Weatherford International(US:WFRD)2021-05-05 16:00Revenue Performance - Revenues totaled $832 million for the three months ended March 31, 2021, a decrease of $383 million, or 32%, compared to the same period in 2020[71] - The Western Hemisphere revenues decreased by $198 million, or 34%, year-over-year, but increased by 5% sequentially due to higher DEI sales and seasonal activity[92] - Eastern Hemisphere revenues decreased by $185 million, or 30%, for the three months ended March 31, 2021, compared to the same period in 2020, due to lower service and product sales in C&P and DEI product lines[93] Operating Results - Consolidated operating results improved by $809 million, or 98%, compared to the same period in 2020, primarily due to lower impairment and restructuring charges[72] - Consolidated operating loss for the three months ended March 31, 2021, decreased by $809 million, or 98%, compared to the same period in 2020, primarily due to lower impairment and restructuring charges[94] - Segment operating income was $5 million for the three months ended March 31, 2021, a decrease of $42 million compared to the same period in 2020[73] - Segment operating income for the three months ended March 31, 2021, was $5 million, a decrease of $42 million compared to the same period in 2020, driven by lower demand for services[95] - Western Hemisphere segment operating income decreased by $5 million to $24 million for the three months ended March 31, 2021, impacted by adverse weather and lower activity levels[96] - Eastern Hemisphere segment operating loss was $19 million for the three months ended March 31, 2021, deteriorating by $37 million compared to the same period in 2020[97] Pricing and Market Conditions - The average oil price (WTI) was $57.79 per barrel for the three months ended March 31, 2021, compared to $45.76 in the same period in 2020[79] - The average natural gas price (Henry Hub) was $3.56 per MMBtu for the three months ended March 31, 2021, compared to $1.91 in the same period in 2020[79] - The oilfield services industry growth is highly dependent on external factors such as oil prices, customer capital expenditures, and geopolitical conditions[86] Cash Flow and Financial Position - Cash provided by operating activities was $74 million for the three months ended March 31, 2021, compared to $30 million for the same period in 2020, driven by improved collections[107] - Non-GAAP free cash flow was $70 million for the three months ended March 31, 2021, compared to negative $2 million for the same period in 2020[110] - Total cash and cash equivalents, including restricted cash, totaled $1.3 billion at March 31, 2021, an increase of $58 million compared to December 31, 2020[106] - As of March 31, 2021, the company had $2.1 billion in aggregate principal amount maturing on December 1, 2024, and $500 million maturing on September 1, 2024, with expected annual interest payments of approximately $275 million[114] Risks and Challenges - The company acknowledges that forward-looking statements are subject to numerous risks and uncertainties, which may cause actual outcomes to differ materially from expectations[124] - Risks include potential impacts from disease outbreaks like COVID-19, affecting global economy and business operations[126] - The company faces challenges related to oil and natural gas price volatility, which could impact revenue and profitability levels[126] - There are concerns regarding the ability to generate cash flow from operations to fund ongoing activities[126] - The company emphasizes the importance of attracting and retaining key personnel to ensure operational success[126] - Compliance with current and future laws and regulations is critical to avoid potential liabilities[126] - The company has not experienced significant changes in market risk exposure since December 31, 2020[127] Strategic Initiatives - The company is enhancing its digital portfolio and applications to offer integrated digital oilfield solutions and increased automation[84] - The company expects consolidated revenues in 2021 to align with current activity levels, projecting low- to mid-single-digit growth in the Western Hemisphere and low-single-digit contraction in the Eastern Hemisphere[85] - The company has experienced delays in key components and logistical constraints due to the ongoing COVID-19 pandemic, impacting operations[83]