HOUSTON - Weatherford International plc (NASDAQ: NASDAQ:WFRD), a global energy services company, reported increased revenues and net income for the second quarter of 2024. The company's revenues rose to $1,405 million, marking a 3.5% increase from the previous quarter and a 10% increase year-over-year. Operating income for the quarter reached $264 million, a 13% sequential increase and a 31% rise compared to the same period last year.
Net income also showed a significant uptick, with the company reporting $125 million for the quarter, which translates to an 8.9% net income margin. This represents a 12% increase from the previous quarter and a substantial 52% increase year-over-year. Adjusted EBITDA for Q2 2024 stood at $365 million, a 9% sequential increase and a 25% rise year-over-year, resulting in an adjusted EBITDA margin of 26.0%.
Weatherford highlighted its shareholder return program, announcing an annual dividend of $1 per share and a three-year share repurchase program of $500 million. The company declared a quarterly cash dividend of $0.25 per share payable on September 12, 2024, to shareholders of record as of August 13, 2024.
The company's President and CEO, Girish Saligram, attributed the strong performance to the company's operational intensity, portfolio differentiation, and continued growth. Saligram expressed confidence in the company's future, citing the strength in international and offshore activity, particularly in the Middle East/North Africa/Asia region, which saw a 9% sequential and 29% year-over-year growth in the second quarter.
In addition to financial achievements, Weatherford also reported operational and technological highlights, including new contracts and the launch of ForeSite® EDGE 2.0, an IoT-enabled automation solution for autonomous production optimization.
Weatherford conducts business in approximately 75 countries and employs around 19,000 people. The company is focused on delivering innovative and sustainable energy services, optimizing resources, and creating value for shareholders.
The information presented in this article is based on a press release statement from Weatherford International plc.
In other recent news, TechnipFMC (NYSE:FTI) has retained its 'Overweight' rating from Piper Sandler, based on recent rig count trends and company performance. Weatherford International has expanded its credit facility to a cap of $1 billion, enhancing its financial flexibility. In addition, Weatherford has signed a Memorandum of Understanding with QatarEnergy to bolster the local energy industry.
TechnipFMC's rating was maintained by Piper Sandler due to the company's potential and strategy. The firm expects TechnipFMC's Subsea margin guidance for 2025 to be a milestone, not a peak, signifying future achievements.
Weatherford International, on the other hand, has seen a 15% increase in revenue year-over-year for the first quarter of 2024, marking its 12th consecutive quarter of year-over-year adjusted EBITDA margin expansion. The company also raised its margin guidance for the remainder of the year.
In addition to these financial developments, Weatherford's strategic partnership with QatarEnergy aims to enhance Qatar's local energy industry and support technological advancement in the region.
Goldman Sachs (NYSE:GS), BofA Securities, and Piper Sandler have all raised their stock price targets for Weatherford, citing the company's strong performance and potential future growth drivers. These recent developments reflect Weatherford's commitment to growth, financial health, and strategic partnerships.
InvestingPro Insights
As Weatherford International plc (NASDAQ: WFRD) showcases a robust financial performance in the second quarter of 2024, InvestingPro data and tips provide a deeper understanding of the company's market position and future potential. With a market capitalization of $9.8 billion and a P/E ratio of 21.09, the company's valuation reflects its recent success and investor confidence. The P/E ratio has remained stable, with a slight increase to 21.23 over the last twelve months as of Q1 2024, suggesting that the company's earnings growth is in line with market expectations.
InvestingPro Tips highlight that Weatherford is trading at a low P/E ratio relative to near-term earnings growth, indicating potential undervaluation compared to its future earnings potential. Additionally, the company has been recognized for its high return over the last year, with a 76.21% price total return, demonstrating its strong performance in the market. This aligns with the company's reported year-over-year net income increase and reflects the positive investor sentiment surrounding its growth trajectory.
Furthermore, Weatherford's liquid assets surpass its short-term obligations, providing financial flexibility and stability. This is a crucial factor for investors considering the company's ability to sustain its dividend payments and share repurchase program. It is worth noting that while the company has announced an annual dividend of $1 per share, InvestingPro Tips reveal that Weatherford does not typically pay a dividend to shareholders, indicating a shift in its capital allocation strategy to enhance shareholder returns.
For readers interested in further analysis and additional InvestingPro Tips, there are 12 more tips available on Weatherford's profile at Investing.com. Use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of data and insights to inform your investment decisions.
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