Weatherford International plc reported a net loss before charges of $77 million ($0.10 net loss per share non-GAAP) on revenues of $2.39 billion for Q2 2015.
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GAAP net loss for the second quarter of 2015 was $489 million, or a net loss of $0.63 per share.
Revenue for the second quarter of 2015 was $2.39 billion compared with $2.79 billion in the first quarter of 2015 and $3.71 billion in the second quarter of 2014. Second quarter revenues declined 14% sequentially and 36% from the prior year.
Sequentially, North America comprised the bulk of the revenue decline with only a small decrease in revenues internationally.
Net loss on a non-GAAP basis for the second quarter of 2015 was $77 million compared to net income of $186 million in the second quarter of the prior year and a net loss of $33 million in the first quarter of 2015.
GAAP net loss for the second quarter of 2015 was $489 million, or a net loss of $0.63 per share.
After-tax charges of $412 million for the second quarter include:
$106 million (pre-tax $112 million), primarily related to the settlement of a lawsuit related to the restatement of our historical financial statements in previous years;
$159 million (pre-tax $223 million), primarily for the impairment of part of our U.S. pressure pumping asset base, true-ups related to our 2014 divestiture activity and other professional fees;
$62 million (pre-tax $72 million), of costs related to severance and facility closures in our 2015 cost reduction plan, including a write-off of our net assets in Yemen due to the political disruption there;
$69 million (pre-tax $69 million), net of legacy contract charges; and
$16 million (pre-tax $16 million), due to exceptional foreign exchange related charges in Angola.
Operating income margin of 4.9% for the second quarter declined 365 basis points sequentially and 909 basis points compared to the second quarter of 2014, reflecting the activity and pricing led revenue reductions.
The tax rate for the quarter (non-GAAP) was 42%, reflecting a net tax benefit on losses in North America which more than offset a normal tax charge on international earnings. ■