Weatherford Hails 26% Increase in 2008
Weatherford International Ltd. has reported second quarter 2008 income from continuing operations of $300 million, or $0.43 per diluted share, excluding an after tax gain from non-recurring items of $0.09. Second quarter diluted earnings per share from continuing operations reflect an improvement of 26% over the second quarter of 2007 diluted earnings per share from continuing operations of $0.34, before non-recurring items.
The non-recurring items in the second quarter of 2008 results include a gain on the restructuring of a Qatar operation into a JV, partially offset by investigation and exit costs incurred in connection with the company's withdrawal from sanctioned countries.
Second quarter revenues were $2,229 million, or 23% higher than the same period last year, against a backdrop of a 7% increase in rig count activity. This is the highest level of quarterly revenue in the company's history.
Sequentially, the company's second quarter diluted earnings per share from continuing operations, before non-recurring items, were $0.07 lower than the first quarter 2008 diluted earnings per share from continuing
operations of $0.50, before non-recurring items, due to the seasonal decline in Canadian activity, which was only partially offset by improvements in other geographic markets.
In the first six months of 2008, revenues were $4.4 billion and income from continuing operations before charges was $650.7 million, or $0.93 per diluted share. In 2007, the company reported revenues for the first six
months of $3.7 billion and income from continuing operations before charges of $521.5 million, or $0.75 per diluted share.
Revenues for the quarter were $1,012 million. This is a 15% increase over the same quarter in the prior year, as compared to a 7% rig count increase. Sequentially, revenues decreased 7%, as compared to an 11% decline in rig count, driven by a 68% decline in Canadian rig count. In Canada, all product lines decreased. In
the United States, strong revenue growth was experienced in our drillingservices, wireline, and artificial lift product lines.
Operating income of $224 million was 17% higher than the same quarter in the prior year and 23% lower sequentially due entirely to the seasonal decline in Canadian activity, which was only partially offset by improvements in the United States.
Middle East/North Africa/Asia
Second quarter revenues of $556 million were 28% higher than the second quarter of 2007 and 7% higher than the prior quarter. Algeria, Kuwait, and Libya as well as Australia, China and Indonesia were standout performers. By product line, wireline, integrated drilling, well construction and completion all experienced significant increases.
The current quarter's operating income of $131 million improved 35% as compared to the same quarter in the prior year and increased 8% as compared to the prior quarter.
Second quarter revenues of $390 million were 34% higher than the second quarter of 2007 and 12% higher than the prior quarter. Norway, U.K. and Russia all saw strong improvements on a sequential basis.
All product lines grew, with the most substantial growth experienced in the Company's drilling services, artificial lift and well construction product lines.
The current quarter's operating income of $99 million improved 42% as compared to the same quarter in the prior year and 6% sequentially.
Second quarter revenues of $271 million were 31% higher than the second quarter of 2007 and 15% higher than the prior quarter. On a sequential basis, Mexico, Brazil and Venezuela were the top performing countries. Region-wide revenue grew in all product lines.
The current quarter's operating income of $58 million improved 28% as compared to the same quarter in the prior year and was 4% lower when compared to the first quarter of 2008 due to mobilization costs incurred with respect to new projects in Mexico.
The company has disposed of its non-core oil and gas development and production business. The results of operations of this business for the current and prior periods are reflected as discontinued operations, net of
taxes. For the three months ended June 30, 2008, the gain per diluted share from discontinued operations was $0.01.
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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