Weatherford reported strong second quarter 2011 profits of US$110mn on the back of strong growth in international markets that helped the company post record revenues for the quarter.
According to a company statement, Q2 revenues jumped by 25 per cent versus last year and seven per cent higher than the prior quarter and came in at US$3.05 billion. International revenues were up 14 per cent sequentially and up 12 per cent versus last year's quarter.
Weatherford’s international operations provided all of the sequential growth compared to the first quarter of 2011 and delivered 51 per cent incremental margins. International operating income was down three per cent compared to last year's quarter.
Weatherford expects that for the whole year revenue growth will rise by approximately 25 per cent, which is higher than the 20 per cent growth rate estimated last quarter. In addition, the Weatherford expects international margins in the fourth quarter of 2011 to be meaningfully higher than full-year 2010 margins of 11 percent.
For the MENA and Asia region, Q2 revenues were US$617mn which was two percent higher than the second quarter of 2010 and seven per cent higher than the prior quarter.
Weatherford attributed this growth “to a stronger Iraq” that “helped offset the impact of a full quarter of reduced activity due to political unrest in the Middle East and North Africa.”
The regional unrest did result in Weatherford posting a decline in quarterly operating income in Q2 of US$34mn a fall of 54 per cent as compared to the same quarter in the prior year but it did increase by US$23mn compared to the first quarter of 2011.
The Well Construction, Integrated Drilling and Artificial Lift product lines posted strong sequential performances in the MENA and Asia region.
