Weatherford International Ltd.

EANS-Adhoc: Weatherford Reports Preliminary Second Quarter Pre-Tax Results


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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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3-month report

25.07.2012

Company achieves new record quarterly revenue 

Prior periods to be restated for tax 

GENEVA, Switzerland, July 25, 2012 -- Weatherford International Ltd. (NYSE and
SIX: WFT) today reported preliminary second quarter 2012 earnings before income
taxes of $205 million, or $276 million after excluding pre-tax losses of $71
million. The excluded items were: 


    - A $100 million charge representing management's best estimate of a
      potential settlement with the U.S. government related to its
      investigation of alleged improper sales in certain sanctioned countries 
    - Severance, exit and other charges of $24 million; and 
    - A $53 million gain associated with the sale of our subsea controls
      business 


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

Second quarter revenues of $3,778 million were the highest in the company's
history. Revenues were five percent higher sequentially and 24 percent higher
than the same period last year. North America revenue was down four percent
sequentially due to the seasonal decline in Canada and up 25 percent versus the
same quarter of 2011. International revenues were up 14 percent sequentially and
up 23 percent versus the same quarter of 2011. Completion and Production lead
the sequential growth with strong performance from Artificial Lift and
Stimulation and Chemicals. Formation, Evaluation and Well Construction also
posted strong sequential growth from Integrated Drilling and Well Construction.

Segment operating income of $539 million improved 29 percent year-over-year and
was down $15 million, or 3 percent sequentially. 

Corporate expenses, research and development and other, net, were marginally
lower due to a lower level of professional service fees offset by increased
foreign exchange losses. The $100 million charge estimated for the potential
settlement with the U.S. government only regarding sanction country allegations
referenced above is management's estimate of the probable loss associated with
that matter, but the matter remains unsettled, and the actual loss could be more
or less. 

Subject to the risks regarding forward-looking statements highlighted by the
company in this press release and its public filings, the company expects
earnings per share of $0.30 to $0.33 in the third quarter of 2012. With regard
to the remainder of 2012, the company maintains a positive but measured outlook
for its North American business and continues to expect 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 Mexico, Colombia, Venezuela and Argentina. The
Eastern Hemisphere also is expected to improve in 2012, with upticks in Europe,
Sub-Saharan Africa 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. For the full year 2012, the company currently estimates an
effective tax rate of between 37 and 39 percent and a cash tax rate in line with
the prior year of approximately 33%.

end of ad-hoc-announcement
================================================================================
North America

Revenues for the quarter were $1,676 million, a 25 percent increase over the
same quarter in the prior year and down $78 million or four percent
sequentially. In North America, the U.S. posted strong sequential growth, but
the increases were more than offset by sequential declines in Canada due to the
extended spring breakup. 

The current quarter's operating income was $271 million, up $27 million or 11%
from the same quarter in the prior year and down $88 million, or 25 percent,
sequentially. The sequential decline is due to a lower level of operating
activity in Canada as an extended "spring breakup" negatively impacted all
product lines and in the United States where activity declines from lower
commodity prices impacted Stimulation and Chemicals.

Middle East/North Africa/Asia

Second quarter revenues of $668 million were eight percent higher than the
second quarter of 2011 and $63 million or 10 percent higher sequentially. The
sequential and year-over-year increase in revenues was broad-based and
attributable to additional activity in China, Turkmenistan, Iraq, Oman, Saudi
Arabia and Australia. 

The current quarter's operating income of $44 million increased 29 percent
compared to the same quarter in the prior year and decreased $4 million compared
to the first quarter of 2012. 

Europe/SSA/Russia

Second quarter revenues of $652 million were 10 percent higher than the second
quarter of 2011 and 15 percent higher than the prior quarter. The revenue
growth, both sequentially and year-over-year came from each of the regions with
U.K., Russia, Kazakhstan and Congo as strong performers. 

The current quarter's operating income of $120 million was up 35 percent
compared to the same quarter in the prior year and up $60 million, or 100
percent, compared to the prior quarter. The current quarter was positively
impacted by the profitability derived from a higher level of operating activity
in Russia. 

Latin America

Second quarter revenues of $782 million were $284 million or 57 percent higher
than the second quarter of 2011 and up 17 percent compared to the first quarter
of 2012. Mexico, Venezuela and Argentina posted strong sequential performances
in revenues and margins.

The current quarter's operating income of $104 million increased $54 million as
compared to the same quarter in the prior year and increased 20 percent from the
prior quarter. Sequentially, our Drilling Services and Stimulation and Chemicals
product lines were the strongest performers. 

Liquidity and Net Debt 

Net debt for the quarter increased $641 million primarily as a result of an
increase in working capital of $486 million and capital expenditures of
approximately $554 million, net of lost-in-hole offset by positive contributions
from operations. Days sales outstanding increased to 86 days and days sales in
inventory declined to 82 days in the second quarter. We expect receivables to
reach 76 days and inventory to reach 75 days by the end of 2012. For the full
year 2012, and in line with prior full-year guidance, the company expects
capital expenditures to be between 10% and 15% of revenue.


Goodwill Assessment

During the three months ended June 30, 2012, the sustained decline in the market
price of the company's registered shares caused management to assess whether an
event or change had occurred that, more likely than not, reduced the fair value
of any of the company's reporting units below their carrying amount. After
considering the relevant circumstances, management prepared the analysis
necessary to identify potential impairment through the comparison of reporting
unit fair values and carrying amounts. This analysis indicated that the Middle
East/North Africa, Russia and Sub-Sahara Africa reporting units were potentially
impaired. The company expects to finalize its goodwill impairment analysis
during the third quarter of 2012 and record an impairment charge if it concludes
that the goodwill of any reporting unit is impaired. The total amount of
goodwill for these reporting units was $769 million as of June 30, 2012, but the
company cannot currently estimate the amount by which, if any, this goodwill is
impaired. If this analysis results in an impairment charge, the company would
expect to reflect that charge in the Form 10-Q for the quarter ended June 30,
2012.

Income Tax Matters and Remediation of Material Weakness

The company is reporting results on a pre-tax basis due to the following
factors:


    - Management has concluded that the company has not remediated its
      previously disclosed material weakness in internal control over financial
      reporting for income taxes relating to current taxes payable, certain
      deferred tax assets and liabilities, reserves for uncertain tax
      positions, and current and deferred income tax expense. 
    - As reported with the company's first quarter 2012 earnings and in
      connection with remediation work and completing first quarter close
      procedures, management discovered and reported $36 million of tax expense
      related to prior periods, a significant portion of which related to
      management's estimates regarding unrecognized tax benefits. 
    - In the second quarter, the company completed and filed over 200 tax
      returns.  These returns resulted in a net increase to tax expense of
      approximately $20 million to account for the difference between actual
      tax paid and tax liabilities accrued for the prior periods. 
    - In the second quarter, the company's ongoing remediation work with
      respect to the previously announced material weakness over the accounting
      for income taxes and management's second quarter income tax accounting
      procedures have identified an additional $41 million of tax expense
      primarily related to accruals for uncertain tax positions that relate to
      prior year operating results.  These items stem from additional
      procedures and enhancements of existing procedures instituted as a result
      of the material weakness remediation process. 
    - The aggregate $92 million of prior period expenses identified in the
      first two quarters of 2012 include $34 million in 2011; $22 million in
      2010; $20 million in 2009 and $16 million in 2008 and before, although
      management's analysis is not complete and these figures are subject to
      revision. Except for additional net payments made as tax returns were
      filed, none of the adjustments is expected to affect the company's
      historically reported net debt balances. 
    - The company has also identified additional issues related to the
      accounting for income taxes in prior periods and is completing its
      analysis of these issues.  These additional issues could result in
      further adjustments.  The company currently estimates that these
      additional tax-related issues could result in further adjustments of up
      to $15 million. 
    - Until the company has concluded work on the above-mentioned adjustments,
      the company will not finalize its tax accounts for the six months ended
      June 30, 2012.  
    - The review of the income tax accounts is ongoing among the company, its
      advisors and the company's auditors.  Once finalized, the company expects
      to record the adjustments in the proper historical periods and restate
      its previously issued Report on Form 10-K for the year ended December 31,
      2011 and previously issued Report on Form 10-Q for the quarter ended
      March 31, 2012 and file its Report on Form 10-Q for the quarter ended
      June 30, 2012.


The company believes that the additional adjustments to prior period income
taxes are a result of additional procedures and improvements implemented during
the first and second quarters of 2012 to existing procedures or procedures
implemented in 2011. These procedures are part of the company's efforts to
remediate the material weakness in accounting for income taxes and included
enhanced reviews and validation of potential uncertain tax positions reported by
internal personnel, additional training and communication of potential tax
exposures, enhanced procedures related to tax returns filed during 2012 to
identify differences in amounts accrued and enhancements to the quarterly tax
provision estimation process. The out-of-period income tax adjustments
identified in the second quarter were identified by the company's processes and
procedures. The company believes this indicates that process changes are
yielding continued incremental improvements in the quality of the company's
accounting for income taxes and support the ongoing remediation of the material
weakness. The company also believes the additional review and post-closing
procedures it performed in connection with the restatement of its financial
statements included in the previously issued Form 10-K for the year ended
December 31, 2011 provided reasonable assurance at the time of filing that the
financial statements were correct as filed. Based upon the additional errors the
company has identified in its reviews for the first and second quarters of 2012,
the company expects that it will not issue restated financial statements for the
year ended December 31, 2011 or the quarter ended March 31, 2012 or file its
financial statements for the quarter ended June 30, 2012 until the completion of
additional procedures and reviews of its accounting for income taxes.


Bernard J. Duroc-Danner, Chairman, President and CEO, explained "Weatherford has
committed its full resources to address our income tax accounting issues as
quickly and as thoroughly as possible. Our entire senior management team and
their respective functional departments—tax, accounting, legal and
operations—are working together to achieve our goal, and we all are working with
Ernst & Young, whose support and guidance is greatly appreciated."

Restatement of Prior Financial Statements 

As previously reported in the company's Quarterly Report on Form 10-Q for the
quarter ended March 31, 2012, the company's Annual Reports on Form 10-K for the
years ended December 31, 2011 and 2010 and each of the company's Quarterly
Reports on Form 10-Q during the year ended December 31, 2011, the Company
identified a material weakness in its internal control over financial reporting
relating to current taxes payable, certain deferred tax assets and liabilities,
reserves for uncertain tax positions, and current and deferred income tax
expense. This material weakness resulted in the restatement of the company's
consolidated financial statements included in its Annual Reports on Form 10-K
for both 2011 and 2010.

To date, the material weakness in accounting for income taxes has not been
remediated, and management has identified additional income tax related errors
as described above. As a result of the foregoing adjustments, the Audit
Committee of our Board of Directors concluded, on July 24, 2012, that investors
should no longer rely upon our previously issued financial statements. The
company expects to file the restated financial statements described below to
correct errors relating to the company's historical reporting of the provision
for income taxes. The Audit Committee has discussed this matter with the
Company's independent auditors. 

Until the restatement is completed, the company's estimates of the expected
income tax accounting adjustments for 2011 through 2008 and prior years, and the
six months ended June 30, 2012, are subject to change. There can be no assurance
that additional income tax accounting issues will not be identified during the
course of the review and audit process and, therefore, these results should be
considered preliminary until the company files its Form 10-K/A for the year
ended December 31, 2011, Form 10-Q/A for the quarter ended March 31, 2012 and
Form 10-Q for the quarter ended June 30, 2012. Any changes to the preliminary,
unaudited estimated results provided in this release, as well as additional
items that may be identified during the completion of the review and audit
processes, could be material to the company's financial condition and results of
operations for the prior periods identified. Further, the company anticipates
the time between this release and the filing of its Form 10-Q for the current
period will be longer than normal, and there is an increased risk that
subsequent events occurring after the date of this release could cause the
second quarter financial information as reported in Form 10-Q to vary from
amounts reported in this release. 

Management continues to assess the effect of the restatement on the company's
internal control over financial reporting for income taxes and its related
disclosure controls and procedures. Management will report its final conclusion
on internal control over financial reporting for income taxes and related
disclosure controls and procedures upon completion of the restatement process.

The company intends to file restated financial statements for fiscal 2011, 2010
and 2009 in a Form 10-K/A for the year ended December 31, 2011 and restated
financial statements for the first quarter of 2012 in a Form 10-Q/A as soon as
practicable, but not before it has completed additional procedures and reviews
of its accounting for income taxes. The company will also include restated
selected financial data for fiscal 2007 through 2011 in its Form 10-K/A. In
addition, the company intends to include in the Form 10-K/A restated quarterly
financial data for each of the quarters for fiscal 2011 and 2010. Based on the
information regarding prior years that the company intends to include in its
Form 10-K/A, the company does not intend to file amendments to any of its
previously filed Form 10-Qs for years prior to 2012.

The company anticipates that these amended filings and its Quarterly Report on
Form 10-Q for the current period will not be completed by the applicable SEC due
date of August 9, 2012. The company will endeavor to make such filings and file
its third quarter Form 10-Q by the SEC due date of November 9, 2012, but its
ability to do so will depend on the results of ongoing accounting procedures and
procedure improvements, and the company cannot provide assurances that it will
be able to achieve that date. The company currently expects that all such
filings, together with subsequent quarterly filings and its full-year 2012
financial statements, will be filed no later than March 1, 2013, the due date
established by SEC regulation for our 2012 Report on Form 10-K. If the company
is unable to file current or future financials by the November 9, 2012 due date
for the third quarter Form 10-Q, the company will release pretax earnings and
hold its normal quarterly conference call to discuss operating results and
provide an update on the identification of prior period tax adjustments and the
remediation of the material weakness in accounting for income taxes. If the
company is unable to file current or future period financial statements by the
times required in covenants under its debt instruments, the company will seek
waivers and consents from its debtholders to extend those periods. 

John H. Briscoe, Senior Vice President and Chief Accounting Officer, commented
"We have a structure and a tactical plan to achieve remediation of the income
tax material weakness. The additional procedures we will perform will support
the end result of building a sustainable tax function. The recent addition of
James C. Parent, Vice President, Tax, brings significant experience. He will be
a key part of our management team as the entire organization works to resolve
the income tax material weakness." 

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. 

Conference Call

The company will host a conference call with financial analysts to discuss the
preliminary second quarter results on July 25, 2012 at 7:00 a.m. (CDT). 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, 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
            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 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. 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 Income
                                 (Unaudited)
                                (In Millions)



                                               Three Months
                                              Ended June 30,
                                              --------------
                                             2012          2011
                                             ----          ----


Net Revenues:
    North America                          $1,676        $1,344

    Middle East/North Africa/Asia             668           617
    Europe/SSA/Russia                         652           593
    Latin America                             782           498
                                            3,778         3,052
                                            -----         -----

Operating Income (Expense):
    North America                             271           244

    Middle East/North Africa/Asia              44            34
    Europe/SSA/Russia                         120            89
    Latin America                             104            50
    Research and Development                  (65)          (62)
    Corporate Expenses                        (53)          (43)
    Gain on Sale of Business                   53             -
    Estimated Settlement -
     Sanctioned Countries                    (100)            -
    Severance, Exit and Other
     Adjustments                              (24)          (19)
                                              ---           ---
                                              350           293

Other Income (Expense):
    Interest Expense, Net                    (121)         (114)
    Other, Net                                (24)          (22)
                                              ---           ---


Income Before Income Taxes                    205           157

Weighted Average Shares
 Outstanding:
  Basic                                       765           751
  Diluted                                     769           758





                                                Six Months
                                              Ended June 30,
                                              --------------
                                             2012          2011
                                             ----          ----


Net Revenues:
    North America                          $3,430        $2,704

    Middle East/North Africa/Asia           1,273         1,193
    Europe/SSA/Russia                       1,221         1,103
    Latin America                           1,453           908
                                            7,377         5,908
                                            -----         -----

Operating Income (Expense):
    North America                             630           527



    Middle East/North Africa/Asia              92            44
    Europe/SSA/Russia                         180           129
    Latin America                             191            71
    Research and Development                 (127)         (122)
    Corporate Expenses                       (117)          (99)
    Gain on Sale of Business                   53             -
    Estimated Settlement -
     Sanctioned Countries                    (100)            -
    Severance, Exit and Other
     Adjustments                              (56)          (40)
                                              ---           ---
                                              746           510

Other Income (Expense):
    Interest Expense, Net                    (233)         (227)
    Other, Net                                (41)          (41)
                                              ---           ---


Income Before Income Taxes                    472           242

Weighted Average Shares
 Outstanding:
  Basic                                       763           749
  Diluted                                     767           758







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






                                             Three Months Ended
                                             ------------------
                                    6/30/2012       3/31/2012  12/31/2011
                                    ---------       ---------  ----------

Net Revenues:
    North America                      $1,676          $1,754      $1,699
    Middle East/North
     Africa/Asia                          668             605         675
    Europe/SSA/Russia                     652             569         609
    Latin America                         782             671         727
                                          ---             ---         ---
                                       $3,778          $3,599      $3,710
                                       ======          ======      ======


                                             Three Months Ended
                                             ------------------
                                    6/30/2012       3/31/2012  12/31/2011
                                    ---------       ---------  ----------


Operating Income
 (Expense):

    North America                        $271            $359        $382
    Middle East/North
     Africa/Asia                           44              48          35
    Europe/SSA/Russia                     120              60          81
    Latin America                         104              87         112
    Research and Development              (65)            (62)        (64)
    Corporate Expenses                    (53)            (64)        (57)
    Libya Reserve                           -               -         (67)
    Gain on Sale of Business               53               -           -
    Estimated Settlement -
     Sanctioned Countries                (100)              -           -
    Severance, Exit and Other
     Adjustments                          (24)            (32)        (26)
                                          ---             ---         ---
                                         $350            $396        $396
                                         ====            ====        ====


                                             Three Months Ended
                                             ------------------
                                    6/30/2012       3/31/2012  12/31/2011
                                    ---------       ---------  ----------


Product Line Revenues:
  Formation Evaluation and

   Well Construction(1)                $2,089          $2,045      $2,075
  Completion and
   Production(2)                        1,689           1,554       1,635
                                       $3,778          $3,599      $3,710
                                       ======          ======      ======


                                             Three Months Ended
                                             ------------------
                                    6/30/2012       3/31/2012  12/31/2011
                                    ---------       ---------  ----------

Depreciation and
 Amortization:
                 North America           $101             $95         $91
                  Middle East/North
                  Africa/Asia              85              83          82
                 Europe/SSA/Russia         60              63          59
                 Latin America             58              55          52
                  Research and
                  Development               2               2           2
                 Corporate                  4               3           3
                                         $310            $301        $289
                                         ====            ====        ====






                                             Three Months Ended
                                             ------------------
                                          9/30/2011       6/30/2011
                                          ---------       ---------

Net Revenues:
    North America                            $1,620          $1,344
    Middle East/North
     Africa/Asia                                573             617
    Europe/SSA/Russia                           588             593
    Latin America                               591             498
                                             $3,372          $3,052
                                             ======          ======


                                             Three Months Ended
                                             ------------------
                                          9/30/2011       6/30/2011
                                          ---------       ---------


Operating Income
 (Expense):

    North America                              $353            $244
    Middle East/North
     Africa/Asia                                 18              34
    Europe/SSA/Russia                            86              89
    Latin America                                70              50
    Research and Development                    (59)            (62)
    Corporate Expenses                          (42)            (43)
    Libya Reserve                                 -               -
    Gain on Sale of Business                      -               -
    Estimated Settlement -
     Sanctioned Countries                         -               -
    Severance, Exit and Other
     Adjustments                                 (8)            (19)
                                                ---             ---
                                               $418            $293
                                               ====            ====


                                             Three Months Ended
                                             ------------------
                                          9/30/2011       6/30/2011
                                          ---------       ---------


Product Line Revenues:
  Formation Evaluation and

   Well Construction(1)                      $1,879          $1,689
  Completion and
   Production(2)                              1,493           1,363
                                             $3,372          $3,052
                                             ======          ======

                                             Three Months Ended
                                             ------------------
                                          9/30/2011       6/30/2011
                                          ---------       ---------

Depreciation and
 Amortization:
                 North America                  $91             $88
                  Middle East/North
                  Africa/Asia                    81              83
                 Europe/SSA/Russia               59              58
                 Latin America                   51              49
                  Research and
                  Development                     2               2
                 Corporate                        2               3
                                               $286            $283
                                               ====            ====


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

    Completion and Production includes Artificial Lift Systems, Stimulation
(2) 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 June 30,
2012, March 31, 2012, and June 30, 2011 and for the six months ended June 30,
2012 and June 30, 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.





                       Weatherford International Ltd.
            Reconciliation of GAAP to Non-GAAP Financial Measures
                                 (Unaudited)
                                (In Millions)



                                           Three Months Ended
                                           ------------------
                                   June          March        June
                                    30,           31,          30,
                                                               2011
                                  2012(a)      2012(b)         (c)
                                  -------      -------       -----

Operating Income:
  GAAP Operating Income              $350          $396        $293
    Gain on Sale of
     Business                         (53)            -           -
    Sanctioned Country Loss
     Contingency                      100             -           -
    Severance, Exit and
     Other Adjustments                 24            32          19
  Non-GAAP Operating
   Income                            $421          $428        $312
                                     ====          ====        ====



Income (Loss) Before
 Income Taxes:
  GAAP Income (Loss)
   Before Income Taxes               $205          $267        $157
    Gain on Sale of
     Business                         (53)            -           -
    Sanctioned Country Loss
     Contingency                      100             -           -
    Severance, Exit and
     Other Adjustments                 24            29          19

  Non-GAAP Income (Loss)
   Before Income Taxes               $276          $296        $176
                                     ====          ====        ====











                                         Six Months Ended
                                         ----------------
                                       June         June
                                        30,          30,
                                                     2011
                                      2012(d)        (e)
                                      -------      -----

Operating Income:
  GAAP Operating Income                  $746        $510
    Gain on Sale of
     Business                             (53)          -
    Sanctioned Country Loss
     Contingency                          100           -
    Severance, Exit and
     Other Adjustments                     56          40
  Non-GAAP Operating
   Income                                $849        $550
                                         ====        ====



Income (Loss) Before
 Income Taxes:
  GAAP Income (Loss)
   Before Income Taxes                   $472        $242
    Gain on Sale of
     Business                             (53)          -
    Sanctioned Country Loss
     Contingency                          100           -
    Severance, Exit and
     Other Adjustments                     53          40
  Non-GAAP Income (Loss)
   Before Income Taxes                   $572        $282
                                         ====        ====


Note (a): Non-GAAP adjustments, are comprised of (i) an excluded $53 million
gain related to the sale of our subsea controls business (ii) a $100 million
estimated loss accrual related to the sanctioned country matters and (iii)
severance, exit and other charges of $24 million.


Note (b): Non-GAAP adjustments are comprised of (i) severance, exit and other
charges of $27 million, primarily related to executive officer severance and
(ii) $2 million of costs incurred in connection with on-going investigations by
the U.S. government.

Note (c): Non-GAAP adjustments are comprised of (i) $16 million of severance and
exit charges (ii) $3 million of costs incurred in connection with on-going
investigations by the U.S. government.

Note (d): Non-GAAP adjustments are comprised of (i) severance, exit and other
charges of $53 million including approximately $3 million of costs incurred in
connection with on-going investigations by the U.S. government, (ii) a $100
million estimated loss accrual related to the sanctioned country matters (iii)
an excluded $53 million gain related to the sale of our subsea controls
business.

Note (e): Non-GAAP adjustments are comprised of (i) $27 million of severance,
exit and charges (ii) $4 million of costs incurred in connection with on-going
investigations by the U.S. government a (iii) a $9 million charge associated
with terminating a corporate consulting contract.





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



                               June           March          December
                                30,            31,             31,
                                2012          2012            2011
                                ----          ----            ----


  Cash and Cash
   Equivalents                  $381          $339            $371
  Accounts Receivable,
   Net                         3,609         3,358           3,235
  Inventories                  3,439         3,303           3,158
  Property, Plant and
   Equipment, Net              7,737         7,585           7,283
  Goodwill &
   Intangibles, Net            5,245         5,151           5,133
  Equity Investments             833           634             616


  Accounts Payable            $1,630        $1,679          $1,567
  Short-term
   Borrowings and
   Current Portion of
    Long-term Debt             1,263         1,902           1,320
  Long-term Debt               7,311         5,989           6,286



  Common Shares Par

   Value                        $861          $775            $769
  Capital In Excess of
   Par                         5,676         4,889           4,824
  Treasury Shares, Net       (1,304)          (479)           (483)
  Accumulated Other

   Comprehensive Income          (70)          252              70









                                September       June         March
                                   30,           30,          31,
                                   2011         2011          2011
                                   ----         ----          ----


  Cash and Cash
   Equivalents                     $274         $330          $249
  Accounts Receivable,
   Net                            3,181        3,021         2,923
  Inventories                     3,073        2,940         2,760
  Property, Plant and
   Equipment, Net                 7,141        7,245         7,117
  Goodwill &
   Intangibles, Net               5,133        5,162         5,089
  Equity Investments                600          559           552



  Accounts Payable               $1,566       $1,518        $1,433
  Short-term
   Borrowings and

   Current Portion of
    Long-term Debt                1,350        1,114           620
  Long-term Debt                  6,266        6,257         6,526



  Common Shares Par

   Value                           $769         $763          $763
  Capital In Excess of
   Par                            4,807        4,723         4,710
  Treasury Shares, Net             (485)        (492)         (561)
  Accumulated Other
   Comprehensive Income              97          398           381








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



Change in Net Debt for the Three Months Ended

 June 30, 2012:
  Net Debt at March 31, 2012                $(7,552)
      Operating Income                          350
      Depreciation and
       Amortization                             310
      Severance, Exit and Other
       Adjustments                               71
      Capital Expenditures                     (584)
      Increase in Working Capital              (486)
      Income Taxes Paid                        (146)
      Interest Paid                             (44)
      Acquisitions and
       Divestitures of Assets and
       Businesses, Net                         (144)
      Foreign Currency Contract
       Settlements                               44
      Other                                     (12)
  Net Debt at June 30, 2012                 $(8,193)

Change in Net Debt for the Six Months Ended
 June 30, 2012:
  Net Debt at December 31,
   2011                                     $(7,235)
      Operating Income                          746
      Depreciation and
       Amortization                             611
      Severance, Exit and Other
       Adjustments                              103
      Capital Expenditures                   (1,098)
      Increase in Working Capital              (666)
      Income Taxes Paid                        (244)
      Interest Paid                            (224)
      Acquisitions and
       Divestitures of Assets and
       Businesses, Net                         (156)
      Foreign Currency Contract
       Settlements                               16
      Other                                     (46)
  Net Debt at June 30, 2012                 $(8,193)

                                              June                 December
                                               30,     March 31,      31,
  Components of Net Debt                       2012       2012       2011
      Cash                                     $381       $339       $371
      Short-term Borrowings and
       Current Portion of Long-
       Term Debt                             (1,263)    (1,902)    (1,320)
      Long-term Debt                         (7,311)    (5,989)    (6,286)
                                             ------     ------     ------
      Net Debt                              $(8,193)   $(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.






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

                                               Three
                                               Months        Six Months
                                               Ended           Ended
                                              June 30,        June 30,
                                                2012             2012
                                             ---------       ---------


CASH FLOWS FROM OPERATING
 ACTIVITIES:

    Net Cash Provided by Continuing
     Operations                                  $158            $294
                                                 ----            ----



CASH FLOWS FROM INVESTING
 ACTIVITIES:
  Capital Expenditures for Property,

   Plant and Equipment                           (584)         (1,098)
  Acquisition of Businesses, Net of
   Cash Acquired                                 (144)           (156)
  Acquisition of Intangibles                       (3)             (6)
  Acquisition of Joint Ventures                    (8)             (8)
  Proceeds from Sale of Assets and
   businesses, Net                                 11              16
    Net Cash Used by Investing
     Activities                                  (728)         (1,252)
                                                 ----          ------


CASH FLOWS FROM FINANCING
 ACTIVITIES:
  Borrowings of Long-Term Debt                  1,295           1,302
  Repayments on Long-Term Debt                   (284)           (290)
  Borrowings (Repayments) of Short-
   Term Debt, Net                                (371)            (86)
  Proceeds from Exercise of Warrants                -              65
  Other Financing Activities , Net                (21)            (19)
    Net Cash Provided by Financing
     Activities                                   619             972
                                                  ---             ---


Effect of Exchange Rate on Cash and
 Cash Equivalents                                  (6)             (3)
                                                  ---             ---

NET INCREASE IN CASH AND CASH
 EQUIVALENTS                                      $43             $11
                                                  ===             ===


SOURCE  Weatherford International Ltd.

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

end of announcement                               euro adhoc 
--------------------------------------------------------------------------------


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
 

 

 



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