On a sequential quarterly basis, Weatherford's second quarter revenues and diluted earnings per share improved 9 percent and 24 percent, respectively, over the first quarter.
Weatherford's strong quarterly performance reflected further gains in the Company's emerging technologies and particularly good performance in international markets. Excluding acquisitions, business expanded 15 percent sequentially in international markets reflecting the early stages of a cyclical recovery. In North America, overall business was up slightly as a 9 percent increase in US revenues offset a 16 percent seasonal decline in Canada. By comparison, on a sequential basis the rig count increased 4 percent internationally and 9 percent in the U.S., while declining 51 percent in Canada.
For the first half of 2001, Weatherford's diluted earnings per share was $0.83 ($99.9 million), a 295 percent improvement over last year's first half earnings per share from continuing operations of $0.21 ($23.2 million). Revenues for the six-month period were $1.1 billion, 34 percent higher than the prior year.
Drilling & Intervention Services
Revenues for Weatherford's Drilling & Intervention Services division were $336.9 million, 63 percent higher than the prior year and 19 percent higher than the preceding quarter. Operating income was $84.8 million, up 123 percent from the prior year and 21 percent from the first quarter. EBITDA was $119.4 million, up 90 percent from the prior year and 22 percent from the preceding quarter.
On a sequential basis, improvement occurred across all service and product lines with the most notable improvement taking place in Underbalanced Services (UBS) where revenues increased approximately 30 percent. Geographically, excluding acquisitions, North American and international revenues increased 5 percent and 17 percent, respectively. The division's sequential incremental EBITDA margin was 40 percent.
Completion Systems
Revenues for Weatherford's Completion Systems division were $88.3 million in the second quarter, 90 percent above the prior year and 16 percent above the preceding quarter. Operating income was $7.4 million, versus a loss of $4.4 million last year, and was 72 percent higher than the preceding quarter. EBITDA of $14.4 million was 720 percent higher than the prior year and 28 percent higher than the second quarter.
Major product categories, including packers and sand control systems were strong performers on a sequential basis. In particular, expandable revenues rose more than 80 percent in the quarter, to a $62 million annual revenue run rate. On a sequential basis, division revenues rose 32 percent internationally and remained steady in North America despite the seasonal slowdown in Canada. The division's sequential incremental EBITDA margin was 25 percent.
Artificial Lift Systems
Weatherford's Artificial Lift Systems division's revenues in the second quarter were $147.8 million, 29 percent higher than the prior year and 5 percent better than the preceding quarter. Operating income was $20.3 million, 130 percent higher than the prior year and 28 percent better than the first quarter. EBITDA of $27.2 million was 78 percent better than the prior year and 20 percent above the level of the preceding quarter.
Sequentially, Artificial Lift Systems' performance reflected strong gains in its reciprocating and gas lift product lines. The division's sequential incremental EBITDA margin was 61 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 50 countries and employs approximately 12,000 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 Six Months Ended June 30, June 30, 2001 2000 2001 2000 Net Revenues: Drilling and Intervention Services $336,857 $206,748 $619,561 $394,277 Completion Systems 88,306 46,544 164,312 94,165 Artificial Lift Systems 147,837 114,468 288,346 220,271 Compression Services --- 54,088 26,939 108,517 573,000 421,848 1,099,158 817,230 Operating Income (Loss): Drilling and Intervention Services 84,825 38,004 154,746 68,014 Completion Systems 7,361 (4,395) 11,638 (9,510) Artificial Lift Systems 20,320 8,832 36,226 16,850 Compression Services --- 726 (597) 3,230 Equity in Earnings 5,003 949 7,761 1,783 Corporate Expenses (9,947) (9,231) (19,666) (17,809) 107,562 34,885 190,108 62,558 Other Expense: Other, Net 1,079 2,486 1,842 4,073 Interest Expense (18,353) (16,520) (33,644) (29,542) Income Before Income Taxes 90,288 20,851 158,306 37,089 Provision for Income Taxes (33,408) (7,502) (57,894) (13,184) Income Before Minority Interest 56,880 13,349 100,412 23,905 Minority Interest Expense, Net of Taxes (444) (145) (466) (708) Net Income from Continuing Operations 56,436 13,204 99,946 23,197 Loss from Discontinued Operations, Net of Taxes --- --- --- (3,458) Net Income $56,436 $13,204 $99,946 $19,739 Basic Earnings Per Share: Income from Continuing Operations $0.50 $0.12 $0.89 $0.21 Loss from Discontinued Operations --- --- --- (0.03) Net Income Per Share $0.50 $0.12 $0.89 $0.18 Basic Weighted Average Shares Outstanding 113,670 108,896 112,105 108,824 Diluted Earnings Per Share (A): Income from Continuing Operations $0.46 $0.12 $0.83 $0.21 Loss from Discontinued Operations --- --- --- (0.03) Net Income Per Share $0.46 $0.12 $0.83 $0.18 Diluted Weighted Average Shares Outstanding 135,547 112,905 130,198 112,111 Other Information: Cash Earnings Per Diluted Share from Continuing Operations $0.52 $0.19 $0.96 $0.35 Depreciation and Amortization: Drilling and Intervention Services $34,565 $24,983 $62,426 $50,992 Completion Systems 6,996 6,146 13,947 12,597 Artificial Lift Systems 6,925 6,493 13,798 12,514 Compression Services --- 9,194 4,184 18,376 Other 1,733 827 3,032 1,578 $50,219 $47,643 $97,387 $96,057 (A) Diluted earnings per share for the three and six months ended June 30, 2001, equals net income plus net interest and amorization 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 of Weatherford International, Inc., +1-713-693-4148 /Photo: http://www.newscom.com/cgi-bin/prnh/19990308/WEATHERFORDLOGO PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840 /Company News On-Call: http://www.prnewswire.com/gh/cnoc/comp/130999.html