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Dec 31, 2019
Weatherford Q4 2019 Earnings Report
Weatherford announced Q4 2019 results, emerging from Chapter 11 bankruptcy protection and eliminating $6.2 billion of debt through financial restructuring.
Key Takeaways
Weatherford's Q4 2019 results were impacted by industry challenges, including activity reductions in North America and the economic crisis in Argentina. The company's combined revenues for the quarter were $1.2 billion. Despite these challenges, the company is focused on improving its business and sees meaningful opportunities for long-term growth.
Weatherford emerged from Chapter 11 bankruptcy protection and eliminated $6.2 billion in debt.
Q4 revenues were $1.2 billion, a 5% sequential decline.
International revenues accounted for approximately 70% of total combined revenues.
Adjusted EBITDA margins expanded by 350 basis points sequentially during the second half of the year.
Weatherford
Weatherford
Weatherford Revenue by Segment
Weatherford Revenue by Geographic Location
Revenue by Segment
DRE Revenue
CapyFin.comWCC Revenue
CapyFin.comPRI Revenue
CapyFin.comRevenue by Geographic Location
North America Revenue
CapyFin.comLatin America Revenue
CapyFin.comME/NA/Asia Revenue
CapyFin.comEurope/SSA/Russia Revenue
CapyFin.com Forward Guidance
Despite a challenging outlook, Weatherford is committed to improving its profitability and free cash flow in 2020 by embedding a returns-focused mindset into the organization, continuing cost-reduction efforts, and eliminating non-recurring financial restructuring costs.
Positive Outlook
- Embedding a returns-focused mindset into the organization
- Continued cost-reduction efforts
- Non-recurrence of costs associated with our financial restructuring
- Contract with ADNOC to deliver directional drilling services
- Contract extension to provide integrated services for shallow-water operations in Mexico
Challenges Ahead
- Significant uncertainty on the industry’s trajectory for 2020
- Global impacts surrounding the COVID-19 pandemic, including operational and manufacturing disruptions, logistical constraints, and travel restrictions, are rapidly evolving and increasingly dynamic.
- Recent actions by certain members of OPEC and its partners have also disrupted the supply/demand equation, resulting in commodity price weakness and reductions to the capital spending plans of our customers.
- Implementing more aggressive actions to right-size our business, including further structural reductions in North America, adjustments to our manufacturing capacity, exiting unprofitable geographies, and lowering global support costs.
- Economic crisis in Argentina
Revenue & Expenses
Visualization of income flow from segment revenue to net income