Weatherford sees Q3 revenues decline in the Middle East

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Weatherford posted third quarter revenues of US$3.3 billion which is an increase of 33 per cent compared to the same period last year and 11 per cent higher than the previous quarter. In the MENA region, revenues dipped slightly due to a fall in activity in Algeria.

Third quarter revenues for the MENA and Asia was US$573mn, five per cent lower than the third quarter of 2010 and seven per cent lower than the prior quarter. According to the company, "the sequential decline in revenues was principally the result of the deconsolidation of three joint ventures and a decline in activity in Algeria."

The current quarter's operating income of US$15mn decreased 77 per cent as compared to the same quarter in the prior year and decreased US$19mn compared to the second quarter of 2011. Weatherford explained these declines by saying, "the mobilisation of equipment out of Algeria pending additional tenders weighed on margins, as did a negative swing in Iraq profitability and continuing operating losses in Libya due to political disruptions."

Weatherford anticipates a recovery in the MENA and Asia Pacific region with positive contributions from new contracts with better terms and pricing, the completion of existing contracts and activity improvements in North Africa.

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W: www.alaincharles.com

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