Oct. 22 (seeking alpha) Weatherford International (WFRD) jumped 8.6% in Wednesday’s trading after easily beating Q3 earnings estimates and saying its Venezuela business could reach its previous peak of $500M in annual revenue in the next few years.
Q3 profit rose to $120M, or $1.66/share, from $81M, or $1.12/share, in the year-earlier quarter, while revenue fell 7% Y/Y to $1.14B, in line with Wall Street analyst consensus.
Weatherford (WFRD) sees potential to ramp up its Venezuela revenue to more than $100M in the next year and higher still in 2028, depending on whether the environment in the country remains stable, CEO Girish Saligram said on the company’s earnings conference call.
The company said it posted its first new revenue in Venezuela in Q3 after a major operator awarded a contract for pumping systems to support well completions in the country.
Weatherford (WFRD) expects to see a tangible revenue contribution from Venezuela in Q3, although with significant startup costs, and its operations in the country could eventually amount to ~10% of the company’s revenue, Saligram said.
Even as conflict-related operational disruptions in the Middle East weighed on Weatherford’s (WFRD) activity levels, the readouts reiterated the durability of the company’s operating model, the CEO also said.
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