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Sep 30, 2021

Weatherford Q3 2021 Earnings Report

Weatherford's Q3 2021 earnings reflected a commitment to driving positive operating performance despite weather impacts and rising inflation.

Key Takeaways

Weatherford International plc announced its Q3 2021 results with revenues of $945 million, a 5% sequential increase. Operating income totaled $71 million, and adjusted EBITDA reached $179 million, representing a 19% margin. The company generated $111 million in free cash flow and restructured its debt capital by redeeming $200 million of unsecured notes and issuing new senior secured notes.

Revenues increased 5% sequentially, driven by a 6% increase in service revenues.

Operating income totaled $71 million with adjusted EBITDA of $179 million, representing 19% adjusted EBITDA margins.

Cash provided by operating activities was $114 million, and free cash flow was $111 million.

The company restructured and reduced its debt capital by redeeming unsecured notes and issuing senior secured notes.

Total Revenue
$945M
Previous year: $807M
+17.1%
EPS
-$0.63
Previous year: -$2.03
-69.0%
Gross Profit
$259M
Previous year: $176M
+47.2%
Cash and Equivalents
$1.29B
Previous year: $1.12B
+15.2%
Free Cash Flow
$111M
Previous year: $105M
+5.7%
Total Assets
$5.15B
Previous year: $5.07B
+1.5%

Weatherford

Weatherford

Weatherford Revenue by Segment

Weatherford Revenue by Geographic Location

Forward Guidance

Weatherford remains committed to driving sustainable profitability and free cash flow generation. The execution of the restructuring and refinancing of our debt is a significant step in the evolution of our capital structure and addressing its inefficiencies.

Positive Outlook

  • Continued commitment to driving positive operating performance
  • Strategic initiatives continue to guide progress
  • Improvements across all focus areas, including North American profitability
  • Improvements in global inventory utilization
  • Improvements in capital structure

Challenges Ahead

  • Negative weather impacts
  • Rising inflation
  • Operational challenges
  • Supply chain disruptions
  • Macroeconomic outlook for the oil and gas industry