Weatherford International Plc (NYSE:WFT) yesterday released its 3Q2016 financial results, with a net loss of $1.78 billion, despite revenues of $1.36 billion. The company’s revenue suffered a sequential decline of 4%, excluding revenue from the Zubair project. WFT has recorded a sequential decline in revenue, for the last seven quarters. In its financial filing, the company pointed out that it had improved its operating income and income margin, both nationally and internationally and also recorded a 12% increase in revenue from local operations.
Other important highlights from the quarter included the reduction of WFT’s workforce, by 8,000, resulting in cost savings of $504 million per annum. Moreover, the management noted that year-to-date it had closed 10 of its manufacturing facilities, exceeding the planned 9 closures for the FY2016. The company’s operating margins for the 3Q2016 showed some improvements, as compared to the 2Q2016, but were drastically high, as compared to the preceding year. Operating margin for the 3Q2016 was (21.2)%, while that of 2Q2016 was (25.2)% and that in the 3Q2015 was (6.5)%.
Following the 3Q2016, Weatherford was also awarded the “Oilfield Services Company of the Year 2016”, at the “Oil & Gas Middle East Awards”, 2016. The finalists of the awards included three other companies, including Schlumberger. Weatherford was successful in obtaining other recognitions, worldwide, during the recent months. It was recognized for its safety and service quality, in Angola and Australia, for its Chevron operations. In Canada, the company received a silver award for the country’s safest employer in the oil & gas industry, for the third time in a row. Finally, WFT’s 2015 Digital Annual Report also received the Top International Business Award.
Weatherford’s most recent achievement was the recognition of its operational safety, in Canada. The awards are given by the Canadian Occupational Safety Magazine, a wing of Thomson Reuters. Only companies that have outstanding accomplishments, in promoting the health and safety of their workers, are considered for the award.
Weatherford International Plc (NYSE:WFT) lost 6.82% of its share value, during the October 27 trading session, to close at $5.74 per share.