Weatherford International reported a 46% decrease in its 2015 revenue, along with the announcement of reducing its workforce by 6000 by 1H 2016 in its Q4 and full year 2015 report due to the steep drop in oil prices, which hurt the company’s drilling and exploration activity.
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Image of Bernard J. Duroc-Danner, courtesy of Weatherford. |
"We have just completed what is probably the most challenging year in our history,” Weatherford chairman of the board, president and CEO Bernard J. Duroc-Danner said.
The company’s net loss came in at US$102 million in Q4 2015, compared to a net loss of $42 million in Q3 2015, and a net income of $252 million in Q4 2014. Weatherford also posted a net debt below $7 billion for the first time since March 2011.
Full year 2015 revenue was down $5.5 billion and operating income declined $1.5 billion, which Weatherford primarily said was due to lower activity, pricing weakness and customer budget reductions in oil and gas markets across the world.
Revenue for Q4 2015 came in at $2.01 billion, a 10% drop compared with $2.24 billion in Q3 2015 and a 46% decline from $3.73 billion in Q4 2014.
“As we continue to face harsh market conditions, we plan to reduce our cost structure by effecting a further headcount reduction of 6000, which we expect to have completed during the first half of 2016,” Duroc-Danner said. “We will also close another nine manufacturing and services facilities. We will also continue to rationalize our operating facility footprint. In line with these cost reduction measures, the full year forecast for capital expenditures will be $300 million, 56% lower than our 2015 spending.
The oilfield services provider had about 56,000 employees at the end of 2014, however, cut some 14,000 jobs in 2015.
In addition, the company closed six of its planned seven manufacturing and service facilities and approximately 90 operating facilities in North America, completing 20 in Q4, which in addition to other actions, have generated a cost savings of $1.4 billion.
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