Weatherford International Plc’s New Demand Risk – A Cause for Worry?

Weatherford International Plc (WFRD) has disclosed a new risk, in the Demand category.

Weatherford International Plc faces significant exposure to a single Mexican customer, which accounted for approximately 10% of their 2023 revenue and 22% of their year-end receivables. The reliance on this customer intensifies risks, as evidenced by the credit default swap entered in the fourth quarter to secure payment of outstanding receivables. Should this customer experience any financial downturn or demand reduction, Weatherford’s operational results, financial standing, and cash flow statements could suffer materially in the upcoming year.

Overall, Wall Street has a Strong Buy consensus rating on WFRD stock based on 4 Buys.

To learn more about Weatherford International Plc’s risk factors, click here.