EANS-Adhoc: Weatherford Reports Third Quarter 2013 EPS of $0.23 (non-GAAP)

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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Earnings/9-month report
05.11.2013

53% Sequential Increase in EPS driven by Improved Operating Margins

FCPA, Oil-for-Food and Sanctioned Countries definitive agreements
reached

GENEVA, Nov. 4, 2013 -- Weatherford International Ltd. (NYSE/Euronext
Paris/SIX: WFT) reported results for the third quarter ended
September 30, 2013.

Third Quarter 2013 Summary

-- $0.23 per diluted share (non-GAAP), or net income of $177 million
excluding after-tax charges of $155 million;
-- FCPA, Oil-for-Food and Sanctioned Countries definitive agreements
reached, subject to final SEC Commission and Court approvals; estimated
costs and terms of the settlement remain unchanged;
-- International operating income margin increased 270 basis points
sequentially, and all international segments showed operating income
margin improvement;
-- North America operating income margin expanded 260 basis points
sequentially with the U.S. and Canada both generating margin
improvement;
-- Foreign exchange losses were $27 million in the third quarter, an
increase of $12 million sequentially;
-- The non-GAAP effective tax rate for the quarter was 20%;
-- Announced the sale of Borets for $400 million with cash proceeds of $370
million in Q4;
-- Free cash flow improved by over $150 million sequentially, driven by
reduction in capital expenditures and operating efficiency improvements;
and
-- Capital expenditures, net of lost-in-hole, declined 39% compared to the
prior year quarter and 20% sequentially.

end of ad-hoc-announcement
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Third Quarter 2013 Results

On a GAAP basis, segment operating income was $395 million with third quarter

net income of $22 million, or earnings of $0.03 per diluted share.
This included:

-- $113 million, net of tax, associated with legacy lump sum contracts in
Iraq;
-- $25 million, net of tax, in severance, exit and other charges; and
-- $17 million, net of tax, in professional fees and expenses related to
the historical U.S. government investigations and the on-going
remediation of our material weakness related to income taxes.

Outlook

The Company expects the fourth quarter to continue to show sequential
improvements in revenue and operating income in North America, with
the U.S. benefiting from a lower operating cost structure and higher
activity levels in Canada. Latin America will be flat sequentially.
The outlook for the Eastern Hemisphere remains positive with
continued expansion in Europe, Caspian and Sub-Saharan Africa, and
with continued improvement in the Middle East/North Africa and Asia
Pacific region. Better operating performance in the fourth quarter
coupled with further cost reductions and improvements in capital
efficiency measures point to a positive outlook. The Company now
expects its 2013 annual effective tax rate to be in the range of 22%
to 24%. The divestiture process of our non-core businesses is fully
underway and progressing with all transactions expected to be
complete by year-end 2014. Supplemental details related to the
divestiture process are available on our website, www.weatherford.com
in the Investor Relations section.

Regional Highlights

-- North America
North America revenues for the quarter were $1,597 million, up 4%
sequentially and down 7% from the same quarter in the prior year. The
quarter's operating income was up 29% sequentially at $215 million, and
down $82 million, or 28% from the same quarter in the prior year. The
sequential increase was largely due to the seasonal recovery from spring
break-up in Canada positively impacting revenues and margins in all
product lines, as well as higher profitability generated by further
internal cost efficiencies and strong execution.
-- Middle East/North Africa/Asia Pacific
Third quarter revenues of $819 million were up $119 million, or 17%
higher than the third quarter of 2012, and down $100 million, or 11%
lower sequentially. The current quarter's operating income of $69
million increased $33 million, or 92% from the same quarter in the prior
year, and increased 5% sequentially. Middle East and North Africa
profitability improved sequentially and was partially offset by lower
sequential performance in the Asia Pacific region. Iraq margins,
excluding legacy contracts, also improved sequentially and
year-over-year.
-- Europe/Sub-Sahara Africa/Russia
Third quarter regional operating income and revenue were the highest in
our history. Third quarter revenues of $691 million were 10% higher than
the third quarter of 2012 and up 1% sequentially. The current quarter's
operating income of $103 million increased 17% when compared to the same
quarter in the prior year, and increased $20 million or 24%
sequentially. The year-over-year operating income increase resulted from
higher margins in the region driven by Europe and Sub-Saharan Africa.
Sequentially, operating income expanded primarily driven by increased
seasonal profitability in Russia.
-- Latin America
Third quarter revenues of $713 million were down $26 million, or 4%
sequentially and down $55 million, or 7% compared to the third quarter
of 2012. The decline in revenue in the third quarter compared to the
prior year was largely related to lower activity in Mexico. The current
quarter's operating income of $115 million was up $18 million, or 19%
compared to the same quarter in the prior year, and $25 million, or 28%
higher sequentially, primarily driven by increased profitability in
Argentina. Sequential increases in profitability were achieved despite
activity contraction in Mexico, our largest country in the region.

Liquidity and Free Cash Flow

Free cash flow improved by over $150 million sequentially, driven by
better operating efficiency and a reduction in capital expenditures.
Capital expenditures, net of lost-in-hole, declined 39%
year-over-year and 20% sequentially. Inventory levels were down for
the second consecutive quarter and contracted 2% sequentially. Days
sales in inventory decreased to 84 days from 85 days in the prior
quarter and 87 days in the same quarter a year ago. Days sales
outstanding increased two days year-over-year and five days
sequentially mainly attributable to the deferment of cash collections
in Latin America.

Non-GAAP Performance Measures; Supplemental Divestiture Presentation

Unless explicitly stated to the contrary, all performance measures
used throughout this document are non-GAAP. Corresponding
reconciliations to GAAP financial measures have been provided in the
following pages to offer meaningful comparisons between current
results and results in prior operating periods. As an adjunct to this
press release, we have furnished and posted to our website a
presentation about our ongoing divestiture program.

About Weatherford

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 65,000 people worldwide. For more
information, visit www.weatherford.com

Conference Call

The Company will host a conference call with financial analysts to
discuss the quarterly results on November 5, 2013, at 8:30 a.m.
eastern standard time (EST), 7:30 a.m. central standard time (CST).
Weatherford invites investors to listen to the call live via the
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 in that section of the website shortly after
the call ends.

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, net income, and the ongoing divestiture
program. 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, Except Per Share Amounts)

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

9/30/2013 9/30/2012 9/30/2013 9/30/2012
--------- --------- --------- ---------
Net Revenues:
North America $1,597 $1,725 $4,818 $5,142
Middle East/North
Africa/Asia 819 700 2,523 1,944
Europe/SSA/Russia 691 626 2,005 1,850
Latin America 713 768 2,179 2,221
3,820 3,819 11,525 11,157
----- ----- ------ ------
Operating Income (Expense):
North America 215 297 606 881
Middle East/North
Africa/Asia 69 36 180 113
Europe/SSA/Russia 103 88 251 256
Latin America 115 97 303 270
Research and
Development (65) (68) (203) (194)
Corporate Expenses (45) (48) (142) (147)
Goodwill and
Equity Investment
Impairment - - - (793)
U.S. Government
Investigation
Loss Contingency - - (153) (100)
Other Items (153) (87) (269) (233)
239 315 573 53
Other Income (Expense):
Interest Expense,
Net (129) (127) (388) (360)
Devaluation of
Venezuelan
Bolivar - - (100) -
Other, Net (30) (25) (61) (70)

Net Income (Loss)
Before Income Taxes 80 163 24 (377)

Benefit (Provision)
for Income Taxes: (49) (86) (74) (259)
--- --- --- ----
Net Income (Loss) 31 77 (50) (636)
Net Income Attributable
to Noncontrolling Interests (9) (7) (24) (20)
Net Income (Loss) Attributable
to Weatherford $22 $70 $(74) $(656)
=== === ==== =====
Income (Loss) Per Share
Attributable to Weatherford:
Basic $0.03 $0.09 $(0.10) $(0.86)
Diluted $0.03 $0.09 $(0.10) $(0.86)

Weighted Average Shares
Outstanding:
Basic 773 767 771 764
Diluted 779 771 771 764

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

Three Months Ended
------------------
9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012
--------- --------- --------- ---------- ---------
Net Revenues:
North America $1,597 $1,529 $1,692 $1,682 $1,725
Middle East/North
Africa/Asia 819 919 785 851 700
Europe/SSA/Russia 691 681 633 669 626
Latin America 713 739 727 856 768
$3,820 $3,868 $3,837 $4,058 $3,819
====== ====== ====== ====== ======

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

9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012
--------- --------- --------- ---------- ---------
Operating Income
(Expense):
North America $215 $167 $224 $226 $297

Middle East/North

Africa/Asia 69 66 45 58 36
Europe/SSA/Russia 103 83 65 59 88
Latin America 115 90 98 125 97
Research and
Development (65) (71) (67) (63) (68)
Corporate Expenses (45) (49) (48) (49) (48)
U.S. Government
Investigation
Loss Contingency - (153) - - -
Other Items (153) (78) (38) (111) (87)
$239 $55 $279 $245 $315
==== === ==== ==== ====

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

9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012
--------- --------- --------- ---------- ---------
Product Line
Revenues:
Formation
Evaluation and
Well
Construction(1) $2,330 $2,361 $2,273 $2,348 $2,128
Completion and
Production(2) 1,490 1,507 1,564 1,710 1,691
$3,820 $3,868 $3,837 $4,058 $3,819
====== ====== ====== ====== ======

Three Months Ended
------------------
9/30/2013 6/30/2013 3/31/2013 12/31/2012 9/30/2012
--------- --------- --------- ---------- ---------
Depreciation and
Amortizatio
North America $108 $102 $108 $108 $108
Middle East/North
Africa/Asia 101 98 93 94 90
Europe/SSA/Russia 69 68 71 71 63
Latin America 71 68 68 63 61
Research and
Development and
Corporate 3 5 6 7 7
$352 $341 $346 $343 $329
==== ==== ==== ==== ====

(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
comparisions between current results and results of prior periods. The non-GAAP
amounts shown below should not be considered as substitues for operating income,
provision for income taxes, net income or other data prepared and reported in
accordance with GAAP, but should be viewed in addition 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
------------------

9/30/2013 6/30/2013 9/30/2012
--------- --------- ---------

Operating Income:
GAAP Operating

Income $239 $55 $315
Goodwill and Equity Investment
Impairment - - -
U.S. Government Investigation
Loss Contingency - 153 -
Legacy Contracts (a) 107 21 14
Tax Remediation and Restatement
Expenses 8 6 27
Severance 20 36 6
Investigation Related Expenses 8 12 -
Other Adjustments 10 3 40
Non-GAAP Operating Income $392 $286 $402
==== ==== ====

Income Before Income Taxes:
GAAP Income (Loss)
Before Income Taxes $80 $(91) $163
Operating Income Adjustments 153 231 87
Devaluation of Venezuelan Bolivar - - -
Other Adjustments - - -
Non-GAAP Income Before Income
Taxes $233 $140 $250
==== ==== ====

Provision for Income Taxes:

GAAP Provision for Income Taxes $(49) $(20) $(86)
Non-GAAP
Provision for

Income Taxes (47) (17) (103)

Net Income Attributable to Weatherford:
GAAP Net Income (Loss) $22 $(118) $70
Goodwill and Equity Investment
Impairment - - -
U.S. Government Investigation
Loss Contingency - 153 -
Devaluation of Venezuelan Bolivar - - -
Legacy Contracts 113 31 14
Tax Remediation and Restatement
Expenses 7 5 24
Severance 17 25 5
Investigation Related Expenses 10 8 -
Other Adjustments 8 12 27
--- --- ---
Total Charges, net of tax 155 234 70
Non-GAAP Net
Income $177 $116 $140
==== ==== ====

Diluted Earnings Per Share
Attributable to Weatherford:
GAAP Diluted
Earnings (Loss)
per Share $0.03 $(0.15) $0.09
Total Charges, net of tax 0.20 0.30 0.09
---- ---- ----
Non-GAAP Diluted
Earnings per
Share $0.23 $0.15 $0.18
===== ===== =====
GAAP Effective Tax
Rate (b) 61% (22%) 53%
Annual Effective
Tax Rate (c) 20% 12% 41%

Nine Months Ended
-----------------
9/30/2013 9/30/2012
--------- ---------

Operating Income:
GAAP Operating

Income $573 $53
Goodwill and Equity Investment
Impairment - 793
U.S. Government Investigation
Loss Contingency 153 100
Legacy Contracts (a) 131 107
Tax Remediation and Restatement
Expenses 35 53
Severance 64 40
Investigation Related Expenses 25 2
Other Adjustments 14 31
Non-GAAP Operating Income $995 $1,179
==== ======

Income Before Income Taxes:
GAAP Income (Loss)
Before Income Taxes $24 $(377)
Operating Income Adjustments 422 1,126
Devaluation of Venezuelan Bolivar 100 -
Other Adjustments - (3)
Non-GAAP Income Before Income
Taxes $546 $746
==== ====

Provision for Income Taxes:

GAAP Provision for Income Taxes $$(74) $(259)
Non-GAAP
Provision for

Income Taxes (112) (287)

Net Income Attributable to Weatherford:
GAAP Net Income (Loss) $(74) $(656)
Goodwill and Equity Investment
Impairment - 792
U.S. Government Investigation
Loss Contingency 153 99
Devaluation of Venezuelan Bolivar 61 -
Legacy Contracts 152 107
Tax Remediation and Restatement
Expenses 30 44
Severance 48 35
Investigation Related Expenses 21 2
Other Adjustments 19 16
--- ---
Total Charges, net of tax 484 1,095
Non-GAAP Net
Income $410 $439
==== ====

Diluted Earnings Per Share
Attributable to Weatherford:
GAAP Diluted
Earnings (Loss)
per Share $(0.10) $(0.86)
Total Charges, net of tax 0.63 1.43
---- ----
Non-GAAP Diluted
Earnings per
Share $0.53 $0.57
===== =====
GAAP Effective Tax
Rate (b) 308% (69%)
Annual Effective
Tax Rate (c) 21% 38%

Note (a): The revenues associated with the legacy lump sum contracts
in Iraq were $80 million, $215 million and $91 million for the three
months ended 9/30/2013, 6/30/2013, and 9/30/2012 and $460 million and
$182 million for the nine months ended 9/30/2013 and 2012,
respectively.

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

Note (c): 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)

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

Assets:
Cash and
Cash
Equivalents $316 $295 $286 $300 $365
Accounts
Receivable,
Net 4,004 3,837 3,850 3,885 3,911
Inventories,
Net 3,580 3,637 3,744 3,675 3,676
Property,
Plant and
Equipment,
Net 8,397 8,333 8,299 8,299 8,122
Goodwill and
Intangibles,
Net 4,421 4,402 4,485 4,637 4,653
Equity
Investments 686 671 660 646 642

Liabilities:
Accounts
Payable 2,117 2,144 2,191 2,108 2,023
Short-term
Borrowings and
Current
Portion
of Long-term Debt 2,230 2,148 1,896 1,585 1,606
Long-term
Debt 7,065 7,087 7,032 7,049 7,300

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

Change in Net Debt for the
Three Months Ended 9/30/2013:

Net Debt at 6/30/2013 $(8,940)
Operating
Income 239
Depreciation
and
Amortization 352

Capital
Expenditures (365)

Increase in
Working
Capital (116)

Income Taxes
Paid (79)

Interest Paid (178)

Acquisitions
and
Divestitures
of Assets
and
Businesses,
Net 8

Net Change in
Billing in
Excess/
Costs in
Excess (17)

Other 117
---

Net Debt at 9/30/2013 $(8,979)

Change in Net Debt for the

Nine Months Ended 9/30/2013:
Net Debt at 12/31/2012 $(8,334)
Operating
Income 573
Depreciation
and
Amortization 1,039
Capital
Expenditures (1,211)
Increase in
Working
Capital (215)
Income Taxes
Paid (336)
Interest Paid (442)
Acquisitions
and
Divestitures
of Assets
and
Businesses,
Net 67
Net Change in
Billing in
Excess/
Costs in
Excess (190)
Other 70
---

Net Debt at 9/30/2013 $(8,979)

Components of Net Debt 9/30/2013 6/30/2013 12/31/2012

Cash $316 $295 $300
Short-term
Borrowings
and Current
Portion of
Long-term
Debt (2,230) (2,148) (1,585)

Long-term
Debt (7,065) (7,087) (7,049)
------ ------ ------

Net Debt $(8,979) $(8,940) $(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.

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 comparisions between
current results and results of prior periods. The non-GAAP amounts
shown below should not be considered as substitutes for cash flow
information prepared and reported in accordance with GAAP, but should
be viewed in addition to the Company's reported cash flow Statements
prepared in accordance with GAAP.

Weatherford International Ltd.
Selected Cash Flow Data
(Unaudited)
(In Millions)

Three Months Ended
------------------
9/30/2013 6/30/2013 9/30/2012
--------- --------- ---------
Net Cash Provided by Operating
Activities $326 $252 $231
Less: Capital Expenditures for
Property, Plant and equipment (365) (446) (572)
Free Cash Flow $(39) $(194) $(341)
==== ===== =====

Nine Months Ended
-----------------
9/30/2013 9/30/2012
--------- ---------
Net Cash Provided by Operating
Activities $567 $516
Less: Capital Expenditures for
Property, Plant and equipment (1,211) (1,670)
Free Cash Flow $(644) $(1,154)
===== =======

Free cash flow is defined as net cash provided by or used in operating

activities less capital expenditures. Free cash flow is an important
indicator of how much cash is generated or used by our normal
business operations, including capital expenditures. Management uses
free cash flow as a measure of progress on its capital efficiency and
cash flow initiatives.

Further inquiry note:
Contacts: Dharmesh Mehta +1.713.836.7267
Executive Vice President and
Chief Operating 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