Jul. 28—Oil field services company Weatherford International is reporting its first profit since 2019 when the company emerged from chapter 11 bankruptcy.
The Houston company said Thursday that, despite challenges in the supply chain stemming in part from Russia's war against Ukraine, it expects to grow its revenue through the year at a faster rate than previously forecast.
Weatherford International made $6 million in the second quarter of the year, compared to a loss of $78 million during the same period last year. Revenues rose 17 percent to $1.06 billion from $903 million in the second quarter of 2021.
Girish Saligram, Weatherford's CEO, told investors the results were well above the company's expectations, supported in part by high oil prices.
"The macro-environment for the sector continues to be supported by strong fundamentals," Saligram said, "and we are capitalizing on the opportunities enabled by our broad services portfolio, leading edge specialty services, transformation of our operating paradigm, and strong customer relationships."
In 2019 the oil field services company filed for bankruptcy after low oil prices translated into nearly five years of losses for Weatherford. It emerged as a reorganized company in December of that year when it posted its first profit since 2014.
However, that would also be the last profits the company would report until this week. In 2020 when drilling came to a near standstill due to the COVID-19 pandemic, the company reported a net loss of $1.9 billion. Last year Weatherford started to close in on the gap, but still ended 2021 with a reported loss of $450 million.
Oil field services companies have been reporting mixed results for the second quarter of 2022. Increases in oil prices and production has meant surging demand for their products. However, companies have had a challenging time getting needed equipment and parts due to supply chain issues. Thanks to inflation, when they are able to get needed supplies, they are paying more for them compared with just a few months ago.
Last week Houston-based Baker Hughes reported a second quarter loss of $839 million, while Halliburton said it made $109 million. Paris-based Schlumberger reported a $959 million profit, more than double what it made in the same period last year.
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