The company recorded pre-tax charges of $2.0 billion, which consist of the write-off of a significant portion of its goodwill balance. Also, Weatherford recorded impairments and asset write-downs, restructuring and transformation charges as well as currency devaluation charges.
Revenue declined 4.1% to $1.43 billion. The top line was hurt by lower year-end product sales in the Eastern Hemisphere and decreased revenues associated with the divested land drilling rigs in the Middle East and pressure pumping assets in the US. This was partially offset by higher revenues from integrated service projects and product sales in Latin America.
Related: Weatherford Q3 2018 earnings report
Revenues in the Western Hemisphere rose 2% helped by increases from integrated service projects in Latin America and managed pressure drilling services in the US. This was offset by lower activity levels in Canada and the sale of pressure pumping assets in the US in the fourth quarter of 2017.
In the Eastern Hemisphere, revenues fell 11% due to the reduction of revenue associated with the completed closings of its land drilling rigs divestiture and lower Production product sales in the Middle East.
Also read: Weatherford fourth quarter 2018 earnings conference call transcript
The company said it achieved targeted annualized recurring transformation benefits of about $400 million, which represents 40% of the $1 billion total transformation target.
Weatherford said its year-end liquidity position of over $900 million and the recent divestiture of its laboratory services and surface data logging businesses will continue to improve net debt position as the company moves through 2019. This gives the company sufficient liquidity to continue to execute on its strategic initiatives and pay down near-term maturities.
Shares of Weatherford opened lower on Friday but changed course to the green territory. The stock has fallen over 82% in the past year and over 47% in the past three months.