Artificial Intelligence
Weatherford Announces First Quarter 2023 Results
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- Revenues of $1,186 million increased 26% year-over-year
- Operating income of $185 million increased 928% year-over-year
- Net income of $72 million increased 190% year-over-year; net income margin of 6.1%
- Adjusted EBITDA* of $269 million increased 78% year-over-year; adjusted EBITDA margin* of 22.7%
- Cash provided by operating activities of $84 million and adjusted free cash flow* of $27 million
- Senior notes repayments and repurchases of $62 million in the first quarter of 2023, followed by issuance of notice to redeem the remaining $105 million of 11% senior unsecured notes due 2024
- Over $1.2 billion of global commercial wins during the first quarter of 2023
- Launched new technology offerings in all three segments, leveraging digital capabilities to enhance performance and differentiate value proposition
*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
HOUSTON, April 25, 2023 (GLOBE NEWSWIRE) — Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the first quarter of 2023.
Revenues for the first quarter of 2023 were $1,186 million, an increase of 26% year-over-year and a decrease of 2% sequentially. Operating income was $185 million in the first quarter of 2023, compared to $18 million in the first quarter of 2022 and $169 million in the fourth quarter of 2022. The Company’s first quarter of 2023 net income was $72 million, compared to a net loss of $80 million in the first quarter of 2022 and net income of $72 million in the fourth quarter of 2022. Adjusted EBITDA* was $269 million, an increase of 78% year-over-year and 1% sequentially. Diluted income per share was $0.97, compared to a diluted loss per share of $1.14 in the first quarter of 2022 and diluted income per share of $0.99 in the fourth quarter of 2022.
First quarter 2023 cash flows provided by operations were $84 million, compared to cash flows used by operations of $64 million in the first quarter of 2022 and cash flows provided by operations of $193 million in the fourth quarter of 2022. Adjusted free cash flow* was $27 million, an increase of $91 million year-over-year and a decrease of $144 million sequentially. Capital expenditures were $64 million in the first quarter of 2023, compared to $20 million in the first quarter of 2022 and $49 million in the fourth quarter of 2022.
Girish Saligram, President and Chief Executive Officer, commented, “The first quarter results are a testament to the unfolding of the next chapter at Weatherford. I am immensely proud of our One Weatherford team for executing very well on all operating fronts and the performance in the first quarter is a springboard for our total year outlook. The first quarter results which generated margins ahead of a historic record fourth quarter of 2022, positions us well for 2023. This very encouraging start to the year gives us confidence to continue to reduce debt, improve our outlook, and raise our guidance for the full year on revenue, margins and adjusted free cash flow*.
While we see macro volatility, driven by geopolitical events, inflation and recessionary threats, a strong outlook for international activity continues to support a robust growth scenario featuring a spending pattern that is more long-lasting and less prone to fluctuations in commodity prices compared to previous cycles. We are seeing some potential softness in the North America market but expect to fully offset that with International demand on both land and offshore.
Our strategic priorities provide us with the clarity of purpose and based on our execution, we now expect our overall revenue to grow by mid-teens year-over-year in 2023 and expect adjusted EBITDA margins* to expand by at least 250 basis points year-over-year. This will result in higher adjusted free cash flow* generation than 2022, providing a very constructive operating performance framework for the year.”
*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Operational Highlights
- Weatherford was awarded a $290 million, two-year contract extension with a Latin America operator to provide pressure pumping, wireline, well services and testing services for onshore gas and shale wells.
- Weatherford was awarded a five-rig deep water contract with bp Azerbaijan. The three-year contract allows bp to further automate its TRS operations and reduce red zone risk by using the Vero technology.
- Weatherford was awarded a three-year joint operations contract with Saudi Arabian Chevron and Kuwait Gulf Oil Company. Weatherford is the first company to provide its premier MPD technology offering for an upcoming exploration campaign.
- Petroleum Development Oman (PDO) awarded Weatherford a seven-year contract for its industry-leading ForeSite® technology, which enables improved production performance of wells through its integrated and automated well models.
- Weatherford received an award from Aramco to deliver Red Eye Water Cut Meter measurement technology. This technology delivers real-time measurements and enhanced accuracy in multi-phase conditions
- CeraPhi Energy and Weatherford have entered into an exclusive collaboration agreement to provide an integrated package of products and services to end users for the development of geothermal energy. Weatherford will offer its global expertise in Data Acquisition, Digitalization and Automation Services and CeraPhi will leverage its proven engineering and project management services to provide enhanced geothermal technology solutions to the market.
Technology Highlights
- Launched a new MPD offering for the performance tier of the market providing comprehensive coverage across the market spectrum. This solution enhances pressure management, improves detection and visualization of kick/loss incidents while digitally capturing data for post job analyses and process improvement by leveraging our industry-leading monitoring and modeling software capability.
- Launched ForeSite® 5.0, which builds upon our industry-leading production optimization platform. By integrating with DataRobot we are now able to deliver operationalized Artificial Intelligence (AI) through machine learning (ML) models. These advanced and field tested ML models will be able to deliver failure prediction of artificial lift to deliver cost savings as well as improved production for customers. This AI foundation in ForeSite® will also enable further collaborative development of machine learning models with our customers.
- Launched CygNet 9.7, which advances our CygNet platform to include greater flow measurement functionality for both gas and liquids. CygNet is the only IoT/SCADA platform offered by an energy services company for upstream and midstream customers, currently active on more than 350,000 wells and facilities.
- Within our WCC segment, launched the Xpress XT Liner System with an API 19LH validation and pressure-balanced capability. With this launch, we are driving increased reliability of Liner hanger systems leading to reduced operational risk and superior well integrity.
Liquidity
We closed the first quarter of 2023 with total cash of approximately $983 million as of March 31, 2023, down $129 million sequentially. In the first quarter of 2023, we made senior notes repayments and repurchases of $62 million, comprised of $20 million of our 11% Senior Unsecured Notes and $42 million of our 6.5% Senior Secured Notes. On April 20, 2023, we issued a notice to redeem the remaining $105 million of our 11% Senior Unsecured Notes due 2024.
Net cash provided by operating activities during the first quarter of 2023 was $84 million, down $109 million sequentially, and up $148 million year-over-year. Adjusted free cash flow* of $27 million was down $144 million sequentially and up $91 million compared to the first quarter of 2022. The sequential decrease was driven mainly by higher operating and working capital requirements, capital expenditures, and lower proceeds from asset sales. The year-over-year increase was primarily driven by higher operating income.
*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Results by Reportable Segment
Drilling & Evaluation (“DRE”)
Three Months Ended | Variance | |||||||||||||||||
($ in Millions) | March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
Seq. | YoY | |||||||||||||
Revenues: | ||||||||||||||||||
DRE Revenues | $ | 372 | $ | 371 | $ | 292 | — | % | 27 | % | ||||||||
DRE Segment Adjusted EBITDA | $ | 108 | $ | 111 | $ | 59 | (3 | )% | 83 | % | ||||||||
DRE Segment Adjusted EBITDA Margin | 29.0 | % | 29.9 | % | 20.2 | % | (90 | ) bps | 880 | bps | ||||||||
First quarter 2023 DRE revenues of $372 million increased by $80 million, or 27%, year-over-year due to increased activity across all product lines and geographies, primarily in drilling-related services. Sequentially, DRE revenues was flat primarily due to a decline in activity for managed pressure drilling and drilling services, offset by increased drilling fluids and wireline activity. Geographically, increased activity in Latin America and North America offset decreased activity in the Europe/Sub-Sahara Africa/Russia and Middle East/North Africa/Asia regions.
First quarter 2023 DRE segment adjusted EBITDA of $108 million increased by $49 million, or 83%, year-over-year, mainly due to higher drilling-related services activity. Sequentially, DRE segment adjusted EBITDA decreased by $3 million, or 3%, primarily due to lower activity in managed pressure drilling partially offset by higher drilling-related services activity and timing of cost inflation related recoveries.
Well Construction and Completions (“WCC”)
Three Months Ended | Variance | |||||||||||||||||
($ in Millions) | March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
Seq. | YoY | |||||||||||||
Revenues: | ||||||||||||||||||
WCC Revenues | $ | 421 | $ | 403 | $ | 344 | 4 | % | 22 | % | ||||||||
WCC Segment Adjusted EBITDA | $ | 96 | $ | 87 | $ | 67 | 10 | % | 43 | % | ||||||||
WCC Segment Adjusted EBITDA Margin | 22.8 | % | 21.6 | % | 19.5 | % | 120 | bps | 330 | bps | ||||||||
First quarter 2023 WCC revenues of $421 million increased by $77 million, or 22% year-over-year, driven by increased activity across all product lines and geographies, and primarily driven by higher cementation products, completions, and tubular running services activity. Sequentially WCC revenues increased by $18 million, or 4%, primarily due to increased completions activity in Europe/SSA/Russia, increased cementation products activity in North America, and higher tubular running services activity.
First quarter 2023 WCC segment adjusted EBITDA of $96 million increased by $29 million, or 43% year-over-year, mainly due to increased activity across all our geographies. Sequentially, WCC segment adjusted EBITDA increased by $9 million, or 10% sequentially, primarily due to higher tubular running services and completions activity.
Production and Intervention (“PRI”)
Three Months Ended | Variance | |||||||||||||||||
($ in Millions) | March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
Seq. |
YoY | |||||||||||||
Revenues: | ||||||||||||||||||
PRI Revenues | $ | 349 | $ | 407 | $ | 286 | (14 | )% | 22 | % | ||||||||
PRI Segment Adjusted EBITDA | $ | 68 | $ | 88 | $ | 39 | (23 | )% | 74 | % | ||||||||
PRI Segment Adjusted EBITDA Margin | 19.5 | % | 21.6 | % | 13.6 | % | (210 | ) bps | 590 | bps | ||||||||
First quarter 2023 PRI revenues of $349 million increased by $63 million, or 22% year-over-year, due to increased activity across all product lines and geographies. Intervention services and drilling tools, international pressure pumping, and artificial lift experienced the highest activity increases. Sequentially, PRI revenues decreased by $58 million, or 14%, primarily due to a decline in artificial lift activity in North America and international pressure pumping partially offset by increased intervention services and drilling tools activity.
First quarter 2023 PRI segment adjusted EBITDA of $68 million, increased by $29 million, or 74% year-over-year, mainly due to higher activity across all product lines and geographies, led by intervention services and drilling tools. Sequentially, PRI segment adjusted EBITDA decreased $20 million, or 23%, primarily due to lower activity for artificial lift in North America and international pressure pumping.
About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company operates in approximately 75 countries and has approximately 17,900 team members representing more than 110 nationalities and 345 operating locations. Visit weatherford.com for more information and connect with us on social media.
Conference Call Details
Weatherford will host a conference call on Wednesday, April 26, 2023, to discuss the Company’s results for the first quarter ended March 31, 2023. The conference call will begin at 10:00 a.m. Eastern Time (9:00 a.m. Central Time).
Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.
Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.
A telephonic replay of the conference call will be available until May 10, 2023, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 8819198. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.
Contacts
For Investors:
Mohammed Topiwala
Vice President, Investor Relations and M&A
+1 713-836-7777
[email protected]
For Media:
Kelley Hughes
Senior Director, Communications & Employee Engagement
+1 713-836-4193
[email protected]
Forward-Looking Statements
This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly and full-year revenues, operating income and losses, segment adjusted EBITDA, adjusted EBITDA*, adjusted free cash flow*, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only predictions and may differ materially from actual future events or results, including: global political, economic and market conditions, banking crises, political disturbances, changes in global trade policies, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from the Russia Ukraine conflict including, but not limited to, extended business interruptions, sanctions, treaties and regulations imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues, as we may experience a higher rate of cybersecurity attacks, intrusions or incidents in the current environment of remote connectivity; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; further spread and the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to address and participate in changes to the market demands for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; and the realization of additional cost savings and operational efficiencies.
These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the SEC, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statements speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.
*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled
Weatherford International plc | ||||||||||||
Selected Statements of Operations (Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
($ in Millions, Except Per Share Amounts) | March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
|||||||||
Revenues: | ||||||||||||
DRE Revenues | $ | 372 | $ | 371 | $ | 292 | ||||||
WCC Revenues | 421 | 403 | 344 | |||||||||
PRI Revenues | 349 | 407 | 286 | |||||||||
All Other | 44 | 28 | 16 | |||||||||
Total Revenues | 1,186 | 1,209 | 938 | |||||||||
Operating Income: | ||||||||||||
DRE Segment Adjusted EBITDA[1] | $ | 108 | $ | 111 | $ | 59 | ||||||
WCC Segment Adjusted EBITDA[1] | 96 | 87 | 67 | |||||||||
PRI Segment Adjusted EBITDA[1] | 68 | 88 | 39 | |||||||||
Corporate and Other[2] | (3 | ) | (20 | ) | (14 | ) | ||||||
Depreciation and Amortization | (80 | ) | (84 | ) | (87 | ) | ||||||
Share-Based Compensation | (9 | ) | (7 | ) | (7 | ) | ||||||
Restructuring Charges | — | — | (20 | ) | ||||||||
Other (Charges) Credits[3] | 5 | (6 | ) | (19 | ) | |||||||
Operating Income | 185 | 169 | 18 | |||||||||
Other Income (Expense): | ||||||||||||
Interest Expense, Net | (31 | ) | (39 | ) | (48 | ) | ||||||
Other Expense, Net | (35 | ) | (33 | ) | (16 | ) | ||||||
Income (Loss) Before Income Taxes | 119 | 97 | (46 | ) | ||||||||
Income Tax Provision | (38 | ) | (21 | ) | (28 | ) | ||||||
Net Income (Loss) | 81 | 76 | (74 | ) | ||||||||
Net Income Attributable to Noncontrolling Interests | 9 | 4 | 6 | |||||||||
Net Income (Loss) Attributable to Weatherford | $ | 72 | $ | 72 | $ | (80 | ) | |||||
Basic Income (Loss) Per Share | $ | 1.00 | $ | 1.01 | $ | (1.14 | ) | |||||
Basic Weighted Average Shares Outstanding | 72 | 71 | 70 | |||||||||
Diluted Income (Loss) Per Share | $ | 0.97 | $ | 0.99 | $ | (1.14 | ) | |||||
Diluted Weighted Average Shares Outstanding | 74 | 73 | 70 | |||||||||
(1) Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation expense and other adjustments. Research and development expenses are included in segment adjusted EBITDA. (2) Corporate and other includes business activities related to all other segments (profit and loss), corporate and other expenses (overhead support and centrally managed or shared facilities costs) that do not individually meet the criteria for segment reporting. The sequential decrease in the three months ended March 31, 2023 was driven by improved results in other non-core businesses that did not individually meet the criteria for segment reporting. (3) Other (charges) credits relate to miscellaneous charges and credits. |
Weatherford International plc | ||||||||||||||||||
Revenues by Geographic Areas (Unaudited) | ||||||||||||||||||
Three Months Ended | Variance | |||||||||||||||||
($ in Millions) | March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
Seq. | YoY | |||||||||||||
Revenues by Geographic Areas: | ||||||||||||||||||
Middle East/North Africa/Asia | $ | 376 | $ | 387 | $ | 310 | (3 | )% | 21 | % | ||||||||
North America | 286 | 301 | 238 | (5 | )% | 20 | % | |||||||||||
Latin America | 317 | 290 | 227 | 9 | % | 40 | % | |||||||||||
Europe/Sub-Sahara Africa/Russia | 207 | 231 | 163 | (10 | )% | 27 | % | |||||||||||
Total Revenues | $ | 1,186 | $ | 1,209 | $ | 938 | (2 | )% | 26 | % |
Weatherford International plc | ||||||||
Selected Balance Sheet Data (Unaudited) | ||||||||
($ in Millions) | March 31, 2023 | December 31, 2022 | ||||||
Assets: | ||||||||
Cash and Cash Equivalents | $ | 833 | $ | 910 | ||||
Restricted Cash | 150 | 202 | ||||||
Accounts Receivable, Net | 1,088 | 989 | ||||||
Inventories, Net | 719 | 689 | ||||||
Property, Plant and Equipment, Net | 919 | 918 | ||||||
Intangibles, Net | 474 | 506 | ||||||
Liabilities: | ||||||||
Accounts Payable | 502 | 460 | ||||||
Accrued Salaries and Benefits | 271 | 367 | ||||||
Current Portion of Long-term Debt | 120 | 45 | ||||||
Long-term Debt | 2,067 | 2,203 | ||||||
Shareholders’ Equity: | ||||||||
Total Shareholders’ Equity | 586 | 551 |
Weatherford International plc | ||||||||||||
Selected Cash Flows Information (Unaudited) | ||||||||||||
Three Months Ended | ||||||||||||
($ in Millions) | March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
|||||||||
Cash Flows From Operating Activities: | ||||||||||||
Net Income (Loss) | $ | 81 | $ | 76 | $ | (74 | ) | |||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided By (Used In) Operating Activities: | ||||||||||||
Depreciation and Amortization | 80 | 84 | 87 | |||||||||
Asset Write-downs and Other (Credits) Charges | — | (1 | ) | 12 | ||||||||
Inventory Charges | 11 | 6 | 15 | |||||||||
Gain on Disposition of Assets | (5 | ) | (19 | ) | (5 | ) | ||||||
Deferred Income Tax Provision (Benefit) | 18 | (20 | ) | 3 | ||||||||
Share-Based Compensation | 9 | 7 | 7 | |||||||||
Changes in Operating Assets and Liabilities, Net: | ||||||||||||
Accounts Receivable | (96 | ) | (90 | ) | (51 | ) | ||||||
Inventories | (45 | ) | 43 | (31 | ) | |||||||
Accounts Payable | 64 | 35 | 7 | |||||||||
Other Assets and Liabilities, Net | (33 | ) | 72 | (34 | ) | |||||||
Net Cash Provided (Used) By Operating Activities | 84 | 193 | (64 | ) | ||||||||
Cash Flows From Investing Activities: | ||||||||||||
Capital Expenditures for Property, Plant and Equipment | (64 | ) | (49 | ) | (20 | ) | ||||||
Proceeds from Disposition of Assets | 7 | 27 | 20 | |||||||||
Proceeds (Payments) for Other Investing Activities | (7 | ) | (10 | ) | 9 | |||||||
Net Cash Provided (Used) In Investing Activities | (64 | ) | (32 | ) | 9 | |||||||
Cash Flows From Financing Activities: | ||||||||||||
Repayments of Long-term Debt | (66 | ) | (136 | ) | (4 | ) | ||||||
Noncontrolling Interest Dividends | (6 | ) | (10 | ) | — | |||||||
Tax Remittance on Equity Awards Vested | (52 | ) | (1 | ) | (1 | ) | ||||||
Payments for Other Financing Activities | (3 | ) | (12 | ) | — | |||||||
Net Cash Used in Financing Activities | $ | (127 | ) | $ | (159 | ) | $ | (5 | ) |
Weatherford International plc |
Non-GAAP Financial Measures Defined (Unaudited) |
We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
Adjusted EBITDA margin* – Adjusted EBITDA margin* is non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
Adjusted Free Cash Flow* (formerly titled as Free Cash Flow) – Adjusted free cash flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.
*Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled
Weatherford International plc | ||||||||||||
GAAP to Non-GAAP Financial Measures Reconciled (Unaudited) | ||||||||||||
($ in Millions, Except Margin in Percentages) | ||||||||||||
Three Months Ended | ||||||||||||
($ in Millions) | March 31, 2023 |
December 31, 2022 |
March 31, 2022 |
|||||||||
Revenues | $ | 1,186 | $ | 1,209 | $ | 938 | ||||||
Net Income (Loss) Attributable to Weatherford | $ | 72 | $ | 72 | $ | (80 | ) | |||||
Net Income (Loss) Margin | 6.1 | % | 6.0 | % | (8.5 | )% | ||||||
Adjusted EBITDA* | $ | 269 | $ | 266 | $ | 151 | ||||||
Adjusted EBITDA Margin* | 22.7 | % | 22.0 | % | 16.1 | % | ||||||
Net Income (Loss) Attributable to Weatherford | $ | 72 | $ | 72 | $ | (80 | ) | |||||
Net Income Attributable to Noncontrolling Interests | 9 | 4 | 6 | |||||||||
Income Tax Provision | 38 | 21 | 28 | |||||||||
Other Expense, Net | 35 | 33 | 16 | |||||||||
Interest Expense, Net | 31 | 39 | 48 | |||||||||
Operating Income | 185 | 169 | 18 | |||||||||
Depreciation and Amortization | 80 | 84 | 87 | |||||||||
Other Charges (Credits) | (5 | ) | 6 | 19 | ||||||||
Restructuring Charges | — | — | 20 | |||||||||
Share-Based Compensation | 9 | 7 | 7 | |||||||||
Adjusted EBITDA* | $ | 269 | $ | 266 | $ | 151 | ||||||
Net Cash Provided (Used) By Operating Activities | $ | 84 | $ | 193 | $ | (64 | ) | |||||
Capital Expenditures for Property, Plant and Equipment | (64 | ) | (49 | ) | (20 | ) | ||||||
Proceeds from Disposition of Assets | 7 | 27 | 20 | |||||||||
Adjusted Free Cash Flow* | $ | 27 | $ | 171 | $ | (64 | ) | |||||
*Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined
Artificial Intelligence
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Learn more about Viya LLM orchestration and other GenAI capabilities in this solution brief: Accelerate productivity with generative AI and SAS Viya.
“SAS’ guiding principle is everyone should be able to query data and perform complex analytical operations in every phase of the data and analytics life cycle, and generative AI is crucial in this democratization journey,” said Wiktor Markiewicz, Senior Market Research Analyst at IDC. “But most leaders don’t understand AI technology and how they can apply it meaningfully. Having an already trusted data and AI platform available removes the guesswork and kickstarts the generative AI journey.”
Georgia-Pacific and wienerberger rely on Viya for AI and GenAI capabilitiesManufacturer Georgia-Pacific is a SAS customer using Viya. “When challenges emerge with our manufacturing equipment or process, we leverage sensor data, business rules, recommender systems and generative AI to suggest the appropriate next best action and resolve the problem,” said Roshan Shah, Vice President, Collaboration & Support Center, Georgia-Pacific. “Streaming analytics and intelligent decision management support from SAS Viya helps us capture immediate value by making the right decisions as events occur.”
About Georgia-Pacific, SAS Executive Vice President and CTO Bryan Harris said, “One of SAS’ core strengths is our deep bench of industry knowledge. We understand manufacturing, and we understand Georgia-Pacific’s unique challenges. We help them appropriately scale LLM orchestration and manufacturing-specific GenAI assistant strategies so their employees can use those cutting-edge applications to troubleshoot real-time operational issues.”
Global brick manufacturer wienerberger also uses SAS for AI support. The company reduces energy consumption, cuts greenhouse gas emissions and improves product quality using SAS on Microsoft Azure. “We use AI and IoT analytics from SAS to connect all our data streams and analyze the entire production process,” said Florian Zittmayr, Team Lead for Data Science at wienerberger. “SAS Analytics brings intelligence to the kiln by helping our engineers and employees to gain valuable information about each step and identify specific target values to make the drying and firing of bricks more economical.”
And a global consumer goods manufacturer uses Viya and its GenAI capabilities to optimize warehouse space, allocate inbound shipments and compare “what-if” scenarios based on product demand. SAS helped develop an LLM-based digital assistant by dynamically updating SAS Visual Analytics dashboards so the company’s supply chain teams can easily save time and improve warehouse space usage with in-depth analytics. This conversational assistant allows both technical and business users to generate fast and accurate results and improve decision making using SAS’ trustworthy, explainable analytics.
Organizations are enthusiastic about adopting and deploying GenAI, but there’s often a gap between preparedness and execution. Learn more by reading the US Executive Summary from a new study: Generative AI Challenges and Potential Unveiled: How to Achieve a Competitive Advantage.
Viya stands out in the GenAI crowd because of pragmatic, industry-driven applicationsAs organizations explore GenAI, SAS prioritizes identifying industry-driven and ethically applied use cases. SAS enables secure adoption and fosters accelerated productivity and trusted results across diverse industries and regulatory landscapes. SAS’ GenAI functionality lives in leading products like Viya and SAS Customer Intelligence 360:
GenAI orchestration: Viya integrates external GenAI models with existing business processes and systems, orchestrating LLMs for end-to-end enterprise use cases. These capabilities are now available in SAS Viya.Viya Copilot: Enhances productivity for developers, data scientists and business users with a personal assistant that accelerates analytical, business and industry tasks. Viya Copilot offers diverse tools for tasks like code generation, data cleaning, data exploration, marketing planning, journey design and knowledge gap analysis. The first iteration of Viya Copilot is available through an invitation-only private preview.SAS Data Maker: Addresses data privacy and scarcity challenges by generating high-quality synthetic tabular data without compromising sensitive information, enabling organizations to address data privacy. SAS Data Maker is now available in private preview.Customer engagement. SAS continues to infuse GenAI capabilities into its flagship MarTech solution, SAS Customer Intelligence 360, to help marketers elevate the customer experience. SAS Customer Intelligence 360 already offers GenAI assistance on streamlining marketing planning, journey design and content and creative development. SAS is now introducing three new capabilities in SAS Customer Intelligence 360 for marketers: using GenAI to build recommended audiences based on natural language prompts, a chat experience to interpret audience data and a GenAI suggestion service for email subject lines.The GenAI functionality of Viya makes a meaningful difference to customers planning to:
Accelerate innovation: Seamlessly integrate GenAI models into decisioning workflows, AI/ML applications and existing business processes by using decisioning flow tools like SAS Intelligent Decisioning.Protect data: Support user privacy and security with robust data quality measures, including synthetic data generation, data minimization, anonymization and encryption, so sensitive information remains safeguarded.Create trustworthy and explainable results: Data experts can apply natural language processing techniques to preprocess data and explain the generated output, minimizing hallucinations and token costs.Enhance governance: Use built-in tools to create workflows that validate the life cycle of LLMs, including model risk management.Make more precise decisions: Quantitative decisioning capabilities, critical for successful GenAI reasoning, are built into the Viya platform.Today’s announcement was made at SAS Innovate, the data and AI experience for business leaders, technical users and SAS Partners. Keep up with the latest news from SAS by following @SASsoftwareNews on X/Twitter.
About SASSAS is a global leader in data and AI. With SAS software and industry-specific solutions, organizations transform data into trusted decisions. SAS gives you THE POWER TO KNOW®.
SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. ® indicates USA registration. Other brand and product names are trademarks of their respective companies. Copyright © 2024 SAS Institute Inc. All rights reserved.
Editorial Contact:Laura Fleek [email protected] 214-803-6692sas.com/news
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Artificial Intelligence
LTA’s Padel Programme Teams Up with Skylab for Enhanced Performance Analytics
MANCHESTER, England, April 17, 2024 /PRNewswire/ — Skylab, a UK-based specialist in sports technology and performance analysis, proudly announces its partnership with LTA Padel, solidifying its position as a premier provider of specialised services in the sports industry. This collaboration underscores Skylab’s commitment to excellence and showcases its ability to deliver innovative and diverse solutions tailored specifically for elite sports organisations like LTA Padel.
The LTA’s Padel performance programme in Great Britain will utilise Skylab’s Game Intelligence product and Performance Analysis services. The software will empower athletes and coaches alike with interactive and detailed match data, seamlessly integrated into intuitive dashboards that create automated video playlists. The Padel team at the LTA will gain a deeper understanding of padel at the elite level to support their talent identification, player pathway and coaching strategies as they strive to compete with the world’s best.
“Previously, Padel players lacked accurate and robust performance data, which made it impossible to analyse the opposition in detail. Coaches couldn’t answer their players’ key performance questions quickly, and performance directors had to rely on gut feeling and experience when evidencing what elite Padel looks like. However, our product and services provide practitioners with insights into the technical and tactical aspects of the game, as well as the physical demands required for elite-level performance. This allows practitioners to understand and predict the future performance of their players, enabling them to make data-informed decisions” says Ciaran Skinner, Business Development Manager, Skylab.
Skylab is a first-of-its-kind sports technology firm, offering tailored, market-leading Performance Analysis services and bespoke web platforms to elite sporting clients. It revolutionises how elite sports teams and individuals interact, use, and visualise their data. By packaging performance analysis with industry leading UX and bespoke software, partners will be in the position to make better decisions in sport.
For more information about Skylab and its services, please visit skylab.com or contact [email protected]
Notes
Website: www.skylab.com
https://skylab.com/padel-performance-insights/
Social:
LinkedIn – Skylab: https://www.linkedin.com/company/studio-skylab
LinkedIn – Skylab: Elite Performance Analysis: www.linkedin.com/company/skylab-epa/
About Skylab
Skylab is a first-of-its-kind sports technology firm, offering tailored, market-leading Performance Analysis services and bespoke web platforms to elite sporting clients. It revolutionises how elite sports teams and individuals interact, use, and visualise their data. By packaging performance analysis with industry leading UX and bespoke software, partners will be in the position to make better decisions in sport. Current clients include elite teams and organisations across Padel, Football, Athletics, Tennis, Rowing and more.
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Artificial Intelligence
Unisys Digital Workplace Solutions Receives HDI’s IT Support Center Recertification, Recognizing Continued Excellence in IT Support
Certification highlights the company’s ongoing optimization of IT support and recognizes Unisys as the only globally certified managed service provider
BLUE BELL, Pa., April 17, 2024 /PRNewswire/ — Unisys (NYSE: UIS) has achieved recertification through HDI’s IT Support Center Certification program, demonstrating the company’s commitment to exceeding IT support expectations and achieving biannual recertification. HDI is the leading organization dedicated to elevating technical support and service management across enterprises.
HDI’s Support Center Certification is based on an internationally recognized standard for best practices in IT support and global validation of organizations with support divisions that operate efficiently and effectively, ultimately leading to increased customer satisfaction and retention. The audit demonstrated that Unisys provides world-class desk services to its clients and that Unisys customer experience measures are significantly more advanced than those of most organizations.
“I congratulate the entire Unisys team on achieving HDI Support Center Certification for their Global Service Desk,” said Tara Gibb, senior director, HDI. “As an HDI-Certified Support Center, Unisys Global Service Desk is part of an elite circle of support centers dedicated to quality operations, continuous improvement, strategic vision, a positive work environment and high levels of customer service.”
This assessment of Unisys reflects a 15% increase in overall performance and significant strides since the last certification audit in 2021. Key strengths highlighted in the recertification report include adding the Experience Management Office into the overall delivery model, implementing 14 Experience Level Agreements (XLA) in the production environment and focusing on proactive business development predictive experiences. Unisys received high marks for overall leadership, strategy and policy, and people management.
“The recertification represents the continuous work of our team to optimize IT support operations, progress the maturity of our advanced Global Service Desk capability and maintain our commitment to helping our clients achieve breakthroughs with superior IT support,” said Patrycja Sobera, global vice president, Digital Workplace Solutions Delivery, Unisys.
Patrycja Sobera has also been highlighted as one of HDI’s Top 25 Thought Leaders for 2024, and Unisys has been named a finalist in four key categories of the 2024 HDI Global Service and Support Awards:
Best Service and Support ManagerBest Service Improvement InitiativeBest Customer ExperienceBest Use of TechnologyThe HDI Global Service and Support Awards 2024 winners will be revealed at HDI SupportWorld Live in May 2024. In 2023, Unisys was named the winner in the Best Culture and Best Support Organization categories.
To learn more about the company’s global service desk offerings, click here.
About Unisys
Unisys is a global technology solutions company that powers breakthroughs for the world’s leading organizations. Our solutions – cloud, data and AI, digital workplace, logistics and enterprise computing – help our clients challenge the status quo and unlock their full potential. To learn how we have been helping clients push what’s possible for 150 years, visit unisys.com and follow us on LinkedIn.
RELEASE NO.: 0417/9944Unisys and other Unisys products and services mentioned herein, as well as their respective logos, are trademarks or registered trademarks of Unisys Corporation. Any other brand or product referenced herein is acknowledged to be a trademark or registered trademark of its respective holder.UIS-C
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