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Sep 30, 2020
Weatherford Q3 2020 Earnings Report
Weatherford's financial performance declined sequentially and year-over-year, but showed improvements in cost savings and liquidity.
Key Takeaways
Weatherford International plc reported revenues of $807 million for Q3 2020, a 2% sequential decrease and a 39% year-over-year decrease. The company's operating loss was $60 million, and the net loss was $174 million. However, the company achieved $107 million in unlevered free cash flow and total cash of $1.3 billion, enhanced by cost savings and financing transactions.
Revenues declined 2% sequentially, with North America growth of 2% offset by international declines of 3%.
Operating loss was $60 million, with adjusted EBITDA at $104 million.
Cash flows from operations reached $127 million, and unlevered free cash flow was $107 million.
Total cash was $1.3 billion as of September 30, 2020, following liquidity-enhancing transactions.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
While the market outlook remains cautious, Weatherford is encouraged by the stabilization of activity in certain geographies and a gradual path to recovery in others.
Positive Outlook
- Activity stabilization in certain geographies.
- Gradual path to recovery in others.
- Extended runway for capitalizing on new opportunities.
- Focus on leveraging sustainable competitive advantages.
- Refining company strategy
Challenges Ahead
- Cautious market outlook.
- Impact of activity reductions.
- Need for further cost and efficiency improvements.
- Reliance on cost savings plan.
- COVID-19 pandemic
Historical Earnings Impact
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Avg. Return Before/After Earnings
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