Weatherford International PLC (WFRD, Financial) announced its Q3 2023 results on October 24, 2023, reporting significant growth in revenue and net income. The company's revenues for the third quarter of 2023 were $1,313 million, marking a 3% sequential increase and a 17% increase year-over-year. Operating income for the quarter was $218 million, compared to $201 million in Q2 2023 and $121 million in Q3 2022. The net income for Q3 2023 was $123 million, a 50% or 293 basis points increase sequentially, and a 339% or 687 basis points increase year-over-year.
Financial Highlights
Adjusted EBITDA for the quarter was $305 million, a 5% or 39 basis points increase sequentially, and a 43% or 412 basis points increase year-over-year. Basic income per share was $1.70, compared to $1.14 in Q2 2023 and $0.39 in Q3 2022. Cash flows provided by operations in Q3 2023 were $172 million, compared to $201 million in Q2 2023 and $160 million in Q3 2022. Adjusted free cash flow was $137 million, a decrease of $35 million sequentially but an increase of $4 million year-over-year. Capital expenditures for the quarter were $42 million.
CEO Commentary
Girish Saligram, President and Chief Executive Officer, commented, “I am grateful to the One Weatherford team for their commitment to our strategic priorities. The result of this commitment is manifested in another quarter of top line growth, margin expansion, and free cash flow generation, with adjusted EBITDA margins setting another record. Our operating performance has enabled a very significant step forward on our capital structure with the announcement of our $550 million credit facility, which significantly enhances liquidity and balance sheet flexibility."
Outlook
Weatherford International PLC (WFRD, Financial) expects strong momentum to continue into the fourth quarter of 2023, with revenues projected to grow further. The company now expects full-year adjusted EBITDA margins to expand over 400 basis points year-over-year, with adjusted free cash flow over $450 million.
Segment Performance
The Drilling & Evaluation (DRE) segment saw revenues of $388 million in Q3 2023, a 2% decrease sequentially but an 11% increase year-over-year. The Well Construction and Completions (WCC) segment reported revenues of $459 million, a 4% increase sequentially and a 17% increase year-over-year. The Production and Intervention (PRI) segment reported revenues of $371 million, a 1% increase sequentially and a 4% increase year-over-year.
Liquidity
Weatherford International PLC (WFRD, Financial) closed Q3 2023 with total cash of approximately $946 million, up $24 million sequentially. The company repurchased $72 million of its 6.5% Senior Secured Notes in the third quarter and an additional $75 million in October 2023.
