WEATHERFORD REVENUE DECLINED 2% SEQUENTIALLY AND 39% YEAR-ON-YEAR

November 11, 2020

Weatherford revenues for the third quarter of 2020 were $807 million, a decline of 2% sequentially and 39% year-on-year. Reported operating loss was $60 million in the third quarter of 2020, compared to an operating loss of $497 million in the second quarter of 2020 and $447 million in the third quarter of 2019. The Company’s third-quarter 2020 net loss was $174 million, compared to a net loss of $581 million in the second quarter of 2020 and $821 million in the third quarter of 2019. Third-quarter 2020 cash flows from operations were $127 million and capital expenditures were $27 million.
In North America, third-quarter 2020 revenues of $175 million increased by 2% sequentially largely due to increased production and workover activity as well as seasonal activity increases in Canada following spring break-up. The 2% sequential revenue increase compares favorably to the corresponding 28% decline in average North America rig count and is in-line with the estimated growth of hydrocarbon production in North America during the quarter.
Weatherford recorded restructuring and other charges of $47 million during the quarter related to the Company’s headcount reductions, facility consolidation, and other activities.
Girish Saligram, President and Chief Executive Officer, commented, “I am honored by the opportunity to lead Weatherford and I am excited about the Company’s potential to create meaningful value for our shareholders. My objective is for Weatherford to continue to partner with our customers to solve their challenges, while also generating sustainable levels of profitability and positive free cash flow. I believe our Company has a unique combination of key attributes that will enable us to achieve this goal, including a comprehensive technology portfolio, a global footprint, deep customer relationships, an extraordinary culture and a talented employee base that is committed to seeing the Company succeed.
“I am pleased with the organization’s continued focus on delivering operational excellence, while also implementing structural improvements to minimize the impact of activity reductions and improve the Company’s operating efficiency. We delivered sequential revenue growth of 2% in North America and adjusted segment EBITDA margins expanded by 730 basis points in the Western Hemisphere. We implemented actions to exceed our $800 million annualized cost savings plan and expect further cost and efficiency improvements going forward. We are relentlessly focusing on enhancing liquidity, with the new $500 million financing and the generation of over $100 million in free cash flow, bringing total cash [1] to approximately $1.3 billion as of September 30, 2020.”

(Source: Weatherford)