Weatherford Q3 2020 Earnings Report
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.
Weatherford
Weatherford
Weatherford Revenue by Segment
Weatherford 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