HOUSTON - Weatherford International plc (NASDAQ:WFRD), a global provider of energy services, has secured a new five-year contract with Bapco Upstream, a subsidiary of Bapco Energies in Bahrain. This contract, announced today, entails the delivery of Directional Drilling and Logging While Drilling Services. Weatherford replaces its own previous drilling services contract with Bapco, which began in 2015.
The comprehensive agreement includes the use of Weatherford's suite of drilling technologies and its Centro well construction optimization platform. Centro is designed to offer high-quality reservoir-characterization data, which aims to enhance collaboration, increase transparency, and improve agility in drilling operations for Bapco Energies.
Girish Saligram, the President and CEO of Weatherford, stated, "I am pleased Bapco Energies selected Weatherford as it continues to advance its drilling program." He emphasized the partnership's strength and the value of Weatherford's drilling portfolio and digital capabilities.
Weatherford has been providing drilling services in Bahrain since 2016. The contract renewal signifies a continuation of the partnership between Weatherford and Bapco Energies, highlighting Bapco's confidence in Weatherford's ability to support its drilling program.
Weatherford operates in approximately 75 countries and boasts a diverse workforce of around 18,800 employees from over 110 nationalities. The company is recognized for integrating advanced technologies with digitalization to offer sustainable services that aim to maximize value and return on investment for its customers.
This new contract with Bapco Upstream is seen as a testament to Weatherford's commitment to delivering strategic solutions that enhance efficiency and flexibility while maintaining responsible energy operations. The information for this report is based on a press release statement from Weatherford International plc.
In other recent news, Weatherford International has reported a significant 15% increase in revenue year-over-year for the first quarter of 2024, led by strong performance in its Drilling and Evaluation (DRE) and Well Construction and Completion (WCC) segments.
The company also marked its 12th consecutive quarter of year-over-year adjusted EBITDA margin expansion, reaching an all-time high of 24.7%. In addition, Weatherford has signed a Memorandum of Understanding (MOU) with QatarEnergy, aimed at enhancing Qatar's local energy industry.
Goldman Sachs (NYSE:GS) has upgraded Weatherford's stock price target to $144 from $132, maintaining a Buy rating. The firm anticipates additional growth drivers for Weatherford in the latter half of 2024, stemming from the company's strategic approach to capital allocation.
Similarly, BofA Securities raised its stock price target for Weatherford to $145, citing consistent performance and increased adjusted EBITDA guidance for 2024. Piper Sandler also lifted its price target for Weatherford to $184, noting the company's robust financial trajectory and operational efficiency.
These recent developments underscore Weatherford's commitment to growth and operational efficiency. The company's strategic partnerships, robust financial performance, and positive outlook from analysts demonstrate its strong position in the market.
InvestingPro Insights
Weatherford International plc (NASDAQ:WFRD) has not only secured a significant contract renewal with Bapco Upstream but is also showing promising financial metrics. According to recent data from InvestingPro, Weatherford boasts a market capitalization of $8.17 billion, reflecting its substantial presence in the energy services sector.
InvestingPro Tips suggest that Weatherford is trading at a low P/E ratio of 17.72 relative to near-term earnings growth, indicating potential value for investors considering the company's growth prospects. Additionally, analysts have revised their earnings upwards for the upcoming period, further signaling confidence in Weatherford's financial trajectory.
The company's revenue growth is notably robust, with the last twelve months as of Q1 2024 showing a 15.9% increase, aligning with the positive outlook expressed by Weatherford's President and CEO, Girish Saligram. Furthermore, with a high return over the last year of 78.81%, Weatherford has demonstrated strong performance in the market.
For investors looking for more in-depth analysis and additional InvestingPro Tips, which currently number 11 for Weatherford, a visit to https://www.investing.com/pro/WFRD is recommended. Plus, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering even more valuable insights for informed decision-making.
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