Weatherford International(WFRD)2025-04-29 20:41Financial Data and Key Metrics Changes - Revenue for Q1 2021 was $832 million, down 1% sequentially and 32% year-over-year, primarily due to increased drilling and intervention services in North America offset by declines in the Middle East, Asia, and North Africa [36][40] - Adjusted EBITDA was $102 million, with a margin of 12%, reflecting a 60 basis point improvement sequentially despite a 13% decline in product revenues [37][39] - Free cash flow was $70 million, up $72 million year-over-year, with a cash balance of $1.3 billion, an increase of $58 million sequentially [11][50][49] Business Line Data and Key Metrics Changes - In North America, revenues grew 6% sequentially, driven by a 14% increase in drilling evaluation and intervention services [40] - Latin America saw a 3% sequential revenue growth, with DEI revenue growth of 8% offsetting declines in completion and production [42] - Eastern Hemisphere revenues declined 6% sequentially, with a 17% drop in completion and production revenues, while DEI revenues increased by 5% [44][46] Market Data and Key Metrics Changes - North America experienced a meaningful increase in activity, with rig counts improving, while international logistics disruptions continued to impact operations [29][30] - There are signs of pent-up demand in key markets like the Middle East and Latin America, although the timing of recovery may extend into 2022 [31][32] Company Strategy and Development Direction - The company aims to enhance commercial traction of new technologies, leverage scale for growth, and focus on digital transformation and energy transition [26][60] - The strategy includes exiting uncompetitive markets and focusing on profitable product lines, particularly in North America [29][87] - The company is also investing in geothermal energy and carbon capture technologies as part of its long-term strategic focus [67][104] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable profitability and free cash flow generation, emphasizing the importance of structural changes to drive profitability at flat activity levels [59][86] - The company remains cautious about the ongoing impacts of COVID-19 on international operations and logistics, which may affect growth in the near term [54][88] Other Important Information - The company filed a registration statement with the SEC to relist on NASDAQ under the ticker symbol WFRD, expected to be completed in Q2 2021 [12][52] - Capital expenditures for 2021 are projected to be between $100 million and $130 million, with a focus on investments that provide clear returns [56][97] Q&A Session Summary Question: Potential big retenders from National Oil Companies - Management noted that most activity is in the Middle East, with product line-specific tenders expected to provide opportunities for market share recovery [72][73] Question: Pricing for service companies in the Middle East - Management acknowledged tighter capacity and potential for price increases, but emphasized the importance of maintaining margins over chasing volume [75][78] Question: Outlook for Managed Pressure Drilling (MPD) business - Management expressed excitement about MPD, noting its current adoption rate is below 10%, with significant growth potential in the coming years [80][82] Question: Guidance for Q2 2021 - Management indicated that Q2 revenues are expected to be flat compared to Q1, with a focus on profitability at current activity levels [57][86] Question: Current status of credit facility discussions - Management is in dialogue with banking partners, noting improved sentiment towards the oilfield services market, but no timeline for finalizing a facility yet [91][92] Question: Working capital expectations for the year - Management expects working capital to be a slight positive for the year, but not as favorable as in 2020 [100][101]