Weatherford International has reported first quarter 2009 income from continuing operations of $186 million, or $0.27 per diluted share, excluding an after tax loss of $0.04 for investigation and exit costs incurred in connection with the company’s withdrawal from sanctioned countries and severance costs mainly related with restructuring activities in North America. The company has reported first quarter diluted earnings per share from continuing operations reflect a decline of 46% over the year-ago quarter, diluted earnings per share from continuing operations of $0.50, before non-recurring items, mainly due to a sharp drop off in customer activity in North America.
While North America revenue declined 23%, in line with a 27% decline in rig count, international revenue was up 28% against a 2% decrease in international rig count. Company-wide revenue was negatively impacted by about $160 million due to the relative strengthening of the US dollar compared to the year-ago period.
Consecutively, Weatherford International’s first quarter diluted earnings per share from continuing operations, before non-recurring items, were $0.26 lower than the year-ago quarter 2008 diluted earnings per share from continuing operations of $0.53, before non-recurring items. This reduction was mainly due to the abrupt curtailment of North American activity during the first quarter of 2009.
North America
Weatherford International has reported that the revenues for the first quarter 2009 were $837 million, down 23% over the same quarter in the previous year, as compared to a 27% rig count decline. Consecutively, revenues were down 29% as compared to a 28% rig count decrease.
The company has reported that operating income of $123 million was 58% lower as compared to the same quarter in the previous year and consecutively, as margins were negatively impacted by pricing, volume and utilization erosion.
Middle East/North Africa/Asia
Weatherford International has reported that the first quarter revenues of $582 million, up 12%, compared with the year-ago quarter and 14% lower than the previous quarter. A seasonal pull-back in product sales, coupled with project delays contributed to the decline.
The current quarter’s operating income of $134 million improved 11% as compared to the same quarter in the prior year and decreased 18% as compared to the prior quarter due to lower pricing and sales volume.
Europe/West Africa/CIS
First quarter revenues of $369 million were 6% higher than the first quarter of 2008 and 6% lower than the prior quarter. The United Kingdom, Romania and Russia had the most significant declines on a sequential basis.
The current quarter’s operating income of $75 million declined 20% as compared to the same quarter in the prior year and 15% sequentially due to reduced sales volume and lower pricing.
Latin America
First quarter revenues of $468 million were 98% higher than the first quarter of 2008 and 21% higher than the prior quarter. Mexico was the top performer on a sequential basis.
The current quarter’s operating income of $92 million improved 52% as compared to the same quarter in the prior year and was 4% higher when compared to the fourth quarter of 2008.