Weatherford's performance reflected worldwide gains across the breadth of the Company's product and service offerings. On a year over year basis, revenue growth of 76 percent in international markets exceeded a rig activity increase of 9 percent. In North America, revenue growth of 36 percent also exceeded the change in rig activity of 21 percent. Sequentially, international revenues grew 6 percent in essentially a flat market. In North America, business improved 7 percent sequentially against the backdrop of a 5 percent increase in rig activity. In addition, revenue growth for new technologies, on a sequential basis, rose 7 percent.
For the first nine months of 2001, Weatherford's diluted earnings per share were $1.32 ($160.1 million), a 230 percent improvement over last year's nine months earnings per share from continuing operations of $0.40 ($44.7 million). Revenues for the nine-month period were $1.7 billion, 33 percent higher than the prior year.
Drilling & Intervention Services
Revenues for Weatherford's Drilling & Intervention Services division were $363.3 million, 61 percent higher than the prior year and 7 percent higher than the preceding quarter. Operating income was $89.8 million, up 119 percent from the prior year and 6 percent from the second quarter. EBITDA was $127.8 million, up 90 percent from the prior year and 7 percent from the preceding quarter.
On a sequential basis, improvement occurred across all service and product lines. Revenues for Underbalanced Systems increased 8 percent sequentially. North American and international revenues increased 4 percent and 11 percent, respectively. The division's sequential incremental EBITDA margin was 34 percent.
Completion Systems
Revenues for Weatherford's Completion Systems division were $86.8 million in the third quarter, 53 percent above the prior year and flat versus the preceding quarter. Operating income was $7.2 million, versus $0.7 million last year, and was 4 percent below the preceding quarter. EBITDA of $15.6 million was 111 percent higher than the prior year and 8 percent higher than the second quarter.
Sequentially, Completion revenues increased 14 percent in North America. International revenues fell 10 percent reflecting project deliveries delayed to the next quarter. Expandables were similarly affected by project delays. On October 10, Weatherford announced a two-year supply agreement with Shell International for $160 million of expandable sand control products over the next two years.
Artificial Lift Systems
Weatherford's Artificial Lift Systems division revenues in the third quarter were $158.5 million, 32 percent higher than the prior year and 7 percent better than the preceding quarter. Operating income was $22.2 million, 110 percent higher than the prior year and 9 percent better than the second quarter. EBITDA of $29.5 million was 69 percent better than the prior year and 8 percent above the level of the preceding quarter.
Sequentially, Artificial Lift Systems' performance reflected gains in its reciprocating and progressing cavity pumping product lines. North American revenues rose 9 percent and international revenues increased 4 percent on a sequential basis. The division's sequential incremental EBITDA margin was 21 percent.
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 100 countries and employs approximately 13,000 people worldwide.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, Weatherford International, Inc.'s future results and prospects for its operations, integration of recent acquisitions and business trends, all of which are subject to certain risks, uncertainties and assumptions. These risks, uncertainties and assumptions, 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, the demand and pricing of Weatherford's products, the ability to achieve the anticipated synergies and savings from the integration of recent acquisitions and other cost reduction measures, and the effect of foreign currency fluctuations. 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 Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Net Revenues:
Drilling and Intervention
Services $363,293 $225,720 $986,197 $619,997
Completion Systems 86,838 56,656 247,807 150,821
Artificial Lift Systems 158,490 119,910 446,836 340,181
Compression Services --- 59,884 26,939 168,401
608,621 462,170 1,707,779 1,279,400
Operating Income (Loss):
Drilling and Intervention
Services 89,760 41,046 244,803 109,060
Completion Systems 7,220 731 18,561 (8,779)
Artificial Lift Systems 22,217 10,570 58,443 27,420
Compression Services --- 1,559 (597) 4,789
Equity in Earnings 6,947 677 14,708 2,460
Corporate Expenses (9,984) (9,574) (29,650) (27,383)
116,160 45,009 306,268 107,567
Other Income (Expense):
Other, Net (891) 4,901 951 8,974
Interest Expense (19,958) (15,818) (53,602) (45,360)
Income Before Income Taxes 95,311 34,092 253,617 71,181
Provision for Income Taxes (34,789) (12,442) (92,683) (25,626)
Income Before Minority Interest 60,522 21,650 160,934 45,555
Minority Interest Expense,
Net of Taxes (341) (127) (807) (835)
Net Income from Continuing
Operations 60,181 21,523 160,127 44,720
Loss from Discontinued
Operations, Net of Taxes --- --- --- (3,458)
Net Income $60,181 $21,523 $160,127 $41,262
Basic Earnings Per Share:
Income from Continuing
Operations $0.52 $0.20 $1.42 $0.41
Loss from Discontinued
Operations --- --- --- (0.03)
Net Income Per Share $0.52 $0.20 $1.42 $0.38
Basic Weighted Average Shares
Outstanding 115,068 109,792 113,093 109,147
Diluted Earnings Per Share (A):
Income from Continuing
Operations $0.49 $0.19 $1.32 $0.40
Loss from Discontinued
Operations --- --- --- (0.03)
Net Income Per Share $0.49 $0.19 $1.32 $0.37
Diluted Weighted Average
Shares Outstanding 135,081 114,500 131,826 112,908
Other Information:
Cash Earnings Per Diluted Share
from Continuing Operations $0.56 $0.26 $1.53 $0.61
Depreciation and Amortization:
Drilling and Intervention
Services $38,064 $26,288 $100,491 $77,280
Completion Systems 8,368 6,660 22,314 19,257
Artificial Lift Systems 7,263 6,859 21,061 19,373
Compression Services --- 9,636 4,184 28,012
Other 1,763 839 4,795 2,417
$55,458 $50,282 $152,845 $146,339
(A) Diluted earnings per share for the three and nine months ended
September 30, 2001, equals net income plus net interest and
amortization expense on the Debentures, divided by the weighted
average common shares outstanding, after giving effect to dilutive
stock options, as well as the weighted average impact of shares
assumed to be issued on conversion of the Debentures.
SOURCE Weatherford International, Inc.
Contact: Don Galletly (713) 693-4148