Weatherford International(US:WFRD)2021-11-01 16:00Financial Performance - Revenues totaled $945 million in Q3 2021, an increase of $138 million or 17% compared to Q3 2020[66] - Service revenues increased by 28% year-over-year, primarily driven by higher demand in Completion and Production (C&P) and Drilling, Evaluation and Intervention (DEI) services in North America and South America[67] - Total operating income improved by $131 million in Q3 2021 compared to Q3 2020, primarily due to the absence of impairment and restructuring charges[69] - Total operating income for the first nine months of 2021 was $83 million, a significant improvement of $1,462 million compared to a loss of $1,379 million in the same period of 2020[86] - Net loss attributable to Weatherford for the first nine months of 2021 was $289 million, an improvement of $1,432 million or 83% compared to a loss of $1,721 million in 2020[86] Revenue Breakdown - Western Hemisphere revenues increased by $42 million or 3% in the first nine months of 2021, driven by higher business activity levels for C&P services and products[87] - Eastern Hemisphere revenues decreased by $205 million or 13% in the first nine months of 2021, attributed to a decline in international activity due to the COVID-19 pandemic[88] Market Conditions - Average oil prices for WTI rose to $70.62 per barrel in Q3 2021, a 73% increase from $40.89 in Q3 2020[75] - Natural gas prices increased by 118% year-over-year, averaging $4.36 per MMBtu in Q3 2021[76] - The average rig count in North America increased to 647 in Q3 2021, up from 301 in Q3 2020, reflecting a recovery in drilling activity[75] Cash Flow and Liquidity - Cash provided by operating activities was $234 million for the first nine months of 2021, an increase of $46 million compared to $188 million in the same period of 2020[100] - Non-GAAP free cash flow for the first nine months of 2021 was $229 million, compared to $101 million in the same period of 2020[107] - Total cash and cash equivalents at September 30, 2021, were $1.45 billion, an increase of $161 million compared to the end of 2020[99] - Cash and cash equivalents totaled $1.45 billion as of September 30, 2021, including $155 million in restricted cash[118] Debt and Financing - Interest expense for the first nine months of 2021 was $211 million, an increase of $30 million or 17% compared to $181 million in the same period of 2020[91] - The company issued $500 million of 6.5% Senior Secured Notes maturing on September 15, 2028, to enhance liquidity[112] - The company issued $1.6 billion of 8.625% senior notes due April 30, 2030, and used the proceeds to redeem $1.6 billion in principal of its Exit Notes[114] - The company expects to make annual interest payments of approximately $204 million after refinancing its Exit Notes and the 2024 Secured Notes, down from $275 million[117] Credit Ratings - Standard and Poor's upgraded the credit rating of the company's Exit Notes to CCC+ with a stable outlook on July 1, 2021[121] - Moody's assigned a B3 rating to the company's new 2030 Senior Unsecured Notes and changed its outlook to stable from negative on October 12, 2021[122] Operational Challenges - The company continues to face challenges from inflationary pressures and supply chain disruptions due to the ongoing COVID-19 pandemic[79] - The company anticipates utilizing cash to invest in capital assets and inventory as business activity rises to pre-COVID-19 levels[115] Other Financial Metrics - The company had $329 million of letters of credit outstanding as of September 30, 2021, which included $173 million under the LC Credit Agreement[124] - The company had outstanding surety bonds of $287 million, primarily in Latin America, as of September 30, 2021[125] - The company received cash proceeds from the sale of accounts receivable of $12 million and $46 million for the three and nine months ended September 30, 2021, respectively, compared to $10 million and $30 million in the same periods of 2020[120]