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Dec 31, 2020
Weatherford Q4 2020 Earnings Report
Announced Q4 and full-year 2020 results, showing sequential revenue growth and improved free cash flow.
Key Takeaways
Weatherford International plc reported Q4 2020 revenues of $842 million, a 4% sequential increase. The company's operating loss was $107 million, with an adjusted EBITDA of $98 million. Cash flow from operating activities was $22 million, and unlevered free cash flow was $95 million. The company ended the year with $1.3 billion in total cash.
Q4 2020 revenues increased by 4% sequentially, driven by growth in North America and internationally.
The company achieved another quarter of double-digit adjusted EBITDA margins.
Full-year 2020 adjusted EBITDA decrementals were limited to 9% year-on-year.
Weatherford generated $78 million of positive free cash flow in 2020, an improvement of $950 million year-on-year.
Revenue by Geographic Location
Forward Guidance
Weatherford has built its 2021 cost plan assuming activity levels remain flat versus 2020 exit levels and identified several focus areas to continue driving improvements.
Positive Outlook
- Continue to improve our profitability in North America
- Simplify our organization
- Implementing initiatives to improve the variable cost profile of our operations
- Capitalize on our margin improvements
- Remain disciplined when evaluating and allocating capital expenditures
Challenges Ahead
- Continued uncertainty around the timing and magnitude of a recovery
- Due to the COVID-19 pandemic and its impact on economic activity
- Assuming activity levels remain flat versus 2020 exit levels
- Implement new processes to catalyze further working capital efficiencies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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