WEATHERFORD NARROWS LOSSES BUT MISSES EARNINGS
Weatherford which has not reported a quarterly profit in four years narrowed its adjusted losses to $140 million from $329 million.
• Excluding the impacts resulting from the sale of the land drilling rigs in Kuwait and Saudi Arabia, increased revenues by approximately 1% compared to the third quarter of 2018.
• Increased fourth quarter 2018 segment operating income by $185 million on a year-over-year basis. For the full year 2018, increased segment operating income by $579 million compared to 2017 results.
• Generated net cash from operating activities of $105 million and free cash flow of $65 million during the quarter.
• Achieved targeted annualized recurring transformation benefits of approximately $400 million, which represents 40% of the total transformation target.
• Completed two of the closings from the previously announced land drilling rigs divestiture for gross proceeds of $216 million.
• Signed a definitive agreement to divest the surface data logging business for $50 million in cash.
• Decreased nonproductive time by 22% on a year-over-year basis, exceeding the annual target and representing the fourth consecutive year of improvement.
• Revenues in the fourth quarter of 2018 were $1.4 billion, essentially flat with revenues recognized in the prior quarter and a modest decrease from the $1.5 billion of revenues reported for the fourth quarter of 2017. Sequentially, increases in integrated service project revenues and higher product sales in Latin America and the Eastern Hemisphere were offset by decreased revenues associated with the divestment of the international land rigs and lower activity levels in Canada.
Mark A. McCollum, President and Chief Executive Officer, commented, “We achieved positive operating cash flow during the quarter and further enhanced our liquidity as we closed the first two tranches of our international land drilling rig sale. Our year-end liquidity position of over $900 million and the recent announcements regarding the divestiture of our laboratory services and surface data logging businesses will continue to improve our net debt position as we move through 2019, giving us sufficient liquidity to continue to execute on our strategic initiatives and pay down our near-term maturities.”