First quarter diluted earnings per share reflected an improvement of 44 percent over the first quarter of 2006 diluted earnings per share of $0.57. The non-recurring items in the first quarter of 2007 results include severance associated with the company's fourth quarter exit and restructuring activities of $2.7 million, after tax.
First quarter revenues were $1,852.3 million, or 21 percent higher than the same period last year, against a backdrop of a five percent increase in rig activity. This is the highest level of quarterly revenues in the company's history.
Sequentially, the company's first quarter diluted earnings per share from continuing operations improved eight percent over the record fourth quarter 2006 diluted earnings per share of $0.76, before non-recurring items. The first quarter performance reflected gains across nearly all of the company's product and service offerings.
Revenues for the quarter were $1,006.6 million, a nine percent increase above the same quarter in the prior year, as compared to a three percent rig count increase. Sequentially, revenues increased five percent, as compared to a four percent increase in rig count. From a product line perspective, wireline, well construction, completion, and drilling services (both directional drilling and underbalanced) reported sequential increases in revenues of 25 percent, 16 percent, 13 percent and 10 percent, respectively.
Operating income of $297.7 million was 15 percent higher than the same quarter in the prior year, despite more than a 20% drop in Canadian rig count. Operating income was 11 percent higher than the preceding quarter.
First quarter revenues of $205.9 million were 27 percent higher than the first quarter of 2006 and three percent lower than the prior quarter. This region's performance reflected sequential improvements in its directional drilling, underbalanced, drilling tools and wireline offerings.
The current quarter's operating income of $48.6 million improved 93 percent as compared to the same quarter in the prior year and five percent as compared to the fourth quarter of 2006. Sequentially, the increase in operating income was primarily driven by increased activity in Brazil and Mexico that more than offset decreased activity in Venezuela. Political concerns in the Orinoco basin dampened market activity, especially in our lift and completion product lines.
First quarter revenues of $245.0 million were 38 percent higher than the first quarter of 2006 and seven percent higher than the prior quarter. The strongest growth was seen in the completion, drilling services and well construction product lines.
The current quarter's operating income of $53.9 million improved 60 percent as compared to the same quarter in the prior year and 15 percent as compared to the fourth quarter of 2006.
Middle East/North Africa/Asia
First quarter revenues of $394.8 million were 44 percent higher than the first quarter of 2006 and four percent lower than the prior quarter. This region's performance reflected sequential improvements in its wireline, re- entry, drilling tools and underbalanced service lines. Seasonal declines in completion, artificial lift and other product shipments more than offset these increases. In the case of Weatherford, this pattern of seasonal declines in product sales has been consistently the historical norm in this region.
The current quarter's operating income of $83.5 million improved 80 percent as compared to the same quarter in the prior year and decreased 15 percent as compared to the fourth quarter of 2006.
Weatherford is one of the largest global providers of innovative mechanical solutions, technology and services for the drilling and production sectors of the oil and gas industry. Weatherford operates in over 100 countries and employs approximately 33,300 people worldwide.
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