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Sep 30, 2023

Weatherford Q3 2023 Earnings Report

Weatherford's Q3 2023 performance reflected top-line growth, margin expansion, and free cash flow generation, with adjusted EBITDA margins reaching a record high.

Key Takeaways

Weatherford International plc announced its Q3 2023 results, showcasing a 17% year-over-year increase in revenues to $1,313 million. The company's operating income rose to $218 million, and net income reached $123 million, a 339% increase year-over-year. Adjusted EBITDA was $305 million, a 43% increase year-over-year. The company also highlighted its enhanced liquidity and balance sheet flexibility through a new $550 million credit facility.

Revenues for Q3 2023 were $1,313 million, up 17% year-over-year.

Operating income reached $218 million, compared to $121 million in Q3 2022.

Net income increased to $123 million, a 339% increase year-over-year.

Adjusted EBITDA increased to $305 million, a 43% increase year-over-year.

Total Revenue
$1.31B
Previous year: $1.12B
+17.2%
EPS
$1.66
Previous year: $0.4
+315.0%
Adjusted EBITDA Margin
0.23%
Previous year: 19.1%
-98.8%
Gross Profit
$454M
Previous year: $345M
+31.6%
Cash and Equivalents
$946M
Previous year: $933M
+1.4%
Free Cash Flow
$137M
Previous year: $133M
+3.0%
Total Assets
$4.9B
Previous year: $4.71B
+4.0%

Weatherford

Weatherford

Weatherford Revenue by Segment

Weatherford Revenue by Geographic Location

Forward Guidance

Weatherford expects revenues to continue to grow in the fourth quarter and now expects full year adjusted EBITDA margins to expand over 400 basis points year-over-year, with adjusted free cash flow over $450 million.

Positive Outlook

  • Revenues expected to continue growing in Q4
  • Full-year adjusted EBITDA margins are expected to expand over 400 basis points year-over-year
  • Adjusted free cash flow expected to exceed $450 million
  • Enhanced liquidity and balance sheet flexibility with new credit facility
  • Strong momentum to close the year

Challenges Ahead

  • Global political disturbances
  • Changes in global trade policies
  • Weak local economic conditions and international currency fluctuations
  • Cybersecurity issues
  • Macroeconomic outlook for the oil and gas industry