WFRD.O

Weatherford International Reports Third Quarter 2024 Financial Results

authorIntellectia.AI

2024-10-233mins

Weatherford International Reports Third Quarter 2024 Financial Results

Weatherford International plc (NASDAQ: WFRD) has announced its financial results for the third quarter of 2024, highlighting several key performance indicators and business developments.

Financial Metric Q3 2024 Actual Q2 2024 Q3 2023 YoY Change QoQ Change Consensus Estimate
Total Revenue $1.409 billion $1.405 billion $1.317 billion +7% +0.3% $1.42 billion
Net Income $157 million $124 million $123 million +28% +26% N/A
Operating Income $243 million $264 million $218 million +11% -8% N/A
Basic Earnings Per Share (EPS) $2.14 $1.71 $1.70 +26% +25% $1.71
Diluted EPS $2.06 $1.66 $1.66 +24% +24% N/A
Adjusted EBITDA $355 million $366 million $306 million +16% -3% N/A

Weatherford's earnings per share exceeded consensus estimates, showcasing strong profitability. Despite a sequential decline in operating income, the company achieved notable year-over-year gains in net income and EBITDA, reflecting efficient cost management and robust business operations.

Segment Revenue Performance

Segment Q3 2024 Revenue QoQ Change YoY Change Commentary
Drilling & Evaluation (DRE) $435 million +2% +12% Driven by increased drilling services in Middle East/North Africa/Asia
Well Construction & Completions (WCC) $509 million +1% +11% Growth due to higher international completions and liner hangers activity
Production & Intervention (PRI) $371 million +1% Flat Stability attributed to growth in digital solutions offsetting pressure pumping decline

Weatherford's segment performance, particularly in the Drilling & Evaluation and Well Construction & Completions sectors, underpinned overall revenue growth, demonstrating resilience despite macroeconomic challenges.

Key Developments and Operational Highlights

  • Credit rating upgrades by S&P Global Ratings and Fitch to ‘BB-’ with positive and stable outlooks, respectively.
  • A notable three-year Corporate Procurement Agreement (CPA) with Aramco.
  • Deployment of Victus™ Managed Pressure Drilling (MPD) systems in Middle East geothermal exploration.
  • Acquisition of Datagration, enhancing digital offerings for production and asset optimization.
  • Successful 20th annual FWRD conference emphasizing digitalization and sustainable efficiency.

Management Commentary

Girish Saligram, President and CEO, emphasized the company’s strong margin delivery amidst a challenging macroeconomic landscape. The acquisition of Datagration is seen as a strategic move to bolster Weatherford's position in the digital transformation of the energy sector, aligning with long-term growth objectives.

Shareholder Returns

During the quarter, Weatherford announced a share repurchase program amounting to $50 million and a dividend payout of $18 million. A quarterly dividend of $0.25 per share will be issued on December 5, 2024, to shareholders of record as of November 6, 2024.

Forward Guidance

Weatherford maintained a positive outlook for full-year revenue growth and adjusted EBITDA margins exceeding 25%, despite acknowledging potential risks brought about by geopolitical tensions and the broader economic environment.

Stock Price Movement

Following the earnings release, Weatherford's stock price experienced a slight decline of approximately 0.9%, reflecting market reactions to the disclosed results.

The report is well-structured and provides comprehensive information for investors. No changes are necessary.

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