WEATHERFORD CUTS 11,000
Weatherford International boosted its headcount reduction target by 1,000 on Thursday to 11,000 positions.
In its second quarter results, the Switzerland-based company confirmed it has successfully completed its previously announced headcount reduction target of 10,000 and has revised its target upwards to 11,000.
The reductions will principally affect the company's U.S. operations, with a focus on support positions.
"The aggregate results of these measures will help mitigate the effects of the downturn, while at the same time, take advantage of the opportunity to develop a leaner structure and a tighter organization," the company said.
Hercules also confirmed that it closed three of its manufacturing and service facilities this quarter, bringing its total amount of closures to over 60 operating facilities across North America through the first half of 2015.
The company plans to close 30 more operating facilities by the end of the year.
"Going forward, we expect positive free cash flow in the third and fourth quarters driven by further reductions in working capital balances, continued discipline on capital expenditure spending, reduced severance cash payments, and improved net income," Weatherford added.
Weatherford reported a second quarter net loss before charges of $77 million, or a loss of $0.10 per share, on revenues of $2.39 billion.
CEO Bernard J. Duroc-Danner noted that the company's revenue dropped by 14 percent from last quarter, beating out a 26 percent decline in the worldwide rig count.
"The second quarter was a very difficult one to navigate," Duroc-Danner said.
The company also revised its full year capital expenditure forecast down by $100 million to $750 million, a 48 percent drop compared to 2014.
Weatherford expects an annualized savings of over $700 million based on its 2015 reductions.
"As we emerge gradually from this industry down cycle, we expect to operate as a much leaner, more efficient and streamlines organization," the company said.
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GAZPROM - The parties discussed relevant issues related to bilateral cooperation, including the Baltic LNG project. Emphasis was placed on the priority measures aimed at developing a joint design concept (pre-FEED).
BHGE - U.S. Rig Count is up 11 rigs from last week to 1,063, with oil rigs up 8 to 869, gas rigs up 4 to 193, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 13 rigs from last week to 195, with oil rigs up 8 to 127 and gas rigs up 5 to 68.
REUTERS - Brent crude futures had risen $1.02 cents, or 1.3 percent, to $81.28 a barrel by 0637 GMT. The contract dropped 3.4 percent on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown. U.S. West Texas Intermediate (WTI) crude futures were up 80 cents, or 1.1 percent, at $71.77 a barrel, after a 3 percent fall in the previous session. WTI is on track for a 3.5 percent drop this week.
EIA - Brent crude oil spot prices averaged $79 per barrel (b) in September, up $6/b from August. EIA expects Brent spot prices will average $74/b in 2018 and $75/b in 2019. EIA expects West Texas Intermediate (WTI) crude oil prices will average about $6/b lower than Brent prices in 2018 and in 2019.