EANS-Adhoc: Weatherford Reports Second Quarter 2013 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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Earnings/6-month report
31.07.2013

-- Earnings per Share of $0.15 (non-GAAP)

-- Estimated $153 million potential FCPA and Oil-for-Food U.S.
government settlement

GENEVA, Switzerland, July 31, 2013 -- Weatherford International Ltd.
(NYSE / Euronext Paris / SIX: WFT) today reported results for the
second quarter ended June 30, 2013.

Second Quarter 2013 Highlights

- $0.15 per diluted share (non-GAAP), or net income of $116 million
excluding after-tax losses of $234 million;
- Estimated $153 million potential FCPA and Oil-for-Food settlement with
the U.S. government;
- Free cash flow increased by over $200 million sequentially, driven by
working capital improvements;
- Capital expenditures, net of lost-in-hole, declined 26% compared to the
prior year quarter;
- Revenues of $3,868 million were 3% higher than the same period last
year, and up 1% sequentially;
- International revenues of $2,339 million were up 12% over the same
period in 2012 and up 9% sequentially;
- Eastern Hemisphere operating income margin expanded 155 basis points
sequentially; and
- North America revenues of $1,529 million were down 10% sequentially, and
down 8% from the same quarter of 2012 primarily due to the Canadian
seasonal downturn compounded by severe flooding.

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

end of ad-hoc-announcement ==========================================
====================================== Second Quarter 2013 Results

On a GAAP basis, segment operating income was $385 million with a
second quarter net loss of $118 million, or a loss of $0.15 per
diluted share. The excluded after-tax losses included:

- $153 million representing management's best estimate of a potential
settlement with the U.S. government related to the FCPA and oil-for-food
matters, although no agreement has been reached and uncertainties
remain;
- $38 million in severance, exit and other charges;
- $31 million associated with legacy lump sum contracts in Iraq; and
- $12 million related to U.S. government investigations and tax related
professional fees.

The non-GAAP effective tax rate for the quarter was 12%.

Outlook

The Company expects the second half of 2013 to show higher revenue
and operating income in North America compared to the first half of
this year with the U.S. also benefiting from a lower operating cost
structure. Latin America will show improvement in both revenue and
profitability in the fourth quarter of 2013. The outlook for the
Eastern Hemisphere remains positive with continued expansion in
Europe, Caspian and Russia along with continued recovery in the
Middle East/North Africa and Asia Pacific region. Increased operating
performance in the second half of the year, as well as further cost
reductions and improvements in capital efficiency measures, all
suggest a positive outlook. The Company expects its 2013 annual
effective tax rate to be in the range of 27% to 29%.

Regional Highlights

- North America

North America revenues for the quarter were $1,529 million, an 8% decrease
over the same quarter in the prior year and down 10% sequentially. The
quarter's operating income was $167 million, down $59 million, or 26% from
the same quarter in the prior year and down 25% sequentially. The
sequential decline was largely due to the seasonal effect of the "spring
breakup" in Canada impacting revenues and margins in all product lines,
and was partially offset by increased U.S. Artificial Lift and Well
Construction activity. U.S. year-over-year performance declined, driven
primarily by lower Stimulation profitability.

- Middle East/North Africa/Asia Pacific

Second quarter revenues of $919 million were up $270 million, or 42%
higher than the second quarter of 2012, and $134 million, or 17% higher
sequentially. The current quarter's operating income of $66 million
increased $42 million, or 175% from the same quarter in the prior year,
and increased 47% sequentially due to an increase in our Drilling
Services, Well Construction and Artificial Lift product lines. The Asia
Pacific region generated the highest revenue and operating income in our
history.

- Europe/Sub-Sahara Africa/Russia

Second quarter revenues of $681 million were 4% higher than the second
quarter of 2012 and up 8% from the prior quarter. The current quarter's
operating income of $83 million was down 19% when compared to the same
quarter in the prior year, and was up $18 million, or 28% from the prior
quarter. The year-over-year operating income decline resulted from reduced
margins in Russia driven by lower activity levels and the change in
product mix. Sequentially, operating income was up due to increased
activity in Well Construction for Europe.

- Latin America

Second quarter revenues of $739 million were down $43 million or 6%
compared to the second quarter of 2012, and up $12 million, or 2%
sequentially. The decline in revenue in the second quarter compared to the
prior year was largely related to lower activity in Mexico. The current
quarter's operating income of $90 million was flat compared to the same
quarter in the prior year, and decreased 8% from the prior quarter.

Liquidity and Free Cash Flow

Free cash flow increased by over $200 million compared to the prior
quarter. The improvement in cash flow was driven entirely by working
capital improvements. Driving the change in working capital, days
sales outstanding decreased to 89 days, and days sales in inventory
decreased to 85 days.

Non-GAAP Performance Measures

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.

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 60,000 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 July 31, 2013, at 8:30 a.m. eastern
daylight savings time, 7:30 a.m. central daylight savings time.
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 and net income. 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 Six Months Ended
------------------ ----------------
6/30/2013 6/30/2012 6/30/2013 6/30/2012
--------- --------- --------- ---------

Net Revenues:
North America $1,529 $1,663 $3,221 $3,417
Middle East/North Africa/
Asia 919 649 1,704 1,244
Europe/SSA/Russia 681 653 1,314 1,224
Latin America 739 782 1,466 1,453
3,868 3,747 7,705 7,338
----- ----- ----- -----

Operating Income
(Expense):
North America 167 226 391 584
Middle East/North Africa/
Asia 66 24 111 77
Europe/SSA/Russia 83 102 148 168
Latin America 90 90 188 173
Research and Development (71) (64) (138) (126)
Corporate Expenses (49) (49) (97) (99)
Goodwill and Equity
Investment Impairment - (793) - (793)
US Government
Investigation Loss
Contingency (153) (100) (153) (100)
Other Items (78) (68) (116) (146)
--- --- ---- ----
55 (632) 334 (262)

Other Income (Expense):
Interest Expense, Net (128) (121) (259) (233)
Devaluation of Venezuelan
Bolivar - - (100) -
Other, Net (18) (27) (31) (45)
--- --- --- ---

Loss Before Income Taxes (91) (780) (56)
(540)

Benefit (Provision) for
Income Taxes:

Provision for Operations (17) (68) (65) (184)
Adjustments to Provision (3) 5 40 11
--- --- --- ---
(20) (63) (25) (173)

Net Loss (111) (843) (81) (713)
Net Income Attributable to
Noncontrolling Interests (7) (6) (15) (13)
Net Loss Attributable to
Weatherford $(118) $(849) $(96) $(726)
===== ===== ==== =====

Loss Per Share
Attributable to
Weatherford
Basic $(0.15) $(1.11) $(0.12) $(0.95)
Diluted $(0.15) $(1.11) $(0.12) $(0.95)

Weighted Average Shares
Outstanding:
Basic 770 765 770 763
Diluted 770 765 770 763

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

Three Months Ended
------------------
6/30/2013 3/31/2013 12/31/2012 9/30/2012 6/30/2012
--------- --------- ---------- --------- ---------

Net Revenues:
North America $1,529 $1,692 $1,682 $1,725 $1,663
Middle East/
North Africa/
Asia 919 785 851 700 649
Europe/SSA/
Russia 681 633 669 626 653
Latin America 739 727 856 768 782
$3,868 $3,837 $4,058 $3,819 $3,747
====== ====== ====== ====== ======

Three Months Ended
------------------
6/30/2013 3/31/2013 12/31/2012 9/30/2012 6/30/2012
--------- --------- ---------- --------- ---------

Operating Income
(Expense):
North America $167 $224 $226 $297 $226
Middle East/
North Africa/
Asia 66 45 58 36 24
Europe/SSA/
Russia 83 65 59 88 102
Latin America 90 98 125 97 90
Research and
Development (71) (67) (63) (68) (64)
Corporate

Expenses (49) (48) (49) (48)
(49) Goodwill and Equity Investment Impairment -
- - - (793) US Government
Investigation

Loss Contingency (153) - - - (100)
Other Items (78) (38) (111) (87) (68)
$55 $279 $245 $315 $(632)
=== ==== ==== ==== =====

Three Months Ended
------------------
6/30/2013 3/31/2013 12/31/2012 9/30/2012 6/30/2012
--------- --------- ---------- --------- ---------

Product Line
Revenues:
Formation

Evaluation and
Well

Construction(1) $2,361 $2,273 $2,348 $2,128 $2,058
Completion and
Production(2) 1,507 1,564 1,710 1,691 1,689
$3,868 $3,837 $4,058 $3,819 $3,747
====== ====== ====== ====== ======

Three Months Ended
------------------
6/30/2013 3/31/2013 12/31/2012 9/30/2012 6/30/2012
--------- --------- ---------- --------- ---------

Depreciation and

Amortization: North America $102 $108 $108
$108 $101 Middle East/ North Africa/

Asia 98 93 94 90 85
Europe/SSA/
Russia 68 71 71 63 60
Latin America 68 68 63 61 59
Research and
Development and
Corporate 5 6 7 7 6
$341 $346 $343 $329 $311
==== ==== ==== ==== ====

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

(2) Completion and Production includes Artificial Lift Systems, Stimulation
and Chemicals, Completion Systems and Pipeline and Specialty Services.

We report our financial results in accordance with generally accepted
accounting principles (GAAP). However, Weatherford's management
believes that certain non-GAAP financial measures and ratios (as
defined under the SEC's Regulation G) may provide users of this
financial information, additional meaningful comparisons between
current results and results of prior periods. The non- GAAP amounts
shown below should not be considered substitutes 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 Six Months Ended
------------------ ----------------
6/30/2013 3/31/2013 6/30/2012 6/30/2013 6/30/2012
--------- --------- --------- --------- ---------
Operating Income:
GAAP Operating
Income (Loss) $55 $279 $(632) $334 $(262)
Goodwill and
Equity
Investment
Impairment - - 793 - 793
US Government
Investigation
Loss
Contingency 153 - 100 153 100
Legacy Contracts
(a) 21 3 62 24 93
Tax Remediation
and Restatement
Expenses 6 21 11 27 26
Other Adjustments 51 14 (5) 65 27
Non-GAAP Operating
Income $286 $317 $329 $603 $777
==== ==== ==== ==== ====

Income (Loss)
Before Income
Taxes:
GAAP Income (Loss)

Before Income Taxes $(91) $35 $(780)
$(56) $(540)

Goodwill and
Equity
Investment
Impairment - - 793 - 793
US Government
Investigation
Loss
Contingency 153 - 100 153 100
Devaluation of
Venezuelan Bolivar - 100 - 100 -
Legacy Contracts 21 3 62 24 93
Tax Remediation
and Restatement
Expenses 6 21 11 27 26
Other Adjustments 51 14 (5) 65 24
Non-GAAP Income
Before Income
Taxes $140 $173 $181 $313 $496
==== ==== ==== ==== ====

Provision for

Income Taxes: GAAP Provision for Income Taxes $(20)
$(5) $(63) $(25) $(173)

Goodwill and
Equity
Investment
Impairment - - (1) - (1)
US Government
Investigation
Loss
Contingency - - (1) - (1)
Devaluation of
Venezuelan Bolivar - (39) - (39) -
Legacy Contracts 10 5 - 15 -
Tax Remediation and
Restatement
Expenses (1) (3) (3) (4) (6)
Other Adjustments (6) (6) - (12) (3)
Non-GAAP Provision
for Income Taxes $(17) $(48) $(68) $(65) $(184)
==== ==== ==== ==== =====

Net Income (Loss)

Attributable to
Weatherford:
GAAP Net Income

(Loss) $(118) $22 $(849) $(96) $(726)
Total Charges,
net of tax 234 (b) 95 (c) 956 (d) 329 (e) 1,025 (f)
Non-GAAP Net
Income $116 $117 $107 $233 $299
==== ==== ==== ==== ====

Diluted

Earnings
(Loss)
Per Share
Attributable to
Weatherford:
GAAP Diluted
Earnings (Loss)

per Share $(0.15) $0.03 $(1.11) $(0.12) $(0.95)
Total Charges,
net of tax 0.30 0.12 1.25 0.42 1.34
---- ---- ---- ---- ----

Non-GAAP Diluted
Earnings per
Share $0.15 $0.15 $0.14 $0.30 $0.39
===== ===== ===== ===== =====

GAAP Effective Tax
Rate (g) -22% 14% -8% -45% -32%
Annual Effective
Tax Rate (h) 12% 28% 38% 21% 37%

Note (a): The revenues associated with the legacy lump sum contracts
in Iraq were $215 million, $166 million and $39 million for the three
months ended June 30, 2013, March 31, 2013, and June 30, 2012 and
$380 million and $91 million for the six months ended June 30, 2013
and 2012, respectively.

Note (b): Non-GAAP adjustments are comprised of (i) $153 million
loss accrual related to US government investigation matters, (ii) $31
million in operating losses and tax expense related to legacy lump
sum contracts in Iraq, (iii) $38 million in other adjustments
consisting of severance of $25 million and $13 million in other
charges and (iv) $12 million related to US government investigations
and tax related professional fees.

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

Note (d): Non-GAAP adjustments are comprised of (i) goodwill and
equity method investment impairments of $793 million, (ii) $100
million loss accrual related to US government investigation matters,
(iii) $62 million in operating losses and tax expense related to
legacy lump sum contracts in Iraq, (iv) tax restatement and
remediation expenses of $8 million and (v) $(7) million in other
adjustments.

Note (e): Non-GAAP adjustments are comprised of (i) $153 million
loss accrual related to US government investigation matters, (ii) $39
million in operating losses and tax expense related to legacy lump
sum contracts in Iraq, (iii) tax restatement and remediation expenses
of $23 million, (iv) a $61 million charge for the devaluation of the
Venezuelan Bolivar and (v) $53 million in other adjustments
consisting of $31 million in severance, $10 million in investigation
related expenses and $12 million in other charges.

Note (f): Non-GAAP adjustments are comprised of (i) goodwill and
equity method investment impairments of $793 million, (ii) $100
million loss accrual related to US government investigation matters,
(iii) $93 million in operating losses and tax expense related to
legacy lump sum contracts in Iraq, (iv) tax restatement and
remediation expenses of $20 million and (v) $19 million in other
adjustments.

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

Note (h): 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)

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

Assets:

Cash and Cash Equivalents $295 $286 $300
$365 $381 Accounts Receivable,

Net 3,837 3,850 3,885 3,911 3,608
Inventories,
Net 3,637 3,744 3,675 3,676 3,399
Property, Plant

and Equipment, Net 8,333 8,299 8,299
8,122 7,733 Goodwill and Intangibles,

Net 4,402 4,485 4,637 4,653 4,581
Equity
Investments 671 660 646 642 629

Liabilities:

Accounts Payable 2,144 2,191 2,108
2,023 1,635 Short-term Borrowings and Current Portion
of Long-term

Debt 2,148 1,896 1,585 1,606 1,263
Long-term Debt 7,087 7,032 7,049 7,300 7,311

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

Change in Net Debt for the Three
Months Ended 6/30/2013:

Net Debt at 3/31/2013 $(8,642)
Operating Income 55
Depreciation and
Amortization 341
Capital
Expenditures (446)
Decrease in Working
Capital 187
Income Taxes Paid (133)
Interest Paid (81)
Acquisitions and
Divestitures of
Assets and
Businesses, Net (22)
Net change in
Billing in Excess/
Costs in Excess (115)
Other (84)

Net Debt at 6/30/2013 $(8,940)
=======

Change in Net Debt for the Six Months
Ended 6/30/2013:
Net Debt at 12/31/2012 $(8,334)
Operating Income 334
Depreciation and
Amortization 687
Capital
Expenditures (846)
Decrease in Working
Capital 120
Income Taxes Paid (257)
Interest Paid (264)
Acquisitions and
Divestitures of
Assets and
Businesses, Net 59
Net change in
Billing in Excess/
Costs in Excess (173)
Other (266)

Net Debt at 6/30/2013 $(8,940)
=======

Components of Net Debt 6/30/2013 3/31/2013 12/31/2012
--------- --------- ----------
Cash $295 $286 $300
Short-term
Borrowings and
Current Portion of
Long-term Debt (2,148) (1,896) (1,585)
Long-term Debt (7,087) (7,032) (7,049)
Net Debt $(8,940) $(8,642) $(8,334)

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

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

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 of prior periods. The non-GAAP amounts
shown below should not be considered substitutes for cash flow
information prepared 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 Six Months Ended
------------------ ----------------
6/30/2013 3/31/2013 6/30/2012 6/30/2013 6/30/2012
--------- --------- --------- --------- ---------

Net Cash Provided by (Used in) Operating Activities
$252 $(11) $145 $241 $285

Less: Capital
Expenditures
for Property,

Plant and (446) (400) (584) (846) (1,098)
Equipment

Free Cash Flow $(194) $(411) $(439) $(605) $(813)
===== ===== ===== ===== =====

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.

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