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Actionable news in WFT: WEATHERFORD INTERNATIONAL PLC,

Weatherford Reports Second Quarter 2016 Results

BAAR, Switzerland, July 27, 2016 /PRNewswire/ -- Weatherford International plc (WFT) reported GAAP net loss for the second quarter of 2016 of $565 million, or a net loss of $0.63 per share, and adjusted net loss before charges and credits of $253 million ($0.28 adjusted net loss per share) on revenues of $1.40 billion for the second quarter of 2016.

Second Quarter 2016 Highlights

  • Industry leading operating income decrementals of 6% sequentially and 24% year-over-year; sequential incrementals of 50% (GAAP basis);
  • Ceased operations in three manufacturing and service facilities, a year-to-date total of seven of the nine planned closures for the year;
  • Closed 28 additional operating and other facilities, now at 54 year-to-date, 11 more than originally projected;
  • Completed 92% of the planned 8,000 reduction in force, with expected annualized savings of $446 million;
  • Entered into an agreement defining the terms and conditions of the Zubair early production facility construction contract settlement in the amount of $150 million;
  • Raised net proceeds of $2.7 billion from newly issued debt: $1.265 billion in exchangeable (convertible) notes maturing in 2021 and $1.5 billion in new senior notes, $750 million maturing in 2021 and $750 million maturing in 2023;
  • Settled in cash, a tender offer of $1.9 billion face value of existing senior notes on June 30, 2016; and
  • Gained inclusion in the Euronext Vigeo World 120 Index, which recognizes companies achieving the most advanced Environmental, Social and Governance (ESG) performance.

(In Millions, Except Per Share Amounts)


Three Months Ended


Change



6/30/2016


3/31/2016


6/30/2015


Sequential


Year-on-Year

Total
















Revenue


$

1,402



$

1,585



$

2,390



(11)

%


(41)

%

Operating Income (Loss)


$

(66)



$

(157)



$

36



58

%


(283)

%

Operating Margin


(4.7)

%


(9.9)

%


1.5

%


520

bps


(621)

bps

Adjusted Operating Income (Loss) *


$

(116)



$

(105)



$

117



(11)

%


...

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