NY-listed oilfield group used Irish examinership to move HQ to Texas
New York-listed oilfield services group Weatherford International, which moved corporate headquarters to Dublin a dozen years ago and filed for examinership in 2019 to eliminate about $6 billion (€5.2 billion) in debt, plans to relocate to its spiritual home in Texas. The group was previously headquartered in Bermuda and Switzerland before landing on Ireland amid a wave of US-run companies using so-called inversion deals at the time in the State – often driven by tax reasons. While most – particularly in the pharmaceuticals sector – involved the purchase of Irish-registered peer companies, Weatherford executed its relocation by merging the then Swiss parent company into a specially formed subsidiary incorporated under Irish law. Throughout all its global headquarters relocations, the company’s operational base – and the location of its leadership team – has consistently remained in Houston, Texas. READ MOREWithings BeamO review: Next-gen thermometer packs a punch – and a price Reaching for the next rung on the career ladder in the age of AI uncertaintyVet turns to herbal medicine to tackle pet health issuesArtificial intelligence report should be wake-up call for CoalitionWeatherford, a provider of tools, machinery and services to the oil and gas drilling industry, availed of Irish examinership in 2019 to rubberstamp a restructuring of its then $8.35 billion debt pile. Resorting to the High Court in Dublin was the final stage in a complex restructuring that also involved the group going into chapter 11 bankruptcy in the US and an insolvency process in Bermuda. The restructuring followed a period of volatility in the oil and gas market that had affected its trading and finances.It has 16,700 employees globally and a stock market capitalisation of $6.8 billion. The group, which traces its roots back to 1941 and does business in 75 countries, said in a statement in recent days that the decision to relocate to Texas would simplify its corporate and operational structure and reduce, or eliminate, certain administrative and compliance burdens and costs. It may also lead to the possibility of a larger US shareholder base and greater access to capital, it said. Weatherford said the move should also improve its ability “to respond to developments in tax laws, enabling greater agility in managing global tax considerations”. [ VHI doubles profits to €71m as it grows subscriber numbersOpens in new window ]“This transition continues the evolution of the new Weatherford and brings greater alignment between our operating profile and structure,” said Girish Saligram, the group’s chief executive since late 2020. “We believe that our redomestication to the United States, and specifically to Texas where our leadership and central organisational expertise reside, strengthens our ability to execute on our strategy with even greater clarity and efficiency.”Weatherford noted in its latest annual report that while it would generally be classified as a foreign company for US tax purposes, as an Irish-registered company it faced the risk of US tax authorities asserting it should be treated as a US corporation for tax purposes. The group’s revenues totalled $4.92 billion last year, down 11 per cent on 2024. Almost a quarter of its revenues came from one customer in Mexico, according to its annual report. Russia accounted for 7 per cent of its revenues, though the report highlighted that the group has been focused on “operating in full compliance with applicable international laws and sanctions” since the Ukraine war broke out in 2022. None of its revenues were generated in Ireland last year. Its net profit declined by almost 15 per cent to $431 million.
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