EANS-Adhoc: Weatherford Reports First Quarter Results

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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3-month report

24.04.2012

Earnings rise approximately 20% to $0.25 in Q1 versus $0.21 in Q4,
before items

GENEVA, April 24, 2012 -- Weatherford International Ltd. (NYSE and
SIX: WFT) today reported first quarter 2012 net income of $190
million, or $0.25 per diluted share, excluding an after tax loss of
$67 million. On a GAAP basis, our net income for the first quarter of
2012 was $123 million, or $0.16 per diluted share. The excluded after
tax loss is comprised of the following items:

- Severance charges of $25 million, primarily related to executive officers;
- $2 million of costs incurred in connection with on-going investigations
by the U.S. government;
- $40 million of discrete tax items primarily related to changes in
estimates and uncertain tax positions that are not directly related to
current year operating results

end of ad-hoc-announcement

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=========== (Logo:
http://photos.prnewswire.com/prnh/19990308/WEATHERFORDLOGO)

First quarter 2012 diluted earnings per share reflect an increase of
$0.18 over the first quarter of 2011 diluted earnings per share of
$0.07, before charges. Sequentially, the company's first quarter
diluted earnings per share, before charges, were $0.04 higher than
the fourth quarter of 2011.

First quarter revenues were $3,599 million, or 26 percent higher than
the same period last year, and down three percent sequentially. North
America revenues increased 29 percent compared to the first quarter
of 2011 while international revenues were up 23 percent over the same
period.

Segment operating income of $554 million improved 57 percent
year-over-year but was down nine percent sequentially. Segment
operating income margins of 15% improved three percent over the same
period last year and declined one percent sequentially. Segment
margin performance improved relative to the same period in the prior
year primarily due to improved operating performance and in part due
to less severe weather conditions in our Middle East/North
Africa/Asia region and the charge taken in the prior-year period for
the Colombia net equity tax enacted in the first quarter of 2011.

Corporate general and administrative expense increased $7 million
sequentially to an all time high of $64 million, primarily
attributable to additional professional service fees incurred in the
first quarter.

Subject to the risks regarding forward-looking statements highlighted
by the company in this press release and its public filings, the
company expects diluted earnings per share before excluded items of
approximately $0.24 to $0.26 in the second quarter of 2012. With
regard to the entirety of 2012, the company maintains a positive but
measured outlook for its North American business and expects modest
revenue and operating income growth compared to 2011.
Internationally, the company anticipates continued growth and
expanding margins in its Latin America region, underpinned by
improvements in Brazil, Colombia, Mexico and Venezuela. Eastern
Hemisphere is also expected to improve in 2012, with upticks in
Europe and Russia, as well as continued recovery in the Middle East /
North Africa / Asia Pacific region with positive contributions in the
second half of 2012 from the completion of unfavorable contracts and
new contracts with better terms and pricing. For 2012, we currently
estimate an effective tax rate of approximately 35 percent, although
the actual rate may vary.

North America Revenue increased three percent sequentially and 29
percent compared to the first quarter of 2011. Artificial Lift,
Wireline and Completions posted strong revenue growth sequentially
and were partially offset by a decline in Stimulation, Drilling Tools
and Fishing which were negatively impacted by the natural gas market.
Operating income of $359 million declined by $23 million sequentially
due to a 200 basis point decline in operating margins to 21%, driven
primarily by the Stimulation, Drilling Tools and Fishing product
lines in the U.S.

Middle East/North Africa/Asia Revenue decreased $70 million
sequentially, or 10 percent, with declines in Completions and
Wireline as well as expected seasonality in China. Despite the
decline in revenue, operating income improved $14 million or 39
percent sequentially.

Europe/SSA/FSU Revenue declined $40 million, or seven percent,
sequentially as the normal winter seasonality in the North Sea and
Russia negatively impacted the first quarter. Operating income
declined $21 million sequentially due to the lower level of activity
and a 280 basis point decline in operating margins.

Latin America Revenue decreased eight percent, or $57 million, on a
sequential basis and increased 64 percent, or $261 million, compared
to the first quarter of 2011. Operating income fell $25 million
sequentially on the decline in revenue due to budgetary seasonality
of operators in the region.

Liquidity and Net Debt Net debt for the quarter increased $317
million primarily as a result of an increase in working capital of
$155 million and capital expenditures of approximately $483 million,
net of lost-in-hole offset by positive contributions from operations.

Reclassifications and Non-GAAP Non-GAAP performance measures and
corresponding reconciliations to GAAP financial measures have been
provided for meaningful comparisons between current results and
results in prior operating periods. The non-GAAP financial measures
we may present from time to time include: 1) operating income or
income from continuing operations excluding certain charges or
amounts, 2) the provision for income taxes excluding discrete items
and 3) the resulting non-GAAP net income and per share amounts.
Weatherford has added and expects to include the provision for income
taxes excluding discrete items as a non-GAAP measure going forward.
We believe it will provide users of this financial information
additional meaningful comparison between current operating results
and operating results in prior periods as well as greater
transparency of income taxes.

Conference Call The company will host a conference call with
financial analysts to discuss the 2012 first quarter results on April
24, 2012 at 8:30 a.m. (CDT). The company invites investors to listen
to a play back of the conference call and to access the call
transcript at the company's website, http://www.weatherford.com in
the "investor relations" section.

Weatherford is a Swiss-based, multi-national oilfield service
company. It is one of the largest global providers of innovative
mechanical solutions, technology and services for the drilling and
production sectors of the oil and gas industry. Weatherford operates
in over 100 countries and employs over 60,000 people worldwide.

Contacts: John H. Briscoe +1.713.836.4610
Chief Financial Officer

Karen David-Green +1.713.836.7430
Vice President - Investor Relations

Forward-Looking Statements This press release contains, and the
conference call announced in this release may include,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. This includes statements
related to future levels of earnings, revenue, expenses, margins,
capital expenditures, changes in working capital, cash flows, tax
expense, effective tax rates and net income, as well as the prospects
for the oilfield service business generally and our business in
particular. Forward-looking statements also include any statements
about the resolution of our ongoing remediation of our material
weakness in internal control over financial reporting for income
taxes. It is inherently difficult to make projections or other
forward-looking statements in a cyclical industry and given the
current macroeconomic uncertainty. Such statements are based upon the
current beliefs of Weatherford's management, and are subject to
significant risks, assumptions and uncertainties. These include the
Company's inability to design or improve internal controls to address
identified issues; the impact upon operations of legal compliance
matters or internal controls review, improvement and remediation,
including the detection of wrongdoing, improper activities or
circumvention of internal controls; difficulties in controlling
expenses, including costs of legal compliance matters or internal
controls review, improvement and remediation; impact of changes in
management or staff levels, the effect of global political, economic
and market conditions on the Company's projected results; the
possibility that the Company may be unable to recognize expected
revenues from current and future contracts; the effect of currency
fluctuations on the Company's business; the Company's ability to
manage its workforce to control costs; the cost and availability of
raw materials, the Company's ability to manage its supply chain and
business processes; the Company's ability to commercialize new
technology; whether the Company can realize expected benefits from
its redomestication of its former Bermuda parent company; the
Company's ability to realize expected benefits from its acquisitions
and dispositions; the effect of a downturn in its industry on the
Company's carrying value of its goodwill; the effect of weather
conditions on the Company's operations; the impact of oil and natural
gas prices and worldwide economic conditions on drilling activity;
the effect of turmoil in the credit markets on the Company's ability
to manage risk with interest rate and foreign exchange swaps; the
outcome of pending government investigations, including the
Securities and Exchange Commission's investigation of the
circumstances surrounding the Company's material weakness in its
internal control over financial reporting of income taxes; the
outcome of ongoing litigation, including shareholder litigation
related to the Company's material weakness in its internal control
over financial reporting of income taxes and its restatement of
historical financial statements; the future level of crude oil and
natural gas prices; demand for our products and services; levels of
pricing for our products and services; utilization rates of our
equipment; the effectiveness of our supply chain; weather-related
disruptions and other operational and non-operational risks that are
detailed in our most recent Form 10-K and other filings with the U.S.
Securities and Exchange Commission. Should one or more of these risks
or uncertainties materialize, or underlying assumptions prove
incorrect, actual results may vary materially from those indicated in
our forward-looking statements. We undertake no obligation to correct
or update any forward-looking statement, whether as a result of new
information, future events, or otherwise, except to the extent
required under federal securities laws.

Weatherford International Ltd.
Consolidated Condensed Statements of Operations
(Unaudited)
(In Millions, Except Per Share Amounts)

Three Months
Ended March 31,
2012 2011
Net Revenues:
North America $ 1,754 $ 1,360
Middle East/North
Africa/Asia 605 576
Europe/SSA/FSU 569 510
Latin America 671 410
3,599 2,856

Operating Income (Expense):
North America 359 283
Middle East/North
Africa/Asia 48 10
Europe/SSA/FSU 60 40
Latin America 87 21
Research and
Development (62) (60)
Corporate Expenses (64) (56)
Severance, Exit and
Other Adjustments (32) (21)
396 217

Other Income (Expense):

Interest Expense, Net (112) (113)
Other, Net (17) (19)

Income Before Income Taxes 267 85

Benefit (Provision) for Income
Taxes:
Provision for Operations (99) (54)
Benefit from Severance, Exit
and Other Adjustments 2 2
Benefit (Provision) for
Discrete Items (40) 6
(137) (46)

Net Income 130 39
Net Income Attributable
to Noncontrolling Interest (7) (2)
Net Income Attributable
to Weatherford $ 123 $ 37

Earnings Per Share Attributable
to Weatherford:

Basic $ 0.16 $ 0.05
Diluted $ 0.16 $ 0.05

Weighted Average Shares
Outstanding:
Basic 760 748
Diluted 766 758

Weatherford International Ltd.
Selected Income Statement Information
(Unaudited)
(In Millions)

Three Months Ended
3/31/2012 12/31/2011 9/30/2011 6/30/2011 3/31/2011
Net Revenues:

North America $ 1,754 $ 1,699 $ 1,620 $ 1,344 $
1,360 Middle East/ North Africa/

Asia 605 675 573 617 576
Europe/SSA/FSU 569 609 588 593 510
Latin America 671 727 591 498 410
$ 3,599 $ 3,710 $ 3,372 $ 3,052 $ 2,856

Three Months Ended
3/31/2012 12/31/2011 9/30/2011 6/30/2011 3/31/2011
Operating Income
(Expense):
North America $ 359 $ 382 $ 353 $ 244 $ 283
Middle East/
North Africa/
Asia 48 35 18 34 10
Europe/SSA/FSU 60 81 86 89 40
Latin America 87 112 70 50 21
Research and
Development (62) (64) (59) (62) (60)
Corporate
Expenses (64) (57) (42) (43) (56)
Libya Reserve - (67) - - -
Severance, Exit
and Other
Adjustments (32) (26) (8) (19) (21)
$ 396 $ 396 $ 418 $ 293 $ 217

Three Months Ended
3/31/2012 12/31/2011 9/30/2011 6/30/2011 3/31/2011
Product Line
Revenues:
Formation
Evaluation
and Well

Construction (1) $ 2,045 $ 2,075 $ 1,879
$ 1,689 $ 1,714 Completion and

Production(2) 1,554 1,635 1,493 1,363 1,142
$ 3,599 $ 3,710 $ 3,372 $ 3,052 $ 2,856

Three Months Ended
3/31/2012 12/31/2011 9/30/2011 6/30/2011 3/31/2011
Depreciation
and

Amortization: North America $ 95 $ 91 $ 91
$ 88 $ 88 Middle East/ North Africa/

Asia 83 82 81 83 82
Europe/SSA/FSU 63 59 59 58 56
Latin America 55 52 51 49 46
Research and
Development 2 2 2 2 2
Corporate 3 3 2 3 3
$ 301 $ 289 $ 286 $ 283 $ 277

(1) Formation Evaluation and Well Construction includes Drilling Services,
Well Construction, Integrated Drilling, Wireline and Evaluation
Services, Drilling Tools and Re-entry and Fishing
(2) Completion and Production includes Artificial Lift Systems,
Stimulation and Chemicals, Completion Systems and Pipeline and
Specialty Services

We report our financial results in accordance with generally accepted accounting
principles (GAAP). However, Weatherford's management believes that certain
non-GAAP financial measures and ratios (as defined under the SEC's Regulation G)
may provide users of this financial information additional meaningful
comparisons between current results and results in prior periods. The non-GAAP
financial measures we may present from time to time include: 1) operating income
or income from continuing operations excluding certain charges or amounts, 2)
the provision for income taxes excluding discrete items and 3) the resulting
non-GAAP net income and per share amounts. These adjusted amounts are not
measures of financial performance under GAAP. Accordingly, these amounts should
not be considered as a substitute for operating income, provision for income
taxes, net income or other data prepared and reported in accordance with GAAP.
See the table below for supplemental financial data and corresponding
reconciliations to GAAP financial measures for the three months ended March 31,
2012, December 31, 2011, and March 31, 2011. Non-GAAP financial measures should
be viewed in addition to, and not as an alternative to, the Company's reported
results prepared in accordance with GAAP.

Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In Millions, Except Per Share Amounts)

Three Months Ended
March 31, December 31, March 31,
2012 2011 2011
Operating Income:
GAAP Operating Income $ 396 $ 397 $ 217
Libya Reserve - 67 -
Severance, Exit
and Other
Adjustments 32 26 21
Non-GAAP Operating Income $ 428 $ 490 $ 238

Income (Loss) Before Income
Taxes:

GAAP Income (Loss) Before
Income Taxes $ 267 $ 245 $ 85
Libya Reserve - 67 -
Severance, Exit
and Other
Adjustments 29 31 21
Non-GAAP Income (Loss)
Before Income Taxes $ 296 $ 343 $ 106

Benefit (Provision) for Income
Taxes:

GAAP Benefit (Provision) for
Income Taxes $ (137) $ (221) $ (46)
Legal Entity
Reorganization
Charges - 22 -
Severance, Exit
and Other
Adjustments (2) (7) (2)
Discrete Items (1) 40 28 (6)
Non-GAAP Benefit (Provision)
for Income Taxes $ (99) $ (178) $ (54)

Net Income (Loss) Attributable to
Weatherford:

GAAP Net Income (Loss) $ 123 $ 18 $ 37
Total Charges, net
of tax 67 (a) 141 (b) 13 (c)
Non-GAAP Net Income $ 190 $ 159 $ 50

Diluted Earnings (Loss) Per Share
Attributable to Weatherford:

GAAP Diluted Earnings (Loss)
per Share $ 0.16 $ 0.02 $ 0.05
Total Charges, net
of tax 0.09 0.19 0.02
Non-GAAP Diluted Earnings
per Share $ 0.25 $ 0.21 $ 0.07

Effective Tax Rate (2) 51.3% 90.2% 54.1%
Annual Effective Tax Rate (3) 33.4% 51.9% 50.9%

Note (a): Non-GAAP adjustments, after tax, are comprised of (i) severance,
exit and other charges of $25 million, primarily related to executive
officer severance, (ii) $2 million of costs incurred in connection with
on-going investigations by the U.S. government and (iii) $40 million of
discrete tax items primarily related to uncertain tax positions and return
to accrual adjustments.

Note (b): Non-GAAP adjustments, after tax, are comprised of (i) a $67
million charge primarily to reserve accounts receivable, inventory and
machinery and equipment in Libya (ii) $4 million in legal and professional
costs incurred in conjunction with our tax planning and reorganization
activities, as well as $23 million in withholding taxes related to these
transactions (iii) $5 million of costs incurred in connection with
on-going investigations by the U.S. government, (iv) severance, exit and
other charges of $14 million and (v) a $28 million provision for discrete
tax items primarily related to valuation allowances on deferred tax
assets.

Note (c): This after tax amount is comprised of (i) a $9 million charge
associated with terminating a corporate consulting contract, (ii) $8
million for severance costs, (iii) investigation costs in connection with
on-going investigations by the U.S. government and (iv) a $6 million
benefit for discrete tax items.

Note (1): Discrete Items are income tax provisions (benefits) related
primarily to our changes in estimates as we file tax returns, settle
disputes with tax authorities or became aware of other events and include
changes in (a) deferred taxes, (b) valuation allowance on deferred taxes,
(c) uncertain tax positions and (d) other tax liabilities. Management
believes that excluding these items from the GAAP provision for income
taxes provides a non-GAAP measure of tax that provides additional
meaningful information about the income tax related to current and prior
period operating results and management expectations of income taxes for
the current year.

Note (2): Effective Tax Rate is GAAP provision for income taxes divided by
GAAP income before income taxes.

Note (3): Annual Effective Tax Rate is the Non-GAAP provision for income
taxes divided by Non-GAAP income before income taxes.

Weatherford International Ltd.
Consolidated Condensed Balance Sheet
(Unaudited)
(In Millions)

March 31, December 31,
2012 2011
Current Assets:
Cash and Cash
Equivalents $ 339 $ 371
Accounts Receivable, Net 3,358 3,235
Inventories 3,303 3,158
Other Current Assets 1,053 935
8,053 7,699
Long-Term Assets:
Property, Plant and
Equipment, Net 7,585 7,283
Goodwill 4,445 4,422
Other Intangibles, Net 706 711
Equity Investments 634 616
Other Assets 450 454
13,820 13,486

Total Assets $ 21,873 $ 21,185
Current Liabilities:
Short-term Borrowings
and Current Portion of
Long-term Debt $ 1,902 $ 1,320
Accounts Payable 1,679 1,567
Other Current
Liabilities 1,251 1,326
4,832 4,213
Long-term Liabilities:
Long-term Debt 5,989 6,286
Other Liabilities 1,119 1,133
7,108 7,419
Total Liabilities 11,940 11,632
Shareholders' Equity:
Weatherford
Shareholders' Equity 9,912 9,532
Noncontrolling Interests 21 21
Total Shareholders' Equity 9,933 9,553

Total Liabilities and Shareholders' Equity $ 21,873 $ 21,185

Weatherford International Ltd.
Net Debt
(Unaudited)
(In Millions)

Change in Net Debt for the Three Months
Ended March 31, 2012:

Net Debt at December 31, 2011 $ (7,235)
Operating Income 396
Depreciation and
Amortization 301
Severance, Exit and Other
Adjustments 32
Capital Expenditures (514)
Increase in Working
Capital (180)
Income Taxes Paid (98)
Interest Paid (180)
Acquisitions and
Divestitures of Assets and
Businesses, Net (12)
Foreign Currency Contract
Settlements (28)
Other (34)
Net Debt at March 31, 2012 $ (7,552)

March 31, December 31,
Components of Net Debt 2012 2011
Cash $ 339 $ 371
Short-term Borrowings and
Current Portion of
Long-Term Debt (1,902) (1,320)
Long-term Debt (5,989) (6,286)
Net Debt $ (7,552) $ (7,235)

"Net Debt" is debt less cash. Management believes that Net Debt
provides useful information regarding the level of
Weatherford indebtedness by reflecting cash that could be used to
repay debt.

Working capital is defined as accounts receivable plus inventory
less accounts payable.

SOURCE Weatherford International Ltd.

Further inquiry note:
Contacts: John H. Briscoe, Chief Financial Officer, +1.713.836.4610; Karen
David-Green, Vice President - Investor Relations, +1.713.836.7430

end of announcement euro adhoc
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issuer: Weatherford International Ltd.
Rue Jean-Francois Bartholoni 4-6
CH-1204 Geneva
phone: +41.22.816.1500
FAX: +41.22.816.1599
mail: karen.david-green@weatherford.com
WWW: http://www.weatherford.com
sector: Oil & Gas - Upstream activities
ISIN: CH0038838394
indexes:
stockmarkets: Main Standard: SIX Swiss Exchange, stock market: New York, Euronext
Paris
language: English