HOUSTON, July 28, 2021 /PRNewswire/ -- Weatherford
International plc (NASDAQ: WFRD) ("Weatherford" or the "Company") announced today
its results for the second quarter of 2021.
Revenues for the second quarter of 2021 were $903 million, an increase of 9% sequentially
and 10% year-on-year. Reported operating income was
$25 million in the second quarter of
2021, compared to an operating loss of $13
million in the first quarter of 2021 and an operating loss
of $497 million in the second quarter
of 2020. The Company's second-quarter 2021 net loss was
$78 million, compared to a net loss
of $116 million in the first quarter
of 2021 and a net loss of $581
million in the second quarter of 2020.
Second-quarter 2021 cash flows provided by operations were
$46 million, compared to $74 million in the first quarter of 2021 and
$31 million in the second quarter of
2020. Capital expenditures were $9
million in the second quarter of 2021, compared to
$15 million in the first quarter of
2021 and $35 million in the second
quarter of 2020.
- Second-quarter 2021
-
- Adjusted EBITDA[1] of $136
million, an increase of 33% sequentially and 72%
year-over-year
- Unlevered free cash flow[1] of $165 million, an increase of $71 million sequentially and $57 million year-over-year
- Free cash flow of $48 million, a
decline of only $22 million
sequentially, despite $117 million in
interest payments, representing an improvement of $50 million year-on-year
Girish Saligram, President and
Chief Executive Officer, commented, "I am pleased with our second
quarter results, as we delivered another quarter of positive
operating performance. We made further progress on our strategic
initiatives by driving improvements across all focus areas,
including North American profitability and global inventory
utilization.
"Our results from the second quarter of 2021 clearly demonstrate
that efforts to streamline the business over the last several
quarters have begun to take hold. We capitalized on activity
improvements to grow revenue and capture significant fall-through
from cost control, which led to expanded margins and positive free
cash flow. We also saw increased traction of the commercialization
of our field-proven technologies led by market-leading MPD and TRS
as evidenced in the Middle East
and Latin America, where we
secured new contracts. These awards are a testament to our
abilities in challenging environments and support our reputation as
the preferred global provider within these product lines.
"Our most recent results also indicate growing momentum for two
of our Company's strategic vectors, digitalization and the energy
transition, as we secured multiple contracts to supply production
automation solutions for operators in Europe and the Middle East. Additionally, we added to our
successful track record for the Firma™ plug & abandonment
solution in Europe by replacing a
competitor and delivering the entire scope of work early.
"We exited the second quarter of 2021 with a strong liquidity
position by generating $48 million of
positive free cash flow, despite $117
million in interest payments. This achievement resulted from
improved operating performance, disciplined capital allocation and
expenditures, and reduced working capital.
"Lastly, I am also pleased to share that we recently completed
the listing of our shares on the NASDAQ stock exchange and the
results from this quarter further validate our decision to relist.
I am incredibly proud of our team's efforts that build upon our
history of innovation and customer focus. While we forge our path
as the new Weatherford, I believe
our best days are ahead."
Notes:
[1] EBITDA represents income before
income tax, depreciation and amortization expense. Adjusted EBITDA
excludes, among other items, impairments of long-lived assets and
goodwill, restructuring expense, share-based compensation expense,
as well as write-offs of property plant and equipment, right-of-use
assets, and inventory. Free cash flow is calculated as cash flows
provided by (used in) operating activities, less capital
expenditures plus proceeds from the disposition of assets.
Unlevered free cash flow is calculated as free cash flow plus cash
paid for interest. EBITDA, adjusted EBITDA, free cash flow and
unlevered free cash flow are non-GAAP measures. Each measure is
defined and reconciled to the most directly comparable GAAP measure
in the tables below.
Operational Highlights
- Weatherford received the
Kuwait Oil Company ("KOC") CEO HSSE Award for logging and
perforation services. The award recognizes outstanding health,
safety, security and environment achievements.
- As a further testament of the Company's digital capabilities,
Weatherford officially launched
the first phase of a contract for rigsite data management and
visualization services with KOC and completed the implementation of
the Centro™ drilling optimization software platform and helped to
establish KOC's real-time drilling decision center.
- Weatherford signed a five-year
well screens contract with bp in Azerbaijan. This agreement directly follows
the safety-valve contract win during the prior quarter, which makes
two concurrent, multiyear contracts with a major operator.
- A major national oil company in the Middle East awarded Weatherford a five-year completion contract to
provide OptiPkr™ production packers, completion accessories, and
other items for 80 wells. Under a previous contract for the same
scope of work, Weatherford
delivered reliable products and excellent service quality in the
field, which drove the current award with increased share.
- In collaboration with a major drilling contractor, Weatherford secured a five-year contract to
provide tubular running services that leverage digital capabilities
for crew integration and personnel optimization in offshore
Russia. This long-term, strategic
contract displaces the incumbent and positions the Company for
future expansion of the scope of work.
- In Continental Europe, Weatherford provided an integrated drilling
solution featuring the Magnus® rotary steerable system to finish a
drilling campaign 70% faster than planned. This success enables the
continued expansion of RSS technology in that market.
- Operators in Continental Europe awarded Weatherford two contracts for de-liquification
equipment and services in more than 100 wells and ForeSite®
ecosystems in more than 200 gas wells. These awards are a
continuation of previous de-liquification services that increased
production, extended the productive life of wells, reduced
operational costs, and minimized the carbon footprint.
Liquidity
The Company maintained its disciplined focus on liquidity during
the second quarter of 2021. Unlevered free cash flow of
$165 million in the second quarter of
2021 improved by $57 million versus
the second quarter of 2020, on a 72% increase in adjusted EBITDA.
This improvement is a result of the Company's efforts to control
costs and optimize net working capital and capital expenditures.
Second-quarter 2021 free cash flow of $48
million improved by $50
million year-on-year and was only down $22 million sequentially, despite $117 million in interest payments in the second
quarter. Total cash of approximately $1.4
billion as of June 30, 2021,
was up $44 million from the prior
quarter.
Results by Operating Segment
Western Hemisphere
|
|
Quarter
Ended
|
|
Variance
|
($ in
Millions)
|
|
06/30/21
|
|
03/31/21
|
|
06/30/20
|
|
Seq.
|
|
YoY
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
220
|
|
|
$
|
214
|
|
|
$
|
172
|
|
|
3
|
%
|
|
28
|
%
|
Latin
America
|
|
205
|
|
|
176
|
|
|
138
|
|
|
16
|
%
|
|
49
|
%
|
Total
Revenues
|
|
$
|
425
|
|
|
$
|
390
|
|
|
$
|
310
|
|
|
9
|
%
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA
|
|
$
|
58
|
|
|
52
|
|
|
$
|
6
|
|
|
12
|
%
|
|
867
|
%
|
%
Margin
|
|
14
|
%
|
|
13
|
%
|
|
2
|
%
|
|
30
|
bps
|
|
1,170
|
bps
|
Second-quarter 2021 Western Hemisphere revenues of $425 million increased 9% sequentially and 37%
year-on-year. North America
revenues of $220 million increased by
3% sequentially primarily due to increased activity in the
Drilling, Evaluation & Intervention ("DEI") product line in
the United States, partially
offset by seasonally lower activity in Canada. Latin
America revenues of $205
million increased 16% sequentially, driven by increased
Integrated Service Project activity in Mexico.
Adjusted segment EBITDA of $58
million increased $6 million
and associated margins of 14% improved 30 basis points,
sequentially, and improved 1,170 basis points year-on-year. The
growth in adjusted segment EBITDA was primarily driven by increased
activity and sales in Latin
America.
Eastern Hemisphere
|
|
Quarter
Ended
|
|
Variance
|
($ in
Millions)
|
|
06/30/21
|
|
03/31/21
|
|
06/30/20
|
|
Seq.
|
|
YoY
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Middle East, North
Africa & Asia
|
|
$
|
289
|
|
|
$
|
267
|
|
|
$
|
341
|
|
|
8
|
%
|
|
(15)
|
%
|
Europe, SSA &
Russia
|
|
189
|
|
|
175
|
|
|
170
|
|
|
8
|
%
|
|
11
|
%
|
Total
Revenues
|
|
$
|
478
|
|
|
$
|
442
|
|
|
$
|
511
|
|
|
8
|
%
|
|
(6)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Segment
EBITDA
|
|
$
|
93
|
|
|
66
|
|
|
$
|
100
|
|
|
41
|
%
|
|
(7)
|
%
|
%
Margin
|
|
20
|
%
|
|
15
|
%
|
|
20
|
%
|
|
460
|
bps
|
|
(10)
|
bps
|
Second-quarter 2021 Eastern Hemisphere revenues of $478 million increased 8% sequentially and
decreased 6% year-on-year. Middle
East, North Africa, and
Asia revenues of $289 million increased 8% sequentially, with
increased sales in both the Completion and Production ("C&P")
and the DEI product lines. Europe,
Sub Saharan Africa, and Russia
revenues of $189 million increased 8%
sequentially, primarily due to increased activity in both the
C&P and DEI product lines.
Adjusted segment EBITDA of $93
million increased $27 million
and associated margins of 20% improved 460 basis points,
sequentially, and decreased 10 basis points year-on-year. The
growth in adjusted segment EBITDA was primarily due to increased
activity and sales in Middle East
and Asia.
About Weatherford
Weatherford is a leading global
energy services company. Operating in approximately 75 countries,
the Company answers the challenges of the energy industry with its
global talent network of approximately 17,000 team members and
approximately 365 operating locations, including manufacturing,
research and development, service, and training facilities. Visit
https://www.weatherford.com/ for more information or connect
on LinkedIn, Facebook, Twitter, Instagram, or YouTube.
Conference Call Details
Weatherford will host a
conference call on Thursday, July 29,
2021, to discuss the results for the second quarter ended
June 30, 2021. The conference call
will begin at 10:00 a.m. Eastern Time
(9:00 a.m. Central Time).
Listeners are encouraged to download the accompanying
presentation slides which will be available in the investor
relations section of the Company's website.
Listeners can participate in the conference call via a live
webcast at
https://www.weatherford.com/en/investor-relations/investor-news-and-events/events/,
or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762
(outside of the U.S.) and asking for the Weatherford conference call. Listeners should
log in or dial in approximately 10 minutes prior to the start of
the call.
A telephonic replay of the conference call will be available
until August 12, 2021, at
5:00 p.m. Eastern Time. To access the
replay, please dial +1 877-344-7529 (within the U.S.) or +1
412-317-0088 (outside of the U.S.) and reference conference number
10157213. A replay and transcript of the earnings call will also be
available in the investor relations section of the Company's
website.
Contacts
For Investors:
Mohammed Topiwala
Director, Investor Relations and M&A
+1 713-836-7777
investor.relations@weatherford.com
For Media:
Kelley
Hughes
Director, Global Communications
+1 713-836-4193
kelley.hughes@weatherford.com
Forward-Looking Statements
This news release contains forward-looking statements
concerning, among other things, the Company's quarterly and
full-year revenues, operating income and losses, adjusted EBITDA,
unlevered free cash flow, forecasts or expectations regarding
business outlook, cost savings plans, and capital expenditures, and
are also generally identified by the words "believe," "project,"
"expect," "anticipate," "estimate," "outlook," "budget," "intend,"
"strategy," "plan," "guidance," "may," "should," "could," "will,"
"would," "will be," "will continue," "will likely result," and
similar expressions, although not all forward-looking statements
contain these identifying words. Such statements are based upon the
current beliefs of Weatherford's
management and are subject to significant risks, assumptions, and
uncertainties. Should one or more of these risks or uncertainties
materialize, or underlying assumptions prove incorrect, actual
results may vary materially from those indicated in our
forward-looking statements. Readers are cautioned that
forward-looking statements are only predictions and may differ
materially from actual future events or results, including the
price and price volatility of oil and natural gas; the extent or
duration of business interruptions, demand for oil and gas and
fluctuations in commodity prices associated with COVID-19 pandemic;
general global economic repercussions related to COVID-19 pandemic;
the macroeconomic outlook for the oil and gas industry; and
operational challenges relating to the COVID-19 pandemic and
efforts to mitigate the spread of the COVID-19 virus and COVID-19
variants, including logistical challenges, protecting the health
and well-being of our employees, remote work arrangements,
performance of contracts and supply chain disruptions; our ability
to generate cash flow from operations to fund our operations; and
the realization of additional cost savings and operational
efficiencies. Forward-looking statements are also affected by the
risk factors described in the Company's Annual Report on Form 10-K
for the year ended December 31, 2020,
and those set forth from time-to-time in the Company's other
filings with the Securities and Exchange Commission. We undertake
no obligation to correct or update any forward-looking statement,
whether as a result of new information, future events, or
otherwise, except to the extent required under federal securities
laws.
Weatherford
International plc
|
Condensed
Consolidated Statements of Operations (Unaudited)
|
($ in Millions,
Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
6/30/21
|
|
3/31/21
|
|
6/30/20
|
|
6/30/21
|
|
6/30/20
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
|
$
|
425
|
|
|
$
|
390
|
|
|
$
|
310
|
|
|
$
|
815
|
|
|
$
|
898
|
|
Eastern
Hemisphere
|
|
478
|
|
|
442
|
|
|
511
|
|
|
920
|
|
|
1,138
|
|
Total
Revenues
|
|
903
|
|
|
832
|
|
|
821
|
|
|
1,735
|
|
|
2,036
|
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
|
28
|
|
|
24
|
|
|
(23)
|
|
|
52
|
|
|
6
|
|
Eastern
Hemisphere
|
|
6
|
|
|
(19)
|
|
|
15
|
|
|
(13)
|
|
|
33
|
|
Segment
Operating Income (Loss)
|
|
34
|
|
|
5
|
|
|
(8)
|
|
|
39
|
|
|
39
|
|
Corporate
|
|
(17)
|
|
|
(18)
|
|
|
(26)
|
|
|
(35)
|
|
|
(52)
|
|
Impairments and Other
(Charges) Credits[1]
|
|
8
|
|
|
—
|
|
|
(406)
|
|
|
8
|
|
|
(1,223)
|
|
Restructuring
Charges
|
|
—
|
|
|
—
|
|
|
(57)
|
|
|
—
|
|
|
(83)
|
|
Total Operating
Income (Loss)
|
|
25
|
|
|
(13)
|
|
|
(497)
|
|
|
12
|
|
|
(1,319)
|
|
Other Income
(Expense):
|
|
|
|
|
|
|
|
|
|
|
Interest Expense,
Net
|
|
(72)
|
|
|
(70)
|
|
|
(59)
|
|
|
(142)
|
|
|
(117)
|
|
Reorganization
Items
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9)
|
|
Other Expense,
Net
|
|
(11)
|
|
|
(4)
|
|
|
(11)
|
|
|
(15)
|
|
|
(36)
|
|
Loss Before
Income Taxes
|
|
(58)
|
|
|
(87)
|
|
|
(567)
|
|
|
(145)
|
|
|
(1,481)
|
|
Income Tax
Provision
|
|
(15)
|
|
|
(23)
|
|
|
(12)
|
|
|
(38)
|
|
|
(56)
|
|
Net
Loss
|
|
(73)
|
|
|
(110)
|
|
|
(579)
|
|
|
(183)
|
|
|
(1,537)
|
|
Net Income Attributable
to Noncontrolling Interests
|
|
5
|
|
|
6
|
|
|
2
|
|
|
11
|
|
|
10
|
|
Net Loss Attributable
to Weatherford
|
|
$
|
(78)
|
|
|
$
|
(116)
|
|
|
$
|
(581)
|
|
|
$
|
(194)
|
|
|
$
|
(1,547)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Loss
Per Share
|
|
$
|
(1.11)
|
|
|
$
|
(1.66)
|
|
|
$
|
(8.30)
|
|
|
$
|
(2.77)
|
|
|
$
|
(22.10)
|
|
Basic and Diluted
Weighted Average Shares Outstanding
|
|
70
|
|
|
70
|
|
|
70
|
|
|
70
|
|
|
70
|
|
|
|
[1]
|
See Selected
Statements of Operations Information Table for further
details.
|
Weatherford
International plc
|
Selected Balance
Sheet Data (Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
6/30/2021
|
|
12/31/2020
|
Assets:
|
|
|
|
Cash and Cash
Equivalents
|
$
|
1,217
|
|
|
$
|
1,118
|
|
Restricted
Cash
|
170
|
|
|
167
|
|
Accounts Receivable,
Net
|
782
|
|
|
826
|
|
Inventories,
Net
|
662
|
|
|
717
|
|
|
|
|
|
Property, Plant and
Equipment, Net
|
1,108
|
|
|
1,236
|
|
Intangibles,
Net
|
734
|
|
|
810
|
|
|
|
|
|
Liabilities:
|
|
|
|
Accounts
Payable
|
348
|
|
|
325
|
|
Accrued Salaries and
Benefits
|
287
|
|
|
297
|
|
Short-term Borrowings
and Current Portion of Long-term Debt
|
10
|
|
|
13
|
|
Long-term
Debt
|
2,605
|
|
|
2,601
|
|
|
|
|
|
Shareholders'
Equity:
|
|
|
|
Total Shareholders'
Equity
|
759
|
|
|
937
|
|
|
|
|
|
Components of Net
Debt[1]:
|
|
|
|
Short-term Borrowings
and Current Portion of Long-term Debt
|
10
|
|
|
13
|
|
Long-term
Debt
|
2,605
|
|
|
2,601
|
|
Less: Cash and Cash
Equivalents
|
1,217
|
|
|
1,118
|
|
Less: Restricted
Cash
|
170
|
|
|
167
|
|
Net
Debt[1]
|
$
|
1,228
|
|
|
$
|
1,329
|
|
|
[1]
|
Net debt is a
non-GAAP measure calculated as total short- and long-term debt less
cash and cash equivalents and restricted cash.
|
Weatherford
International plc
|
Selected Cash
Flows Information (Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
6/30/2021
|
|
3/31/2021
|
|
6/30/2020
|
|
6/30/21
|
|
6/30/20
|
Cash Flows From
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(73)
|
|
|
$
|
(110)
|
|
|
$
|
(579)
|
|
|
$
|
(183)
|
|
|
$
|
(1,537)
|
|
Adjustments to
Reconcile Net Loss to Net Cash Provided By Operating
Activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
114
|
|
|
111
|
|
|
113
|
|
|
225
|
|
|
270
|
|
Impairments of
Long-Lived Assets and Goodwill
|
|
—
|
|
|
—
|
|
|
250
|
|
|
—
|
|
|
1,057
|
|
Inventory
Charges
|
|
22
|
|
|
17
|
|
|
136
|
|
|
39
|
|
|
138
|
|
(Gain) Loss on
Disposition of Assets
|
|
(8)
|
|
|
(5)
|
|
|
(1)
|
|
|
(13)
|
|
|
4
|
|
Deferred Income Tax
Provision (Benefit)
|
|
4
|
|
|
2
|
|
|
(2)
|
|
|
6
|
|
|
21
|
|
Share-Based
Compensation
|
|
5
|
|
|
4
|
|
|
—
|
|
|
9
|
|
|
—
|
|
Working
Capital[1]
|
|
12
|
|
|
60
|
|
|
130
|
|
|
72
|
|
|
47
|
|
Other Operating
Activities[2]
|
|
(30)
|
|
|
(5)
|
|
|
(16)
|
|
|
(35)
|
|
|
61
|
|
Net Cash
Provided By Operating Activities
|
|
46
|
|
|
74
|
|
|
31
|
|
|
120
|
|
|
61
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
for Property, Plant and Equipment
|
|
(9)
|
|
|
(15)
|
|
|
(35)
|
|
|
(24)
|
|
|
(73)
|
|
Proceeds from
Disposition of Assets
|
|
11
|
|
|
11
|
|
|
2
|
|
|
22
|
|
|
8
|
|
Proceeds (Payments)
for Other Investing Activities
|
|
(1)
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
3
|
|
Net Cash Used
in Investing Activities
|
|
1
|
|
|
(3)
|
|
|
(27)
|
|
|
(2)
|
|
|
(62)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
Borrowings of
Long-term Debt
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Repayments of
Long-term Debt
|
|
(2)
|
|
|
(3)
|
|
|
(3)
|
|
|
(5)
|
|
|
(5)
|
|
Borrowings
(Repayments) of Short-term Debt, Net
|
|
—
|
|
|
(4)
|
|
|
10
|
|
|
(4)
|
|
|
7
|
|
Other Financing
Activities
|
|
(4)
|
|
|
(2)
|
|
|
(23)
|
|
|
(6)
|
|
|
(38)
|
|
Net Cash Used
In Financing Activities
|
|
$
|
(6)
|
|
|
$
|
(9)
|
|
|
$
|
(16)
|
|
|
$
|
(15)
|
|
|
$
|
(36)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash
Flow[3]:
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by
Operating Activities
|
|
46
|
|
|
74
|
|
|
31
|
|
|
120
|
|
|
61
|
|
Capital Expenditures
for Property, Plant and Equipment
|
|
(9)
|
|
|
(15)
|
|
|
(35)
|
|
|
(24)
|
|
|
(73)
|
|
Proceeds from
Disposition of Assets
|
|
11
|
|
|
11
|
|
|
2
|
|
|
22
|
|
|
8
|
|
Free Cash
Flow[3]
|
|
$
|
48
|
|
|
$
|
70
|
|
|
$
|
(2)
|
|
|
$
|
118
|
|
|
$
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1]
|
Working capital is
defined as the cash changes in accounts receivable plus inventory
less accounts payable.
|
[2]
|
Other operating
activities is primarily accruals, net of cash payments for
operational expenses, interest, taxes, employee costs and
leases.
|
[3]
|
Free cash flow is a
non-GAAP measure calculated as cash flows provided by (used in)
operating activities, less capital expenditures for property, plant
and equipment plus proceeds from the disposition of assets.
Management believes free cash flow is useful to understand
liquidity and should be considered in addition to but not
substitute cash flows provided by (used in) operating
activities.
|
Weatherford
International plc
|
Selected
Statements of Operations Information (Unaudited)
|
($ in
Millions)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
6/30/21
|
|
3/31/21
|
|
6/30/20
|
|
6/30/21
|
|
6/30/20
|
Operating Income
(Loss)
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
28
|
|
|
$
|
24
|
|
|
$
|
(23)
|
|
|
$
|
52
|
|
|
$
|
6
|
|
Eastern
Hemisphere
|
6
|
|
|
(19)
|
|
|
15
|
|
|
(13)
|
|
|
33
|
|
Segment
Operating Income (Loss)
|
34
|
|
|
5
|
|
|
(8)
|
|
|
39
|
|
|
39
|
|
Corporate
|
(17)
|
|
|
(18)
|
|
|
(26)
|
|
|
(35)
|
|
|
(52)
|
|
Total Operating
Income (Loss) Before Impairments and Other (Charges) Credits and
Restructuring Charges
|
$
|
17
|
|
|
$
|
(13)
|
|
|
$
|
(34)
|
|
|
$
|
4
|
|
|
$
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
Amortization
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
29
|
|
|
27
|
|
|
$
|
29
|
|
|
$
|
56
|
|
|
$
|
76
|
|
Eastern
Hemisphere
|
85
|
|
|
84
|
|
|
85
|
|
|
169
|
|
|
194
|
|
Corporate
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
|
Total Depreciation and
Amortization
|
$
|
114
|
|
|
111
|
|
|
$
|
113
|
|
|
$
|
225
|
|
|
$
|
270
|
|
|
|
|
|
|
|
|
|
|
|
Share-Based
Compensation
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
1
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
Eastern
Hemisphere
|
2
|
|
|
1
|
|
|
—
|
|
|
3
|
|
|
—
|
|
Corporate
|
2
|
|
|
2
|
|
|
—
|
|
|
4
|
|
|
—
|
|
Total Share-Based
Compensation
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA[1]
|
|
|
|
|
|
|
|
|
|
Western
Hemisphere
|
$
|
58
|
|
|
$
|
52
|
|
|
$
|
6
|
|
|
$
|
110
|
|
|
$
|
82
|
|
Eastern
Hemisphere
|
93
|
|
|
66
|
|
|
100
|
|
|
159
|
|
|
227
|
|
Corporate
|
(15)
|
|
|
(16)
|
|
|
(27)
|
|
|
(31)
|
|
|
(52)
|
|
Total Adjusted
EBITDA[1]
|
$
|
136
|
|
|
$
|
102
|
|
|
$
|
79
|
|
|
$
|
238
|
|
|
$
|
257
|
|
|
|
|
|
|
|
|
|
|
|
Impairments and
Other Charges (Credits)[2]
|
|
|
|
|
|
|
|
|
|
Long-lived Asset
Impairments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(178)
|
|
|
$
|
—
|
|
|
$
|
(818)
|
|
Goodwill
Impairment
|
—
|
|
|
—
|
|
|
(72)
|
|
|
—
|
|
|
(239)
|
|
Inventory
Charges
|
—
|
|
|
—
|
|
|
(134)
|
|
|
—
|
|
|
(134)
|
|
Other Charges
(Credits)
|
8
|
|
|
—
|
|
|
(22)
|
|
|
8
|
|
|
(32)
|
|
Total Impairments and
Other Charges (Credits)[2]
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
(406)
|
|
|
$
|
8
|
|
|
$
|
(1,223)
|
|
|
|
|
|
|
|
|
|
|
|
[1]
|
Adjusted EBITDA is
calculated as total operating income (loss) before impairments and
other (charges) credits and restructuring charges plus depreciation
and amortization plus share-based compensation.
|
[2]
|
Impairments and Other
Charges (Credits) are excluded from segment operating results and
primarily represent charges on long-lived assets and goodwill,
restructuring expense, as well as write-offs of property plant and
equipment, right-of-use assets, and inventory.
|
Weatherford
International plc
|
($ in
Millions)
|
Selected
Statements of Operations Information (Unaudited) - Product Line
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
06/30/21
|
|
03/31/21
|
|
06/30/20
|
|
6/30/21
|
|
6/30/20
|
Product Line
Revenue by Hemisphere:
|
|
|
|
|
|
|
|
|
|
Completion and
Production
|
$
|
231
|
|
|
$
|
225
|
|
|
$
|
165
|
|
|
$
|
456
|
|
|
$
|
462
|
|
Drilling,
Evaluation and Intervention
|
194
|
|
|
165
|
|
|
145
|
|
|
359
|
|
|
436
|
|
Western
Hemisphere
|
425
|
|
|
390
|
|
|
310
|
|
|
$
|
815
|
|
|
$
|
898
|
|
|
|
|
|
|
|
|
|
|
|
Completion and
Production
|
214
|
|
|
198
|
|
|
240
|
|
|
$
|
412
|
|
|
$
|
542
|
|
Drilling,
Evaluation and Intervention
|
264
|
|
|
244
|
|
|
271
|
|
|
508
|
|
|
596
|
|
Eastern
Hemisphere
|
478
|
|
|
442
|
|
|
511
|
|
|
$
|
920
|
|
|
$
|
1,138
|
|
|
|
|
|
|
|
|
|
|
|
Total Completion and
Production
|
445
|
|
|
423
|
|
|
405
|
|
|
$
|
868
|
|
|
$
|
1,004
|
|
Total Drilling,
Evaluation and Intervention
|
458
|
|
|
409
|
|
|
416
|
|
|
867
|
|
|
1,032
|
|
Total Product Line
Revenues
|
$
|
903
|
|
|
$
|
832
|
|
|
$
|
821
|
|
|
$
|
1,735
|
|
|
$
|
2,036
|
|
We report our financial results in accordance with U.S.
generally accepted accounting principles (GAAP). However,
Weatherford's management believes
that certain non-GAAP financial measures (as defined under the
SEC's Regulation G and Item 10(e) of Regulation S-K) may provide
users of this financial information additional meaningful
comparisons between current results and results of prior periods
and comparisons with peer companies. The non-GAAP amounts shown in
the following tables should not be considered as substitutes for
operating income, provision for income taxes, net income or other
data prepared and reported in accordance with GAAP, but should be
viewed in addition to the Company's reported results prepared in
accordance with GAAP.
Weatherford
International plc
|
Reconciliation of
GAAP to Non-GAAP Financial Measures (Unaudited)
|
($ in Millions,
Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
6/30/21
|
|
3/31/21
|
|
6/30/20
|
|
6/30/21
|
|
6/30/20
|
Operating Income
(Loss):
|
|
|
|
|
|
|
|
|
|
GAAP Operating Income
(Loss)
|
$
|
25
|
|
|
$
|
(13)
|
|
|
$
|
(497)
|
|
|
$
|
12
|
|
|
$
|
(1,319)
|
|
Impairments and Other
Charges (Credits)
|
(8)
|
|
|
—
|
|
|
406
|
|
|
(8)
|
|
|
1,223
|
|
Restructuring
Charges
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
83
|
|
Operating
Non-GAAP Adjustments
|
(8)
|
|
|
—
|
|
|
463
|
|
|
(8)
|
|
|
1,306
|
|
Non-GAAP Adjusted
Operating Income (Loss)
|
$
|
17
|
|
|
$
|
(13)
|
|
|
$
|
(34)
|
|
|
$
|
4
|
|
|
$
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss)
Before Income Taxes:
|
|
|
|
|
|
|
|
|
|
GAAP Income (Loss)
Before Income Taxes
|
$
|
(58)
|
|
|
$
|
(87)
|
|
|
$
|
(567)
|
|
|
$
|
(145)
|
|
|
$
|
(1,481)
|
|
Operating Non-GAAP
Adjustments
|
(8)
|
|
|
—
|
|
|
463
|
|
|
(8)
|
|
|
1,306
|
|
Reorganization
Items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
Non-GAAP Adjustments
Before Taxes
|
(8)
|
|
|
—
|
|
|
463
|
|
|
(8)
|
|
|
1,315
|
|
Non-GAAP Loss Before
Income Taxes
|
$
|
(66)
|
|
|
$
|
(87)
|
|
|
$
|
(104)
|
|
|
$
|
(153)
|
|
|
$
|
(166)
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
Income Taxes:
|
|
|
|
|
|
|
|
|
|
GAAP Provision for
Income Taxes
|
$
|
(15)
|
|
|
$
|
(23)
|
|
|
$
|
(12)
|
|
|
$
|
(38)
|
|
|
$
|
(56)
|
|
Tax Effect on Non-GAAP
Adjustments
|
—
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
(9)
|
|
Non-GAAP Provision
for Income Taxes
|
$
|
(15)
|
|
|
$
|
(23)
|
|
|
$
|
(14)
|
|
|
$
|
(38)
|
|
|
$
|
(65)
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
Attributable to Weatherford:
|
|
|
|
|
|
|
|
|
|
GAAP Net
Loss
|
$
|
(78)
|
|
|
$
|
(116)
|
|
|
$
|
(581)
|
|
|
$
|
(194)
|
|
|
$
|
(1,547)
|
|
Non-GAAP Adjustments,
net of tax
|
(8)
|
|
|
—
|
|
|
461
|
|
|
(8)
|
|
|
1,306
|
|
Non-GAAP Net
Loss
|
$
|
(86)
|
|
|
$
|
(116)
|
|
|
$
|
(120)
|
|
|
$
|
(202)
|
|
|
$
|
(241)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Loss Per
Share Attributable to Weatherford:
|
|
|
|
|
|
|
|
|
|
GAAP Diluted Loss per
Share
|
$
|
(1.11)
|
|
|
$
|
(1.66)
|
|
|
$
|
(8.30)
|
|
|
$
|
(2.77)
|
|
|
$
|
(22.10)
|
|
Non-GAAP Adjustments,
net of tax
|
(0.12)
|
|
|
—
|
|
|
6.59
|
|
|
(0.12)
|
|
|
18.66
|
|
Non-GAAP Diluted Loss
per Share
|
$
|
(1.23)
|
|
|
$
|
(1.66)
|
|
|
$
|
(1.71)
|
|
|
$
|
(2.89)
|
|
|
$
|
(3.44)
|
|
|
|
|
|
|
|
|
|
|
|
Weatherford
International plc
|
($ in
Millions)
|
Reconciliation of
GAAP to Non-GAAP Financial Measures
|
Net Loss to
Adjusted EBITDA (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
6/30/21
|
|
3/31/21
|
|
6/30/20
|
|
6/30/21
|
|
6/30/20
|
Net Loss
Attributable to Weatherford
|
$
|
(78)
|
|
|
$
|
(116)
|
|
|
$
|
(581)
|
|
|
$
|
(194)
|
|
|
$
|
(1,547)
|
|
Net Income
Attributable to Noncontrolling Interests
|
5
|
|
|
6
|
|
|
2
|
|
|
11
|
|
|
10
|
|
Net Loss
|
(73)
|
|
|
(110)
|
|
|
(579)
|
|
|
(183)
|
|
|
(1,537)
|
|
Interest Expense,
Net
|
72
|
|
|
70
|
|
|
59
|
|
|
142
|
|
|
117
|
|
Income Tax
Provision
|
15
|
|
|
23
|
|
|
12
|
|
|
38
|
|
|
56
|
|
Depreciation and
Amortization
|
114
|
|
|
111
|
|
|
113
|
|
|
225
|
|
|
270
|
|
EBITDA
|
128
|
|
|
94
|
|
|
(395)
|
|
|
222
|
|
|
(1,094)
|
|
|
|
|
|
|
|
|
|
|
|
Other (Income)
Expense Adjustments:
|
|
|
|
|
|
|
|
|
|
Reorganization
Items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9
|
|
Impairments and Other
(Charges) Credits
|
(8)
|
|
|
—
|
|
|
406
|
|
|
(8)
|
|
|
1,223
|
|
Restructuring
Charges
|
—
|
|
|
—
|
|
|
57
|
|
|
—
|
|
|
83
|
|
Share-Based
Compensation
|
5
|
|
|
4
|
|
|
—
|
|
|
9
|
|
|
—
|
|
Other Expense,
Net
|
11
|
|
|
4
|
|
|
11
|
|
|
15
|
|
|
36
|
|
Adjusted
EBITDA
|
$
|
136
|
|
|
$
|
102
|
|
|
$
|
79
|
|
|
$
|
238
|
|
|
$
|
257
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Reconciliation of Non-GAAP Financial Measures
|
Adjusted EBITDA to
Free Cash Flow (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
Six Months
Ended
|
|
|
|
6/30/21
|
|
3/31/21
|
|
6/30/20
|
|
6/30/21
|
|
6/30/20
|
Adjusted
EBITDA
|
|
$
|
136
|
|
|
$
|
102
|
|
|
$
|
79
|
|
|
$
|
238
|
|
|
$
|
257
|
|
|
Cash From (Used) for
Working Capital
|
|
12
|
|
|
60
|
|
|
130
|
|
|
72
|
|
|
47
|
|
|
Capital Expenditures
for Property, Plant and Equipment
|
|
(9)
|
|
|
(15)
|
|
|
(35)
|
|
|
(24)
|
|
|
(73)
|
|
|
Cash Paid for
Taxes
|
|
(17)
|
|
|
(15)
|
|
|
(19)
|
|
|
(32)
|
|
|
(40)
|
|
|
Cash Paid for
Severance and Restructuring
|
|
(9)
|
|
|
(12)
|
|
|
(58)
|
|
|
(21)
|
|
|
(75)
|
|
|
Other
[1]
|
|
52
|
|
|
(26)
|
|
|
11
|
|
|
26
|
|
|
(8)
|
|
Unlevered Free
Cash Flow
|
|
$
|
165
|
|
|
$
|
94
|
|
|
$
|
108
|
|
|
$
|
259
|
|
|
$
|
108
|
|
|
Cash Paid for
Interest
|
|
(117)
|
|
|
(24)
|
|
|
(110)
|
|
|
(141)
|
|
|
(112)
|
|
Free Cash
Flow[2]
|
|
$
|
48
|
|
|
$
|
70
|
|
|
$
|
(2)
|
|
|
$
|
118
|
|
|
$
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[1]
|
Other primarily
includes accruals net of payments for certain operational expenses,
employee costs (excluding restructuring and shared-based
compensation) and leases, inventory charges, bad debt expense,
proceeds from disposition of assets and foreign currency exchange
impact.
|
[2]
|
Free cash flow is a
non-GAAP measure calculated as cash flows provided by (used in)
operating activities, less capital expenditures for property, plant
and equipment plus proceeds from the disposition of assets.
Management believes free cash flow is useful to understand
liquidity and should be considered in addition to but not
substitute cash flows provided by (used in) operating
activities.
|
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SOURCE Weatherford International plc