Weatherford EGM backs Dublin move

Relocation plans: Weatherford International advances Ireland move

Weatherford International’s shareholders have endorsed the oilfield services giant’s plans to re-incorporate in Ireland in a drive to cut costs.

An extraordinary general meeting of shareholders in Zug, Switzerland endorsed the plans first announced in April.

Weatherford said it now expected its Swiss-listed stock to be suspended as of Tuesday and for it to be taken off the commercial register of companies in Zug on Thursday.

The New York-listed drilling company also plans to drop its listing on the Paris stock exchange as part of the cost-cutting drive.

Under the plans, the company is to reincorporate as Weatherford Ireland with a registered address in central Dublin and hold its first annual general meeting in Ireland in September.

Chief executive Bernard Duroc-Danner said previously that the redomiciliation would “strengthen Weatherford's steady course allowing us to operate at the lowest possible cost while enhancing the company's ability to retain, as well as further attract, the best women and men in the industry”.

Switzerland has an effective corporate tax rate of around 18% while Ireland’s is just 12.5%, according to data compiled by KPMG.

Weatherford has cut thousands of jobs and made divestments in recent months as it seeks to bounce back from a series of loss-making results and tackle a high level of net debt.

Newsletter signup

User

Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?

Login