WFRD - Earnings call transcript Q3 2024 | Weatherford International plc

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this event is being recorded. I would now like to turn the conference over to Luc Lomon, Senior Vice President, Corporate Development. Sir, you may begin.

Unknown Executive

Weatherford Quarter the Call. Earnings to everyone, International XXXX Third Conference Welcome, joined President President Executive Saligram, by and CEO; I'm Girish Mitra, and today and Arun CFO. Vice for remarks start then We'll our prepared with open today up questions. and

could You and may presentation to remind our section. from call statements cause today's forward-looking everyone Relations subject of uncertainties that our many Investor today's want are slides statements. here to comments website's include corresponding results from I differ a expectation download any copy that within. the to risks some to actual of These materially expressed

Please regarding refer latest forward-looking Exchange and cautions for Commission filings to our statements. and risk factors Securities

financial press website. comments be included measures details The our are underlying reconciliation release, found our on non-GAAP Our non-GAAP and quarter's third which financial also in today can earnings measures. of include a GAAP to

being today's that, the section be Girish. website's on reminder, our call a call of As call. and conclusion is will version turn a over available like to the the Relations recorded Investor to webcast, following I'd With

Girish Saligram

and then targets brief will highlights and our joining return direction Luke, guidance, off our call. you on before balance wrap thoughts on market thank and opening Q&A. up an all outlook. the multiyear will our flow, and cover strategic our I a and of prepared for Arun overview update remarks I for cash our will key with Thanks, program, an sheet, performance, kick liquidity with capital some

America East Africa. and shifted strong As challenged, where cash America performance delays illustrated and in schedule margin Latin quarter delivered Middle North and on the X, a remained in North we Slide had

normalized and XX.X%, trend of revenue were cycle E&P almost basis in in the after continue the supported short quarter onshore are XXX this expected in a worthwhile the expect second near approach, and XXXX, margins a points activity, gradual MPD taking adjusted the is expansion to while quarter, despite softening had In as third more sales margin EBITDA oil came we We cautious in have measured, year. programs. the it over margins term. observed last of at we headwinds, operators particularly asset projects the that period same noting

delivered flow with conversion cash of of We cash free adjusted adjusted free million an $XXX XX%. flow

Third were quarter revenue the X% sequentially of X% experienced sector. in in international year-over-year. at main across growth we firstly, up activity was the X Revenue broadly came flat of felt end driven year-over-year, delays and lower due in America that revenue to factors: Latin expectations by

East, scheduling there shifts driven the referenced Secondly, earlier. I the in measured Middle were by North more Africa region, approach

the pricing to to While did offset discipline drive remain work, long-term we to revenue value have we creation. firmly and with transactional opportunities expansion margin committed shortfall

the our end lower margin the to flow at came margin the and encouraged I'm revenue continue in thesis by on in annual Canada which activity performance, cash While growth strong to ability basis. America of expectations, an of on X% reinforces favorable driving increase our overall revenue in due up regional sequentially, primarily Mexico. to seasonality Gulf and North From an was due standpoint, a activity increased

international Asia of we Our driving primarily has Despite a region was X% region achieved have continues year-over-year. international year-over-year the but up the down the growth, grown of business the show Kingdom consecutive revenue strength previously results with year-to-date. mentioned and the Arabia X% The XX sequential sequential function this XX% East, year-on-year grown North quarter. Saudi The was broader Africa, Middle of quarters sequentially, impact has factors. Middle to East, North Africa, XX% Asia delta, and year-to-date, now

the with modulation expected first normalization quarter quarter into began project and resume XXXX. will Oman. the third in year, discussed our fourth continue in in we integrated the of this the Earlier of expected This to

Our this expected. has team's significantly performance originally to led than outstanding execution on contract better

activities other have allow we up. we down to slow discussed, as to to needed However, previously catch customer

On and we the allocation $XXX second quarter call, dividend a a expanded buyback. million include our framework capital to quarterly

shown per share $X.XX of third $XX on our quarterly X, we million first paid dividend during Slide ever As quarter. approximately and of repurchased shares the

However, each market may vary amount on quarter this depending conditions.

Our leverage our additional to and ratio net while approximately X.Xx, committed is we maintaining ROIC. debt retiring remain top-tier

opportunities continue inorganic our to pursue align filters. with We strategic that

pleased small and the integration to of progress acquisitions our announced execution the team across September. in in very X plans all of February, these addition In we businesses. with Datagration I'm on the X

cementation, XX. Also deep drilling. elevated geothermal and operational exploration continued X liner overview on advancements penetration, geothermal includes the exploration X Weatherford that stocks our hangers service as a during portfolio. procurement agreement completions, innovation technology awarded Aramco deployed showcase highlights in innovative well segment as technical Slides new and services from The MPD gradients of market X-year product of our use to and mitigates turning adoption in corporate complementary through Now risk rip technology MPD Weatherford East, Middle solutions in agreements. This wells. and

to contract and the Forward ago decision-making. extremely we added a potential. our the the and platform's EcoVisor weeks Signet PetroVisor and with growth. is for East of the conference, immediate customer improved in at unconventional Foresight capability and platforms to acquisition for integration of XXth customer Annual was data A response Middle pipeline see and encouraging It portfolio, drilling resources. strong digital the Datagration real-time few analysis X-year frame showcased services Weatherford enhancing Weatherford's Furthermore, awarded solutions In digital,

for our outlook. market Now

broader in including in delays reasons, but the decelerated. moderating various efficiencies, is changes. scheduling is see market While to due prices, and budget several still whipsaw campaigns short-cycle exhaustion, market, commodity growing, has several growth activity international We don't the a

our release. competitive in noteworthy several is that activity able demonstrate showcase to have and the that slowing We and proceeding in drive contracts press several these still are listed growth, Despite advantage award spaces. tender Weatherford

was predicated our on flat year increase per an XX annual Importantly, margin of improvement XX basis revenues. to outlook of point

production and our there with than Furthermore, still anticipate life opportunities growth technologies of pockets. While that by remains ago, and select competitive of isolate supply growth parts emphasis on to cycle, of driven in We sub-Saharan support is Middle continued international East our parts the softer and market growth an which across that believe cost offshore, outlook for continue X to in ability mainly the customers, we supported land predictable the comfortable pockets we portions in are in. excel we're months Asia. that well of areas by and Africa security all

we growth approximately EBITDA XX% driven flow growth, continue adjusted slightly we cash free adjusted for line in of The we that key this Most have margins confidence than bottom year-on-year more adjusted delivering EBITDA markets. over year, $XXX have million. is importantly, will believe in differentiating technologies XX% pockets of by and to

to over to like I'd With it Arun. that, hand

Arunava Mitra

capital Thank an performance joining third our you, update on on everyone and Girish call. program. the an for Thank you quarter us has sighted already Girish. of our overview return shared

the our For please working liquidity company's center balance deck. detailed breakdown refer slide results, around and more today a cash third My press will flow, release guidance. of quarter quarter on comments to our capital, fourth sheet

quarter flows cash generated up Turning third million and the million, levels In second $XX of of to free flow for the liquidity. $XX million. Slide $XXX adjusted quarter, from we XX cash

to XX basis efficiencies in points a better working quarter Our XXX significantly basis increased only of capital increase compared and showed revenues. point third in of the net spite 'XX

as versus which a to percentage as capital revenue working net of the than a result, XX.X%, greater XX months stage a of capital points, year-on-year percentage of a last the net XXX irrespective working better. the sustainably of at get the is or represented to basis be cycle, As revenue XX% of improvement goal

CapEx months, million of million, $XXX XX last was cash was or X.X% approximately sequentially. revenues. Total the For up million $XXX $XX

of quarter, third paid $X.XX the approximately shares a dividend. $XX quarterly During we and repurchased million

while liquidity $X we and $X.X to business operate maintaining intent interest gross retiring additional leverage remain manage get at risk. expense our below with is billion, liquidity of approximately While event the to to reducing billion and our an committed debt Xx

and and on our growth, debt To summarize in returns capital creation. organic allocation investing shareholder approach our inorganic balanced management underscores technology, value sustainable focus to

on Slide XX. our to and year fourth XXXX full Turning quarter guidance

of are in market that have mentioned, campaigns a recently that Girish there scheduled with factors several As short-cycle have number delayed. ships in the developed been

adjusted revenues expect be be be this, low flat to and quarter flat XX%, mid-single the PRI fourth is free we for quarter still revenues to $XXX to DRE As to revenues we digits margins year Adjusted to low up to to EBITDA single digits. year WCC be up to above a margins revenues up million. flow sequentially. still to digits. exceed cash to expect flat Full are XX%. approximately Within we low full and be result, be fourth single slightly expect expected expected

the pass Girish time comments. I to your closing today. now for for you Thank call his back will

Girish Saligram

Arun. Thanks,

intensity, technology, I capability requires call, the same future conference larger with it's but the quarter the fueled and world-class on fulfillment On rigor the second for differentiating more the out operating scale. vision that laid of

around on intensely While cash market to EBITDA evolving in years conversion the operating have interest achieve we burden, XX% flat high to expect further modestly up is in and focused net free is the and maturing, we deliver next working believe of environment. this remain efficiency margins X with cycle reductions opportunity flow in the a We XXs we the overall our the capital to during period. in

return capital. aimed internal deliver Our to top-tier investments on invested

the return framework will around an XX% enable have we thesis. outlined. selective significant leave that will dry This of through reinforce entire of opportunity that sufficiently this All this powder providing shareholders place inorganic cash for will to to generation,

immediate is entering the years. significantly So cycle new focus over growth the the and value capability for bolstered our while true we few are past deliver the with to phase by creation of a actions low future,

the And now please questions. open for call operator,

Operator

of our And Dave from Instructions] first today question Barclays. comes Anderson [Operator

John Anderson

want of future. kind back was you here. kind scale. about part So discussion the in of the talked One of quarter how come view I Weatherford to the you last just M&A call of to about kind that

have than a question, kind going for? certain forward? could I smaller done where of technologies was the you wondering kind during any scale. about you're really maybe it of the need? must-haves is go I are looking of what More year. kind to you they of acquisitions kind bringing I'm Are You've kind secondarily, kind please. thinking to just scale, just sort acquisitions how there to of X you're table? curious M&A a you general more as talk Just those back little bit of then said that, of gone And first,

Girish Saligram

Dave. Sure,

little into maybe So walk look, let bit me first, and then the more a I'll the question. first with start

gaps an fill. So have got see M&A We're any today. holes don't start the with the from absolutely We significant look, go standpoint, pleased. glaring to fact very happy with that that we're me or portfolio let we've we

result, be a selective. in as I out as So will pointed M&A comments, prepared my

That's scale. not really cards. We of We for on the sufficient is portfolio. are absolutely company grow looking Today, with not sake the got happy We're to scale the scale. think we've the operating well.

product But trying within to what strategy value enterprise each operate is to we're aim we those teams product got have that the do enhance lines we also within to that lines that further and We've of drive. some grow creation. a

what we have they done here, when potential So we you strategy. M&A any but into fit And strategy? it the small, that if is this we does year, about been look that look think at have fit they target all that at deals

provider. So pivot successfully wireline business wireline technology We an to trying Probe the the different at acquisition that example, as being to and doing are were a in you of of look wireline kind a our space.

critical a in areas will have don't to a but be service operate. companies other we we We some in provider that service will wireline technology countries, also

we Probe broader us. do suite, that's gave what a To needed that, and

has the full and fill like capability a recovery. things helped out with Ardyne high really around a portfolio in it's of innovative and abandonment So technology degree terms of with plug efficiency slot that.

with are we we things are that pleased after. kinds getting those I'm the have of made. So progress extremely that the

knows, past Weatherford's but of great history job have a a done in had we is everyone integrating As what acquisitions, the not them.

execute. to And deal with I'm consummated ability through a how So the dedicated build years about we're playbook we to be planning to of that, the before terrific significant we done all out we the come. but teams, are the platforms job, teams emphasis clear integration the excited and learning for around have lot growth go a going us of a put to on these in

John Anderson

that sounds mentioned it had sort this you growth after pockets? flattish market. a of idea is of sort these isolating growth in pockets like find kind So these a that And technologies of of times the go couple Girish, can you

Girish Saligram

we still solid Absolutely. think good Look, chances there's reasonably for activity.

opportunity share into our just be got that. might opportunity we've to and we've it an move an While also increase create some stable, position, to space got but not white

we the provide we the while So that. to And will that's slightly market stable overall the up. us think be that business to ability might grow exactly what mean by

John Anderson

little could you East Great. in North expand scheduling And on that I one couple if a the by some you these bit? just about bit color a mean on next? you scheduling you, What ask little other to does times ships? just -- kind and more thing, are that, what these had temporary? the do of Or project of a Africa. please. one just Just shifts mentioned Are Middle Could

Girish Saligram

Yes.

really So into quarter the is getting what really campaigns out some or look, getting X. specifics, I of That's pushed without down by it is, to. think what it customer a comes

of my again permanent measured, not cautious approach. more remarks, but a cancellations, seeing It's bit a bit a shift. of more in So out as are we a a it's -- pointed I prepared not

so that overall out customers little to get are the that macroeconomic And can bit push things how situation seeing unfolds. we a see delayed,

Operator

our comes And with West question Evercore. James next from

James West

so So this market about stable the you've M&A kind about talked know of little done year. that far the Girish, a environment. just you you bit discussed a I And

environment? And and do much? biggest Can environment? Weatherford see growth then see what stable so growing this areas And so, you I'm you kind if of strength? outpace how in how in by you the And if evolving your so, curious modest

Girish Saligram

Yes.

And working I more So But can get we around areas you have can sure growth. towards, specific are we that, making February which James, will execute guidance think hard as year. is of able we've on speaking, growth. are very look, in if to like we give, we we got imagine, pointed, broadly that incremental that the specific essentially

it's really that's what So about.

as growth, as will. long as exaggerated that to we So you market an long opportunity remains do I execute, stable, we think have the as get if can

areas different and different it's lines. look, Specifically, product

talked up packages the getting the the launch trials, past in on the I've been successful. in Modus getting out year This cetera. NPD incredibly getting our the For and example, done, These finishing launch. around them getting supply together chain really about was field, field have built, et

that create for for year, bolus bit us. next of little should a growth a more So

are at a very notion area, is fields. we thematic are optimization The other we production look, broad approach focused around really mature of where this

notion rejuvenation offering, comes et cetera, through mature to So capability the field everything that got asset production we've mature from fore in line this surveillance. our rejuvenation, a product is optimization, really Mars which of our

We great have had examples there. some

up well Our intervention services through to that portfolio our decommissioning. brings capabilities all the way

to that of to do emphasis that's existing is environment where and do they us going an in how out more going extremely focused customers out So more existing we actually there more be far their their strong on because wells, an fields, they still to how think should of this give opportunity get get be are grow.

James West

you. Got

on And Okay. maybe a that. follow-up then

February, how in very year, next color margins the growth already you'll in think good growth potential environment? you how a to are again, but some profile? know, have more you I get do you And what higher about slower take about think As margin do

Girish Saligram

Yes.

probably things efficient. kind company opportunities up the execution. slightly flat still we get our in we internally, as to So XX look, seen of able margin of in should confident have not grow X the driving And really that bps to of value tune to that's to of past before, margins multiple that I that a an expansion within basis to points. we combination out hundreds XX gap, a X we improving be we will in still But more the the pointed to feel see comfortable several that have And improving and years environment. we are

the years, built that have of past So and with developed while the gotten trees, the still ladders go few over low-hanging the we've fruit, small X well. that have there's lot on we there enough a out capabilities a to we as fruit

Operator

Our from next Scott comes question Gruber at Citigroup. today

Scott Gruber

slower that of to growth topic -- margin drivers those is because opportunity about. stand thinking course just they've reassess often an been margin kind management of I the at want the team to environment, enhancement

margin guys that technology or of how faster? differently kind Just Can a pull enhancement are thinking on internally are certain additional pull some thoughts margin those can growth drivers slower environment? harder? any faster in introduce Like enhancement levers you you you the there about So you levels.

Girish Saligram

Yes.

that, and positive. inflation slight us, that is for still consistent, enough product but levers tightness lines Obviously, a Scott, the an -- slower differentiated we offset a right? bit are still pricing growth look, minimum the and technologies of net and one supply So be expect So pricing. environment is there in highly becomes to a is think at opportunity, challenging, in we first pricing more

and second of really probably to we new the gap. technology. value we're one most do The is introduction the that, as significant enhance And trying

price deliver where efficiencies the So cost. point and the at we really it can it but more get at position higher time, also, same a lower with

us The is fulfillment been what is a while for network. working third entire for our on we've

this a X-year Now road It's a to task. map. herculean X- is

good We are making it. progress on

a The it We're was initial part of done of that. with facility lot consolidation.

how supply Now chain we optimize sourcing about our the networks and around do it's that.

about else Just very talked done is already on on a countries example significant late the us doing X from what's this. XX one already or I Everyone we are interesting sourcing that. providing base. a quarters this. of to calls, about years simplistic that That's has benefits. think, moving on lower-cost And X ago, I

that, the it really margin slightly does for reduction good still get help a getting that But or expansion able margins. So that. above, us, doing cost where keeping significant significant is it's we're to actually price

harder But Look, will never And an we sticking network was cost becomes lever cost lean chain is is that over past supply is taking our that today. what the big that to optimization, And designed last and structure. the to be company, of on a years, our improving really a fulfillment few internal cost important. really team own has lot team, a because the factor. So now out. on outstanding more efficiencies lot the done cost job is it Weatherford optimization

we an we've doing, people, opportunity we to got roles how where from we still technology flows to to And so use consolidate, efficiencies more get better. have how material what they're flows everything how can information can

be to the XX going next so. us over huge that's emphasis So for or months a

to ammunition and And us so cost I get growth margins all combined, that of environment. slower in enough after gives think, really this improve

Scott Gruber

want the wonder pricing if the of the come concerned and you in we because risk on I be that That's folks color. from a topic margin marketplace, introduces that Weatherford from point way I benefited about? disproportionately back price a great. to some competitive up. I questions that to investors on appreciate the resiliency get think if versus folks more peers inflation should And is for risk

Girish Saligram

to So amount commercial way we've strategy. Look, disproportionately. it benefited, might it I is, part that the assume call approach about and Scott, fair a is of put of as it our pricing we on think I emphasis reasonably have if think you'll tremendous

So price. we have gotten

have pricing all say would I think, factors. is whole poses is we'll strong to that I a that continue because couple the of discipline. of what feel And One think that. don't I has We maintain other hopefully, But a increased industry I significantly price. the side on risk

to prepared not got that. we've I rigorous day, prices we in frankly, And pricing. second, every mechanism to fairly internally reducing we've significantly, my look, a revenue around increase by in remarks very, got absolutely talked opportunities, and think I that culture week, giving are and a very every

cash and for Star, first very generation our clear the So we are North proxy are that. margins which is about

we about So very clear are that.

us that to sure our that that And value allows making pricing. technology so keep we focus the to articulate on customers can differentiating brings proposition our

first think fair. say, part, I is So I the would

second I am think I concerned something part is personally that the overly not about.

Operator

comes And from today our Sachs. Goldman Modak next with question Atidrip

Ati Modak

Middle you highlighted Girish, a East. in NPD new the award

can So of can might which XX regions be months? focus area you the and adoption for talk you in drive where maybe are next perspective, from the an other about adoption lower moment growth at an

Girish Saligram

that very There something isn't I Yes. positive continues it's important signs for per Ati, And that. ubiquitous. our really very se. -- be us. region NPD adoption of necessarily we're seeing to is sort It's Look, think of a

are them world. far, areas we of practices. significant in seeing part to would trying this in are part probably increase. more of every as share there's more in Middle are and as in best that adoption well. We The Asia. in We're There's the able I been, front show customers, of by the And it, to Europe, has America, Latin case East, say, seeing get push areas we studies, that most of more but where

overall So an it's really of perspective. sort

the now Look, on the what the market. we're we cetera. the are always what is We've Victus performance right? et applications, this which you of of that look segment But performance of basic tier we after been offering. -- is very really market if high-end end sort never this of our though, get had it, RCDs to trying deepwater got So at the has have lower typically the market. offering, types in there really go

now So up something really and to is an think we something and for after. excited in starts the focused on, offshore. are that getting is you a And allows example, market, about product capture that for we in something that both open about offshore, to Modus and really that's land us are as that jack-up outstanding us that's and

Ati Modak

capital that. growth. be margin will what then working And year, maybe year have you've previous revenue, a because flattish for obviously Any flow Great. seasonality mentioned free different like thoughts early the been. Appreciate next for years cadence next year some cash on versus

use, any that could. if and cash maybe So you thoughts around

Girish Saligram

Sure. Arun?

Arunava Mitra

working And capital. months, efficiency the beginning mentioned, last XX at at find seen We of you we've of were improvement we last the XX% use at of over the Ati, seriously things as the is year. capital. a take ourselves we efficiency We have is consistent would what which pretty XX.X%. working one in

at be below XX% forward. or is the to Now sustainably going idea going

cycle. the you board, will improvement then costs into interest better DSI we DPO as across conversion what to expect, a DSO, translating should keep time, I And lower mentioned tell for, to can is over and well. cash expect taxes translates content, continuous we which as continuing moderate work efficiency we've into you So and

So cash to over conversion X next we the expect years. improve sequentially

Operator

James. next today Jim Rollyson with And from comes question our Raymond

James Rollyson

shareholders. Girish, those oilfield look I while, doing kind space guess, the have of this down you congrats. of lines, quarter Along around guys service different this to of on little a see ways executing capital it. and of first you a returning that break been into couple for

look just share kind what year their going more based to on the a portion people and at Some price. annual programmatically free are across of cash flow the return be guys of and execute annual buyback kind little is opportunistic the of some

first Just how forward, how guys that? since going but about you curious million, you're $XX with will thinking your execute Curious you how quarter the that

Girish Saligram

let but I Yes. a kick for look, is it take this, just Jim, I on sort Arun us. will off process I'll of specifics the learning this think saying, with

do else the out risk. to the optimal most on the way. going doing and undue fashion most everything like really responsible with we that without and taking trying focus are in But this figure We prudent

Arunava Mitra

we value. did good you very fact executing at evidence put and what we suggests we companies tell are know bit that is Jim, quarter. a this what that adding of empirical for And also can a buybacks opportunistically not

is which we buy we programmatically. to opportunistic and buybacks. at triggered employees, careful, back is which by be will the something So trigger [indiscernible] signals, expect to But we dilution be that looking component same time, market at the will

future on the this. in come to quarters more So

James Rollyson

been digital, but on Yes. that order the and impactful just growth Datagration the That's talk about talked a think Girish, magnitude, helpful a Maybe FORWARD one forward guys from going a integrate digital -- things. about sensors things ability a of order Weatherford At conference, different of we how from you there's color. of of the is different aspect? magnitude And lot of of to obviously, kind to lot just lot as about follow-up. front

Girish Saligram

it. pockets, Yes. I certainly Jim, production of other it's get significant focus portion. those highlighted about Look, far this capability. couple we mature PNAs with other of about and things of most one rejuvenation. growth a talked out digital third Digital a is of and we those digital and that a earlier, So look, revenue field than simplistic very is growth. And right? get the more pockets We that

first The is higher significantly margin.

So And et there cetera, bit of the is is, an of integrator a different upfront our little to margins. more in it's different, lot second very really typically accretive approach software development, things. cost becoming a of while is

So it's actually less capital intensive as well.

not would enough it or that about something being we it's But and middle of center the in a it Today, that. expansion and like big in talk on really talk counting feel smack are driver, levers out margin we a we anything Digital technology as that segment separate is as that. it about those dab is of

Operator

And comes Bank our next question from Saurabh with Pant of America.

Saurabh Pant

know to company, see you're more it's color that orders I order-driven an that right? you not interesting Girish, dozen orders in maybe your a a primarily on I want announced. to you release announced. little the with start press But

slowing on are East. concerns down. the think are them still But about get on do simultaneously specifically right? Middle we of I to orders. the I How East, Saudi hand, X Middle mean, considering the And trajectory in X the the stronger or looks you I more talking inflow, order know maybe you feel continue about forward, other relatively the going positive. conversation

Girish Saligram

great Yes. Look, Saurabh, question.

there lot I out in highlighted mean, press of a the release, still we is there. activity As

little to there it's activity slowing, a itself is growing much very But important bit. still that activity question. it's I So growth and actually no think is understand

geographies. place there several the that the overall, is still different right? not show orders actually And Middle the winning areas activity, we think that think growth the we East, I business but So are spearheading as just in is about in I think, of several different that

or we the of everyone we recognizes to of likely into that look a down. I sort sort next North bit so, is at America going months likely challenged global landscape, as As XX more understands look be think and flat, a

But of overall, mid-single North On East, growth Asia Sea, some kind Sub-Saharan think but mixed. growth that at mid-single-digit the has there countries down. is year. things in growth. is then select to digits. growth. next has We look of mid-single East Europe, obviously, that's U.K., probably be digits is We international very Africa think think digits think we happening as single Middle we the the about side, with And growth, the Middle likely high have we

would sort continue that And look that the at then it's of margin up I this therefore, accretion probably business, higher America, really one to modulates, little that ability there awards, have wait places how say, total really you card, to you're be in right, we happens. showcase single is EBITDA Latin wild got digits to margins. still and deliver place, select but in going and we it bit international there. what a for happening The those eventually what's really exploit activity which XXX% then us, -- to significant Mexico, Argentina when see kind like pockets and us is But have give low out is probably should of especially

Saurabh Pant

positive. other resilient, No, the mean are concerns, Right, the I right, still like look about relatively if right, on hear but you said, not on exactly the ground we hand, they all the right. right. trends like

Girish Saligram

retrospective. strong But growth very year-to-date very, look, mean, growth. talked I granted we about our it's that's Yes. and still year-to-date

got enough get even I drive we've margin think be those momentum that momentum, efficiencies to enough and able really story. got that we if really and should continue So expansion we've moderates, to not scale

from significant flat is this have revenue for cash be saying environment, up slightly years Yes, been even is that. to to to a I've drive help you've able to growth margin consistently a value expansion. in But and we that story. creation got should So margin get X-plus this

Saurabh Pant

is accelerate, to it make the we about know Perfect. for down efficiency question. great And market overall to That's XX.X%. you Ati's talked job, done growth you XX% harder you expect I XX%. you? And than you that come or fantastic capital right, there? example, How and you've to does less for sitting are further target very working fact slowing, the a one in response right. for at Right, Arun, is quickly. Perfect. to get number that a does collections soon the to

Arunava Mitra

on impact any we Look, collections. sort of haven't seen

As suggests down to at had pretty up of we or slow well. actually things inventory that same collections build a But fact, down, would collections strong reduced. less you a as the slow if history time, much would But matter expect quarter.

was, overall working in some growing would actually to favorable environment, you capital quickly start direction. as So expect go -- as a which is it

everything you Now mean soon, handbasket, some But of if world improvements. capital And unwind. continuous that, to how moderately concentrations. you dependencies. when up, have working I would goes ask and efficiency would falls to see flat you the about in critical expect apart to a see [indiscernible] we course,

from that You've portion AR is of significant Qs concentrated seen in our Mexico. our a

to working concentration. actively the reduce are we So

that, expect geography. particular or you next any once particular be XX% could do to you better customer on So we I get couldn't tell you on quarter that are is we which tell to can And I we XX% structure, any or concentration reduces the working quarter to What sustainably. do we sustainably the after. over next us couple which the years, expect or of

Saurabh Pant

lot Okay. No, of Arun. I makes got a it, sense. It

Okay. it Perfect, I'll turn Arun, back. Girish,

Operator

our today Benchmark. comes Kurt Hallead next And with from question

Kurt Hallead

Here with some to questions. you pepper

the you growth moderation went So detailed of obviously, where some referenced, come. that rates, to of of through they think back Girish, to kind and commentary you explanation in is the very going a let's go growth

got on the that and improving your even maintaining size, environment. focus margins in You've the

will, context feeling pressure the I don't book bit Or to getting work how about if organization, work know, you the it's to of or work? even you return of, margin necessarily little best indication not any take do So maybe some meet the having thresholds? a are doesn't if organization within the the in that you of anxiety guide

Girish Saligram

of mechanisms is sure Yes. feel that rhythms culture I lot company, operating right years. And the making everyone X a the changes within we've firstly. got the then we over that Look, second good the is communication do the and about page. on set have ensure really last Kurt, just the same the the to is had way up we that

Star is. cash And to North think the it's proxies what again, I that. and get to today everyone the understands

grow is of and the share no at I'm just looking going So to expense say, revenue one really to hey, margins or cash.

XX,XXX making the about of organization. we leadership but feel a importantly, been put I is lot more through that, team, message have of So in really the sure and work years it's that, people as percolated that X a that in good

it. We have had dialogue of bidirectional interaction, a lot around

I system is to about chase can opportunity will work. address it really feel we not. good look, ask them. perfect? then the and have go to overall But people are yes, Probably that we questions, So low-quality not the those But going absolutely

Kurt Hallead

in of not either and typical, in color. like, situation a nonetheless, go really now and base But to like just a a types experiencing of in which a Appreciate suppliers lean typically, up of big we're big way, standpoint. we're or from companies is service right? that tends these Maybe kind great. it's moderating. customer utilize down the really going pricing the That's kind as periods follow-up, to way on And now to

around prices. discussion as So but customers that X are might on really to it the been kind ago? reduced than X, some seeing of to lean you us months you from kind it you amount maybe give dynamic the have now -- Is of you it, insight of can explained X, to more culture intense increased trying

Girish Saligram

always it's do is that conversation, base. of part our Look, with every We right? something that supply

you go that Our of business us. through. circle do just with That's the customers that

One strong pricing to value really have is proposition. by certainly of sure years, are I that on about. make the couple look, it's we past up have we things. say, a think it's a concerned importantly, to a tried more Most that maybe that widespread say is over but it overly nothing we would few I extent are we as worked would a few very backed something or we So conversations, the phenomenon having,

commodity prices not go It's our hey, the it's create we customers. been, argument that about and are prices generate pricing high, been So value should so a high. that's for our

around The second of still is of especially is when cognizant keen on ensuring very security technologies. a different there supply, differentiating are customers choices lack very and

big, a that's big So factor.

cycle I capacity. not of a lot this out more lot has prudent building been think of in a industry the

And so softness. there of get isn't this could the that suggest huge a throw create mismatch capacity that pricing right surplus would now, to again, especially that in margins those there's we differentiated lot higher areas where

think there this is is very not changed, isn't least, customers also service And look, And a have and but very, cycles that moderation fundamental I cognizant need are not that I healthy customers think think a a a And that's difference. whipsaw effect. well. I last sector in they but There activity, drop. the as recognize that

opportunity So the margins. increase we an a I And got constructive. to road conversations think we've still net-net, believe map and are

Operator

Capital Doug question comes with One. Our today from next Becker

Doug Becker

important to Girish, rigs Weatherford. new market a The there then looking for country new company CEO. has budget. a an is Pemex a yesterday, some suspend was manage to has oil is national Mexico President, And that just report

for wanted So specifically. just I outlook Latin get backdrop, America that to given dynamic your

Girish Saligram

has America past months. Latin look, X over Doug, challenges of Yes. the the one been

as and got referenced of got this We that And elections, down of call little we've have it that terms was of certainly, seen. part now and a a we in up the is slowed things to new Mexico recognize on bit a We that. as on well delays prior call have there the administration. leading churn

very value on of a going days and to we exactly Pemex they in the that's due. clearly, while want generate But focus we still want early to right there's extent them do and sure say the we big look a can to what like. on it's think the I as supplier to footing, terms that getting it's partner what support to making

a the next I at earlier, year. said as on wildcard sort for probably questions. look the I America whole, as of of So Latin America is Latin one as

is As region at the down, But several feels that that in up it full it ability inflect maybe to and to one the happen right look Argentina at cetera. we to need has probably to slightly now, has like still flat point this probably strongest. free positive but ability outlook most see controls, it also the it's actually the we shift et than it's years. capital had the

there could slowdown, to If we some persist think et there that Colombia, and a a significant be happens, the positive about to market. have changes which and I That's talked Mexico, really well. for continues likely And bit a opportunity it the cetera. pretty going has not of there. is and longer. Brazil that do very steady growing, then been significant down comes and change really to

So to I come call but very cognizant are especially we something out et as February think in guidance, cetera. we of. that lay it's on more the that,

really well modulating exposure overall to manage with our we a that are keeping on are close plans, we ensuring as eye We very in workforce, and company a our are that making and everything activity positioned sure line there. customer

Doug Becker

increasingly well sense. Foresight industry the the life that system. makes a the platform you recent That the you of gears bit. production your were regenerative power be At little on seems to Switching highlighting integrate and then lift can cycle. into The conference, focused phase artificial specifically digital production

the would how you from the characterize Just production-related opportunity growth for Weatherford offerings? digital

Girish Saligram

our a it's Yes. one of on got very most dimensions. extensive Look, I X think significant portfolio We've opportunities.

it's the right? installed strong very don't lift, in ESP really about that first offering industry. we the other but a base So around offering, is artificial form we've of an we have have with and The got one every lift, most just comprehensive lift

domain. understand production huge a that's for advantage us. really this So We

The second is capability. digital the

competitive the huge own platform us. that a with is only OFS Signet, its are We advantage SCADA company and for has that

that bring Datagration that, have powerful feed modernize with this into data different the a different to allows different their platforms data for models then together ability we create databases, of us model as we with data so And to now, to structures, capability operational algorithms, foresight, efficiency. customers unified drive that incredibly what

So focused that's what we're on. really

portfolio artificial now cetera, we've et combination hey, the lot got their third a that. through we of we're we the think adding So just, now got wells of area making get rejuvenate capability. we lift. a We've from And production their services, to customers X existing drive legs we've help what different improve to sure these really technologies will is digital are well is got services, fields an help but comprehensive that the dimension, mature intervention that which it's that to capability, tremendous not

it's So are excited of in probably growth most that the an area we potential. terms about

Operator

with comes And Chan from Daniel Energy our final question Partners. today Josh

Unknown Analyst

in bit just a down follow-up little on your question, you to discussed service a that but further last I the drill wanted have one on. with I related

how can maybe more and bit specifically you evolving and give detail specific on you was exactly how the first, time completed over deal follow-up, how over third So they're Foresight now going detail the real-time Datagration right as for Signet acquisition just that of that the ultimately about work bit EcoVisor? next years? in my more couple can that's -- analysis with you to of and you importance the speak a see PetroVisor and a And to and together time of why then the And quarter. just increasing

Girish Saligram

high try things But most let lot sort right. a and them me All different of of at of in level. Josh. address there, A

looked really data. We So it's was together. a capabilities, terms just -- of issue, is always the to well that's really, which as customers our look, comes answer, is hard now, the we as a couple all why first typically own Look, landscape we in bring a at same there things bit don't we've market how together. everything realized. it of But lot of to are that with struggling the got know as

more a get of different is it tied phenomenon, but particular are a lack the to to nobody a especially really system. granted, it's about things of or U.S. that when into market. that's together, see They you all consolidation huge stitch ability particular wants but think second the The best-in-class, a all platform in

[indiscernible] this bring it of things customers. customers. that our treasure that, bridges data we adapter and other, describes gap see company they're all internally, It for we sort with system. to very of solution me that and as looked they model don't a pull see crude sort do that but of is consolidating unified together plug really got different world. the each system. There's passed huge also hey, trove this Datagration to at that it's for was How on digital the within are I've sort but fashion, this have the to We saying, the systems. acquired that a together. really we ability this Customers that universal we look, of offerings of in data, talk the

do creates and fast that. time, importantly, with do And software what So different that's it we can the that a it for do can that it real data sources Different get as do or model cloud, delivery if mechanisms kind it most on-prem, a well. customers want we a message together. service that then we as of bring really bring a very help it together they that them as on powerful very

it So that's really what is.

drive AI in to these But model in integration be capability what that have ability we of their something the in the that we that road exact got variety on. We've can specific mechanism platforms. of terms now the important optimization they whatever Look, a et map delivered channel interface that's want. ML of user actual whatever use is want models that to that the subscription cases simple a PetroVisor, to with cetera, are them Foresight, on very they platform to fact working with then more along deliver is the customers' a to

really what thesis this that's So about. is whole

Operator

for you. closing concludes question-and-answer turn team I'd management conference like the the And session. Thank back to to this over remarks. any our

Girish Saligram

Great. Thanks, call Look, the all today. Rocco. for appreciate Thank you it. joining

the have market recognize of that we believe is changing. It's So still, We we again, just evolving. that summarize though, to pockets growth.

for we've that past year, most We different And are And excited to been the of the grow importantly, deliver $XXX we're this have several EBITDA the million ability and margin the over we business about. XX% to on over journey areas track margins cash. the years. continue in to for we have that ability few on expansion

you on our we'll for talk fourth to all joining, call. thank so and you -- quarter So much

Arunava Mitra

you. Thank

Operator

Thank concludes you all call. We thank for today's conference you, attending everybody. presentation. This today's

You lines, day. may now have a and wonderful your disconnect

Weatherford International (WFRD) 23 Oct 242024 Q3 Earnings call transcript