Oilfield services giant Weatherford International has made a 180-degree about turn by announcing it will not to pursue its plans to raise $1billion of fresh capital.
Weatherford said yesterday that it planned to raise the money via concurrent public offerings of ordinary shares and mandatory subordinated notes.
However, in a statement to investors today the company said: “While investor interest was strong for this offering, we are unwilling to sell securities at prices that do not reflect the value we have created at Weatherford.
“The company continues on its resolute course of focusing on its core businesses and the efficiency of its operations. The company also continues to expect to deliver positive free cash flow in 2015 and years beyond, has ample liquidity, and remains focused on generating strong returns for our shareholders.”
Weatherford signaled that it would use the proceeds to pre-fund acquisitions and to reduce borrowings under its revolving credit facility and commercial paper program.
In July, Weatherford said it planned to increase the number of headcount reductions within the company to 11,000. The move was made in response to what Weatherford sees as a weakening market in North America.
Second quarter profits came in at a loss of $489million compared to a loss of $145million in the same period last year.
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