Weatherford has reported third quarter 2008 income from continuing operations of $384 million, or $0.55 per diluted share, excluding an after tax loss from non-recurring items of $0.02. Third quarter diluted earnings per share from continuing operations reflect an improvement of 28 percent over the third quarter of 2007 diluted earnings per share from continuing operations of $0.43, before nonrecurring items. The non-recurring items in the third quarter of 2008 results include investigation and exit costs incurred in connection with the company’s withdrawal from sanctioned countries.
Third quarter revenues were $2,541 million, or 29 percent higher than the same period last year, against a backdrop of an 11 percent increase in rig count activity. This is the highest level of quarterly revenue in the company's history.
Sequentially, the company’s third quarter diluted earnings per share from continuing operations, before non-recurring items, were $0.12 higher than the second quarter 2008 diluted earnings per share from continuing operations of $0.43, before non-recurring items.
In the first nine months of 2008, revenues were $7.0 billion and income from continuing operations before non-recurring items was $1,035 million, or $1.48 per diluted share. In 2007, the company reported revenues for the first nine months of $5.6 billion and income from continuing operations before non-recurring items of $819 million, or $1.18 per diluted share.
Revenues for the quarter were $1,180 million. This is a 19 percent increase over the same quarter in the prior year, as compared to a 13 percent rig count increase. Sequentially, revenues increased 17 percent. All product lines grew, other than well construction which experienced significant downtime due to hurricanes.
Operating income of $313 million was 18 percent higher than the same quarter in the prior year and 40 percent higher sequentially due to the seasonal recovery in Canadian activity offset by the impact of hurricanes.
Middle East/North Africa/Asia
Third quarter revenues of $638 million were 40 percent higher than the third quarter of 2007 and 15 percent higher than the prior quarter. Algeria, Libya, Saudi Arabia, India, China and Malaysia were standout performers. By product line, artificial lift, drilling services, integrated drilling, drilling tools and wireline all experienced significant increases.
The current quarter’s operating income of $146 million improved 41 percent as compared to the same quarter in the prior year and increased 12 percent as compared to the prior quarter.
Third quarter revenues of $409 million were 33 percent higher than the third quarter of 2007 and five percent higher than the prior quarter. Central Europe, Russia and Kazakhstan saw strong improvements on a sequential basis. Substantial growth was experienced in our drilling services, wireline and stimulation and chemicals product lines.
The current quarter’s operating income of $102 million improved 31 percent as compared to the same quarter in the prior year and three percent sequentially.
Third quarter revenues of $314 million were 47 percent higher than the third quarter of 2007 and 16 percent higher than the prior quarter. On a sequential basis, Argentina, Brazil, Mexico and Venezuela were the top performing countries. Revenue grew across all product lines, with drilling services, completion and integrated drilling standing out as the top performers.
The current quarter’s operating income of $70 million improved 53 percent as compared to the same quarter in the prior year and was 19 percent higher when compared to the second quarter of 2008.
Reclassifications and Non-GAAP
Non-GAAP performance measures and corresponding reconciliations to GAAP financial measures have been provided for meaningful comparisons between current results and results in prior operating periods.
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