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