Weatherford Announces Third Quarter 2022 Results
- Third quarter revenues of $1,120 million, increased 5% sequentially, led by higher Drilling and Evaluation activity
- Net income was $28 million and operating income was $121 million
- Adjusted EBITDA[1] was $214 million, a 19.1% adjusted EBITDA margin with a 160 basis point sequential improvement
- Net cash provided by operating activities was $160 million and free cash flow[1] was $133 million, primarily driven by higher adjusted EBITDA margins and working capital efficiency
- Secured significant contract wins across the portfolio with IOC’s and NOC’s, including ADNOC, KOC, and YPF
- Amended Credit Facility with increase in aggregate amount available to $370 million, and a two-year maturity extension subject to certain conditions
- Issued a notice to redeem $125 million of our 11% senior unsecured notes
Weatherford International plc announced today its results for the third quarter of 2022.
Revenues for the third quarter of 2022 were $1,120 million, an increase of 5% sequentially and 19% year-over-year. Operating income was $121 million in the third quarter of 2022, compared to $104 million in the second quarter of 2022 and $71 million in the third quarter of 2021. The Company’s third quarter of 2022 net income was $28 million, compared to $6 million in the second quarter of 2022 and a net loss of $95 million in the third quarter of 2021.
Third quarter 2022 cash flows provided by operations were $160 million, compared to $60 million in the second quarter of 2022 and $114 million in the third quarter of 2021. Capital expenditures were $39 million in the third quarter of 2022, compared to $24 million in the second quarter of 2022 and $20 million in the third quarter of 2021.
- Adjusted EBITDA[1] was $214 million, an increase of 15% sequentially and 20% year-over-year
- Free cash flow[1] was $133 million, an increase of $74 million sequentially and $22 million year-over-year
Girish Saligram, President and Chief Executive Officer, commented, “In the third quarter, we continued to outperform on our two key metrics of margin expansion and free cash flow generation. We showed strong sequential revenue growth, with solid margin fall-through, as our market-leading offerings continue to deliver value in the marketplace. Our adjusted EBITDA margins of 19.1% and free cash flow of $133 million clearly demonstrate the effectiveness of our refreshed operating paradigm and reaffirm that our strategy to sustainably expand margins over the cycle while generating positive free cash flow is delivering the intended results.
I am proud of and encouraged by our progress in strengthening our Company and balance sheet. The successful amendment of the credit facility and our ability to pay down debt meaningfully underscores the substantial improvements we have made and allows us greater flexibility to drive growth and scale into our business.
As we look forward, we now expect full-year 2022 revenue to grow by high-teens year-over-year and for EBITDA margins to expand by over 200 basis points year-over-year, driven by solid execution, increased market activity, and dedicated customer focus. The overall macro-environment for the sector continues to be supported by strong fundamentals, despite inflationary and geopolitical headwinds. Our ability to carry our momentum forward is evidenced by the recently announced contract awards for Aramco and PDO. As we close out the year, we will continue to capitalize on the opportunities enabled by our broad portfolio, leading-edge specialty services, the transformation of our operating paradigm, and strong customer relationships.”
