Weatherford International(US:WFRD)2024-10-23 20:32Financial Performance - Revenues for the three and nine months ended September 30, 2024, were $1.4 billion and $4.2 billion, representing increases of 7% and 11% compared to $1.3 billion and $3.8 billion for the same periods in 2023[65] - Operating income for the three and nine months ended September 30, 2024, was $243 million and $740 million, reflecting increases of 11% and 23% compared to $218 million and $604 million in the same periods of 2023[67] - Product revenues increased by 10% and service revenues by 11% year-over-year for the nine months ended September 30, 2024, with contributions from Well Construction and Completions (38%) and Drilling and Evaluation (33%) segments[65] - Total revenues for Q3 2024 were $1,409 million, reflecting a $96 million or 7% increase from $1,313 million in Q3 2023[80] Segment Performance - DRE revenues increased to $435 million in Q3 2024, up $47 million or 12% from $388 million in Q3 2023[81] - WCC revenues reached $509 million in Q3 2024, an increase of $50 million or 11% compared to $459 million in Q3 2023[84] - DRE segment adjusted EBITDA was $111 million in Q3 2024, flat compared to Q3 2023, while nine-month adjusted EBITDA increased by $46 million or 14%[83] - WCC segment adjusted EBITDA rose to $151 million in Q3 2024, a $32 million or 27% increase from $119 million in Q3 2023[85] - PRI revenues remained flat at $371 million in Q3 2024, with a slight increase of $2 million or 0.2% year-over-year[86] Costs and Expenses - Selling, general, administrative, and research and development costs were $236 million and $719 million for the three and nine months ended September 30, 2024, showing a decrease of 2% and an increase of 5% compared to the same periods in 2023[69] - Corporate expenses were $13 million in Q3 2024, a decrease from $18 million in Q3 2023, primarily due to reduced professional fees[89] - Interest expense, net was $24 million and $77 million for the three and nine months ended September 30, 2024, down from $30 million and $92 million in the same periods of 2023[71] Cash Flow and Capital Management - Cash provided by operating activities increased to $543 million for the nine months ended September 30, 2024, compared to $457 million for the same period in 2023, driven by revenue growth and higher collections from the largest customer in Mexico[92] - Cash used in investing activities rose to $207 million for the nine months ended September 30, 2024, compared to $158 million in the prior year, primarily due to capital expenditures of $199 million[93] - Cash used in financing activities decreased to $378 million for the nine months ended September 30, 2024, from $388 million in the same period in 2023, with long-term debt repayments totaling $264 million[94] - The company declared a cash dividend of $0.25 per share, with $18 million paid in dividends during the third quarter of 2024[94] - As of September 30, 2024, the company had cash and cash equivalents of $920 million, down from $958 million at December 31, 2023[91] Strategic Outlook - The company expects overall 2024 revenue to exceed 2023 levels, driven by international and global offshore activity[90] - The company expects capital expenditures to be 3-5% of revenue over the next 12 to 18 months, maintaining the same framework for 2024[98] - The company anticipates sufficient cash from operations and cash on hand to meet both short-term and long-term cash requirements[96] Risks and Compliance - The company faces numerous risks and uncertainties that may cause actual results to differ materially from forward-looking statements, including geopolitical conflicts and economic conditions[112] - The company must navigate compliance with current and future laws and regulations, particularly those related to geopolitical issues and environmental standards[112] - The company is exposed to market risks that have not changed materially since December 31, 2023, as detailed in various notes to the financial statements[115] Operational Challenges - The company continues to evaluate operational strategies in response to the ongoing Russia-Ukraine conflict, including compliance with international laws and potential asset divestitures[63] - The company is managing supply chain challenges and disruptions as part of its operational strategy[113] - The company is monitoring the impact of disease outbreaks and public health issues on its operations and market conditions[112] Sustainability and Innovation - The company is focused on adapting its technology portfolio to meet market demands for alternative energy sources and digitalization efforts[112] - The company is addressing the need for sustainable operations and a lower carbon footprint in response to environmental initiatives[112] - The company aims to return capital to shareholders through dividends and share repurchases, although timing and amounts are subject to change[113] Internal Controls - The management evaluated the effectiveness of disclosure controls and procedures as of September 30, 2024, concluding they were effective[117] - There were no changes in internal control over financial reporting during the three months ended September 30, 2024, that materially affected the controls[118]