Weatherford Q3 2022 Earnings Report
Key Takeaways
Weatherford International plc announced strong Q3 2022 results, with revenues of $1,120 million, a 5% sequential increase. The company reported a net income of $28 million and operating income of $121 million. Adjusted EBITDA was $214 million, representing a 19.1% margin. Free cash flow was $133 million, driven by higher adjusted EBITDA margins and working capital efficiency.
Revenues increased 5% sequentially to $1,120 million, driven by higher Drilling and Evaluation activity.
Net income reached $28 million, with operating income at $121 million.
Adjusted EBITDA was $214 million, with a 19.1% margin, a 160 basis point sequential improvement.
Free cash flow was $133 million, boosted by higher adjusted EBITDA margins and efficient working capital management.
Weatherford
Weatherford
Weatherford Revenue by Segment
Weatherford Revenue by Geographic Location
Forward Guidance
The company expects full-year 2022 revenue to grow by high-teens year-over-year and for EBITDA margins to expand by over 200 basis points year-over-year.
Positive Outlook
- Solid execution
- Increased market activity
- Dedicated customer focus
- Strong fundamentals in the macro-environment
- Recently announced contract awards for Aramco and PDO
Challenges Ahead
- Inflationary headwinds
- Geopolitical headwinds
- Potential extended business interruptions due to the Russia-Ukraine conflict
- Sanctions imposed by various countries
- Associated operational and logistical challenges