Swiss-based, multi-national oilfield service company Weatherford has recorded record second quarter revenue of $3.052 billion, an increase of 25% over Q2 2010.
In the MENA region, Weatherford’s Q2 revenues were $617 million, 2% higher than Q2 2010 and 7% up from Q1 2011.
“Weather improvements in China and Australia and a stronger Iraq helped offset the impact of a full quarter of reduced activity due to political unrest in the Middle East and North Africa,” the company said in a statement. “Libya operating expenses cost almost $0.01 per share. The Well Construction, Integrated Drilling and Artificial Lift product lines posted strong sequential performances”.
As a result primarily of civil unrest, the current quarter’s MENA region operating income of $34 million decreased 54% as compared to the same quarter in the prior year and increased $23 million compared to the first quarter of 2011.
International revenues were up 14 percent sequentially and up 12% versus the year ago quarter. North America revenue was down one percent sequentially and up 46% versus the second quarter of 2010. The sequential decline in North America was due to the severe impact of the Canadian break-up. The Canadian results overshadowed a very strong performance in the U.S., where sequential revenue growth outpaced rig count by more than two-to-one and operating margins expanded.
Segment operating income of $421 million improved 36% year-over-year and 19% sequentially. The company’s international operations provided all of the sequential growth compared to the first quarter of 2011 and delivered 51 percent incremental margins. International operating income was down three percent compared to the year ago quarter.
The company expects earnings per share before excluded items of approximately $0.24 to $0.26 in the third quarter of 2011, supported by a seasonal recovery in Canada and steady improvement in the U.S. and international markets. For full-year 2011, the company anticipates that revenue growth will be approximately 25%, which is higher than the 20% growth rate estimated last quarter. In addition, the company expects international margins in the fourth quarter of 2011 to be meaningfully higher than full-year 2010 margins of 11%.
Weatherford also reported strong performances in the Caspian, with Europe/West Africa/FSU revenues of $592 million up 17% on Q2 2010 and 16% higher than the prior quarter. The Completion, Stimulation and Chemicals, Drilling Services and Integrated Drilling product lines had the strongest sequential growth.
