1.
Quotation levels increased 25% sequentially, and the conversion of quotes to orders also improved, however, only quotes for small orders converted to bookings.
While customers in the Middle East and Asia continue to express the need for newbuild rigs and offshore customers require meaningful upgrades for reactivations, we expect the lack of urgency will keep the book-to-bill for our traditional rig equipment business below 1 times.
As a reminder, the plant has a commitment for 50 drilling rigs over the next 10 years and accounted for $1.8 billion in backlog.
In our Aftermarket business, spare part bookings increased 22%, led by demand from the Middle East and U.S. land markets as the ability to cannibalize stacked rigs has nearly run its course.
Our Q1 offshore wind order intake was modest relative to the opportunities we are pursuing, which include over $400 million in potential projects that could be awarded before the end of the year.

Summary:
On a U.S. GAAP basis for the first quarter of 2021, NOV reported revenues of $1.25 billion and a net loss of $115 million.
NOV's consolidated revenue fell $78 million or 6% sequentially to $1.25 billion during the first quarter of 2021.
We ended the first quarter with $1.61 billion in cash and $1.85 billion in gross debt or net debt of $244 million.
Our Completion & Production Solutions segment generated $439 million in revenue during the first quarter, a decrease of $107 million or 20% sequentially.
Orders for the segment improved $57 million sequentially to $338 million, resulting in a book-to-bill of 127%; the segment's first book-to-bill greater than 100% since the fourth quarter of 2019.
Orders for the segment declined $78 million sequentially to $112 million, yielding a book-to-bill of 59%; the segment's sixth quarter out of the last seven with a book-to-bill of less than 1.