Oil and natural gas services company Weatherford International Ltd. (NYSE:$WFT) has posted 2017 second quarter adjusted loss of 28 cents per share. This is compatible with the Zacks Consensus Estimate and the 2016 number.
So what caused the loss? Many speculate the primary reason behind the loss is attributable to the adverse impact of pressure pumping operations and a decline in product sales.
For the second quarter of 2017, total revenue decreased to $1,363.0 million from $1,402.0 million in the 2016 quarter. Additionally, it fell behind the Zacks Consensus of $1,417.0 million.
Let’s break down the Q2 report into sections!
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Operation Performances
In regards to North American revenue, this came in at $475 million for the second quarter, which means it is up 18.5% from the 2016 comparable quarter.
Middle East /North Africa /Asia reported revenues of $340 million, which means it’s down 15% (or $60 million) from the 2016 period. Second quarter operating income came in at $9 million, which is a decrease from $50 million in the 2016 quarter.
In terms of Europe/West Africa/FSU, revenue came in at $244 million. And last but not least, Latin American revenues of $203 million were down $46 million (18.5%) year over year.
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Weatherford Liquidity
Weatherford had $584 million in cash and cash equivalents, as of June 30. In regards to long-term debt, this amounted to $7,538 million. Weatherford spent roughly $42 million in capital expenditures throughout the reported quarter.
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Price Performance
Throughout April to June of this year, Weatherford saw its shares underperform the sector. The stock lost 41.8% during the aforesaid period, which is compared with a 20.3% decline for the broader sector.
It’s worth noting that, as of right now, Weatherford has a Zacks Rank #4 (‘Sell’).
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