Weatherford International PLC (WFRD) 2024 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Weatherford International third-quarter 2024 earnings call.

女士們、先生們，感謝你們的支持。歡迎參加 Weatherford International 2024 年第三季財報電話會議。

(Operator Instructions)

（操作員指令）

As a reminder, this event is being recorded.

提醒一下，此事件正在記錄中。

I would now like to turn the conference over to Luke Lemoine, Senior Vice President, Corporate Development.

現在，我想將會議交給企業發展部資深副總裁 Luke Lemoine。

Sir, you may begin.

先生，您可以開始啦。

Welcome everyone to the Weatherford International third-quarter 2024 earnings conference call.

歡迎大家參加Weatherford International 2024年第三季財報電話會議。

I'm joined today by Girish Saligram, President and CEO; and Arun Mitra, Executive Vice President and CFO.

今天與我一起參加的是總裁兼執行長 Girish Saligram；以及執行副總裁兼財務長阿倫·米特拉 (Arun Mitra)。

We'll start today with our prepared remarks and then open up for questions. You may download a copy of the presentation slides corresponding to today's call from our website's Investor Relations section.

今天我們將開始發表準備好的發言，然後接受提問。您可以從我們網站的投資者關係部分下載與今天的電話會議相對應的簡報投影片的副本。

I want to remind everyone that some of today's comments include forward-looking statements. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any expectation expressed herein. Please refer to our latest securities and exchange commission filings for risk factors and cautions regarding forward-looking statements.

我想提醒大家，今天的一些評論包括前瞻性的陳述。這些聲明受許多風險和不確定性的影響，可能導致我們的實際結果與本文表達的任何預期有重大差異。有關前瞻性陳述的風險因素和警告，請參閱我們最新的證券交易委員會文件。

Our comments today also include non-GAAP financial measures. The underlying details and a reconciliation of GAAP to non-GAAP financial measures are included in our third quarter's earnings press release which can be found on our website.

我們今天的評論還包括非公認會計準則財務指標。有關基本詳細資訊以及 GAAP 與非 GAAP 財務指標的對帳表包含在我們的第三季收益新聞稿中，您可以在我們的網站上找到。

As a reminder, today's call is being webcast and a recorded version will be available on our website's Investor Relations section following the conclusion of the call.

提醒一下，今天的電話會議將進行網路直播，電話會議結束後，我們網站的投資者關係部分將提供錄音版本。

With that, I'd like to turn over the call to Girish.

說完這些，我想將電話轉給 Girish。

Thanks Luke and thank you all for joining our call.

謝謝盧克，也謝謝大家加入我們的電話會議。

I will kick off our prepared remarks with an overview of our performance and update on our capital return program, key highlights, and a brief market outlook. Arun will then cover cash flow, the balance sheet, liquidity, and guidance and I will wrap up with some thoughts on our strategic direction and multi-year targets before opening for Q&A.

我將以我們的業績概述、資本回報計劃的最新進展、主要亮點以及簡要的市場展望開始我們的準備好的發言。然後，阿倫將介紹現金流、資產負債表、流動性和指導，我將總結我們策略方向和多年目標的一些想法，然後開始問答。

As illustrated on slide 3, we delivered strong margin and cash performance in a quarter where North America remained challenged, Latin America had delays, and schedule shifted in the Middle East and North Africa. We have observed a gradual softening in activity, particularly in short cycle oil projects and onshore programs.

如投影片 3 所示，在北美市場依然面臨挑戰、拉丁美洲市場出現延誤、中東和北非市場時間表出現變化的這個季度，我們仍實現了強勁的利潤率和現金表現。我們觀察到活動逐漸減弱，特別是短週期石油項目和陸上項目。

E&P operators are taking a measured cautious approach and we expect this trend to continue in the near term. In the third quarter of 2024, despite the revenue headwinds, adjusted EBITDA margins came in as expected at 25.2%. While the margins were more normalized after MPD asset sales supported the second quarter, it is worthwhile noting that we had almost 200 basis points of margin expansion over the same period last year. We delivered adjusted free cash flow of $184 million for an adjusted free cash flow conversion of 52%.

勘探與生產業者正在採取謹慎的態度，我們預計這種趨勢將在短期內持續下去。2024 年第三季度，儘管營收面臨阻力，但調整後的 EBITDA 利潤率仍達到預期的 25.2%。儘管在 MPD 資產銷售支撐第二季後利潤率更加正常化，但值得注意的是，我們的利潤率比去年同期擴大了近 200 個基點。我們實現了調整後的自由現金流為 1.84 億美元，調整後的自由現金流轉換率為 52%。

Third quarter revenue was flat sequentially and up 7% year over year, driven by international revenue growth of 9% year over year. Revenue came in at the lower end of expectations due to two main factors. Firstly, we experienced delays in activity in Latin America that were broadly felt across the sector. Secondly, there were scheduling shifts in the Middle East, North Africa region driven by the more measured approach I referenced earlier. While we did have opportunities to offset the revenue shortfall with transactional work, we remain firmly committed to pricing discipline and margin expansion to drive long-term value creation.

第三季營收與上季持平，年增 7%，主要得益於國際營收年增 9%。收入低於預期主要有兩個原因。首先，我們在拉丁美洲的活動受到了廣泛影響，整個產業都受到了影響。其次，中東、北非地區的日程安排發生了變化，這是由我之前提到的更謹慎的方法所推動的。雖然我們確實有機會透過交易工作來彌補收入缺口，但我們仍然堅定地致力於定價紀律和利潤率擴大，以推動長期價值創造。

While revenue came in at the lower end of expectations, I'm encouraged by our strong margin and cash flow performance, which reinforces our thesis on the ability to continue driving margin growth on an annual basis. From a regional standpoint, overall North America revenue was up 6% sequentially, primarily due to an activity increase in Canada due to favorable seasonality and increased activity in the Gulf of Mexico. Our international business was down 1% sequentially but up 9% year over year. The sequential impact was primarily a function of the previously mentioned factors.

雖然營收處於預期的低端，但強勁的利潤率和現金流表現令我感到鼓舞，這強化了我們有能力繼續推動年度利潤率成長的論點。從區域角度來看，北美整體營收季增 6%，主要原因是加拿大因季節性因素活動增加以及墨西哥灣活動增加。我們的國際業務較上季下降 1%，但年增 9%。連續影響主要由前面提到的因素所引起。

Despite the sequential delta, we have now achieved 14 consecutive quarters of year-over-year international revenue growth with the Middle East, North Africa, Asia region driving the year-on-year results this quarter. The Kingdom of Saudi Arabia continues to show strength and has grown 29% year to date, and the broader Middle East, North Africa, Asia region has grown 25% year to date.

儘管環比有所下降，但我們已連續 14 個季度實現國際收入同比增長，其中中東、北非和亞洲地區的收入增長是本季度同比增長的主要推動力。沙烏地阿拉伯王國持續展現強勢，今年迄今已成長 29%，而中東、北非和亞洲地區的經濟今年迄今已成長 25%。

Earlier this year, we discussed the expected modulation of our integrated project in Oman. This began in the third quarter and will continue into the fourth with normalization expected to resume in the first quarter of 2025. Our team's outstanding execution on this contract has led to significantly better performance than originally expected. However, as we have previously discussed, we needed to slow down to allow other customer activities to catch up.

今年早些時候，我們討論了在阿曼的綜合項目的預期調整。這一趨勢始於第三季度，並將持續到第四季度，預計將在 2025 年第一季恢復正常化。我們團隊出色地執行了這份合同，並取得了比最初預期更好的業績。然而，正如我們之前討論過的，我們需要放慢速度，以便其他客戶活動能夠跟上。

On the second quarter call, we expanded our capital allocation framework to include a quarterly dividend and a $500 million buyback. As shown on slide 6, we paid our first ever quarterly dividend of $0.25 per share and repurchased approximately $50 million of shares during the third quarter. However, this amount may vary each quarter depending on market conditions.

在第二季電話會議上，我們擴大了資本配置框架，包括季度股利和 5 億美元的回購。如投影片 6 所示，我們在第三季支付了有史以來第一筆每股 0.25 美元的季度股息，並回購了價值約 5,000 萬美元的股票。然而，根據市場情況，這個金額每季可能會有所不同。

Our net leverage ratio is approximately 0.5 times and we remain committed to retiring additional debt while maintaining our top tier ROIC. We continue to pursue inorganic opportunities that align with our strategic filters. In addition to the three small acquisitions in February, we announced Datagration in September. I'm very pleased with the progress and execution of our team on the integration plans across all four of these businesses.

我們的淨槓桿率約為 0.5 倍，我們仍致力於償還額外債務，同時保持我們的頂級 ROIC。我們將繼續尋求符合我們戰略過濾器的無機機會。除了二月份的三項小型收購之外，我們還在九月宣布了 Datagration。我對我們團隊在這四項業務的整合計劃上的進展和執行感到非常滿意。

Now turning to our segment overview on slides 8 through 10, the operational and technical highlights showcase advancements in new market penetration, technology adoption, and continued innovation of our product and services portfolio. Aramco awarded Weatherford a three-year Corporate Procurement Agreement that includes cementation [products], completions, liner hangers, and whipstocks as well as [associated] (corrected by company after the call) service agreements.

現在轉到第 8 至第 10 頁的分部概述，營運和技術亮點展示了我們在新市場滲透、技術採用以及產品和服務組合的持續創新方面的進步。沙烏地阿美公司授予韋瑟福德一份為期三年的企業採購協議，其中包括固井[產品]、完井產品、尾管懸掛器和造斜器以及[相關]（公司在通話後進行了更正）服務協議。

Also in the Middle East, Weatherford deployed MPD Solutions in two deep geothermal exploration wells. This innovative use of MPD technology mitigates risk from elevated geothermal gradients during exploration drilling. Furthermore, Weatherford was awarded a three-year frame contract for drilling services in Middle East unconventional resources.

同樣在中東，Weatherford 在兩個深層地熱勘探井中部署了 MPD 解決方案。這種創新的 MPD 技術可以降低勘探鑽探過程中地熱梯度升高所帶來的風險。此外，韋瑟福德還獲得了為期三年的中東非常規資源鑽探服務框架合約。

In digital, the acquisition of Datagration added the PetroVisor and EcoVisor platforms to Weatherford's digital solutions portfolio, enhancing the integration of customer data with ForeSite and Cygnet for improved real-time analysis and decision-making. A few weeks ago at our 20th Annual FWRD Conference, we showcased the platform's capability and potential. It is extremely encouraging to see the strong customer response and immediate pipeline growth.

在數位領域，收購 Datagration 為 Weatherford 的數位解決方案組合添加了 PetroVisor 和 EcoVisor 平台，增強了客戶資料與 ForeSite 和 Cygnet 的集成，從而改善了即時分析和決策。幾週前，在我們的第 20 屆年度 FWRD 會議上，我們展示了該平台的功能和潛力。看到客戶的強烈反應和管道的迅速增長，我們感到非常鼓舞。

Now for our market outlook. While the broader international market is still growing, growth has decelerated. We don't see a whipsaw in the market but activity is moderating due to various reasons, including commodity prices, efficiencies, budget exhaustion, delays in several short-cycle campaigns, and several scheduling changes.

現在來談談我們的市場展望。儘管整體國際市場仍在成長，但成長速度已放緩。我們沒有看到市場出現大幅波動，但由於各種原因，包括商品價格、效率、預算耗盡、幾個短週期活動的延遲以及幾次日程安排變更，活動正在放緩。

We have several noteworthy contracts listed in our press release. Despite the slowing growth, we showcased the tender and award activity are still proceeding and demonstrate that Weatherford is able to drive competitive advantage in several spaces.

我們的新聞稿中列出了幾份值得注意的合約。儘管成長放緩，但我們展示的招標和授予活動仍在進行中，並證明威德福能夠在多個領域推動競爭優勢。

Importantly, our margin outlook of an annual increase of 25- to 75-basis-point improvement per year was predicated on flat revenues. While the market outlook is softer than three months ago, we're still comfortable with our ability to isolate growth opportunities in select pockets. Furthermore, we continue to believe that across all parts of the well life cycles, there remains an emphasis on technologies that support predictable, cost-competitive production, and supply security for our customers which are areas that we excel in. We anticipate continued growth in parts of international land and offshore, mainly driven by portions of the Middle East and supported by pockets of growth in sub-Saharan Africa and Asia.

重要的是，我們對利潤率每年增長 25 至 75 個基點的預期是基於收入持平的。儘管市場前景比三個月前更為疲軟，但我們仍然對自己在特定領域中尋找成長機會的能力充滿信心。此外，我們始終相信，在油井生命週期的各個部分，我們仍然重視支援可預測、具有成本競爭力的生產和為客戶提供安全供應的技術，而這些正是我們擅長的領域。我們預計部分國際陸地和近海地區將持續成長，主要受中東部分地區的推動，並受到撒哈拉以南非洲和亞洲部分地區的成長支持。

The bottom line is that we believe we will have pockets of growth driven by differentiating technologies in key markets. Most importantly, for this year, we continue to have confidence in delivering approximately 20% year-on-year adjusted EBITDA growth, slightly more than 25% adjusted EBITDA margins, and adjusted free cash flow of over $500 million.

最重要的是，我們相信，我們將在關鍵市場中透過差異化技術實現成長。最重要的是，對於今年，我們仍然有信心實現約 20% 的調整後 EBITDA 同比增長、略高於 25% 的調整後 EBITDA 利潤率以及超過 5 億美元的調整後自由現金流。

With that, I'd like to hand it over to Arun.

現在，我想把它交給阿倫。

Thank you, Girish. Good morning and thank you everyone for joining us on the call.

謝謝你，吉里什。早安，感謝大家參加我們的電話會議。

Girish has already shared an overview of our third-quarter performance and provided an update on our capital return program. For a more detailed breakdown of the third-quarter results, please refer to our press release and accompanying slide deck. My comments today will center around cash flow, working capital, balance sheet, liquidity, and fourth-quarter guidance.

Girish 已經分享了我們第三季業績的概況並提供了我們的資本回報計劃的最新資訊。有關第三季業績的更詳細分類，請參閱我們的新聞稿和隨附的幻燈片。我今天的評論將圍繞著現金流、營運資本、資產負債表、流動性和第四季指引。

Turning to slide 18 for cash flows and liquidity. In the third quarter, we generated adjusted free cash flow of $184 million, up $88 million from the second quarter levels of $96 million. Our networking capital showed significantly better efficiencies and only increased 70 basis points compared to the third quarter of 2023 in spite of a 730-basis-point increase in revenues. As a result, net working capital as a percentage of the last 12 months revenue was 25.8% which represented a year-on-year improvement of greater than 260 basis points. Irrespective of the stage of the cycle, the goal is to get net working capital as a percentage of revenue to be sustainably at 25% or better.

翻到第 18 張投影片了解現金流和流動性。第三季度，我們產生的調整後自由現金流為 1.84 億美元，較第二季的 9,600 萬美元增加了 8,800 萬美元。我們的網路資本效率明顯提高，儘管收入增加了 730 個基點，但與 2023 年第三季相比僅增加了 70 個基點。因此，淨營運資本佔過去 12 個月收入的百分比為 25.8%，較去年同期成長超過 260 個基點。無論處於週期的哪個階段，目標都是使淨營運資本佔收入的百分比持續達到 25% 或更高。

For the last 12 months, CapEx was $266 million or 4.8% of revenues. Total cash was approximately $978 million, up $58 million sequentially. During the third quarter, we repurchased approximately $50 million of shares and paid a 25% quarterly dividend.

過去 12 個月，資本支出為 2.66 億美元，佔營收的 4.8%。總現金約 9.78 億美元，比上一季增加 5,800 萬美元。第三季度，我們回購了約 5,000 萬美元的股票，並支付了 25% 的季度股息。

While our liquidity is at $1.3 billion, we remain committed to retiring additional debt and reducing our interest expense with an intent to get gross leverage below 1x while maintaining liquidity of approximately $1 billion to operate the business and manage event risk.

雖然我們的流動資金為13 億美元，但我們仍致力於償還額外債務並降低利息支出，目的是將總槓桿率降至1 倍以下，同時保持約10 億美元的流動資金來運營業務和管理事件風險。

To summarize, our balanced capital allocation approach to investing in technology, organic and inorganic growth, debt management, and shareholder returns underscores our focus on sustainable value creation.

總而言之，我們在技術、有機和無機成長、債務管理和股東回報方面的投資採用平衡的資本配置方法，強調了我們對永續價值創造的關注。

Turning to our fourth-quarter and full-year 2024 guidance on slide 19. As Girish mentioned, there are a number of factors that have recently developed in the market with scheduled shifts and several short-cycle campaigns that have been delayed. As a result, we expect fourth-quarter revenues to be flat to up low single digits. Within this, we expect DRE revenues to be flat sequentially. WCC revenues to be flat to up low single digits and PRI revenues to be up low-to-mid single digits.

談到第 19 頁上的我們對 2024 年第四季和全年的指引。正如 Girish 所提到的，最近市場出現了許多因素，包括預定的輪班和一些短週期活動被推遲。因此，我們預計第四季營收將持平或略有個位數成長。在此範圍內，我們預計 DRE 收入將環比持平。WCC 收入將保持平穩或略有成長，而 PRI 收入將略為成長至中個位數。

Adjusted EBITDA margins for the fourth quarter are expected to be approximately 25% and we still expect full-year margins to be slightly above 25%. Full-year adjusted free cash flow is still expected to exceed $500 million.

預計第四季度調整後 EBITDA 利潤率約為 25%，我們仍預計全年利潤率將略高於 25%。全年調整後自由現金流預計仍將超過5億美元。

Thank you for your time today. I will now pass the call back to Girish for his closing comments.

感謝您今天抽出時間。我現在將電話轉回給 Girish，請他作最後發言。

Thanks, Arun.

謝謝，阿倫。

On the second-quarter conference call, I laid out the vision for the future that requires the same rigor on operating intensity, but is fueled with the capability of more differentiating technology, world-class fulfillment, and larger scale. While the overall market is evolving and the cycle is maturing, we believe we have the opportunity to deliver EBITDA margins in the high 20s in the next three years in a flat-to-modestly up operating environment.

在第二季的電話會議上，我闡述了未來的願景，它要求在營運強度上保持同樣的嚴謹性，但需要具備更具差異化的技術、世界級的履行能力和更大規模的能力。雖然整體市場正在改變且週期正在成熟，但我們相信，我們有機會在未來三年內，在平穩至略有上升的營運環境中實現 20% 以上的 EBITDA 利潤率。

We remain intensely focused on networking capital efficiency and with further reductions in our interest burden, we expect to achieve free cash flow conversion of around 50% during this period. Our internal investments aim to deliver top-tier return on invested capital. All of this will enable significant cash generation, providing an opportunity to return around 50% of that to shareholders through the framework we have outlined. This will leave sufficient dry powder for selective inorganic place that will reinforce this entire thesis.

我們仍然高度關注網路資本效率，隨著利息負擔的進一步減少，我們預計在此期間實現約 50% 的自由現金流轉換。我們的內部投資旨在實現頂級的投資資本回報。所有這些都將實現大量現金創造，並有機會透過我們所概述的框架將其中約 50% 的現金返還給股東。這將留下足夠的乾粉用於選擇性無機位置，以強化整個論文。

So while we are entering a new phase of the cycle with low growth for the immediate future, our capability to deliver true value creation is significantly bolstered by the actions and focus over the past few years.

因此，雖然我們即將進入一個低成長的新周期階段，但我們創造真正價值的能力因過去幾年的行動和重點而得到了極大增強。

And now operator, please open the call for questions.

現在請接線生打開問答環節。

(Operator Instructions)

（操作員指令）

Dave Anderson, Barclay.

巴克萊的戴夫·安德森。

So you talked about the last quarter call about how you view Weatherford in the future, and one part of that was scale. I just want to come back to the M&A discussion here. You've done four smaller acquisitions during the year. I was wondering first, maybe you could just talk a little bit about how those acquisitions have gone, what are they bringing to the table? And then really more secondarily, I'm curious as to where are you thinking going forward? Are there any must-haves you need? I go back to that you said scale. Is it more than just scale? Are there certain technologies you're looking for? Just a general M&A discussion?

所以您在上個季度的電話會議上談到了您如何看待 Weatherford 的未來，其中一部分就是規模。我只是想回到這裡的併購討論。您在這一年中已經完成了四次較小規模的收購。我首先想問的是，您能否簡單談談這些收購的進展以及它們帶來了什麼？其次，我很好奇您接下來的打算是什麼？有什麼是你需要的必需品嗎？我回到你所說的規模。這不僅僅是規模的問題嗎？您是否正在尋找某些技術？只是一般的併購討論嗎？

Sure, Dave. So look, let me start maybe a little bit more with the first and then I'll walk into the first question. So look from an M&A standpoint, let me start with the fact that we're very pleased -- we're happy with the portfolio we've got today. We don't see any glaring gaps or significant holes that we absolutely have to go fill. So as a result, as I pointed out in my prepared comments, M&A will be selective. We are not looking to grow scale for the sake of scale. That's absolutely not on the cards.

當然，戴夫。那麼看，讓我先從第一個問題開始說更多，然後再進入第一個問題。因此，從併購的角度來看，首先我要說的是，我們非常高興——我們對今天的投資組合感到滿意。我們沒有看到任何明顯的差距或重大的漏洞需要我們去填補。因此，正如我在準備好的評論中指出的那樣，併購將具有選擇性。我們並不是為了擴大規模而擴大規模。這絕對是不可能的。

We think we've got sufficient scale today. The company is operating really well. We're happy with the portfolio. But what we do have is a strategy within each of the product lines that we operate within that aim to further grow those product lines and to enhance value creation. We've also got some enterprise teams that we're trying to drive. So what we look at when we think about M&A is any potential target here, does it fit that strategy?

我們認為我們今天的規模已經足夠了。公司經營得非常好。我們對這個投資組合很滿意。但我們在每條產品線上都制定了策略，旨在進一步發展這些產品線並提高價值創造。我們還有一些正在努力推動的企業團隊。因此，當我們考慮併購時，我們要考慮的是，這裡的任何潛在目標是否符合該策略？

And if you look at the deals that we have done this year they have been small but they all fit into that strategy. So as an example, you look at the acquisition of Probe in the wireline technology space. We were trying to pivot our wireline business and are doing that successfully to being a different a wireline provider. We will have a wireline service in some critical countries, but we will also be a technology provider to other service companies in areas that we don't operate.

如果你看看我們今年達成的交易，雖然規模不大，但都符合這項策略。舉個例子，我們來看看有線技術領域對 Probe 的收購。我們試圖轉型我們的有線業務，並且成功地成為了不同的有線提供者。我們將在一些關鍵國家提供有線服務，但我們也將在我們沒有營運的地區為其他服務公司提供技術服務。

To do that, we needed a broader suite and that's what Probe gave us. So it's things like that. Ardyne has really helped fill out the portfolio in terms of a full capability with high degree of efficiency with innovative technology around plug and abandonment and slot recovery. So those are the kinds of things that we are getting after. I'm extremely pleased with the progress that we have made.

為了做到這一點，我們需要更廣泛的套件，而這就是 Probe 給我們的。就是這樣的事情。Ardyne 確實透過在封鎖和廢棄以及槽口恢復方面的創新技術，以高效全面地填補了投資組合的空白。這些都是我們所追求的。我對我們所取得的進展感到非常高興。

As everyone knows, Weatherford's had a history of acquisitions, but what we have not done a great job in the past is integrating them. So we put a lot of emphasis before we consummated the deal around the integration planning with dedicated teams, a clear playbook on how we're going to go execute, and we're learning through that. But the teams have done a terrific job and I'm excited about the ability to build out all of these platforms to be significant growth for us in the years to come.

眾所周知，威德福有著收購的歷史，但是過去我們在整合方面做得併不好。因此，在達成交易之前，我們非常重視與專門團隊進行整合規劃，並制定了明確的執行方案，並從中學習。但這些團隊已經做得非常出色，我很高興能夠建立所有這些平台，這將為我們未來幾年帶來顯著的成長。

So Girish, it sounds like you had mentioned a couple of times isolating growth pockets in a flattish market. And is this the idea that you can find these technologies that go after these growth pockets?

所以 Girish，聽起來你已經提到過幾次在平淡的市場中隔離成長點。你的想法是不是可以找到那些追逐這些成長點的技術？

Absolutely. Look, we still think there's reasonably good chances for solid activity while it might be stable, we've got an opportunity to not just increase our share position, but we've also got an opportunity to create some white space and move into that. So that's exactly what we mean by that. And we think that will provide us the ability to grow the business while the overall market might be stable to slightly up.

絕對地。看，我們仍然認為，在它可能穩定的同時，仍有相當好的機會開展穩固的活動，我們不僅有機會增加我們的份額，而且我們也有機會創造一些空白並進入其中。這正是我們的意思。我們認為，這將使我們有能力發展業務，同時整體市場可能會保持穩定或略有上漲。

Great. And just one other thing, if I could just ask you, you had mentioned a couple of times about some scheduling shifts in the Middle East and North Africa. Could you expand on that a little bit? What do you mean by scheduling shifts? Or are these temporary? Are these just one project to the next? Just a little bit more color on that, please? Thank you.

偉大的。還有一件事，如果我可以問您的話，您曾經幾次提到中東和北非的一些日程安排變化。能稍微詳細說明一下嗎？你說的排班是什麼意思？還是這些都是暫時的？這些僅僅是一個專案到下一個專案嗎？請再多加一點顏色，好嗎？謝謝。

Yeah, so look, I think without getting into customer specifics what it really is some of the campaigns getting pushed out a quarter or two. That's really what it comes down to. So it's not a permanent shift. It's not cancellations, but we are seeing as I pointed out again in my prepared remarks, a bit more of a measured, a bit more of a cautious approach and so things that can get delayed, we are seeing customers push that out a little bit to see how the overall macroeconomic situation unfolds.

是的，所以看，我認為在不了解客戶具體情況的情況下，一些活動確實被推遲了一兩個季度。這才是真正的關鍵。所以這不是一個永久性的轉變。這不是取消，但正如我在準備好的發言中再次指出的那樣，我們看到的是更加慎重、更加謹慎的態度，因此可能會延遲的事情，我們看到客戶會稍微推遲一點看看整個宏觀經濟情勢如何發展。

James West, Evercore.

詹姆斯·韋斯特 (Evercore)。

So Girish, you talked about stable market environment and I know you just discussed a little bit about the M&A that you've done so far this year. And so I'm curious how you see Weatherford evolving and growing in this stable environment, can you outpace the modest growth environment? And if so by how much and then if so in what areas do you see your biggest strength?

所以 Girish，您談到了穩定的市場環境，我知道您剛剛討論了今年迄今為止您所做的併購活動。所以我很好奇，您如何看待 Weatherford 在這種穩定的環境中的發展和成長，您能否超越適度增長的環境？如果是的話，那麼您認為自己最大的優勢在哪些方面？

Yeah. So James, look, we will give as you can imagine more specific guidance in February around the year. But broadly speaking like we have pointed out, I think we've got specific areas of growth and if we are able to execute on that, which we are working very hard towards, is making sure that we essentially can get that incremental growth. So that's really what it's about.

是的。所以詹姆斯，你看，正如你所想像的，我們將在今年二月份給出更具體的指導。但從廣義上講，正如我們所指出的，我認為我們有特定的成長領域，如果我們能夠執行這些成長領域，我們正在為此努力，確保我們基本上能夠獲得漸進式成長。這就是事情的真正意義。

So I think as long as the market remains stable, as long as we can execute, we do have an opportunity to get that exaggerated growth, if you will. Specifically look, it's different areas and different product lines. For example, I've talked in the past on MPD around our Modus launch. This year was really about getting the launch done, getting packages built, getting the supply chain together, and getting them out in the field, finishing up the field trials, et cetera. Those have been incredibly successful, so next year that should create a little bit more of a bolus for growth for us.

因此我認為，只要市場保持穩定，只要我們能夠執行，我們確實有機會獲得誇張的成長，如果你願意的話。具體看，是不同的領域，不同的產品線。例如，我過去曾在 MPD 上談論過我們的 Modus 發表會。今年的主要任務是完成發射、建造包裹、整合供應鏈、將其投入實地、完成實地試驗等等。這些都是令人難以置信的成功，所以明年這應該會為我們的成長提供更多的動力。

The other area. Look at a very broad thematic approach where we are really focused is this notion of production optimization around matured fields. So everything that we've got from a product line capability really comes to the floor in this notion of mature field rejuvenation, production optimization, et cetera. Our MARS offering which is our Mature Asset Rejuvenation through Surveillance, we have had some great examples there. Our well services portfolio brings that through our intervention capabilities all the way up to decommissioning. So that's where we think there is still going to be an extremely strong emphasis because customers in this environment are actually going to be far more focused on how do they get more out of their existing fields, how do they get more out of their existing wells, and that should give us an opportunity to grow.

其它區域。從非常廣泛的主題方法來看，我們真正關注的是圍繞著成熟油田的生產優化概念。因此，我們從產品線能力中獲得的一切實際上都體現在成熟領域復興、生產優化等概念中。我們的 MARS 產品是透過監控來實現成熟資產的復興，我們已經有一些很好的例子。我們的油井服務組合透過我們的干預能力直至退役實現了這一點。因此，我們認為這仍將是重點，因為在這種環境下，客戶實際上將更加關注如何從現有油田獲得更多收益，如何從現有油井獲得更多收益，這將給我們一個成長的機會。

Got you. Okay.

明白了。好的。

And then maybe a follow-up on that. As you have some growth next year, how do you think about margin profile? And I know again, you'll get more color in February. But how do you think about the potential to take what are already very good margins higher in a slower growth environment?

然後可能會對此進行跟進。由於明年您會有一定的成長，您認為利潤率狀況如何？我也確信，二月你將會看到更多色彩。但是，您如何看待在成長放緩的環境下進一步提高原本就很高的利潤率的潛力呢？

Yeah. So look, we will probably not see a margin expansion to the tune that we've seen in the past two to three years of multiple hundreds of basis points. But we feel comfortable and confident that we should still be able to grow margins in that 25 to 75 bps in a flat to slightly up an environment. And that's really a combination of several things that we are driving internally, improving the value gap, improving our execution. And as I've pointed out before, we still have opportunities within the company to get more efficient. So the capabilities that we have developed over the past three years while we've gotten a lot of the low-hanging fruit, there's still enough fruit out there on the trees and we've built a few small ladders to go with that as well.

是的。因此，我們可能不會看到利潤率像過去兩三年那樣擴大數百個基點。但我們感到放心和自信，在平穩或略有上升的環境下，我們仍然能夠將利潤率提高 25 至 75 個基點。這實際上是我們內部推動的幾個因素的結合，改善了價值差距，提高了我們的執行力。正如我之前指出的，我們公司內部仍有機會提高效率。因此，我們在過去三年中開發的能力，雖然我們已經收穫了許多唾手可得的果實，但樹上仍然有足夠的果實，我們也建造了一些小梯子來配合這些果實。

Scott Gruber, Citigroup.

花旗集團的史考特‧格魯伯。

I want to stay on the margin topic. Just because the slower growth environment, of course, management teams look at opportunity to reassess those margin enhancement drivers that they've been thinking about. So are you guys thinking about the margin enhancement drivers any differently in the slower growth environment? Like are there certain levers that you can pull faster or harder? Can you introduce technology internally faster? Just some additional thoughts on how you pull those larger enhancement levels.

我想繼續討論邊緣話題。當然，正是因為成長環境較慢，管理團隊才會尋找機會重新評估他們一直在考慮的那些提高利潤的驅動因素。那麼，在成長放緩的環境下，你們對提高利潤率的驅動因素有什麼不同的看法嗎？例如，是否有某些槓桿你可以拉得更快或更用力？你能更快在內部引入技術嗎？這只是關於如何實現更大增強等級的一些額外想法。

Yeah. So look, Scott, for us, the levers are consistent, right? So the first one is pricing. Obviously, pricing in a slower growth environment becomes a bit more challenging, but we still think there is enough tightness of supply in highly differentiated product lines and technologies that that is still an opportunity and we expect pricing to -- at a minimum offset inflation and be a slight net positive.

是的。所以，史考特，對我們來說，槓桿是一致的，對嗎？第一個是定價。顯然，在成長放緩的環境下定價變得更具挑戰性，但我們仍然認為，高度差異化的產品線和技術的供應足夠緊張，這仍然是一個機會，我們預計定價至少可以抵消通貨膨脹和為輕微的淨正值。

The second and probably most significant one is the introduction of new technology. And as we do that, we're really trying to enhance the value gap. So really position it at the point where we can get higher price but also at the same time, deliver it with more efficiencies and a lower cost.

第二個也可能是最重要的因素是新技術的引進。當我們這樣做的時候，我們實際上是在努力擴大價值差距。因此，我們真正要定位在能夠獲得更高價格的同時，能夠以更高的效率和更低的成本交付。

The third for us is what we've been working on for a while is our entire fulfillment network. Now, this is a herculean task. It's a four- to five-year road map. We're making good progress on it. The initial part of it was a lot of facility consolidation. We're done with that. Now, it's about how do we optimize the supply chain and our sourcing networks around that. Just a very simplistic example on that.

對我們來說，第三個是我們一直致力於的，那就是我們的整個履行網絡。現在，這是一項艱鉅的任務。這是一份四到五年的路線圖。我們在這方面取得了良好的進展。其初期部分是大量設施的整合。我們已經完成了。現在，我們要考慮的是如何優化供應鏈和採購網路。這只是一個非常簡單的例子。

I talked on one of the calls, I think three or four quarters ago about moving to lower-cost countries from a sourcing base. That's providing us already significant benefits and what's interesting about that is we are 10 years late on doing this. Everyone else has already done this. So for us, it's actually a significant margin expansion that we're still able to get really good margins. But doing that keeping price where it is or slightly above, getting a significant cost reduction does help that. So network optimization, the supply chain optimization and fulfillment is a big factor and we will lean on that a lot harder now is because cost becomes more important.

我在一次電話會議上談到了從採購基地轉移到成本較低的國家，我想大概是三、四個季度前。這已經為我們帶來了顯著的利益，有趣的是，我們這樣做已經晚了 10 年。其他人都已經這樣做了。因此對我們來說，這實際上是一個顯著的利潤擴張，我們仍然能夠獲得非常好的利潤。但這樣做確實有助於保持價格不變或略高，從而大幅降低成本。因此，網路優化、供應鏈優化和履行是一個重要因素，我們現在將更加依賴它，因為成本變得更加重要。

And sticking to that cost theme, the last lever really is our own internal efficiencies and our cost structure. Look, the team's done an outstanding job over the past few years, improving the company, taking a lot of cost out, but Weatherford was never really designed to be what it is today. And so we've still got an opportunity to get more efficiencies. Everything from how information flows, to material flows, to where we have people, what roles they're doing, how we can consolidate, how we can use technology better. So that's going to be a huge emphasis for us over the next 18 months or so. And so all of that combined, I think gives us enough ammunition to really get after cost and improved margins in this slower growth environment.

堅持這個成本主題，最後一個槓桿實際上是我們自己的內部效率和成本結構。你看，這個團隊在過去幾年裡做出了傑出的工作，改善了公司，節省了大量成本，但 Weatherford 從未真正設計成今天這個樣子。因此我們仍有機會提高效率。從資訊如何流動，到物質如何流動，到人們在哪裡，他們在做什麼角色，我們如何整合，如何更好地利用科技。所以這將是我們未來 18 個月左右的重點工作。所以，我認為，所有這些因素結合起來，為我們提供了足夠的彈藥，讓我們能夠在這種成長較慢的環境下降低成本、提高利潤率。

That's great. I appreciate the color.

那太棒了。我很欣賞這個顏色。

I want to come back to the pricing point because we get questions from investors on the topic of margin resiliency for Weatherford. And I think some folks wonder if you benefited disproportionately versus peers from price inflation on the way up. And if that introduces risk in a more competitive marketplace. Is that a risk that folks should be concerned about?

我想回到定價問題上，因為我們收到了投資者關於韋瑟福德利潤彈性的問題。我認為有些人會想，在價格上漲的過程中，您是否相對於同行而言從價格上漲中獲得了不成比例的利益。如果這在競爭更加激烈的市場中引入了風險。這是人們應該擔心的風險嗎？

Scott, the way I think about it is, I think it is reasonably fair to assume that we might have benefited, if you'll call it disproportionately. Look, we've put a tremendous amount of emphasis on pricing as part of our commercial approach and strategy. So we have gotten price. We have significantly increased price. But what I would say is, I don't think that poses a risk on the other side because of a couple of factors.

史考特，我的想法是，我認為可以合理地假設我們可能會受益，如果你稱之為不成比例的話。你看，我們非常重視定價，這是我們商業方法和策略的一部分。因此我們得到了價格。我們已大幅提高價格。但我想說的是，由於幾個因素，我認為這不會對另一方構成風險。

One is I feel that the whole industry has strong pricing discipline and I think hopefully, we'll all continue to maintain that. I think second look, we've got internally a very, very rigorous mechanism and a culture around pricing. And I talked in my prepared remarks that we've got opportunities frankly every day, every week to increase revenue by reducing prices fairly significantly and we're absolutely not giving in to that. So we are very clear about our North Star, which is cash generation and margins are the first proxy for that. So we are very clear about that. And so our focus on making sure that we can articulate the value proposition that our differentiating technology brings to customers allows us to keep that pricing. So I think the first part I would say is fair. I think the second part is not something that I'm personally overly concerned about.

一是我覺得整個產業都有很強的定價紀律，我希望我們都能繼續保持這種紀律。我認為再看一下，我們內部有一個非常非常嚴格的定價機制和文化。我在準備好的演講中說過，坦白說，我們每天、每週都有機會透過大幅降低價格來增加收入，我們絕對不會屈服於此。因此，我們非常清楚我們的北極星，即現金創造和利潤率是其第一個代表。我們對此非常清楚。因此，我們專注於確保能夠清楚地表達我們的差異化技術為客戶帶來的價值主張，從而使我們能夠保持該定價。所以我認為第一部分是公平的。我認為第二部分不是我個人太在意的事情。

That's great color. Appreciate it. Thank you.

顏色真棒。非常感謝。謝謝。

Ati Modak, Goldman Sachs.

Ati Modak、高盛。

Girish, you highlighted a new MPD award in the Middle East. So maybe from an adoption perspective, can you talk about which are the regions are an area of focus for you where adoption might be low at the moment and can drive growth in the next 12 months?

吉里什 (Girish)，您重點介紹了中東地區一項新的 MPD 獎項。因此，從採用的角度來看，您能否談談哪些地區是您關注的重點區域，這些地區的採用率目前可能較低，但可以在未來 12 個月內推動成長？

Yeah. Ati, look, I think MPD adoption continues to be something that is very important for us. When we're seeing very positive signs of that, there isn't necessarily a region per se. It's really our -- it's ubiquitous. We're trying to push this in every part of the world and as we are able to get in front of customers, show them more case studies, share best practices; we're seeing that adoption increase.

是的。Ati，看，我認為 MPD 的採用對我們來說仍然非常重要。當我們看到非常積極的跡象時，並不一定存在某個地區本身。它確實是我們的——它無所不在。我們正在努力將這一點推廣到世界各地，並且我們能夠走在客戶面前，向他們展示更多的案例研究，分享最佳實踐；我們看到採用率正在增加。

The Middle East, I would say, has been by far the probably most significant part of it but there's areas in Asia, there's areas in Europe and Latin America where we're seeing more and more of that as well. So it's really a overall perspective.

我想說，中東可能是迄今為止最重要的地區，但在亞洲、歐洲和拉丁美洲，我們也看到越來越多的這種情況。所以這確實是一個整體的觀點。

Look, what we are really -- if you look at it though, what we're trying to now get after is this performance segment of the market, right? So we have always had the basic RCDs that go on the lower end of the market, we've got our very high-end Victus offering, which is typically deep-water types of applications, et cetera. But there really has never been in the market this performance tier offering. So that's something that we are really focused on. And Modus is an outstanding product and really allows us to capture that both in land and in offshore. And offshore, you think about the jack-up market, for example, that's something that now starts to open up for us and something that we are excited about getting after.

你看，我們真正想要的是——如果你看一下，我們現在想要得到的是市場中的這個性能部分，對嗎？因此，我們一直擁有面向低端市場的基本的 RCD，同時我們也提供非常高端的 Victus 產品，通常用於深水類型的應用等等。但市場上確實從未出現過此性能層的產品。所以這是我們真正關注的事情。Modus 是一款出色的產品，它確實讓我們能夠在陸地和海上捕捉這種能力。以海上自升式鑽井平台市場為例，這個市場現在開始為我們開放，我們對此感到很興奮。

Great appreciate that.

非常感謝。

And then for next year with -- you've mentioned flattish revenue, maybe some margin growth. Any early thoughts on free cash flow cadence because the working capital seasonality will obviously be different for a year like next year versus what previous years have been. So maybe any thoughts around that and cash use, if you could.

然後對於明年——您提到收入持平，但利潤率可能會有所增長。對自由現金流節奏有什麼初步想法嗎？所以，如果可以的話，您可能對這一點和現金的使用有什麼想法。

Ati, as Girish mentioned, one of the things we take very seriously is the efficiency which we use working capital. And what you would have seen over the last 21 months is a consistent improvement in the efficiency of working capital. We were at 28% beginning of last year. We find ourselves at 25.8%. Now, the idea is to sustainably be at 25% or below going forward. So what I can tell you is you should expect continuous efficiency improvement across the board DSO, DSI, and DPO translating into a better conversion cycle. And then as we mentioned before, we will keep -- continue to work on debt which translates into lower interest costs and we expect over time cash taxes to moderate as well. So we expect cash conversion to sequentially improve over the next three years.

Ati，正如 Girish 所提到的，我們非常重視的事情之一就是我們使用營運資金的效率。在過去的 21 個月中，您會看到營運資本效率持續提高。去年年初我們的這一比例是28%。我們發現這一比例達到了 25.8%。現在的想法是，未來這一比例可持續維持在 25% 或以下。因此我可以告訴您的是，您應該期待 DSO、DSI 和 DPO 的全面效率持續提高，從而轉化為更好的轉換週期。正如我們之前提到的，我們將繼續努力償還債務，從而降低利息成本，並且我們預計隨著時間的推移，現金稅也將隨之減少。因此，我們預計未來三年現金轉換率將逐步改善。

James Rollyson, Raymond James.

詹姆斯·羅利森，雷蒙德·詹姆斯。

Girish, congrats, I guess on the first quarter of returning capital to shareholders. Along those lines, you look around oilfield service base and guys that have been doing this for a little while you see this breakdown into a couple of different ways of executing it. Some people just look at what their annual free cash flow is going to be and execute the buyback portion of the annual return programmatically across the year and some guys are a little more opportunistic based on share price. Just curious how you guys, this is your first quarter with the $50 million but curious how you will execute that going forward, how you're thinking about that?

吉里什，我想恭喜你，這是第一季向股東返還資本。沿著這個思路，你環顧油田服務基地和那些已經做了一段時間的人，你會發現這分解為幾種不同的執行方式。有些人只看其年度自由現金流是多少，並在全年以編程方式執行年度回報的回購部分，而有些人則根據股價採取更具投機性的行動。只是好奇你們的情況，這是你們第一個季度獲得 5,000 萬美元，但很好奇你們未來將如何執行，你們是如何考慮的？

Yeah. Jim, I'll let Arun take the specifics on this, but I will just kick it off and say, look, I think this is a learning process for us. We are trying to figure out the most optimal way but really with the focus on doing this, like we do everything else in the most prudent and responsible fashion without going nuts and taking undue risk.

是的。吉姆，我會讓阿倫詳細闡述這一點，但我首先要說的是，看，我認為這對我們來說是一個學習過程。我們正在嘗試找出最優的方法，但真正集中精力做到這一點，就像我們以最謹慎和負責任的方式做其他事情一樣，不會瘋狂或承擔不當風險。

Jim, what we can tell you is we did a bit of both this quarter and what we also know for a fact that empirical evidence suggests that companies are not very good at opportunistically executing buybacks and adding value. So we will be careful and we will be looking at market signals which trigger opportunistic buybacks. But at the same time, the dilution component which is triggered by grants to employees, that is something we expect to buyback programmatically so more to come in the future quarters on this.

吉姆，我們可以告訴你的是，本季度我們做了一些這方面的事情，而且我們也知道一個事實，即經驗證據表明，公司並不擅長機會性地執行回購和增加價值。因此，我們會保持謹慎，並專注於引發機會性回購的市場訊號。但同時，由於授予員工而引發的稀釋成分，我們預計將透過程序回購，因此在未來幾季將會有更多此類回購。

Yeah. No, that's helpful color. Thanks for both answers.

是的。不，那是有用的顏色。感謝兩位的回答。

And Girish, just one follow-up. At the FWRD Conference, you guys talked about a lot of different things on the digital front from sensors to obviously Datagration and the ability to integrate a lot of different things. Maybe just order of magnitude, there's been a lot of talk about digital but order of magnitude how impactful is that as we think about Weatherford going forward from the growth aspect.

還有 Girish，還有一個後續問題。在 FWRD 會議上，你們談論了數位領域的許多不同事物，從感測器到數據集成，以及整合許多不同事物的能力。也許只是數量級，關於數位化的討論很多，但當我們從成長角度考慮韋瑟福德未來的發展時，數量級的影響有多大。

Yeah, look we talked earlier, Jim, about those pockets of growth. Digital is most certainly one of those pockets, right? So I highlighted production focus and this mature field rejuvenation. P&A is another digital is a third and a very significant portion. And look, it's far more than about the simplistic revenue growth that we get out of it. We get a couple of other things with that digital capability.

是的，吉姆，我們之前談過這些成長點。數字肯定是其中之一，對嗎？因此我強調了生產重點和這個成熟領域的復興。P&A 是另一種數位貨幣，是第三大也是非常重要的部分。而且看看，這遠不只是我們從中獲得的簡單的收入成長。利用這種數位化能力，我們還獲得了一些其他的東西。

The first is significantly higher margins so it's very accretive to margins. And the second is while there is a lot of typically upfront cost in software development, et cetera, our approach is a little bit different really becoming more of an integrator of different things. So it's actually less capital intensive as well. Today, it's not big enough that we would peel it out and talk about it as a separate segment or anything like that. But it is something that we are really counting on as we talk about in those levers of margin expansion, technology being a driver, digital is smack-dab and center in the middle of that.

首先是利潤率明顯提高，因此對利潤的增值非常有利。第二，雖然軟體開發等方面通常需要大量的前期成本，但我們的方法略有不同，我們實際上更像是不同事物的整合者。因此它實際上對資本的密集程度也較低。今天，它還沒有大到我們可以把它剝離出來，作為一個單獨的部分或諸如此類的東西來討論。但當我們談論利潤擴張的槓桿時，我們真正依賴的是技術，而數位化是其中的核心。

Perfect. Appreciate the answer.

完美的。感謝您的回答。

Saurabh Pant, Bank of America.

美國銀行的 Saurabh Pant。

Girish, maybe I want to start with a little more color on the orders that you announced. I know you're not primarily an order-driven company, right? But it's interesting to see a dozen orders in your press release that you announced. I think seven or eight of them are in the Middle East. And I know we are simultaneously talking about concerns on the Middle East, maybe Saudi more specifically slowing down. But on the other hand, you continue to get stronger orders. How do you feel about the trajectory going forward, right? I mean, considering the order and flow, the conversation still looks relatively positive.

吉里什，也許我想先稍微詳細地介紹一下你宣布的命令。我知道你們主要不是一家訂單驅動的公司，對嗎？但有趣的是，看到你們在新聞稿中宣布了十幾項命令。我認為其中七八個在中東。我知道我們同時在談論對中東的擔憂，也許更具體地說是沙烏地阿拉伯經濟放緩。但另一方面，你不斷獲得更強勁的訂單。您對未來的發展軌跡有什麼感覺，對嗎？我的意思是，考慮到順序和流程，對話仍然看起來相對積極。

Yeah, look, Saurabh. Great question. As we highlighted in the press release, I mean, there is still a lot of activity out there. So I think it's important to understand that activity growth is slowing, no question. But activity itself is actually still very much there and it's growing a little bit. So I think the orders not just show that there is activity but that we are actually winning in several different areas of the business, in several different geographies.

是的，看，Saurabh。好問題。正如我們在新聞稿中所強調的那樣，我的意思是，那裡仍然有很多活動。因此我認為，了解活動成長正在放緩很重要，毫無疑問。但活動本身實際上仍然存在，而且還在一點點增長。因此，我認為訂單不僅表明我們有活動，而且表明我們實際上在幾個不同的業務領域、幾個不同的地區都取得了成功。

And the Middle East, I think is still the place that we think about as spearheading growth overall, right? As we look at a global landscape, I think everyone understands and recognizes that North America is likely as we look into the next 12 months or so, going to be challenged flat more likely a bit down.

我認為中東仍然是我們認為引領整體成長的地方，對嗎？放眼全球情勢，我想每個人都能理解並認識到，展望未來 12 個月左右，北美地區很可能會面臨持平甚至略有下滑的挑戰。

On the international side, we think there's growth but that growth is very mixed. Europe, obviously with some of the things happening in the UK, the North Sea, that's likely to be down. We think sub-Saharan Africa has probably mid-single digits growth. We think Asia has mid-single digit growth. But then Middle East select countries have high-single digits. And overall, we think Middle East is about mid-single digits growth as we look at next year.

從國際方面來看，我們認為有所成長，但這種成長情況很複雜。歐洲，顯然由於英國、北海等地發生的一些事件，產量可能會下降。我們認為撒哈拉以南非洲地區的成長率可能達到中等個位數。我們認為亞洲將實現中等個位數成長。但中東部分國家的比例只有個位數。整體而言，我們認為明年中東地區的經濟將實現中等個位數成長。

And then for us, therefore, when you look at the total international business, it's probably up in this low-single digits place. But then select pockets that have significant margin accretion that we continue to exploit should give us that ability to deliver higher EBITDA margins. The one wildcard I would say is probably going to be Latin America, which it really is -- we've got to wait and see a little bit how it eventually modulates especially in places like Argentina and Mexico what really happens. But those awards you are 100% right, really showcase what's happening and there is still activity out there.

因此，對我們來說，當你看整個國際業務時，它可能會處於這個低個位數的位置。但是，選擇那些利潤率大幅成長的領域並繼續加以利用，應該能夠讓我們實現更高的 EBITDA 利潤率。我想說的一個不確定因素可能是拉丁美洲，事實也確實如此——我們必須拭目以待，看看它最終將如何調節，特別是在阿根廷和墨西哥這樣的地方，到底會發生什麼。但你 100% 正確地說，這些獎項確實展示了正在發生的事情，而且那裡仍然有活動。

Right. No, exactly right. I mean, we hear about all the concerns but on the other hand, like you said, the trends on the ground they still look -- like they're relatively resilient, right, if not positive.

正確的。不，完全正確。我的意思是，我們聽到了所有的擔憂，但另一方面，就像你說的，實際趨勢看起來仍然相對有彈性，即使不是正面的。

Yeah, I mean, look, we talked about our year-to-date growth and granted that's retrospective. But it's still very, very strong year-to-date growth. So even if that moderates, I think we've got enough momentum, we've got enough scale that we should now really be able to continue to get momentum and efficiencies and really drive those margin expansion story. So I feel -- I've been saying this consistently for three-plus years is this is a margin and cash story. Yes, you've got to have revenue growth to help drive that but even in a flat to slightly up environment, we should be able to get a significant value creation from that margin expansion.

是的，我的意思是，看，我們談論了我們今年迄今為止的成長，並承認這是回顧性的。但今年迄今的成長仍然非常強勁。因此，即使這種情況有所緩和，我認為我們已經有足夠的動力，有足夠的規模，我們現在應該能夠繼續獲得動力和效率，真正推動利潤率擴張。所以我覺得──我三年多來一直在說，這是一個利潤和現金的故事。是的，你必須有收入成長來推動這一點，但即使在平穩或略有上升的環境中，我們也應該能夠從利潤率擴大中獲得顯著的價值創造。

Right. Perfect.

正確的。完美的。

Arun, one for you very quickly. I know you talked about the working capital efficiency in response to a Ati's question and you've done a great job right 25%, 28%. That's a fantastic number you're sitting at and the target is to come down to 25% or less than 25%. How soon should we expect you to get there? And that the fact that the overall market growth is slowing, does that make it harder to further accelerate, for example, collections for you?

阿倫，很快給你一個。我知道您在回答 Ati 的問題時談到了營運資本效率，您做得很好，25%、28%。這是一個非常棒的數字，我們的目標是降至 25% 或低於 25%。我們希望您多久能到達那裡？而且，整體市場成長正在放緩，這是否會使進一步加速（例如，收款）變得更加困難？

Look, we haven't seen, Saurabh, any impact on collections. As a matter of fact, we had a pretty strong collections quarter. But if things slow down, history suggests that collections would slow down as well. But at the same time, you would expect inventory to build up much less or actually reduce. So overall in our environment, which is not growing as quickly as it was, you would expect some actually working capital to go in a favorable direction.

你看，Saurabh，我們還沒有看到對收藏品產生任何影響。事實上，我們本季的收款表現相當強勁。但如果經濟放緩，歷史顯示收藏也會放緩。但同時，你會預期庫存增加的幅度會大大減少，甚至實際上會減少。因此，總體而言，在我們的環境中，成長速度不再像以前那麼快，您會預期一些實際營運資金將朝著有利的方向發展。

Now, if the world falls apart and everything goes to hell in a handbasket, then of course, you would expect to see working capital unwind, but in a flat to moderately up, you would see continuous efficiency improvements. And when you ask about how soon we have some critical dependencies, I mean concentrations. We've seen from our 10-Qs that a significant portion of our AR is concentrated in Mexico. So we are actively working to reduce the concentration.

現在，如果世界分崩離析，一切都變得一團糟，那麼當然，你會看到營運資本的減少，但是在平穩或適度上升的情況下，你會看到效率的持續提高。當你問到我們多久會有一些關鍵的依賴關係時，我指的是濃度。我們從 10-Q 看到，我們的應收款很大一部分集中在墨西哥。因此我們正在積極努力降低濃度。

So I couldn't tell you that we sustainably get to 25% next quarter or the quarter after. What I can tell you is we are working on the structure which reduces concentration on any particular customer or any particular geography. And once we do that, which we expect to do over the next couple of years, you could expect us to be 25% or better sustainably.

所以我無法告訴你我們下個季度或下個季度是否能夠持續達到 25%。我可以告訴你的是，我們正在研究一種可以減少對特定客戶或特定地區集中度的結構。一旦我們做到了這一點，預計在未來幾年內就會實現，你可以預期我們的成長率將持續達到 25% 甚至更高。

Okay. No, I got it. Arun, it makes a lot of sense.

好的。不，我明白了。阿倫，這很有道理。

Kurt Hallead, Benchmark.

庫爾特·哈萊德 (Kurt Hallead)，基準。

I have some questions. So Girish, let's go back to some of the commentary you referenced obviously moderation in the growth rates. And you went through a very detailed explanation of where you think that growth is going to come. You've emphasized the focus on maintaining and improving your margins even in that environment.

我有一些問題。所以 Girish，讓我們回顧一下您提到的一些評論，顯然增長率要適度。並且您已經非常詳細地解釋了您認為成長將會來自何處。您強調即使在那種環境下也要專注於維持和提高利潤率。

So how do you guide the organization if you will in the context of maybe feeling pressure to take some work that doesn't meet necessarily the margin or return thresholds? Or are you getting any indication of a little bit of, I don't know, anxiety within the organization about having to book work even if it's not the best work.

那麼，如果您感到壓力，必須承擔一些不一定符合利潤或回報門檻的工作，那麼您將如何引導組織？或者你是否感覺到組織內部有一點焦慮，擔心必須預定工作，即使它不是最好的工作。

Yeah. Look, Kurt, the way we do that is just a lot of communication firstly, and then the second is making sure we've got the right operating rhythms and mechanisms set up to ensure that everyone's on the same page. I feel really good about the culture within the company, the changes that we have had over the last four years. I think everyone understands today what the North Star is. And again, it's, it's cash and the proxies to get to that. So no one's really looking to say, hey, I'm just going to grow revenue or share at the expense of margins and cash.

是的。你看，庫爾特，我們這樣做的方式首先就是進行大量的溝通，然後其次是確保我們有正確的操作節奏和機制，以確保每個人都在同一頁上。我對公司的文化以及過去四年來經歷的變化感到非常滿意。我想今天每個人都明白北極星是什麼了。再說一遍，這就是現金和代理來實現這一點。因此，沒有人會真正想說，嘿，我只是想以犧牲利潤和現金為代價來增加收入或份額。

So I feel really good about that and it's been four years of a lot of work that we've put in as a leadership team. But more importantly, making sure that that message is percolated through the 19,000 people in the organization. We have had bi-directional interaction, a lot of dialogue around it. So is it perfect? Probably not, but I feel really good about the overall system that people will have the opportunity to ask those questions and then we can address them. But yeah, look, we're absolutely not going to go chase low-quality work.

所以我對此感到非常高興，我們作為領導團隊已經投入了四年的大量工作。但更重要的是，確保這項訊息能夠傳達給組織內的 19,000 名員工。我們進行了雙向互動，並圍繞此進行了大量對話。那麼它是完美的嗎？可能不會，但我對整個系統感到非常滿意，人們將有機會提出這些問題，然後我們可以解決它們。但是的，你看，我們絕對不會去追求低品質的工作。

That's great. Appreciate that color.

那太棒了。欣賞那種顏色。

Maybe a follow-up and typically in periods like we're experiencing now, like which is not really typical if it's either going to go up in a big way or down in a big way and now we're just moderating. But nonetheless, the customer base tends to utilize these types of situations to really lean on the suppliers and service companies from a pricing standpoint.

也許是後續行動，通常在我們現在經歷的時期，這種情況並不常見，要么大幅上升，要么大幅下降，而現在我們只是在緩和。但儘管如此，客戶群還是傾向於利用這些類型的情況，從定價的角度真正依賴供應商和服務公司。

So you explain the culture dynamic around it, but maybe can you give us some insights as to are you seeing that increased amount of discussion from the customers really trying to lean on you to reduce prices. Is it more intense now than it might have been three, four, five months ago?

所以你解釋了周圍的文化動態，但也許你能否給我們一些見解，你是否看到客戶真正試圖依靠你來降低價格的討論越來越多。現在的情況是否比三、四、五個月前更嚴重？

It's always something that is part of every conversation, right. We do that with our supply base, our customers do that with us. That's just the circle of business that you go through. So we're certainly having, I would say, maybe a few more conversations, but it's nothing to the extent that we would say, it's a widespread phenomenon or something that we are overly concerned about.

它總是每次談話的一部分，對吧。我們對我們的供應基地這樣做，我們的客戶也對我們這樣做。這只是您所經歷的商業循環。因此，我想說，我們肯定會進行更多對話，但還不足以稱之為一種普遍現像或值得我們過度擔憂的事情。

Most importantly, look, I think a couple of things, one is we have really tried as we have worked on pricing over the past few years to make sure that it is backed up by a very strong value proposition. So it's not a pricing argument that's been hey, commodity prices are high, so our prices should go high. It's been about the value that we generate and create for our customers.

最重要的是，我認為有幾件事，一是我們在過去幾年的定價工作中確實努力過，以確保它有非常強大的價值主張作為後盾。因此，這不是一個定價論點，商品價格很高，所以我們的價格也應該提高。這與我們為客戶創造的價值有關。

The second is customers are still very cognizant and very keen on ensuring security of supply, especially when there is a lack of different choices around differentiating technology. So that's a big, big factor. I think the industry has been a lot more prudent in this cycle of not building out a lot of capacity. And so there isn't this huge mismatch right now again, especially in those differentiated areas where we get the higher margins that would suggest that there's a lot of surplus capacity to throw that could create pricing softness.

第二，客戶仍然非常了解並且非常熱衷於確保供應安全，特別是在缺乏差異化技術的不同選擇的情況下。所以這是一個非常重要的因素。我認為，在這一週期中，產業已經變得更加謹慎，沒有增加過多的產能。因此，現在不再存在這種巨大的不匹配，特別是在我們獲得更高利潤的差異化領域，這意味著有大量的剩餘產能可供投放，從而造成價格疲軟。

And look, I think last but not least, I think customers are also very, very cognizant that the cycles have changed and this is not whipsaw effect. There is a moderation in activity but there isn't a drop. And I think that's a fundamental difference and customers recognize that they need a healthy service sector as well. So I think the conversations are constructive and net-net, we still believe we've got an opportunity and a road map to increase margins.

最後但並非最不重要的一點是，我認為客戶也非常清楚週期已經發生了變化，這不是鞭鋸效應。活動有所緩和，但沒有減少。我認為這是一個根本的區別，客戶也認識到他們需要一個健康的服務業。因此，我認為對話是建設性的、整體而言，我們仍然相信我們有機會和路線圖來提高利潤率。

Doug Becker, Capital One.

道格貝克爾 (Doug Becker)，Capital One。

Girish, Mexico is an important market for Weatherford. The country has a new President, National Oil Company has a new CEO. And then yesterday, there was a report that Pemex is looking to suspend some rigs just to manage budget. So just given that dynamic backdrop, wanted to get your outlook for Latin America specifically.

吉里什，墨西哥是韋瑟福德的重要市場。該國有了一位新總統，國家石油公司有了一位新執行長。昨天有報導稱，Pemex 正考慮暫停一些鑽井平台以管理預算。因此，鑑於這種動態背景，我想具體了解您對拉丁美洲的看法。

Yeah. Doug, look, Latin America has been one of the challenges over the past six months. We have referenced it on the prior call as well as on this call in terms of delays that we have seen and certainly Mexico is a part of that. We recognized that leading up to the elections, there was a little bit of churn and things got slowed down and now we've got a new administration. I think it's still very early days to say exactly what it's going to look like.

是的。道格，你看，拉丁美洲是過去六個月來面臨的挑戰之一。我們在之前的電話會議以及這次電話會議上都提到了我們所看到的延誤，當然墨西哥也是其中的一部分。我們意識到，在選舉前夕，出現了一些動盪，事情進展緩慢，而現在我們有了新政府。我認為現在判斷它到底是什麼樣子還為時過早。

But clearly there's a big focus on what they want to do in terms of getting Pemex on the right footing and we want to support them as a supplier and partner to the extent that we can while making sure that we generate the value that's due.

但顯然，他們非常關注如何讓 Pemex 走上正軌，而我們希望盡力作為供應商和合作夥伴為他們提供支持，同時確保創造應有的價值。

So as I look at Latin America as a whole, as I said earlier on one of the questions, Latin America is probably the wild card for next year. As we look at it right now, it probably feels like it's flat to maybe slightly down. But it also is the one region that has the ability to inflect the strongest. Argentina has probably the most positive outlook at this point than it's had in several years. But we still need to see that shift actually happen and the full ability to free up capital controls, et cetera. If that happens, I think there could be a significant positive opportunity there.

因此，當我從整體上看待拉丁美洲時，正如我之前在回答其中一個問題時所說的那樣，拉丁美洲很可能是明年的不確定因素。從我們現在的角度來看，它可能感覺像是持平的，甚至可能略有下降。但它也是一個具有最強影響力的地區。阿根廷目前的前景可能比過去幾年更樂觀。但我們仍需要看到這種轉變真正發生，以及完全開放資本管制的能力等等。如果發生這種情況，我認為可能會有一個重大的積極機會。

Colombia, we have talked about some of the changes there and the slow down et cetera, that's likely going to persist and not really change for a bit longer. Brazil has been pretty steady and growing and that continues to do well. And then it really comes down to Mexico, which is a very significant market. So I think more to come on that, especially in the February call as we lay out guidance, et cetera. But it's something that we are very cognizant of. We're keeping a very close eye on and making sure that we are modulating our workforce, our plans, everything in line with customer activity and really ensuring that we are well positioned as a company to manage overall exposure there.

我們已經討論過哥倫比亞的一些變化以及經濟放緩等等，這些情況可能會持續下去，一段時間內不會真正改變。巴西一直相當穩定地增長，並且繼續表現良好。然後實際上就要說到墨西哥，這是一個非常重要的市場。因此，我認為這方面還會有更多內容，特別是在二月的電話會議上，我們將提供指導等等。但我們對此非常清楚。我們密切關注並確保我們根據客戶活動調整我們的勞動力、計劃等一切，並真正確保我們作為一家公司能夠很好地管理那裡的整體風險。

That makes sense.

這很有道理。

Just switching gears a little bit, the industry seems to be increasingly focused on the production phase of the well life cycle. At your recent digital conference, you were highlighting the ForeSite production platform that you integrate artificial lift into and then specifically the power regenerative system. Just how would you characterize the growth opportunity for Weatherford from the digital production related offerings?

稍微轉換一下主題，業界似乎越來越重視油井生命週期的生產階段。在您最近的數位會議上，您重點介紹了整合式人工舉升的 ForeSite 生產平台，特別是動力再生系統。您如何描述 Weatherford 在數位生產相關產品方面面臨的成長機會？

Yeah, look, I think it's one of our most significant opportunities. We've got a very extensive portfolio on two dimensions. The first one is really around artificial lift, right? So we don't have an ESP offering, but we have just about every other form of lift. And it's the most comprehensive lift offering with a very strong installed base that we've got in the industry. So that's a huge advantage for us. We really understand this production domain.

是的，我認為這是我們最重要的機會之一。我們在兩個維度上擁有非常廣泛的產品組合。第一個問題確實是關於人工升力的，對嗎？因此，我們沒有提供 ESP，但我們提供幾乎所有其他形式的升力。它是我們在業界提供的最全面的升降機產品，擁有非常強大的安裝基礎。這對我們來說是一個巨大的優勢。我們確實了解這個生產領域。

The second is the digital capability. We're the only OFS company that has its own SCADA platform with Cygnet and that is a huge competitive advantage for us. And so as we modernize that, feed that into ForeSite, the ability to then bring together different data structures, different databases, different data models with what we have with Datagration now this capability of a unified data model that allows us to create incredibly powerful algorithms platforms for customers to drive their operational efficiency. So that's what we're really focused on.

第二是數位化能力。我們是唯一擁有自己的 Cygnet SCADA 平台的 OFS 公司，這對我們來說是一個巨大的競爭優勢。因此，當我們對其進行現代化改造，將其輸入ForeSite 時，我們能夠將不同的資料結構、不同的資料庫、不同的資料模型與我們現有的Datagration 整合在一起，這種統一資料模型的功能使我們能夠創建非常強大的演算法為客戶提供提高營運效率的平台。這正是我們真正關注的。

So we think it's an area that we will get tremendous capability. And what we're adding to these two legs now is a third dimension, which is not just hey, we've got the artificial lift, we've got the digital capability but we're now making sure we've got that comprehensive portfolio to help customers rejuvenate their mature fields to improve their production from existing wells through a combination of intervention services, well services, et cetera, a lot of different technologies that really help drive that. So it's an area that we are probably -- most excited about in terms of the growth potential.

因此我們認為這是一個我們將獲得巨大能力的領域。我們現在為這兩條腿添加了第三個維度，這不僅僅是嘿，我們有了人工升力，我們有了數位能力，但我們現在要確保我們擁有全面的投資組合可以幫助客戶恢復成熟油田，透過幹預服務、油井服務等的組合來提高現有油井的產量，許多不同的技術確實有助於推動這一目標。因此，從成長潛力的角度來看，這可能是我們最興奮的一個領域。

Josh Jayne, Daniel Energy Partners.

喬許·傑恩（Josh Jayne），丹尼爾能源合作夥伴。

I have one with a related follow-up that you discussed on the service and a little bit in your last question, but I just wanted to drill down further on. So first, you completed the acquisition of Datagration in the third quarter. Could you just speak to why now exactly was the right time for that specific deal and maybe a bit more detail on PetroVisor and EcoVisor.

我有一個相關的後續問題，您在上一個問題中討論過該服務，也討論過一點，但我只是想進一步深入探討。首先，您在第三季完成了對 Datagration 的收購。您能否談談為什麼現在正是達成這項特定交易的最佳時機？

And then as my follow-up, could you just give a bit more detail about how they're ultimately going to work together with ForeSite and Cygnet? And the increasing importance of real-time analysis and how that's -- how you see that specifically evolving over time over the next couple of years? Thanks.

然後作為我的後續問題，您能否更詳細地介紹他們最終將如何與 ForeSite 和 Cygnet 合作？即時分析的重要性日益增加，您認為未來幾年它會如何發展？謝謝。

All right, a lot of different things in there, Josh, but let me try and address most of them at a high level.

好吧，喬希，這裡面有很多不同的事情，但讓我嘗試從高層次解決其中的大部分問題。

So look in terms of the why now? Yeah, that's always a bit hard to answer. Everything typically comes together but really, as we looked at the market landscape as well as our own capabilities, there was a couple of things that we realized. Look, first is customers are struggling with the same issue, which is, we've got a lot of data. We just don't know how to really bring it all together.

那現在來看看為什麼？是的，這個問題總是有點難回答。通常所有事情都會結合在一起，但實際上，當我們審視市場格局以及我們自己的能力時，我們意識到了一些事情。首先，客戶正在努力解決同一個問題，那就是我們擁有大量的數據。我們只是不知道如何真正地將這一切整合在一起。

The second is nobody really wants to get tied into a particular platform or a particular system. They see different things that are best in class, but lack the ability to stitch it all together. Especially, when you think about all of the consolidation and granted that's more of a US phenomena, but it's a huge market. Customers are consolidating and they're saying, hey, look company acquired was on this system. I've got the system. There's this huge treasure trove of data, but they don't talk to each other, they are different systems. How do we pull all of that together?

第二，沒有人真正想被束縛在某個特定的平台或特定的系統中。他們看到了同類中最好的不同事物，但缺乏將它們整合在一起的能力。特別是，當你考慮到所有的整合，並承認這更多的是美國現象，但它是一個巨大的市場。客戶正在進行整合，他們說，嘿，看，被收購的公司就是採用這個系統。我已經掌握了這個系統。雖然有龐大的資料寶庫，但它們之間卻無法相互交流，它們是不同的系統。我們怎樣才能把這一切結合起來？

We looked at that, we see that internally, but we also see that within the offerings that we have for customers. Datagration really is a solution that bridges that gap for our customers. It has this ability with this unified data model to really bring things together in a very crude fashion, the layman in me describes it as it's the universal plug adapter for the digital world. So that's really what we get with that and it creates then a very powerful message for customers that we can help them bring together different data sources and most importantly, do it very fast, do it real time, do it on the cloud, do it as a software-as-a-service model, or if they want it on-prem we can do that as well. Different delivery mechanisms that bring that together.

我們研究了這一點，我們在內部看到了這一點，但我們也在為客戶提供的產品中看到了這一點。Datagration 確實是一個能為我們的客戶彌補這一差距的解決方案。它具有透過這種統一的資料模型將事物以非常粗略的方式整合在一起的能力，我這個門外漢將它描述為數位世界的通用插頭適配器。這就是我們真正得到的結果，它向客戶傳達了一個非常有力的信息，即我們可以幫助他們整合不同的數據源，最重要的是，它可以非常快速地完成，實時地完成，在雲端完成，作為軟體即服務模型，或者如果他們想要在本地使用，我們也可以這樣做。不同的交付機制將這些結合在一起。

So that's really what it is. Look, in terms of the exact road map of integration with ForeSite, PetroVisor, et cetera, that's something that we're working on. But what is more important than the actual platform is the fact that we have the capability now to deliver to customers specific optimization platforms. We've got the ability to drive these AI, ML models on a variety of their use cases through whatever channel that they want along with a very simple user interface that can be delivered to them in a subscription model, in whatever mechanism that they want. So that's really what this whole thesis is about.

事實確實如此。你看，就與 ForeSite、PetroVisor 等整合的具體路線圖而言，這是我們正在努力的事情。但比實際平台更重要的是，我們現在有能力提供客戶特定的最佳化平台。我們有能力透過他們想要的任何管道，在各種用例上驅動這些人工智慧、機器學習模型，以及一個非常簡單的使用者介面，並以訂閱模式、他們想要的任何機制向他們提供。這就是整篇論文的真正意義。

Thank you. And this concludes our question-and-answer session. I'd like to turn the conference back over to the management team for any closing remarks.

謝謝。我們的問答環節到此結束。我想將會議交還給管理團隊，讓他們做最後發言。

Great. Thanks, Rocco.

偉大的。謝謝，羅科。

Hey, thank you all for joining the call today. Look, appreciate it. So just to summarize again, we recognize that the market is changing, it's evolving. We still do believe that we have pockets of growth. We have the ability to grow the business in several different areas that we're excited about. And most importantly, we have the ability to continue the margin expansion journey that we've been on for the past few years. And for this year, we are on track to deliver over 25% EBITDA margins and over $500 million of cash.

嘿，感謝大家今天參加電話會議。看看，欣賞。再次總結一下，我們意識到市場正在改變、發展。我們仍然相信我們還有成長的空間。我們有能力在幾個不同的領域發展業務，這是我們所興奮的。最重要的是，我們有能力繼續過去幾年來的利潤擴張之旅。今年，我們預計將實現超過 25% 的 EBITDA 利潤率和超過 5 億美元的現金。

So thank you all so much for joining and we'll talk to you on our fourth quarter call.

非常感謝大家的加入，我們將在第四季電話會議上與您討論。

Thank you.

謝謝。

Thank you, everybody. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

謝謝大家。今天的電話會議到此結束。我們感謝大家參加今天的演講。現在您可以斷開連接並享受美好的一天。