Rumours have it that Layoffs will also occur in the Manufacturing and support units in Abu Dhabi 150 to go by middle Janurary
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It's no wonder why their closing down. Icing on the cake on all the inferior screw ups on manufacturing products. Many screw ups on products with costly materials, time, QC letting crap get by, let lone frustrated clients. ...
Could I be horsewhipped hard?
if we ever get a bounce up in business, there will be few people who know what they are doing. It will be miserable for those of us left around who actually provide oilfield services and engineering.
For the most part, the only ones left will be the suck ups, political correct liberals and the feminists in personnel departments.
Let them do the real oilfield work. Ha ha.
If you think it's bad now, wait until personnel is left with almost no qualified staff to horsewhip.
Me hear facility to be closeded
Who will it privatized too?
Manufacturing and regional support Abu Dhbai me heard same thing. Non revenue jobs go early next week I hear
WFT manufacturing to be privatised is the news we hearing as well. We make sense I would think
Not an original post. It is an article from seekingalpha.com
To the previous post, I think you are on the wrong site, none of us here at WFT are smart enough to know what you are talking about.
Summary
•I previously valued Weatherford at $4.
•Given potential asset impairments of $2 billion the company might need to raise capital.
•I believe Weatherford needs about $1 billion to avoid a breach of its debt covenants and potential bankruptcy.
•Including its $1B capital hole WFT is worth closer to $2.25.
Source: Fortune
With $7.7 billion in debt at 5.4x run-rate EBITDA, Weatherford (NYSE:WFT) is one the world's most-indebted oilfield services companies. Management built the company's via a string of acquisitions when oil prices were much higher. Though oil prices and E&P have free fallen, Weatherford's debt service obligations have not.
Now that the company's revenue and EBITDA have also declined, goodwill related to prior acquisitions may be overstated. I estimate that Weatherford's goodwill and intangibles could be impaired by about $1.8 billion. In addition, its stale $2.8 billion inventory balance could be overstated by about $540 million. A total of $2 billion in asset impairments could cause Weatherford to breach its JP MorganChase (NYSE:JPM) debt covenant requiring debt-to-capitalization of less than 60%.
Based on [i] a $1.8 billion goodwill mark, [ii] $542 million inventory mark, [iii] $850 million estimated net losses from Q3 2015 to Q4 2016 and [iv] $300 million in estimated debt pay downs, I project Weatherford would need to raise about $1 billion to remain in compliance with its debt covenants. Coincidentally, the company attempted to raise $1 billion in September for the purpose of "pre-funding acquisitions." In my opinion, Weatherford has already tipped its hand that it is in need a substantial capital raise.
Including $1B Capital Hole WFT Is Worth $2.25
Based on a multiple of 5x - 7x run-rate EBITDA Weatherford is worth from $0 to $4 per share. That assumes the company is adequately capitalized. By reducing the value by its $1 billion capital hole, Weatherford would be worth about $2.25.
2015E Revenue
2015E revenue is revenue through the first nine months of 2015 annualized. This is optimistic given that revenue has declined each quarter since the beginning of the year.
2015E EBITDA
2015E EBITDA is actual EBITDA through the first nine months of 2015 and annualized. This equates to a 14% EBITDA margin.
EBITDA Multiple
The EBITDA multiple of 5.0x to 7.0x is appropriate for companies in cyclical industries.
Enterprise Value
The company's enterprise value (equity and debt) is $7.1 to $9.9 billion.
Equity Value
After subtracting net debt (debt less cash and equivalents) of $7.2 billion, and the $1.0 billion capital hole, I derived an equity value of -$1.1 billion to $1.8 billion. This equates to $0 to $2.25 per share.
Per Share Price
I assumed 779 million shares outstanding which was sourced from Yahoo!.
Conclusion
Weatherford currently has an equity value of $5.72 billion and an enterprise value of $12.9 billion. This equates to about 9x run-rate EBITDA. Based on its equity value, investors may believe WFT is a safe investment. However, its debt trades below par which means bondholders could question Weatherford's ability to service its debt.
Based on its $1 billion capital hole WFT is worth $2.25. I believe over time its stock will begin to reflect its distressed status. Avoid WFT.
Share price had dropped below $7. For the handful that are left; genuine question... Do you now wish you'd gone when this all blew up early last year? I think that this is going to continue getting messier and there is no way WFT will pay that money back no-matter how many fine people get thrown under the bus.
150 jobs go for BINGO
Job is about as safe as being a captured terrorist in Saudi Arabia. Better get ready for the chop.
Grapevine here says all managers / supervisor Jobs are being transferred to Houma by April. Anybody hear anything else?
You were told your roles were safe? Oh, well don't worry then. Management and the HR hatchet teams have been fully transparent during this slump so you're fine.
Glug...glug....glug. Last one out; please turn off the lights.
We told roles safe. What changed .
I hear same support roles finished as early as 19th
How does one know this. How many job go