Categories Earnings, Other Industries

Weatherford posts narrower-than-expected Q3 loss

Weatherford International plc (WFT) reported a narrower loss in the third quarter helped by improved efficiencies and reduced expenses as a result of the transformation processes. The bottom line exceeded analysts’ expectations, while the top line missed consensus estimates.

Net loss narrowed to $199 million or $0.20 per share from $256 million or $0.26 per share last year. Non-GAAP loss was $0.10 per share, lower than the previous year’s loss of $0.22 per share.

The company recorded pre-tax charges of $95 million, which consist of non-cash impairments and asset write-downs from land drilling rigs, restructuring and transformation charges, as well as currency devaluation charges.

Revenue declined about 1% to $1.44 billion. The top line was hurt by lower activity levels in Canada as crude oil differentials expanded, which lowered demand for Completions and Production services and products. This was partially offset by higher revenues from integrated service projects in Latin America. Results in Russia were negatively impacted by foreign exchange rate effects.

Phillips 66 stock rallies after Q3 results beat street view

A large part to transitory supply chain and manufacturing inefficiencies as well as continued challenges converting inventories to cash hurt the company, which fell short of its revenue and cash flow goals. Revenue from Western Hemisphere declined 1% and that from Eastern Hemisphere fell 2% year-over-year.

After achieving about 30% of annualized transformation goal, the company said it will reach its $1 billion run-rate improvement target by the end of 2019.

Weatherford said the recent sale of its laboratory services business earlier this month, combined with the previously announced land drilling rigs divestiture, will generate close to $500 million in cash proceeds, which will be used to lower debt.

Shares of Weatherford ended Friday’s regular session down 3.88% at $1.98 on the NYSE. The stock has fallen over 39% in the past year and over 52% in the year so far.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top