WEATHEREFORD INTERNATIONAL REPORTS FIRST PROFIT SINCE 2019
Weatherford International announced its results for the second quarter of 2022.
Revenues for the second quarter of 2022 were $1,064 million, an increase of 13% sequentially and 18% year-over-year. Operating income was $104 million in the second quarter of 2022, compared to $18 million in the first quarter of 2022 and $25 million in the second quarter of 2021. The Company’s second quarter of 2022 net income was $6 million, compared to a net loss of $80 million in the first quarter of 2022 and a net loss of $78 million in the second quarter of 2021. Tax expense in the second quarter of 2022 included a $27 million recognition of a benefit from certain previously uncertain tax positions.
Second quarter 2022 cash flows provided by operations were $60 million, compared to cash flows used in operations of $64 million in the first quarter of 2022 and cash flows provided by operations of $46 million in the second quarter of 2021. Capital expenditures were $24 million in the second quarter of 2022, compared to $20 million in the first quarter of 2022 and $9 million in the second quarter of 2021.
Adjusted EBITDA was $186 million, an increase of 23% sequentially and 37% year-over-year
Free cash flow was $59 million, an increase of $123 million sequentially and $11 million year-over-year
Other charges was a net credit of $14 million, primarily related to the gain on sale of assets related to our fulfillment initiatives and collections of previously impaired receivables
Girish Saligram, President and Chief Executive Officer, commented, “We delivered noteworthy results well ahead of our guidance across all metrics. We showed strong sequential growth in revenues, adjusted EBITDA, and free cash flow, as our market leading offerings continued to gain commercial traction with solid fall-through on margins. We continue to make progress on our commercial and operational paradigm changes and our second quarter adjusted EBITDA margins of 17.5% and free cash flow of $59 million, demonstrate those improvements taking hold. Our results reaffirm that our strategy to expand margins sustainably over the cycle, while generating positive free cash flow, is delivering the intended results.
The macro-environment for the sector continues to be supported by strong fundamentals, and we are capitalizing on the opportunities enabled by our broad services portfolio, leading edge specialty services, transformation of our operating paradigm, and strong customer relationships. Despite substantial supply chain and geopolitical headwinds, based on the strength of our second-quarter performance and the confidence in our strategy, we now expect full-year 2022 revenue to grow by mid-teens year-over-year, exceeding our previous expectations.”
(Source and image: Weatherford – Weatherford workers in Colombia)
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