Weatherford’s growth by geography
Weatherford International (WFT) saw robust revenue growth (a ~20% rise) from 3Q16 to 3Q17. On the other hand, WFT’s Latin America region declined the most (a 10.2% fall) during the period. Schlumberger’s (SLB) 3Q17 North America revenues rose 53% from 3Q16. WFT is 0.26% of the Vanguard Energy ETF (VDE). VDE declined 5% in the past year, compared to a 33% decrease in WFT’s stock price.
Comparison with peers
In 3Q17, Weatherford International’s net loss was $251 million. In comparison, Schlumberger’s net loss was $556 million in 3Q17 while National Oilwell Varco’s (NOV) net loss was $27 million. Nabors Industries’ (NBR) net loss was $119 million in 3Q17. WFT is 2% of the VanEck Vectors Oil Services ETF (OIH), which decreased 26% in the past year versus a 23% fall in WFT’s stock price.
WFT’s 3Q17 growth drivers: Negatives
- an operating profit decline due to a difficult situation in Venezuela
- a decline in deeper-water offshore work activity in Sub-Saharan Africa
- a loss of non-repeating product sales in Brazil
WFT’s 3Q17 growth drivers: Positives
- an increase in completions-related work in Russia
- a strong rise in revenues in WFT’s Well Construction, Completions, and Artificial Lift product lines
- a lower-cost structure in the United States as well as increased activity levels in both the United States and Canada
- recovery from the Canadian spring break-up
- benefits from cost reductions in Sub-Saharan Africa
- a favorable product mix in the North Sea
Next in this series, we’ll discuss how the US rig count can affect WFT’s 4Q17 financial results.