Weatherford International PLC (NYSE:WFT) Q4 2016 Earnings Conference Call - Final Transcript
Feb 02, 2017 • 08:30 am ET
Good morning. My name is Kim and I'll be your conference operator today. At this time, I would like to welcome everyone to the Weatherford International Fourth Quarter 2016 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question and answer session. [Operator Instructions]
I would now like to turn the conference over to Karen David-Green, Vice President, Investor Relations and Marketing and Communications. You may begin your conference.
Thank you, Kimberly. Good morning and welcome to the Weatherford International fourth quarter conference call. With me on today's call we have Krishna Shivram, Chief Executive Officer; and Christoph Bausch, Executive Vice President and Chief Financial Officer. Today's call is being webcast and a replay will be available on Weatherford website for 10 days.
Before we begin with our opening comments, I'd like to remind our audience that some of today's comments may include forward looking statements and non-GAAP financial measures. These matters may involve risks and uncertainties that could cause our actual results to differ materially from the forward looking statements. Please refer to our Form 10 k for the period ended December 31, 2015, Form 10-Q for the quarter ended September 30, 2016, and recent current reports on Form 8-K for risk factors and the customary caution on forward looking statements. A reconciliation of GAAP to non-GAAP financial measures is included in our fourth quarter press release, which can be found on our website. We welcome your questions after the prepared comments.
And now, I'd like to hand over the call to Krishna.
Thank you, Karen. Ladies and gentlemen, Weatherford is back. We have a new team, a fresh outlook, a new strategy, which I will describe later and a high level of energy within the Company not seen in recent years. We have just been through the most brutal down-cycle in our industry's history and we have not only survived, we have transformed the Company internally, and positioned it well for the multi-year up-cycle that is just about beginning.
Let me start by reflecting on several of our 2016 achievements. During the past year, we reduced costs by an annualized $601 million, exceeding the targets we set for ourselves at the beginning of the year. Our support ratio was rationalized down to 35% at year end, which signifies a much leaner, fixed cost support structure, setting us up for strong incrementals.
In addition, we upgraded our leadership team, and now we have a talented experienced group that can run seamless global operations, combined with strong regional customer relationships. We also successfully termed out our debt maturities to 2019 and beyond. This financial runway, including covenant management, is now clear for the next few years. And we did all of this with the best safety record in the Company's history, and a 24% reduction in non-productive time in our core businesses. We are proud of these achievements, and I would like to thank our investors, employees