Weatherford International(WFRD) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter revenue was $1,341 million, a decrease of 5% sequentially and 2% year-over-year; full year revenue increased by 7% to $5,513 million, driven by a 10% growth in international revenue[2] - Fourth quarter operating income was $198 million, down 19% sequentially and 8% year-over-year; full year operating income increased by 14% to $938 million[2] - Fourth quarter net income was $112 million with an 8.4% margin, a decrease of 29% sequentially and 20% year-over-year; full year net income increased by 21% to $506 million with a 9.2% margin[2] - Fourth quarter adjusted EBITDA was $326 million, a 24.3% margin, down 8% sequentially but up 2% year-over-year; full year adjusted EBITDA increased by 17% to $1,382 million[2] - Total revenues for the three months ended December 31, 2024, were $1,341 million, a decrease of 4.8% from $1,409 million in the previous quarter and an increase of 0.7% from $1,362 million in the same quarter last year[48] - Net income attributable to Weatherford for the three months ended December 31, 2024, was $112 million, down 28.7% from $157 million in the previous quarter and up 8.6% from $140 million in the same quarter last year[48] - Adjusted EBITDA for the DRE segment was $96 million for the three months ended December 31, 2024, compared to $111 million in the previous quarter and $97 million in the same quarter last year[48] - Revenues for Q4 2024 were $1,341 million, a slight decrease from $1,362 million in Q4 2023, while total revenues for the year increased to $5,513 million from $5,135 million[63] - Net income attributable to Weatherford for Q4 2024 was $112 million, down from $140 million in Q4 2023, with a net income margin of 8.4% compared to 10.3% in the previous year[63] - Adjusted EBITDA for Q4 2024 was $326 million, slightly lower than $321 million in Q4 2023, with an adjusted EBITDA margin of 24.3% compared to 23.6% in the prior year[63] Cash Flow and Shareholder Returns - Fourth quarter cash provided by operating activities was $249 million; full year cash provided by operating activities totaled $792 million[2] - Shareholder return for the fourth quarter was $67 million, including $18 million in dividends and $49 million in share repurchases; total shareholder return for the year was $135 million[2] - Cash flows from operating activities for the year ended December 31, 2024, were $792 million, compared to $832 million for the previous year, reflecting a decrease of 4.8%[53] - Net cash provided by operating activities for Q4 2024 was $249 million, down from $375 million in Q4 2023, while adjusted free cash flow was $162 million compared to $315 million in the same period last year[63] Segment Performance - Fourth quarter Drilling and Evaluation segment revenue was $398 million, a decrease of 9% sequentially but an increase of 4% year-over-year; full year revenue increased by 10% to $1,682 million[15][17] - Fourth quarter Well Construction and Completions segment revenue was $505 million, down 1% sequentially but up 5% year-over-year; full year revenue increased by 10% to $1,976 million[19][24] - Fourth quarter 2024 PRI revenue was $364 million, a decrease of $7 million, or 2% sequentially, and a decrease of $22 million, or 6% year-over-year[25] - Fourth quarter 2024 PRI segment adjusted EBITDA was $78 million, down $5 million, or 6% sequentially, and down $10 million, or 11% year-over-year[26] - Full year 2024 PRI revenues totaled $1,452 million, a decrease of $20 million, or 1% compared to 2023[27] - Full year 2024 PRI segment adjusted EBITDA was $319 million, a decrease of $4 million, or 1% compared to 2023[28] Regional Revenue Performance - North America revenue for Q4 2024 was $261 million, a decrease of $5 million, or 2% sequentially, but an increase of $13 million, or 5% year-over-year[31] - International revenue for Q4 2024 was $1,080 million, a decrease of 6% sequentially and 3% year-over-year, while full year 2024 international revenue increased by 10% to $4,467 million[33] - Latin America revenue for Q4 2024 was $312 million, a decrease of $46 million, or 13% sequentially, and a decrease of $30 million year-over-year[34] - Middle East/North Africa/Asia revenue for Q4 2024 was $542 million, flat sequentially, with a year-over-year decrease of $5 million, or 1%[35] - Europe/Sub-Sahara Africa/Russia revenue for Q4 2024 was $226 million, a decrease of $17 million, or 7% sequentially, but full year revenue increased by $86 million, or 10% compared to 2023[38] Debt and Equity - Total shareholders' equity increased to $1,283 million as of December 31, 2024, from $922 million as of December 31, 2023, representing a growth of 39.2%[49] - The company’s long-term debt decreased to $1,617 million as of December 31, 2024, from $1,715 million as of December 31, 2023, a reduction of 5.7%[49] - Total debt as of December 31, 2024, was $1,634 million, a decrease from $1,883 million a year earlier, with net debt at $659 million compared to $820 million in Q4 2023[65] - The company’s net debt, calculated as total debt less cash and cash equivalents and restricted cash, is a key measure for assessing its ability to service debt[51] - The net leverage ratio improved to 0.48x as of December 31, 2024, down from 0.69x a year earlier[65] Capital Expenditures - The company reported capital expenditures of $100 million for the three months ended December 31, 2024, compared to $78 million in the previous quarter and $67 million in the same quarter last year[53] - Capital expenditures for property, plant, and equipment in Q4 2024 were $100 million, compared to $67 million in Q4 2023[63] Strategic Initiatives - Weatherford secured multiple contracts, including a three-year contract for rigless services from ADNOC and a Managed Pressure Drilling contract from Kuwait Oil Company[10] - The company signed a strategic partnership with SPARK in Saudi Arabia to enhance local presence and production capabilities, aligning with Saudi Arabia's Vision 2030[11] Upcoming Events - The company will host a conference call on February 6, 2025, to discuss the fourth quarter results[40] Other Charges - Other charges in Q4 2024 primarily included severance and restructuring costs related to collections from a major customer in Mexico[63]