Weatherford Announces Second Quarter 2024 Results and Shareholder Return Program

Core Insights - Weatherford International plc reported strong financial results for Q2 2024, with revenues of $1,405 million, reflecting a 3.5% sequential increase and a 10% year-over-year growth [31][57] - The company anticipates mid-single-digit sequential revenue growth in the second half of the year, with adjusted EBITDA margins expected to exceed 25% for the full year [2][31] - Weatherford has initiated a shareholder return program, including a quarterly dividend of $0.25 per share and a $500 million share repurchase program over three years [4][32] Financial Performance - Adjusted EBITDA for Q2 2024 was $365 million, a 9% increase sequentially and a 25% increase year-over-year, with an adjusted EBITDA margin of 26.0% [31][57] - Net income for Q2 2024 was $125 million, representing a 12% sequential increase and a 52% year-over-year increase, with a net income margin of 8.9% [31][57] - Cash flows from operating activities were $150 million, with adjusted free cash flow of $96 million, marking a $14 million increase sequentially but a $76 million decrease year-over-year [6][31] Segment Performance - The Drilling & Evaluation (DRE) segment reported revenues of $427 million, a 1% sequential increase and an 8% year-over-year increase, driven by higher Managed Pressure Drilling activity [36][57] - The Well Construction and Completions (WCC) segment achieved revenues of $504 million, a 10% sequential increase and a 15% year-over-year increase, primarily due to increased activity in the Middle East/North Africa/Asia [11][38] - The Production and Intervention (PRI) segment generated revenues of $369 million, a 6% sequential increase and a 1% year-over-year increase, supported by higher activity in Middle East/North Africa/Asia [40][41] Geographic Performance - North America revenue decreased by 6% sequentially to $252 million, primarily due to seasonal declines in Canada [41] - International revenue increased by 6% sequentially to $1,153 million, with a 14% year-over-year growth, driven by strong performance in the Middle East/North Africa/Asia region [16][31] - The Middle East/North Africa/Asia region saw a revenue increase of 9% sequentially and 29% year-over-year, reaching $542 million [17][31] Operational Highlights - Weatherford secured multiple contracts, including a five-year contract for Directional Drilling services in Bahrain and a three-year contract for Tubular Running Services in the Malaysia-Thailand Joint Development Area [7] - The company launched ForeSite® EDGE 2.0, an IoT-enabled automation solution aimed at enhancing production optimization [34][38]