Weatherford Reports Record Performance for Q4
Weatherford International Ltd. on Tuesday reported fourth quarter 2006 net income of $263.7 million from continuing operations, or $0.76 per diluted share, before non-recurring items. Fourth quarter diluted earnings per share reflected an improvement of 65 percent over the fourth quarter of 2005 diluted earnings per share of $0.46, before non-recurring items. The non-recurring items in the fourth quarter of 2006 results include a one-time exit and restructuring charge of $18.1 million after tax, and an offsetting benefit of $26.4 million related to the favorable settlement of foreign tax exposures.
Fourth quarter revenues were $1.8 billion, or 24 percent higher than the same period last year, against a backdrop of a seven percent increase in rig activity. This is the highest level of quarterly revenues in the company's history.
Sequentially, the company's fourth quarter diluted earnings per share from continuing operations improved 15 percent over the third quarter 2006 diluted earnings per share of $0.66. The fourth quarter record performance reflected worldwide gains outside of Canada across the majority of the company's product and service offerings. North American revenues were essentially flat despite a contraction of the Canadian rig count. The U.S. made up for the decline in Canadian markets. Markets outside of North America accounted for essentially all of the sequential revenue growth. Combined Eastern Hemisphere and Latin America revenues increased 15 percent sequentially.
Annual revenues were $6.6 billion and represent the highest revenue levels in the history of the company. Income from continuing operations was $889.9 million, before non-recurring items, or $2.51 per diluted share. In 2005, the company reported annual revenues of $4.3 billion, and income from continuing operations of $462.7 million, or $1.46 per diluted share, before non-recurring items.
Evaluation, Drilling & Intervention Services
Revenues for the quarter were $1.2 billion, a 26 percent increase above the same quarter in the prior year and a six percent increase from the prior quarter. Geographically, all regions, with the exception of Canada, posted sequential revenue improvements. Latin America led with 16 percent sequential growth. The Eastern Hemisphere's revenues rose 10 percent sequentially. From a product line perspective, all product lines exceeded prior quarter revenue levels with the exception of wireline, which was negatively impacted by lower activity levels in Canada.
Operating income of $320.2 million was 53 percent higher than the same quarter in the prior year and nine percent higher than the preceding quarter.
Completion & Production Systems
Fourth quarter revenues of $645.4 million were 19 percent higher than the fourth quarter of 2005 and eight percent higher than the prior quarter. Geographically, all regions, with the exception of Canada, posted sequential revenue improvements. Of particular note, the Eastern Hemisphere grew 21 percent. This division's performance reflected improvements in electric submersible pumps, sand control systems and production optimization.
The current quarter's operating income of $140.6 million improved 57 percent as compared to the same quarter in the prior year and seven percent as compared to the third 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 33,000 people worldwide.
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