Oil field service company Weatherford International in its fourth quarter earnings reported an income of US$156 million.
Fourth quarter revenues of US$2.9 billion were the highest in company history and produced the highest quarterly sequential growth rate in the recent past. Revenues were 20% higher than the same period last year, and 14% higher than the prior quarter. International revenues were up 15% versus the prior quarter. Eastern Hemisphere revenues increased 10% sequentially and 13% versus the year ago quarter, while North America revenue increased 14% and 70%, respectively, over the same period. Integrated Drilling, Completion Systems, Drilling Services, Stimulation and Chemicals, and Artificial Lift product lines posted strong sequential growth for the company.
Segment operating income of $421 million improved 89% year on year  and 13% sequentially. Margin performance was held back primarily due to asset write-offs, particularly in the Eastern Hemisphere, as well as unfavourable weather conditions in Australia. Asset write-offs, principally on inventory, totalled $50 million during the quarter and negatively impacted earnings per share by approximately $0.05.
The outlook for the international markets in 2011 is constructive, as supported by this quarter’s healthy improvement in international revenues. The pace of recovery is expected to accelerate throughout the year and gain further momentum in 2012.
Middle East/North Africa/Asia
Fourth quarter revenues of $681 million were 15% higher than the fourth quarter of 2009 and 13% higher than the prior quarter. On a sequential basis, Algeria and Iraq posted strong performances along with the Completion Systems and Integrated Drilling product lines. Year-over-year, revenue gains were meaningful in Iraq and China.
The current quarter’s operating income of $53 million decreased 35% as compared to the same quarter in the prior year and decreased 22% compared to the prior quarter. Asset write-offs and inclement weather in Australia negatively impacted profitability during the quarter.
