EANS-Adhoc: Weatherford Reports First Quarter 2013 Results

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
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announcement.
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quarterly or semiannual financial statement/quarterly report
03.05.2013

Earnings per Share of $0.15

GENEVA, Switzerland, May 2, 2013 -- Weatherford International Ltd.
(NYSE / Euronext Paris / SIX: WFT) today reported first quarter 2013
revenues of $3,837 million with net income of $117 million, or $0.15
per diluted share, excluding after-tax losses of $95 million. On a
GAAP basis, our net income for the first quarter of 2013 was $22
million, or $0.03 per diluted share. The excluded after-tax losses
included:

-- $61 million of foreign exchange losses recognized upon the devaluation
of the Venezuelan bolivar;
-- $18 million in professional fees associated with our income tax
remediation efforts;
-- $8 million associated with legacy lump sum contracts in Iraq; and
-- $8 million in severance, exit and other charges.

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

end of ad-hoc-announcement ==========================================
====================================== The Non-GAAP effective tax
rate for the quarter was 28%.

First quarter revenues of $3,837 million were seven percent higher
than the same period last year and down five percent sequentially.
International revenues of $2,145 million were up 17 percent over the
same period in 2012 and down ten percent sequentially. North America
revenue of $1,692 million was up one percent sequentially, and down
four percent versus the same quarter of 2012.

Segment operating income was $429 million on a GAAP basis. Adjusted
for excluded items, segment operating income of $432 million was down
eight percent sequentially, and down 23 percent from the same quarter
of 2012. On an adjusted basis, corporate expenses were essentially
flat compared to the previous quarter.

Consistent with previously published views, the company expects the
second half of 2013 to show modest growth in North America revenues
and operating income. Latin America will maintain a steady
improvement throughout the year. The outlook for the Eastern
Hemisphere remains positive with continued expansion in Europe,
Sub-Sahara Africa and Russia, with continued recovery in the Middle
East/North Africa and Asia Pacific Region.

The Company maintains its estimate of an annual effective tax rate
for 2013 of 34%.

North America North America revenues for the quarter were $1,692
million, a four percent decrease over the same quarter in the prior
year and up one percent sequentially. The quarter's operating income
was $224 million, down $134 million, or 37 percent from the same
quarter in the prior year and down one percent, sequentially. This
result is consistent with the decline in US land rig count relative
to the first quarter of 2012 and the continued oversupply of
hydraulic fracturing capacity. In addition, the bulk sale of our US
guar inventory held at market value reduced North America margins.

Middle East/North Africa/Asia Pacific First quarter revenues of $785
million were up $190 million, or 32 percent higher than the first
quarter of 2012, and $66 million, or eight percent lower
sequentially. The sequential decline is typical of seasonal effects
in Asia. The current quarter's operating income of $45 million
decreased $8 million, or 15 percent from the same quarter in the
prior year, and declined 22 percent sequentially.

Europe/Sub-Sahara Africa/Russia First quarter revenues of $633
million were eleven percent higher than the first quarter of 2012 and
down five percent from the prior quarter Sequentially, the decline is
attributable to normal winter seasonality, and its first quarter
impact on the North Sea and Russia. The current quarter's operating
income of $65 million was essentially flat when compared to the same
quarter in the prior year, and was up $6 million, or 10 percent from
the prior quarter.

Latin America First quarter revenues of $727 million were up $56
million or eight percent compared to the first quarter of 2012, and
down $129 million, or 15 percent sequentially. The current quarter's
operating income of $98 million increased 18 percent compared to the
same quarter in the prior year, and decreased 22 percent from the
prior quarter.

Liquidity and Net Debt Net debt increased $308 million sequentially,
primarily as a result of the timing of interest payments associated
with our senior notes as well as an increase in working capital of
$67 million and certain prepayment items. Driving the change in
working capital, days sales outstanding increased to 90 days and days
sales in inventory increased to 88 days.

Non-GAAP Performance Measures Non-GAAP performance measures and
corresponding reconciliations to GAAP financial measures have been
provided to offer meaningful comparisons between current results and
results in prior operating periods.

Conference Call The Company will host a conference call with
financial analysts to discuss the quarterly results on May 3, 2013 at
8:30 a.m. eastern daylight saving time, 7:30 a.m. central daylight
saving time. The company invites investors to listen to the call live
via company's website, www.weatherford.com in the Investor Relations
section. A recording of the conference call and transcript of the
call will be available on that section of the website shortly after
the call ends.

Weatherford is a Swiss-based, multinational oilfield service company.
It is one of the largest global providers of technology and services
for the oil and gas industry. Weatherford operates in over 100
countries and employs over 70,000 people worldwide.

Contacts: John H. Briscoe +1.713.836.4610
Senior Vice President and Chief
Financial Officer

Karen David-Green +1.713.836.7430
Vice President - Investor Relations

Forward-Looking Statements This press release and the documents
referenced herein contain, 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, as well as statements regarding timing or
content of the financial information that will be filed with the SEC
regarding the current period. Forward-looking statements also include
any statements about the resolution or potential future resolution of
our ongoing remediation of our material weaknesses in internal
control over financial reporting for income taxes and our assessment
of the degree to which historical remediation efforts have been
successful to date. 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. Specifically, statements regarding
the current period assume that there will be no subsequent events or
other adverse developments after the date of this press release that
cause our financial statements for the current period, when filed
with the SEC, to vary materially from the amounts herein. 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)

Three Months Ended
------------------

3/31/2013 3/31/2012
--------- ---------

Net Revenues:

North America $1,692 $1,754

Middle East/North Africa/Asia 785 595

Europe/SSA/Russia 633 571

Latin America 727 671

3,837 3,591
----- -----

Operating Income (Expense):

North America 224 358

Middle East/North Africa/Asia 45 53

Europe/SSA/Russia 65 66

Latin America 98 83

Research and Development (67) (62)

Corporate Expenses (48) (50)

Other Items (38) (78)
---- ----

279 370

Other Income (Expense):

Interest Expense, Net (131) (112)

Devaluation of Venezuelan Bolivar (100) -

Other, Net (13) (18)
----- ----

Income (Loss) Before Income Taxes 35 240

Benefit (Provision) for Income Taxes:

Provision for Operations (48) (116)

Adjustments to Provision 43 6

--- -----
(5) (110)

Net Income (Loss) 30 130

Net Income Attributable to Noncontrolling
Interests (8) (7)
---- -----
Net Income (Loss) Attributable to Weatherford $22 $123
=== ====

Earnings Per Share Attributable to Weatherford

Basic $0.03 $0.16

Diluted $0.03 $0.16

Weighted Average Shares Outstanding:

Basic 769 760

Diluted 773 766

Weatherford International Ltd.
Selected Statements of Operations Information
(Unaudited)
(In Millions)

Three Months Ended
------------------

3/31/2013 12/31/2012 9/30/2012
--------- ---------- ---------

Net Revenues:

North America $1,692 $1,682 $1,725

Middle East/North Africa/Asia 785 851 700

Europe/SSA/Russia 633 669 626

Latin America 727 856 768

$3,837 $4,058 $3,819
====== ====== ======

Three Months Ended
------------------

3/31/2013 12/31/2012 9/30/2012
--------- ---------- ---------

Operating Income (Expense):

North America $224 $226 $297

Middle East/North Africa/Asia 45 58 36

Europe/SSA/Russia 65 59 88

Latin America 98 125 97

Research and Development (67) (63) (68)

Corporate Expenses (48) (49) (48)

Goodwill and Equity
Investment Impairment - - -

Sanctioned Country
Loss Contingency - - -

Other Items (38) (111) (87)

$279 $245 $315
==== ==== ====

Three Months Ended
------------------

3/31/2013 12/31/2012 9/30/2012
--------- ---------- ---------

Product Line Revenues:

Formation Evaluation and
Well Construction(1) $2,273 $2,348 $2,128

Completion and Production(2) 1,564 1,710 1,691

$3,837 $4,058 $3,819
====== ====== ======

Three Months Ended
------------------

3/31/2013 12/31/2012 9/30/2012
--------- ---------- ---------

Depreciation and Amortization:

North America $108 $108 $108

Middle East/North Africa/Asia 93 94 90

Europe/SSA/Russia 71 71 63

Latin America 68 63 61

Research and Development
and Corporate 6 7 7

$346 $343 $329
==== ==== ====

Three Months Ended
------------------

6/30/2012 3/31/2012
--------- ---------

Net Revenues:

North America $1,663 $1,754

Middle East/North Africa/Asia 649 595

Europe/SSA/Russia 653 571

Latin America 782 671

$3,747 $3,591
====== ======

Three Months Ended
------------------

6/30/2012 3/31/2012
--------- ---------

Operating Income (Expense):

North America $226 $358

Middle East/North Africa/Asia 24 53

Europe/SSA/Russia 102 66

Latin America 90 83

Research and Development (64) (62)

Corporate Expenses (49) (50)

Goodwill and Equity
Investment Impairment (793) -

Sanctioned Country Loss Contingency (100) -

Other Items (68) (78)

$(632) $370
===== ====

Three Months Ended
------------------

6/30/2012 3/31/2012
--------- ---------

Product Line Revenues:

Formation Evaluation and
Well Construction(1) $2,058 $2,034

Completion and Production(2) 1,689 1,557

$3,747 $3,591
====== ======

Three Months Ended
------------------

6/30/2012 3/31/2012
--------- ---------

Depreciation and Amortization:

North America $101 $95

Middle East/North Africa/Asia 85 83

Europe/SSA/Russia 60 61

Latin America 59 55

Research and Development and Corporate 6 5

$311 $299
==== ====

(1) Formation Evaluation and Well Construction includes Drilling
Services, Well Construction, Integrated Drilling, Wireline and
Evaluation Services, Drilling Tools and Fishing and Re-entry.

(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, 2013, December 31, 2012, and March 31, 2012. 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.

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

Three Months Ended
------------------

3/31/2013 12/31/2012 3/31/2012
--------- ---------- ---------

Operating Income:

GAAP Operating
Income $279 $245 $370

Tax Remediation and Restatement
Expenses 21 50 15

Legacy Contracts (a) 3 30 31

Other Adjustments 14 31 32

Non-GAAP
Operating Income $317 $356 $448

Income (Loss) Before Income Taxes:

GAAP Income
(Loss) Before
Income Taxes $35 $89 $240

Devaluation of Venezuelan
Bolivar 100 - -

Tax Remediation and Restatement
Expenses 21 50 15

Legacy Contracts 3 30 31

Other Adjustments 14 31 29

Non-GAAP Income
(Loss) Before
Income Taxes $173 $200 $315

Benefit (Provision) for Income Taxes:

GAAP Benefit
(Provision) for
Income Taxes $(5) $(203) $(110)

Devaluation of Venezuelan
Bolivar (39) - -

Tax Remediation and Restatement
Expenses (3) (7) (3)

Legacy Contracts 5 34 -

Other Adjustments (6) (8) (3)

Non-GAAP Benefit
(Provision) for
Income Taxes $(48) $(184) $(116)

Net Income (Loss) Attributable
to Weatherford:

GAAP Net Income
(Loss) $22 $(122) $123

Total Charges, net of tax 95 (b) 130 (c) 69 (d)

Non-GAAP Net

Income $117 $8
$192

Diluted Earnings (Loss) Per Share
Attributable to Weatherford:

GAAP Diluted
Earnings (Loss)
per Share $0.03 $(0.16) $0.16

Total Charges, net of tax 0.12 0.17 0.09
---- ---- ----

Non-GAAP Diluted
Earnings per
Share $0.15 $0.01 $0.25

GAAP Effective
Tax Rate (e) 14% 228% 46%

Annual Effective

Tax Rate (f) 28% 92%
37%

Note (a): The revenues associated with the legacy lump sum contracts
in Iraq were $166 million, $177 million and $51 million in each of
the three months ended March 31, 2013, December 31, 2012, and March
31, 2012, respectively.

Note (b): Non-GAAP adjustments are comprised of (i) a charge for
the devaluation of the Venezuelan Bolivar of $61 million, (ii) tax
restatement and remediation expenses of $18 million, (iii) $8
million in operating losses and tax expense related to legacy lump
sum contracts in Iraq, (iv) $8 million in other adjustments
consisting of severance and other charges including $3 million in
investigation related expenses.

Note (c): Non-GAAP adjustments are comprised of (i) tax
restatement and remediation expenses of $43 million, (ii) $64
million in operating losses and tax expense related to legacy lump
sum contracts in Iraq, (iii) $23 million in other adjustments
consisting of severance and other charges including $7 million in
investigation related expenses.

Note (d): Non-GAAP adjustments are comfprised of (i) tax
restatement and remediation expenses of $15 million, (ii) $31
million in operating losses and tax expense related to legacy lump
sum contracts in Iraq, (iii) $29 million in other adjustments
consisting of severance and other charges including $2 million in
investigation related expenses.

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

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

Weatherford International Ltd.
Selected Balance Sheet Data
(Unaudited)
(In Millions)

3/31/2013 12/31/2012 9/30/2012 6/30/2012 3/31/2012
--------- ---------- --------- --------- ---------

Assets:

Cash and
Cash
Equivalents $286 $300 $365 $381 $339

Accounts
Receivable,
Net 3,850 3,885 3,911 3,608 3,358

Inventories,
Net 3,744 3,675 3,676 3,399 3,301

Property,
Plant and
Equipment,
Net 8,299 8,299 8,122 7,733 7,591

Goodwill and
Intangibles,
Net 4,485 4,637 4,653 4,581 5,152

Equity
Investments 660 646 642 629 634

Liabilities:

Accounts
Payable 2,191 2,108 2,023 1,635 1,684

Short-term
Borrowings
and Current
Portion
of Long-term Debt 1,896 1,585 1,606 1,263 1,902

Long-term

Debt 7,032 7,049 7,300 7,311
5,989

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

Change in Net Debt for the Three Months
Ended 3/31/2013:

Net Debt at
12/31/2012 $(8,334)

Operating Income 279

Depreciation and Amortization 346

Other Items 38

Capital Expenditures (400)

Increase in Working Capital (67)

Income Taxes Paid (124)

Interest Paid (183)

Acquisitions and Divestitures of
Assets and Businesses, Net 81

Other (278)
----

Net Debt at
3/31/2013 $(8,642)

Components of
Net Debt 3/31/2013 12/31/2012

Cash $286 $300

Short-term Borrowings and
Current Portion of Long-term
Debt (1,896) (1,585)

Long-term Debt (7,032) (7,049)
------ ------

Net Debt $(8,642) $(8,334)
======= =======

"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 +1.713.836.4610
Senior Vice President and Chief
Financial Officer

Karen David-Green +1.713.836.7430
Vice President - Investor Relations

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