Weatherford Reports Second Quarter 2000 Results
HOUSTON, July 27 /PRNewswire/ -- Weatherford International, Inc.
(NYSE: WFT) today reported second quarter income from continuing operations of
$13.2 million ($0.12 per diluted share), an improvement of 583 percent over
the prior year result of $1.9 million ($0.02 per diluted share). Second
quarter cash earnings from continuing operations (after-tax earnings,
excluding goodwill amortization, net of tax) were $21.6 million ($0.19 per
diluted share), or 247 percent higher than the prior year's cash earnings of
$6.2 million ($0.06 per diluted share). Net income in the quarter, also
$0.12 per diluted share, compared favorably with a net loss in the prior year
quarter of $0.02 per diluted share, which included a loss from discontinued
operations of $0.04. Revenues for the second quarter of $421.8 million were
51 percent higher than the prior year.
Sequential improvement in revenues, operating income and EBITDA continued
in the second quarter, up 7 percent, 26 percent and 8 percent respectively.
The improved results reflect the impact of higher drilling and production
activity in the United States and the beginning of a turnaround in activity in
key international markets. Sequentially, the rig count grew 9 percent both in
the United States and in international markets outside North America. The
company's performance also benefited from products and services added during
the downturn. These additional capabilities provide a foundation for future
growth.
For the first six months, net income per diluted share was $0.18 versus
$0.01 in the prior year, which included a $0.05 per share loss from
discontinued operations. Revenues of $817.2 million and operating income of
$62.6 million were 50 percent and 143 percent higher than the prior year,
respectively.
Weatherford Drilling & Intervention Services
Revenues in the Drilling & Intervention Services division were
$206.7 million in the second quarter, 51 percent higher than the prior year
and 10 percent higher than the preceding quarter. EBITDA of $63.8 million was
63 percent higher than the prior year and 12 percent higher than the preceding
quarter.
On a sequential basis, gains were experienced across all major product
lines as demand for drilling products and services increased with the higher
rig activity. Gains were also experienced in re-entry and thru tubing
activities, reflecting successful introduction of their offerings into new
geographic markets.
Growth in North America was moderated by the seasonal decline in Canada.
Revenues and operating income in Canada for this division declined
approximately $6 million and $3 million, respectively, in the second quarter
compared to the first quarter. Internationally, the division generated
revenue gains throughout most regions, signaling the beginning of a recovery
in those markets.
Weatherford Completion Systems
Weatherford Completion Systems division revenues were approximately double
the level of a year ago. EBITDA of $1.8 million was significantly higher than
the loss of $3.5 million last year and 31 percent above the preceding quarter.
Sequentially, the division had a slight revenue decline due to the impact
of the Canadian spring breakup. Revenues were also affected by the relocation
and expansion of this division's European manufacturing facilities that is
currently underway. The decline in Canada affected revenues by $3.5 million
and operating income by $1.3 million. Strong performances occurred in the
Asia Pacific region and in the Company's sand control product lines. The
division continues to experience growing demand for its innovative products,
particularly its expandable sand control line, traditional well screens, flow
control products and liner hangers. The division is adding substantial
manufacturing capacity to handle the increased activity anticipated in the
second half of 2000 and beyond.
Weatherford Artificial Lift Systems
Weatherford Artificial Lift Systems division second quarter revenues of
$104.2 million increased 68 percent over the prior year and 4 percent over the
prior quarter. EBITDA in the quarter of $15.1 million nearly doubled the
level of a year ago and was 7 percent higher than the prior quarter.
Sequentially, division performance improved despite the impact of the
Canadian breakup. The improvement reflected higher drilling and workover
related activity for oil in the United States where the number of rigs
drilling for oil increased approximately 28 percent and well servicing and
workover jobs increased an estimated 7 and 12 percent, respectively. In
addition, Latin American production activity has been increasing, creating
higher artificial lift requirements.
Weatherford Global Compression Services
The Compression Services division reported revenues of $64.3 million,
15 percent higher than the prior year and 7 percent higher than the prior
quarter. EBITDAR (earnings before interest, taxes, depreciation, amortization
and rental expenses) was $15.3 million, below both the levels of the prior
year and the prior quarter.
Efforts to reorganize this division and reduce its cost structure that
began last quarter continued in the second quarter, contributing to the lower
profitability. These efforts have been largely completed at the end of the
second quarter and the division is expected to begin to generate improved
results in the second half of the year.
Houston-based Weatherford International, Inc. (http://www.weatherford.com)
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 50 countries and employs
approximately 10,000 people worldwide.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 concerning,
among other things, Weatherford's prospects for its operations and the
integration of recent acquisitions, all of which are subject to certain risks,
uncertainties and assumptions. These risks and uncertainties, which are more
fully described in Weatherford International, Inc.'s Annual, Quarterly and
Current Reports filed with the Securities and Exchange Commission, include the
impact of oil and natural gas prices and worldwide economic conditions on
drilling activity and the demand for and pricing of Weatherford's products.
Should one or more of these risks or uncertainties materialize, or should the
assumptions prove incorrect, actual results may vary in material aspects from
those currently anticipated.
Weatherford International, Inc.
Consolidated Condensed Statements of Operations
(In 000's, Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Net Revenues:
Drilling and
Intervention
Services $206,748 $136,730 $394,277 $279,364
Completion Systems 46,544 23,681 94,165 46,334
Artificial Lift
Systems 104,235 62,227 204,452 119,698
Compression Services 64,321 55,950 124,336 98,533
421,848 278,588 817,230 543,929
Operating Income
(Loss):
Drilling and
Intervention
Services 38,810 15,510 69,654 37,682
Completion Systems (4,395) (5,758) (9,510) (10,900)
Artificial Lift
Systems 8,949 2,671 17,247 1,827
Compression Services 609 4,656 2,833 9,672
Corporate Expenses (9,088) (6,993) (17,666) (12,565)
34,885 10,086 62,558 25,716
Other Expense (Expense):
Other, Net 2,486 3,689 4,073 4,258
Interest Expense (16,520) (10,898) (29,542) (20,898)
Income Before Income
Taxes 20,851 2,877 37,089 9,076
Provision for Income
Taxes (7,502) (356) (13,184) (2,055)
Income Before
Minority Interest 13,349 2,521 23,905 7,021
Minority Interest
Expense, Net of Taxes (145) (588) (708) (1,326)
Net Income from
Continuing Operations 13,204 1,933 23,197 5,695
Loss from Discontinued
Operations, Net of
Taxes --- (3,953) (3,458) (5,177)
Net Income (Loss) $13,204 $(2,020) $19,739 $518
Basic Earnings Per
Share:
Income from
Continuing
Operations $0.12 $0.02 $0.21 $0.06
Loss from
Discontinued
Operations --- (0.04) (0.03) (0.05)
Net Income (Loss)
Per Share $0.12 $(0.02) $0.18 $0.01
Basic Weighted
Average Shares
Outstanding 108,896 97,586 108,824 97,451
Diluted Earnings
Per Share:
Income from
Continuing
Operations $0.12 $0.02 $0.21 $0.06
Loss from
Discontinued
Operations --- (0.04) (0.03) (0.05)
Net Income
(Loss) Per Share $0.12 $(0.02) $0.18 $0.01
Diluted Weighted
Average Shares
Outstanding 112,905 99,430 112,111 98,718
Other Information:
Cash Earnings Per
Diluted Share from
Continuing
Operations $0.19 $0.06 $0.35 $0.14
Depreciation and
Amortization:
Drilling and
Intervention
Services $24,983 $23,509 $50,992 $47,365
Completion
Systems 6,146 2,283 12,597 4,710
Artificial Lift
Systems 6,166 4,835 12,040 9,670
Compression
Services 9,521 9,166 18,850 16,734
Corporate 827 509 1,578 872
47,643 $40,302 $96,057 $79,351
SOURCE Weatherford International, Inc.
CO: Weatherford International, Inc.
ST: Texas
IN: OIL
SU: ERN
07/27/2000 08:09 EDT prnewswire.com |
