Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Could you walk us through how some of the key countries in MENA are trending? Are those IOCs contemplating any shifts to plans? A: Girish Saligram, President and CEO, explained that while there is uncertainty, international markets, particularly MENA, tend to be more stable. He noted that Saudi Arabia has been reducing rig counts, but Weatherford believes it can still grow its business there unless there is another significant ramp down. Other regions like Kuwait, UAE, and Oman show robust spending patterns, and positive signs are emerging from Iraq.
Q: How do you see this downturn playing out in terms of duration or severity? A: Girish Saligram stated that the current downturn is different due to industry discipline and varying causes across regions. He anticipates a milder downturn, with some regions like the Middle East experiencing a gradual slowdown. He remains optimistic about offshore prospects in 2026 and 2027 and believes the downturn will be reasonably short-lived.
Q: Can you provide more details on the impact of divestitures and other moving pieces in your guidance? A: Girish Saligram noted that Mexico's activity is down more than expected, contributing to a 150-250 basis point reduction. North America has also been adjusted downwards, with a prudent view taken for Sub-Saharan Africa, Europe, and the Middle East. Divestitures account for a 100-300 basis point impact, with a global market reduction factored in at 300-500 basis points.
Q: Can you provide more color on what's going on in Mexico and the risks of further deterioration or improvement? A: Girish Saligram mentioned that while Mexico's activity has dropped significantly, they expect it to remain flat or slightly improve. He is optimistic about 2026, as there is an understanding in Mexico of the need to increase activity. Weatherford has positioned its business to adapt to current levels and take advantage of potential improvements.
Q: How should we think about your priorities as you start in this new role, particularly regarding capital allocation and balance sheet priorities? A: Anuj Dhruv, Executive Vice President and CFO, emphasized the importance of maintaining a strong balance sheet and liquidity to allow flexibility throughout the cycle. He reiterated the commitment to the dividend and the need for a fortress-like balance sheet to withstand uncertainty and be opportunistic.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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