After a few rocky years with major accounting issues regarding taxes and major losses from an Iraqi contract, Weatherford International (NYSE: WFT ) finally appears on a path to success. The oil services firm famously shifted headquarters to Switzerland back in 2009 to reduce taxes and ended up paying a higher effective tax rate, then ran into issues requiring a restatement of taxes. All of those issues led to a major slump in the stock as 2012 ended.
In the latest quarter, the company showed improvements in operations with a focus on margins; the effective tax rate also dropped to an incredible low rate of 20%. Finally, Weatherford is on track and could achieve numbers comparable to other top oil service firms such as Halliburton (NYSE: HAL ) and Baker Hughes (NYSE: BHI ) . The inability to operate efficiently and generate strong margins has left Weatherford trading at industry-low revenue multiples, but a new plan to focus on core operations and debt reduction should close that gap.
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