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EANS-Adhoc: Weatherford Reports Third Quarter Pre-Tax Results


PR Newswire/euro adhoc/ EANS-Adhoc: Weatherford Reports Third Quarter Pre-Tax Results 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.

13.11.2012

Company achieves record quarterly revenue

GENEVA, Nov. 13, 2012 -- Weatherford International Ltd. (NYSE and SIX: WFT) today reported preliminary third quarter 2012 earnings before income taxes of $191 million, or $264 million after excluding pre-tax losses of $73 million. The excluded items include:

-- $29 million for a lower of cost or market adjustment to the carrying

value of our inventory, -- $27 million in professional fees associated with our ongoing income tax

remediation efforts, -- $11 million in fees and expenses associated with our August 2012

consent solicitation that extends the financial statement filing

deadline of our senior notes to March 31, 2013 and -- Severance, exit and other charges of $6 million.

The company also reports a revised preliminary second quarter 2012 loss before income taxes of $753 million, or earnings of $146 million after excluding pre-tax losses of $899 million. These results had been previously reported on a preliminary basis, and the excluded items include:

-- $589 million for non-cash goodwill impairment charges in the Middle

East/North Africa and Sub-Sahara Africa regions, -- $204 million primarily for the non-cash write down of equity method

investments, -- $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, which was included in our previously reported second quarter

results, -- $28 million for the gain on sale of a business, which includes a $25

million revision from the amount previously reported, -- $11 million in professional fees associated with our ongoing income tax

remediation efforts and -- $23 million in severance, exit and other adjustments.

end of ad-hoc-announcement ================================================================================ Other non-excluded items that are adjustments to the previously reported results are $76 million related to changes in operating income amounts previously reported on contracts accounted for on a percentage-of-completion basis and $55 million related to charges for excess and obsolete inventory.

Third quarter revenues of $3,818 million were a quarterly record, up two percent sequentially from the revised second quarter revenues of $3,747. Third quarter revenues also climbed 13 percent from the same quarter of 2011. North America revenue was up four percent sequentially limited by the lower than anticipated rig count in Canada and pressure pumping pricing declines in the U.S. and up seven percent versus the same quarter of 2011. International revenues were flat sequentially but up 20 percent versus the same quarter of 2011. Completion and Production led the sequential growth with strong performance from Artificial Lift partially offset by declines in Stimulation and Chemicals. Formation Evaluation and Well Construction also posted strong sequential growth from Fishing and Re-Entry, Drilling Services and Well Construction, partially offset by a decline in Integrated Drilling.

Segment operating income was $448 million on a GAAP basis. Adjusted for excluded items segment operating income of $521 million was essentially flat year-over-year but was up 30 percent sequentially. On an adjusted basis, corporate expenses, research and development and other, net, were two percent lower sequentially.

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 approximately $0.20 in the fourth quarter of 2012. With respect to 2013, the company maintains a positive outlook for its North American business and expects modest revenue and operating income growth continuing the current trend. Internationally, the company anticipates continued growth and expanding margins in its Latin America region, underpinned by improvements in Mexico, Colombia, Venezuela and Argentina and in line with E&P spending estimates. The Eastern Hemisphere also is expected to improve in 2013, 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 2013. For the full year 2012, the company currently estimates a book effective tax rate of approximately 45 percent and a cash tax rate in line with the prior year of approximately 33 percent. For 2013, the company currently estimates a book effective tax rate of approximately 34 percent.

North America

Revenues for the quarter were $1,725 million, a seven percent increase over the same quarter in the prior year and up $62 million or four percent sequentially. In North America, the U.S. posted a modest sequential decline driven by falling U.S. land rig count, continued oversupply of hydraulic fracturing capacity, and the effects of Hurricane Isaac. This decline was more than offset by sequential growth in Canada driven by seasonal recovery despite a lower rig count compared to the prior year.

The current quarter's operating income was $297 million, down $55 million or 16% from the same quarter in the prior year but up $65 million, or 28 percent, sequentially.

Middle East/North Africa/Asia

Third quarter revenues of $699 million were 22 percent higher than the third quarter of 2011 and $50 million or eight percent higher sequentially. The sequential and year-over-year increase in revenues was broad-based and attributable to additional activity in Iraq, Saudi Arabia, Australia and Oman.

The current quarter's operating income of $33 million increased $16 million from the same quarter in the prior year and increased $65 million compared to the operating loss in the second quarter of 2012.

Europe/SSA/Russia

Third quarter revenues of $626 million were seven percent higher than the third quarter of 2011 and four percent lower than the prior quarter. The revenue growth, year-over-year, came from each of the regions with Romania, Kazakhstan, Kenya and Congo as strong performers. Sequential declines in revenue and operating income were experienced in Russia, Tanzania, the UK, and Caspian.

The current quarter's operating income of $94 million was up 16 percent compared to the same quarter in the prior year and down $17 million or 15 percent from the prior quarter. The current quarter was impacted by a lower level of operating activity in Azerbaijan and the UK as well as in Russia, which was notably strong in the prior quarter.

Latin America

Third quarter revenues of $768 million were $176 million or 30 percent higher than the third quarter of 2011 and down two percent compared to the second quarter of 2012. The current quarter's operating income of $97 million increased $27 million or 39 percent as compared to the same quarter in the prior year and increased seven percent from the prior quarter. Mexico and Colombia were the primary drivers of the sequential decrease in revenue and operating income due to a decline in rig count.

Liquidity and Net Debt

Net debt for the quarter increased $347 million sequentially, primarily as a result of capital expenditures of approximately $540 million, net of lost-in-hole, and an increase in working capital of $203 million offset by positive contributions from operations. Sequentially, day's sales outstanding increased to 92 days and day's sales in inventory increased to 89 days.

Goodwill and Equity Method Investments Impairment

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 relevant factors, management prepared the analysis necessary to identify potential impairment through the comparison of reporting unit fair values and carrying amounts. As announced in July 2012 in connection with our preliminary second quarter results, this analysis indicated that the Middle East/North Africa, Russia and Sub-Sahara Africa reporting units were potentially impaired. During the third quarter of 2012, the company finalized its goodwill impairment analysis and concluded that the carrying amount of goodwill in the Middle East/North Africa and Sub-Sahara Africa reporting units exceeded the fair value of goodwill and recorded a non-cash charge of $589 million in the second quarter to write-off all the goodwill in these reporting units. There was no goodwill impairment in the Russia reporting unit. During our goodwill impairment analysis, we also identified impairment losses associated with our equity method investments and have recorded a $204 million non-cash charge during the second quarter related to those investments.

Material Weakness Related to Percentage of Completion Contract in Iraq

The company has restated previously reported results for the first quarter 2012 and revised its preliminary second quarter 2012 results to correct errors in revenue and operating income amounts associated with a percentage of completion contract. In connection with these corrections we identified a material weakness in internal controls over financial reporting related to the accounting for a percentage of completion contract in Iraq. The unfavorable adjustments to the first and second quarters operating income total $24 million and $55 million, respectively. The company has implemented additional controls and procedures over percentage of completion accounting during the third quarter of 2012 to remediate the issues related to Iraq and these will be taken into account in our internal control assessment at year end 2012.

Income Tax Matters and Remediation of Tax Material Weakness

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

-- 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.

Errors relating to 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 below. -- As previously reported, through the second quarter of 2012 and in

connection with work completed during the first and second quarter

close, management identified $92 million of additional income tax

expense related to prior periods, a significant portion of which

related to management's estimates regarding unrecognized tax benefits

and adjustments for the difference between actual taxes paid and tax

liabilities accrued for the prior period on over 200 tax returns filed

during the second quarter. -- 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. As

announced in the release of our preliminary second quarter results, 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 also intends to file its Form 10-Q for the second and third

quarter of 2012 concurrent with the filing of the restated financial

information. -- During the third quarter, we expanded our procedures and reviews of our

accounting for income taxes to ensure that our restated consolidated

financial statements will be prepared in accordance with generally

accepted accounting principles. These expanded procedures, which were

extraordinary in their scope, included an expanded validation of all

our income tax accounts and primarily focused on reconciliations of our

deferred tax balances with the tax bases of assets and liabilities in

all jurisdictions, an extensive review of unrecognized tax benefits in

all taxing jurisdictions with an additional focus on transfer pricing

activities, and a further review of our accounting for withholding

taxes. These additional procedures have included reviews of substantial

volumes of data and analyses of our income tax accounts. The company

believes it has made substantial progress toward completion of these

procedures, and, based on the progress to date, has shortened the outer

range of its estimated timing to complete all its financial statement

filings to around the end of November, 2012. -- As a result of these additional procedures, we have identified through

the date of this release cumulative income tax accounting errors

totaling approximately $150 million related to prior periods. The

errors identified are substantially related to net increases in income

tax expense for reserves for unrecognized tax benefits. Management's

analysis is not complete and amounts are subject to change. None of the

adjustments are expected to affect the company's historically reported

net debt balances. -- Until the company has concluded work on the above-mentioned

adjustments, the company will not finalize its tax accounts for the

nine months ended September 30, 2012. -- The company will publish in a filing with the SEC and has posted in the

Investor Relations section and under Conference Call Details on its

website (www.weatherford.com) a document that describes the remedial

procedures completed in 2012 and related steps it is taking to

implement additional controls and procedures designed to remediate the

material weakness in accounting for income taxes.

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 nine months ended September 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 quarters ended June 30 and September 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.

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.

Non-GAAP Performance Measures

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 November 13, 2012 at 7:00 a.m. (CST). 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 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 ability to complete all processes necessary to the issuance of revised financial statements, including obtaining an audit opinion from its independent auditors, 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.

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


                     Weatherford International Ltd.
            Consolidated Condensed Statements of Operations
                              (Unaudited)
                             (In Millions)
                            Three Months Ended       Nine Months Ended
                            ------------------       -----------------
                         9/30/2012      9/30/2011  9/30/2012   9/30/2011
                         ---------      ---------  ---------   ---------
                                       (Restated)             (Restated)

Net Revenues:
  North America             $1,725         $1,619    $5,142      $4,323
  Middle East/North
   Africa/Asia                 699            573     1,943       1,766
  Europe/SSA/Russia            626            586     1,850       1,689
  Latin America                768            592     2,221       1,500
                               ---            ---
                             3,818          3,370    11,156       9,278
                             -----          -----    ------       -----

Operating Income
 (Expense):
  North America                297            352       887         878
  Middle East/North
   Africa/Asia                  33             17        24          62
  Europe/SSA/Russia             94             81       271         207
  Latin America                 97             70       271         140
  Research and
   Development                 (68)           (59)     (195)       (181)
  Corporate Expenses           (37)           (32)     (128)       (130)
  Goodwill and Equity
   Investment Impairment         -              -      (793)          -
  Sanctioned Country
   Loss Contingency              -              -      (100)          -
  Other Items                  (73)           (18)     (126)        (58)
                               ---            ---      ----         ---
                               343            411       111         918

Other Income
 (Expense):
  Interest Expense, Net       (127)          (115)     (360)       (342)
  Other, Net                   (25)           (26)      (70)        (67)
                               ---            ---       ---         ---

Income (Loss) Before
 Income Taxes                  191            270      (319)        509

Weighted Average
 Shares Outstanding:
  Basic                        767            754       764         751
  Diluted                      771            760       764         758
                   Weatherford International Ltd.
            Consolidated Condensed Statement of Operations
                             (Unaudited)
                            (In Millions)
                                       Three Months Ended   6/30/2012
                                       ------------------------------
                             Previously
                             Reported          Adjustments       Restated
                             --------          -----------       --------

Net Revenues:
  North America                  $1,676               $(13)        $1,663
  Middle East/North
   Africa/Asia                      668                (19)           649
  Europe/SSA/Russia                 652                  1            653
  Latin America                     782                  -            782
                                  3,778                (31)         3,747
                                  -----                ---          -----

Operating Income (Expense):
  North America                     271                (39)           232
  Middle East/North
   Africa/Asia                       44                (76)           (32)
  Europe/SSA/Russia                 120                 (9)           111
  Latin America                     104                (13)            91
  Research and Development          (65)                 -            (65)
  Corporate Expenses                (53)                11            (42)
  Goodwill and Equity
   Investment Impairment              -               (793)          (793)
  Sanctioned Country Loss
   Contingency                     (100)                 -           (100)
  Other Items                        29                (35)            (6)
                                    ---                ---            ---
                                    350               (954)          (604)

Other Income (Expense):
  Interest Expense, Net            (121)                 -           (121)
  Other, Net                        (24)                (4)           (28)
                                    ---                ---            ---

Income (Loss) Before
 Income Taxes                       205               (958)          (753)
     The preliminary results for the three months ended June 30, 2012 have
      been revised to (i) correct our accounting for certain long-term
      construction-type contracts, (ii) recognize a previously disclosed
      goodwill and an equity method investment impairment, (iii) recognize
      a charge for excess and obsolete inventory, (iv) correct previously
      identified immaterial errors affecting operating income that were
      recorded in improper periods and (v) present separately the costs we
      attribute to our income tax accounting remediation and restatement
      effort.  As a result of these adjustments, income from operations
      before income taxes decreased by $958 million.
                      Weatherford International Ltd.
               Consolidated Condensed Statement of Operations
                                (Unaudited)
                               (In Millions)
                                Three Months Ended   3/31/2012
                                ------------------------------
                         Previously
                          Reported         Adjustments         Restated
                          --------         -----------         --------

Net Revenues:
  North America                $1,754                $-           $1,754
  Middle East/North
   Africa/Asia                    605               (10)             595
  Europe/SSA/Russia               569                 2              571
  Latin America                   671                 -              671
                                3,599                (8)           3,591
                                -----               ---            -----

Operating Income (Expense):
  North America                   359                (1)             358
  Middle East/North
   Africa/Asia                     48               (25)              23
  Europe/SSA/Russia                60                 6               66
  Latin America                    87                (4)              83
  Research and
   Development                    (62)                -              (62)
  Corporate Expenses              (64)               15              (49)
  Other Items                     (32)              (15)             (47)
                                  ---               ---              ---
                                  396               (24)             372

Other Income (Expense):
  Interest Expense,
   Net                           (112)                -             (112)
  Other, Net                      (17)                -              (17)
                                  ---               ---              ---

Income Before Income
 Taxes                            267               (24)             243
     The restated results for the three months ended March 31, 2012 have
      been adjusted to (i) correct our accounting for certain long-term
      construction-type contracts, (ii) to correct previously identified
      immaterial errors affecting operating income that were recorded in
      improper periods and to (iii) present separately the costs we
      attribute to our income tax accounting remediation and restatement
      effort.  As a result of these adjustments, income from operations
      before income taxes decreased by $24 million.
                       Weatherford International Ltd.
                Selected Statements of Operations Information
                                 (Unaudited)
                                (In Millions)
                                       Three Months Ended
                                       ------------------
                          9/30/2012        6/30/2012        3/31/2012
                          ---------        ---------        ---------

(Restated) (Restated) Net Revenues: North America $1,725 $1,663 $1,754 Middle East/North

Africa/Asia 699 649 595 Europe/SSA/Russia 626 653 571 Latin America 768 782 671


                                ---              ---              ---
                             $3,818           $3,747           $3,591
                             ======           ======           ======
                                       Three Months Ended
                                       ------------------
                          9/30/2012        6/30/2012        3/31/2012
                          ---------        ---------        ---------

(Restated) (Restated) Operating Income (Expense): North America $297 $232 $358 Middle East/North

Africa/Asia 33 (32) 23 Europe/SSA/Russia 94 111 66 Latin America 97 91 83 Research and

Development (68) (65) (62) Corporate Expenses (37) (42) (49) Libya Reserve - - - Goodwill and Equity

Investment

Impairment - (793) - Sanctioned Country

Loss Contingency - (100) - Other Items (73) (6) (47)


                                ---              ---              ---
                               $343            $(604)            $372
                               ====            =====             ====
                                        Three Months Ended
                                        ------------------
                          9/30/2012        6/30/2012        3/31/2012
                          ---------        ---------        ---------

(Restated) (Restated) Product Line Revenues: Formation Evaluation

and Well

Construction(1) $2,128 $2,058 $2,034 Completion and

Production(2) 1,690 1,689 1,557


                              -----            -----            -----
                             $3,818           $3,747           $3,591
                             ======           ======           ======
                                       Three Months Ended
                                       ------------------
                          9/30/2012        6/30/2012        3/31/2012
                          ---------        ---------        ---------

(Restated) (Restated) Depreciation and Amortization: North America $108 $101 $95 Middle East/North

Africa/Asia 90 85 83 Europe/SSA/Russia 63 60 61 Latin America 61 59 55 Research and

Development 3 2 2 Corporate 4 4 3


                                ---              ---              ---
                               $329             $311             $299
                               ====             ====             ====
                                  Three Months Ended
                                  ------------------
                             12/31/2011        9/30/2011
                             ----------        ---------

(Restated) Net Revenues: North America $1,699 $1,619 Middle East/North

Africa/Asia 675 573 Europe/SSA/Russia 609 586 Latin America 727 592


                                    ---              ---
                                 $3,710           $3,370
                                 ======           ======
                                  Three Months Ended
                                  ------------------
                             12/31/2011        9/30/2011
                             ----------        ---------

(Restated) (Restated) Operating Income (Expense): North America $381 $352 Middle East/North

Africa/Asia 35 17 Europe/SSA/Russia 80 81 Latin America 114 70 Research and

Development (64) (59) Corporate Expenses (45) (32) Libya Reserve (67) - Goodwill and Equity

Investment

Impairment - - Sanctioned Country

Loss Contingency - - Other Items (38) (18)


                                    ---              ---
                                   $396             $411
                                   ====             ====
                                    Three Months Ended
                                    ------------------
                             12/31/2011        9/30/2011
                             ----------        ---------

(Restated) Product Line Revenues: Formation Evaluation

and Well

Construction(1) $2,074 $1,880 Completion and

Production(2) 1,636 1,490


                                  -----            -----
                                 $3,710           $3,370
                                 ======           ======
                                  Three Months Ended
                                  ------------------
                             12/31/2011        9/30/2011
                             ----------        ---------

Depreciation and
 Amortization:
  North America                     $91              $91
  Middle East/North
   Africa/Asia                       82               81
  Europe/SSA/Russia                  59               59
  Latin America                      52               51
  Research and
   Development                        2                2
  Corporate                           3                2
                                    ---              ---
                                   $289             $286
                                   ====             ====


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

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


We report our financial results in accordance with generally accepted
 accounting principles (GAAP).  However, Weatherford's management
 believes that certain non-GAAP financial measures and ratios (as
 defined under the SEC's Regulation G) may provide users of this
 financial information additional meaningful comparisons between
 current results and results in prior periods.   The non-GAAP
 financial measures we may present from time to time include: 1)
 operating income or income from continuing operations excluding
 certain charges or amounts, 2) the provision for income taxes
 excluding discrete items and 3) the resulting non-GAAP net income
 and per share amounts.  These adjusted amounts are not measures of
 financial performance under GAAP.  Accordingly, these amounts should
 not be considered as a substitute for operating income, provision for
 income taxes, net income or other data prepared and reported in
 accordance with GAAP.  See the table below for supplemental financial
 data and corresponding reconciliations to GAAP financial measures for
 the three months ended September 30, 2012, June 30, 2012, and
 September 30, 2011 and for the nine months ended September 30, 2012
 and September 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
                                      ------------------
                              9/30             6/30             9/30
                           2012 (a)         2012 (b)         2011 (c)
                             -----         --------         --------

(Restated) (Restated) Operating Income (Loss): GAAP Operating Income

(Loss) $343 $(604) $411


    Gain on Sale of
     Business                     -              (28)               -
    Goodwill and Equity
     Investment Impairment        -              793                -
    Sanctioned Country Loss
     Contingency                  -              100                -
    Tax Remediation and
     Restatement Expenses        27               11                9
    Inventory Lower of Cost
     or Market Adjustment        29                -                -
    Debt Waiver
     Solicitation Fees           11                -                -
    Severance, Exit and

Other Adjustments 6 23 9 Non-GAAP Operating

Income $416 $295 $429


                               ====             ====             ====



Income (Loss) Before
 Income Taxes:
  GAAP Income (Loss)
   Before Income Taxes         $191            $(753)            $270
    Gain on Sale of
     Business                     -              (28)               -
    Goodwill and Equity
     Investment Impairment        -              793                -
    Sanctioned Country Loss
     Contingency                  -              100                -
    Tax Remediation and
     Restatement Expenses        27               11                9
    Inventory Lower of Cost
     or Market Adjustment        29                -                -
    Debt Waiver
     Solicitation Fees           11                -                -
    Severance, Exit and

Other Adjustments 6 23 9 Non-GAAP Income (Loss)

Before Income Taxes $264 $146 $288


                               ====             ====             ====
                                      Nine Months Ended
                                      -----------------
                                       9/30             9/30
                                   2012 (d)          2011 (e)
                                   --------          --------

(Restated) (Restated) Operating Income (Loss): GAAP Operating Income

(Loss) $111 $918


    Gain on Sale of
     Business                            (28)               -
    Goodwill and Equity
     Investment Impairment               793                -
    Sanctioned Country Loss
     Contingency                         100                -
    Tax Remediation and
     Restatement Expenses                 52                9
    Inventory Lower of Cost
     or Market Adjustment                 29                -
    Debt Waiver
     Solicitation Fees                    11                -
    Severance, Exit and

Other Adjustments 62 49 Non-GAAP Operating

Income $1,130 $976


                                      ======             ====



Income (Loss) Before
 Income Taxes:
  GAAP Income (Loss)
   Before Income Taxes                 $(319)            $509
    Gain on Sale of
     Business                            (28)               -
    Goodwill and Equity
     Investment Impairment               793                -
    Sanctioned Country Loss
     Contingency                         100                -
    Tax Remediation and
     Restatement Expenses                 52                9
    Inventory Lower of Cost
     or Market Adjustment                 29                -
    Debt Waiver
     Solicitation Fees                    11                -
    Severance, Exit and

Other Adjustments 60 49 Non-GAAP Income (Loss)

Before Income Taxes $698 $567


                                        ====             ====
    Note (a): Non-GAAP adjustments are comprised of (i) tax restatement
     and remediation expenses of $27 million, (ii) $11 million in fees
     and expenses associated with our Q3 debt consent solicitation,
     (iii) a $29 million lower of cost or market adjustment to the
     carrying value of our inventory and  (iv) severance, exit and other
     charges of $6 million.
    Note (b):  Non-GAAP adjustments are comprised of (i) a $28 million
     gain related to the sale of our subsea controls business (ii)
     goodwill and equity method investment impairments of $793 million
     (iii) $100 million loss accrual related to sanctioned country
     matters, (iv) tax restatement and remediation expenses of $11
     million and (v) severance, exit and other charges of $23 million.
    Note (c):  Non-GAAP adjustments are comprised of (i) tax
     restatement and remediation expenses of $9 million and (iii)
     severance, exit and other charges of $9 million.
    Note (d):  Non-GAAP adjustments are comprised of (i) a $28 million
     gain related to the sale of our subsea controls business (ii)
     goodwill and equity method investment impairments of $793 million
     (iii) $100 million loss accrual related to sanctioned country
     matters (iv) tax restatement and remediation expenses of $52
     million, (v) a $29 million lower of cost or market adjustment to
     the carrying value of our inventory (vi) $11 million in fees and
     expenses associated with our Q3 debt consent solicitation and (vii)
     severance, exit and other charges of $62 million.
    Note (e): Non-GAAP adjustments are comprised of (i) tax restatement
     and remediation expenses of $9 million and (iii) severance, exit
     and other charges of $49 million.
                    Weatherford International Ltd.
                     Selected Balance Sheet Data
                             (Unaudited)
                            (In Millions)
                        9/30/2012        6/30/2012        3/31/2012
                        ---------        ---------        ---------
                                        (Restated)       (Restated)

Assets:
  Cash and Cash
   Equivalents               $366             $381             $339
  Accounts
   Receivable, Net          3,911            3,608            3,358
  Inventories               3,694            3,407            3,301
  Property, Plant and
   Equipment, Net           8,131            7,742            7,591
  Goodwill and
   Intangibles, Net         4,652            4,580            5,151
  Equity Investments          642              629              634


Liabilities:
  Accounts Payable         $2,021           $1,634           $1,684

  Short-term
   Borrowings and
   Current Portion of

Long-term Debt 1,606 1,263 1,902 Long-term Debt 7,300 7,311 5,989


                            12/31/2011        9/30/2011
                            ----------        ---------
                            (Restated)       (Restated)

Assets:
  Cash and Cash
   Equivalents                    $371             $274
  Accounts
   Receivable, Net               3,234            3,178
  Inventories                    3,158            3,073
  Property, Plant and
   Equipment, Net                7,287            7,145
  Goodwill and
   Intangibles, Net              5,133            5,133
  Equity Investments               616              600


Liabilities:
  Accounts Payable              $1,571           $1,569

  Short-term
   Borrowings and
   Current Portion of

Long-term Debt 1,320 1,350 Long-term Debt 6,286 6,266


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


Change in Net Debt for the Three Months
 Ended 9/30/2012:
  Net Debt at 6/30/2012                   $(8,193)
    Operating Income                          343
    Depreciation and Amortization             329
    Other Items                                73
    Capital Expenditures                     (572)
    Increase in Working Capital              (203)
    Income Taxes Paid                         (25)
    Interest Paid                            (177)
    Acquisitions and Divestitures
     of Assets and Businesses, Net              7
    Foreign Currency Contract
     Settlements                               24
    Other                                    (146)

---- Net Debt at 9/30/12 $(8,540)


                                          =======

Change in Net Debt for the Nine Months
 Ended 9/30/2012:
  Net Debt at 12/31/2011                  $(7,235)
    Operating Income                          111
    Depreciation and Amortization             939
    Goodwill and Investment
     Impairment                               793
    Sanctioned Country Loss
     Contingency                              100
    Other Items                               126
    Capital Expenditures                   (1,670)
    Increase in Working Capital              (763)
    Income Taxes Paid                        (269)
    Interest Paid                            (401)
    Acquisitions and Divestitures
     of Assets and Businesses, Net           (147)
    Foreign Currency Contract
     Settlements                                8
    Other                                    (132)

---- Net Debt at 9/30/12 $(8,540)


                                          =======
    Components of Net Debt                9/30/2012  6/30/2012  12/31/2011
                                        ---------  ---------  ----------
    Cash                                     $366       $381        $371
    Short-term Borrowings and
     Current Portion of Long-Term
     Debt                                  (1,606)    (1,263)     (1,320)
    Long-term Debt                         (7,300)    (7,311)     (6,286)
                                           ------     ------      ------
    Net Debt                              $(8,540)   $(8,193)    $(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  Nine Months
                                                   Ended        Ended
                                                  9/30/2012    9/30/2012
                                                  ---------    ---------

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net Cash Provided by Continuing Operations         $231         $513
                                                       ----         ----


CASH FLOWS FROM INVESTING ACTIVITIES:
  Capital Expenditures for Property, Plant and
   Equipment                                           (572)      (1,670)
  Acquisition  of Businesses, Net of Cash
   Acquired                                               -         (156)
  Acquisition of Intangibles                            (10)         (16)
  Acquisition of Joint Ventures                           -           (8)
  Proceeds from Sale of Assets and businesses,
   Net                                                   17           33
    Net Cash Used by Investing Activities              (565)      (1,817)
                                                       ----       ------


CASH FLOWS FROM FINANCING ACTIVITIES:
  Borrowings of Long-Term Debt                            -        1,302
  Repayments on Long-Term Debt                          (11)        (302)
  Borrowings of Short-Term Debt, Net                    343          257
  Proceeds from Exercise of Warrants                      -           65
  Other Financing Activities , Net                      (17)         (24)
    Net Cash Provided by Financing Activities           315        1,298
                                                        ---        -----


Effect of Exchange Rate on Cash and Cash
 Equivalents                                              4            1

NET DECREASE IN CASH AND CASH EQUIVALENTS               (15)          (5)
CASH AND CASH EQUIVALENTS AT BEGINNING OF
 PERIOD                                                 381          371

--- --- CASH AND CASH EQUIVALENTS AT END OF PERIOD $366 $366


                                                       ====         ====
                  ADDITIONAL FINANCIAL INFORMATION
                 REQUIRED BY THE SIX SWISS EXCHANGE

 The following supplemental information to our press release is furnished
  under the reporting requirements of the SIX Swiss Exchange ("the SIX").
  The SIX has requested that we provide the following information to
  comply with a half-year reporting requirement due to the postponement
  of our Form 10-Q for the quarters ended June 30 and September 30,
  2012.  All amounts presented are as of and for the three and nine month
  periods ended September 30, 2012.  Please note that the information
  provided below may be revised upon finalization and filing of our Form
  10-Q for the quarter ended September 30, 2012.
             WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                               (UNAUDITED)
                              (In millions)
                            Three Months               Nine Months
                            ------------               -----------
                         Ended September 30,       Ended September 30,
                         -------------------       -------------------
                          2012             2011    2012            2011
                          ----             ----    ----            ----

(Restated) (Restated) Revenues:


     Products           $1,534           $1,252  $4,456          $3,468
     Services            2,284            2,118   6,700           5,810
                         -----            -----   -----           -----
                         3,818            3,370  11,156           9,278

Costs and
 Expenses:
     Cost of Products    1,206              952   3,405           2,618
     Cost of Services    1,743            1,527   5,193           4,260
     Research and

Development 68 59 195 181 Selling, General

and

Administrative


    Attributable to
     Segments              381              378   1,161           1,146
     Corporate,
      General and
      Administrative        77               43     226             155
     Goodwill and
      Equity
      Investment             -                -     793               -
             Impairment
     Estimated
      Settlement -
      Sanctioned
         Countries           -                -     100               -
     Gain on Sale of
      Business               -                -     (28)              -
                           ---              ---     ---             ---
                         3,475            2,959  11,045           8,360
                         -----            -----  ------           -----

Operating Income           343              411     111             918

Other Expense:
     Interest
      Expense, Net        (127)            (115)   (360)           (342)
     Other, Net            (25)             (26)    (70)            (67)
                           ---              ---     ---             ---

Income Before
 Income Taxes              191              270    (319)            509

Weighted Average
 Shares
 Outstanding:
     Basic                 767              754     764             751
     Diluted               771              760     764             758
               WEATHERFORD INTERNATIONAL LTD. AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                 (UNAUDITED)
                                (In millions)
                           Three Months            Nine Months
                           ------------            -----------
                        Ended September 30,     Ended September 30,
                        -------------------     -------------------
                       2012             2011   2012             2011
                       ----             ----   ----             ----

(Restated) (Restated) Other Comprehensive Income (Loss):


     Foreign Currency
      Translation
      Adjustment      $(221)           $(287)   $84             $(91)
    Derivatives
     Designated as
     Cash Flow
         Hedges           -              (14)     -              (14)
     Amortization of
      Pension
      Components          1                1      2                2

--- --- --- --- Other Comprehensive Income (Loss) $(220) $(300) $86 $(103)

Goodwill We perform an impairment test for goodwill and indefinite-lived intangible assets annually as of October 1, or more frequently if indicators of potential impairment exist. Our goodwill impairment test involves a comparison of the fair value of each of our reporting units with its carrying amount. Our reporting units are based on our regional structure and consist of the United States, Canada, Latin America, Europe, Sub-Sahara Africa ("SSA"), Russia, Middle East/North Africa ("MENA") and Asia Pacific ("AP"). During the course of 2011, the market price of our registered shares declined significantly; however, we concluded that the decline did not constitute an indicator of potential impairment as there had not been a significant change in the estimated future cash flows of our reporting units. Ultimately, our 2011 impairment test performed as of October 1 indicated goodwill was not impaired.


    None of our reporting units failed the first step of our
     impairment test during 2011, as their fair values were in excess
     of their carrying value.  At October 1, 2011 the fair values of
     our MENA, Russia, SSA and Latin America reporting units were
     closest to their carrying values; and were in excess of their
     carrying values in a range from 15% to 23%.
    During the three months ended June 30, 2012, we noted a sustained
     decline in the market price of our registered shares.  In
     response, we considered the associated circumstances to assess
     whether an event or change occurred that, more likely than not,
     reduced the fair value of any of our reporting units below their
     carrying amount.  After considering the relevant circumstances,
     we were unable to conclude that the decline in our market
     capitalization was other than a potential indicator of
     impairment and we prepared the analysis necessary to identify
     potential impairment through the comparison of reporting unit
     fair values and carrying amounts.   This analysis, also known as
     step one, indicated that our MENA and SSA reporting units were
     potentially impaired. Consequently we performed the second step
     of our goodwill impairment test, intended to measure the amount
     of impairment loss, comparing the implied fair value of
     reporting unit goodwill with the carrying amount of that
     goodwill.  The second step indicated that carrying amount of
     reporting unit goodwill exceeded the implied fair value of that
     goodwill.  In accordance with the goodwill impairment guidance,
     we recognized an impairment loss in an amount equal to the
     excess carrying value over fair value.  The impairment loss,
     recognized in Selling, General and Administrative Attributable
     to Segments line on the Condensed Consolidated Statement of
     Operations, totaled $589 million of which $512 million was
     attributable to MENA and $77 million to SSA.
      The changes in the carrying amount of goodwill by segment for the
      nine months ended September 30, 2012, were as follows:
                  North              Europe/SSA/     Latin
                 America    MENA/AP    Russia       America    Total
                 -------    -------    ------       -------    -----
                                    (In millions)

As of
 December 31,
 2011             $2,271      $743      $1,020        $388   $4,422
Acquisitions          40         -          32           -       72
Disposals             (2)       (7)        (65)          -      (74)
Impairment
 Loss                  -      (512)        (77)          -     (589)
Purchase
 price and
 other               (18)        -           -

adjustments (21) (39) Foreign currency translation 40 3 17 (8) 52

--- --- --- --- --- As of September 30, 2012 $2,331 $227 $927 $359 $3,844


    Financial Instruments and Derivatives
    Financial Instruments Measured and Recognized at Fair Value
     We estimate fair value at a price that would be received to sell an
     asset or paid to transfer a liability in an orderly transaction
     between market participants in the principal market for the asset or
     liability.  Our valuation techniques require inputs that we
     categorize using a three level hierarchy, from highest to lowest
     level of observable inputs.  Level 1 inputs are unadjusted quoted
     prices in active markets for identical assets or liabilities. Level
     2 inputs are quoted prices or other market data for similar assets
     and liabilities in active markets, or inputs that are observable for
     the asset or liability, either directly or indirectly through market
     corroboration, for substantially the full term of the financial
     instrument. Level 3 inputs are unobservable inputs based upon our
     own judgment and assumptions used to measure assets and liabilities
     at fair value. Classification of a financial asset or liability
     within the hierarchy is determined based on the lowest level of
     input that is significant to the fair value measurement.  Other than
     disclosed below under derivative instruments, we had no assets or
     liabilities measured and recognized at fair value on a recurring
     basis at September 30, 2012 and December 31, 2011.
    Fair Value of Other Financial Instruments
     Our other financial instruments include short-term borrowings and
     long-term debt.  The carrying value of our commercial paper and
     other short-term borrowings approximates their fair value due to
     the short-term duration of the associated interest rate periods.
     These short-term borrowings are classified as Level 2 in the fair
     value hierarchy.
     The fair value of our long-term debt fluctuates with changes in
     applicable interest rates.  Fair value will exceed carrying value
     when the current market interest rate is lower than the interest
     rate at which the debt was originally issued.  The fair value of our
     long-term debt is a measure of its current value under present
     market conditions and is established based on observable inputs in
     non-active markets.  Our long-term debt is classified as Level 2
     in the fair value hierarchy.
    The fair value and carrying value of our long-term debt and current
    portion of long-term debt is as follows:
                September 30,              December 31,
                     2012                    2011
                             (In millions)

 Fair value        $8,342                  $7,270
 Carrying value     7,639                   6,595
    Derivative Instruments
    We are exposed to market risk from changes in foreign currency and
    changes in interest rates.  From time to time, we may enter into
    derivative financial instrument transactions to manage or reduce our
    market risk.  We manage our debt portfolio to achieve an overall
    desired position of fixed and floating rates and we may employ
    interest rate swaps as a tool to achieve that goal.  The major risks
    from interest rate derivatives include changes in the interest rates
    affecting the fair value of such instruments, potential increases in
    interest expense due to market increases in floating interest rates
    and the creditworthiness of the counterparties in such transactions.
    In light of events in the global credit markets and the potential
    impact of these events on the liquidity of the banking industry, we
    continue to monitor the creditworthiness of our counterparties,
    which are multinational commercial banks.
    The fair values of all our outstanding derivative instruments are
    determined using a model with Level 2 inputs including quoted market
    prices for contracts with similar terms and maturity dates.
    Fair Value Hedges
    We may use interest rate swaps to help mitigate exposures related to
    changes in the fair values of the associated debt.  Amounts paid or
    received upon termination of interest rate swaps accounted for as
    fair value hedges represent the fair value of the agreements at the
    time of termination and are recorded as an adjustment to the
    carrying value of the related debt.  These amounts are amortized as
    a reduction, in the case of gains, or as an increase, in the case of
    losses, of interest expense over the remaining term of the debt.
    In July 2011, we entered into interest rate swap agreements to pay a
    variable interest rate and receive a fixed interest rate with an
    aggregate notional amount of $300 million.  These swaps were
    designated as fair value hedges of our 6.35% Senior Notes.  In June
    2012 these swaps were terminated. As a result of these terminations,
    we received a cash settlement of $18 million.  The gain associated
    with these interest rate swap terminations was deferred and is being
    amortized over the remaining term of our 6.35% Senior Notes.
    As of September 30, 2012, we had net unamortized gains of $56 million
    associated with interest rate swap terminations.
    Cash Flow Hedges
    In 2008, we entered into interest rate derivative instruments to
    hedge projected exposures to interest rates in anticipation of a
    debt offering.  Those hedges were terminated at the time of the
    issuance of the debt, and the loss on these hedges is being
    amortized from Accumulated Other Comprehensive Income (Loss) into
    interest expense over the remaining term of the debt.  As of
    September 30, 2012, we had net unamortized losses of $12 million
    associated with our cash flow hedge terminations.
    Other Derivative Instruments
    As of September 30, 2012, we had foreign currency forward contracts
    with notional amounts aggregating to $951 million. These contracts
    were entered into to hedge exposure to currency fluctuations in
    various foreign currencies.  The total estimated fair value of these
    contracts and amounts receivable or owed associated with closed
    contracts resulted in a net liability of approximately $3 million.
    These derivative instruments were not designated as hedges and the
    changes in fair value of the contracts are recorded each period in
    Other, Net in the accompanying Condensed Consolidated Statements of
    Operations.
    We have cross-currency swaps between the U.S. dollar and Canadian
    dollar to hedge certain exposures to the Canadian dollar.  At
    September 30, 2012, we had notional amounts outstanding of $168
    million.  The total estimated fair value of these contracts at
    September 30, 2012, resulted in a liability of $36 million. These
    derivative instruments were not designated as hedges and the changes
    in fair value of the contracts are recorded each period in Other,
    Net in the accompanying Condensed Consolidated Statements of
    Operations.
    The fair values of outstanding derivative instruments are summarized
    as follows:
                               September   December
                                  30,         31,   
                                 2012        2011    Classifications
                             (In millions)

Derivative assets designated
 as hedges:

Interest rate swaps $- $13 Other Assets Derivative assets not Other Current designated as hedges: 8 20 Assets

Foreign currency forward

contracts Derivative liabilities not Other Current designated as hedges: 11 8 Liabilities


    Foreign currency forward
     contracts
                                                      Other Current
    Interest rate locks              -         9       Liabilities
    Cross-currency swap                               Other
     contracts                      36        27       Liabilities
    Segment Information
    Financial information by segment is summarized below.  Revenues are
    attributable to countries based on the ultimate destination of the
    sale of products or performance of services.
                              Three Months Ended September 30, 2012
                              -------------------------------------
                          Net              Income           Depreciation
                          ---              ------           ------------
                       Operating            from                 and
                       ---------            ----                 ---
                        Revenues         Operations         Amortization
                        --------         ----------         ------------
                                        (In millions)

North America              $1,725               $297                 $108
MENA/AP                       699                 33                   90
Europe/SSA/Russia             626                 94                   63
Latin America                 768                 97                   61
                              ---                ---                  ---

3,818 521 322 Corporate and Research and - (105) 7

Development Other (a) - (73) -

--- --- --- Total $3,818 $343 $329


                           ======               ====                 ====
                              Three Months Ended September 30, 2011
                              -------------------------------------
                          Net              Income           Depreciation
                       Operating            from                 and
                        Revenues         Operations         Amortization
                                       (In millions)

North America              $1,619               $352                  $91
MENA/AP                       573                 17                   81
Europe/SSA/Russia             586                 81                   59
Latin America                 592                 70                   51
                              ---                ---                  ---

3,370 520 282 Corporate and Research and - (91) 4

Development Other (b) - (18) - Total $3,370 $411 $286


    (a) The three months ended September 30, 2012 includes tax restatement and
    remediation expenses of $27 million, $11 million in fees and expenses
    associated with our third quarter 2012 debt consent solicitation and
    severance, a $29 million lower of cost or market adjustment to the

carrying value of our inventory, exit and other charges of $6 million. (b) The three months ended September 30, 2011 includes $9 million for tax


    restatement and remediation expenses, and $9 million for severance,
    exit costs and other charges.
                          Nine Months Ended September 30, 2012
                          ------------------------------------
                           Net            Income           Depreciation
                        Operating          From                 and
                        Revenues        Operations         Amortization
                                       (In millions)

North America              $5,142             $887                    $304
MENA/AP                     1,943               24                     258
Europe/West
 Africa/Russia              1,850              271                     184
Latin America               2,221              271                     175
                            -----              ---                     ---

11,156 1,453 921 Corporate and Research and Development - (323) 18 Goodwill and Equity Investment Impairment - (793) - Other (a) - (226) -

--- ---- --- Total $11,156 $111 $939


                          =======             ====                    ====
                             Nine Months Ended September 30, 2011
                             ------------------------------------
                           Net            Income           Depreciation
                        Operating          From                 and
                        Revenues        Operations         Amortization
                                       (In millions)

(Restated) North America $4,323 $878 $267 MENA/AP 1,766 62 246 Europe/West Africa/Russia 1,689 207 173 Latin America 1,500 140 146

----- --- ---

9,278 1,287 832 Corporate and Research and Development - (311) 14 Other (b) - (58) - Total $9,278 $918 $846

(a) The nine months ended September 30, 2012 includes a $28 million gain


    related to the sale of our subsea controls business, $100 million
    loss accrual related to sanctioned country matters, tax restatement
    and remediation expenses of $52 million, a $29 million lower of cost
    or market adjustment to the carrying value of our inventory, $11
    million in fees and expenses associated with our third quarter 2012
    debt consent solicitation and severance, exit and other charges of

$62 million. (b) The nine months ended September 30, 2011 includes tax restatement and


    remediation expenses of $9 million and severance, exit and other
    charges of $49 million.
    Disputes, Litigation and Contingencies
    U.S. Government and Internal Investigations
    We are currently involved in government and internal investigations.
    The U.S. Department of Commerce, Bureau of Industry & Security,
     Office of Foreign Assets Control ("OFAC"), DOJ and SEC have
     undertaken investigations of allegations of improper sales of
     products and services by the Company and its subsidiaries in
     certain sanctioned countries. We have cooperated fully with this
     investigation and have retained legal counsel, reporting to our
     audit committee, to investigate these matters.
    In light of these investigations, the U.S. and foreign policy
     environment and the inherent uncertainties surrounding these
     countries, we decided in September 2007 to direct our foreign
     subsidiaries to discontinue doing business in countries that are
     subject to comprehensive U.S. economic and trade sanctions,
     specifically Cuba, Iran, and Sudan, as well as Syria.  Effective
     September 2007, we ceased entering into any new contracts in these
     countries and began an orderly discontinuation and winding down of
     our existing business in these sanctioned countries.  Effective
     March 31, 2008, we substantially completed our winding down of
     business in these countries and have conducted further withdrawal
     activities, pursuant to the licenses issued by OFAC, which have now
     ceased.  Certain of our subsidiaries continue to conduct business
     in countries such as Myanmar that are subject to more limited U.S.
     trading sanctions.  In 2011, the country of South Sudan came into
     formal existence without the same sanction restrictions as those
     imposed upon Sudan; the Company may operate in South Sudan.
    We have been in negotiations with the government agencies to resolve
     the investigation into alleged violations of the trade sanctions
     laws for more than a year, and these negotiations have advanced
     significantly.  During the quarter ended June 30, 2012, the
     negotiations progressed to a point where we recognized a liability
     for loss contingencies that we believe are probable and for which a
     reasonable estimate can be made. The Company estimates that the
     most likely amount of this loss is $100 million, although the
     actual amount could be greater or less, and the timing of the
     payment cannot yet be determined. The Company has therefore
     recognized a $100 million loss contingency in the nine months ended
     September 30, 2012 for the potential settlement of the sanctioned
     country matters.  However, uncertainties remain and therefore an
     exposure to loss may exist in excess of the amount accrued, pending
     the ultimate resolution of the investigation and we may not
     ultimately reach a final settlement with the government and may
     proceed to litigation.  As part of any potential resolution with
     the government, the DOJ may seek to impose modifications to
     business practices, that decrease our business, and modifications
     to the Company's compliance programs, which may increase compliance
     costs.
    Until 2003, we participated in the United Nations oil-for-food
     program governing sales of goods and services into Iraq. The U.S.
     Department of Justice ("DOJ") and the SEC have undertaken
     investigations of our participation in the oil-for-food program
     and have subpoenaed certain documents in connection with these
     investigations.  We have cooperated fully with these
     investigations. We have retained legal counsel, reporting to our
     audit committee, to investigate this matter. We are in negotiations
     with the government agencies to resolve these matters, but we
     cannot yet anticipate the timing, outcome or possible impact of the
     ultimate resolution of the investigations, financial or otherwise.
    The DOJ and SEC are also investigating our compliance with the
     Foreign Corrupt Practices Act ("FCPA") and other laws worldwide. We
     have retained legal counsel, reporting to our audit committee, to
     investigate these matters and we are cooperating fully with the DOJ
     and SEC.  As part of our internal investigations, we have uncovered
     potential violations of U.S. law in connection with activities in
     several jurisdictions.  We have been in negotiations with the
     government agencies to resolve these matters for more than a year,
     but we cannot yet anticipate the timing, outcome or possible impact
     of the ultimate resolution of the investigations, financial or
     otherwise.
    The DOJ, SEC and other agencies and authorities have a broad range
     of civil and criminal penalties they may seek to impose against
     corporations and individuals for violations of trade sanctions
     laws, the FCPA and other federal statutes including, but not
     limited to, injunctive relief, disgorgement, fines, penalties and
     modifications to business practices and compliance programs. In
     recent years, these agencies and authorities have entered into
     agreements with, and obtained a range of penalties against, several
     corporations and individuals in similar investigations, under which
     civil and criminal penalties were imposed, including in some cases
     fines and other penalties and sanctions in the tens and hundreds of
     millions of dollars. Any injunctive relief, disgorgement, fines,
     penalties, sanctions or imposed modifications to business practices
     resulting from these investigations could adversely affect our
     results of operations, and the cost of our investigations have been
     significant.
    To the extent we violated trade sanctions laws, the FCPA, or other
     laws or regulations, fines and other penalties may be imposed.
     Because these matters are now pending before the indicated
     agencies, there is some uncertainty as to the ultimate amount of
     any penalties we may pay and, with regard to the FCPA matters we
     currently cannot reasonably estimate the ultimate amount of any
     penalties we may pay. We have not yet recognized a loss contingency
     related to these matters, as we have not concluded that there are
     related losses that we believe are probable and for which a
     reasonable estimate can be made. However, there can be no assurance
     that actual fines or penalties, if any, will not have a material
     adverse effect on our business, financial condition, liquidity or
     results of operations.
    Through September 30, 2012, we have incurred $125 million for legal
     and professional fees in connection with complying with and
     conducting these on-going investigations.  We also incurred $44
     million from 2007 through 2009 for costs in connection with our
     exit from sanctioned countries.
    In addition, the SEC and the DOJ are investigating the circumstances
     surrounding the material weakness in the Company's internal
     controls over financial reporting for income taxes that was
     disclosed on Forms 12b-25 and 8-K on March 1, 2011 and February
     21, 2012, respectively, and the related restatements of our
     historical financial statements.  We are cooperating fully with the
     government investigation.
    Shareholder Litigation
    In 2010, shareholders filed suit in Weatherford's name against those
     directors in place before June 2010 and certain current and former
     members of management relating to the U.S. government and internal
     investigations disclosed above and in our SEC filings since 2007.
     Separately, in 2011 and 2012, shareholders filed suit relating to
     the material weakness in the Company's internal controls over
     financial reporting for income taxes that was disclosed on Forms
     12b-25 and 8-K filed on March 1, 2011 and February 21, 2012,
     respectively, and the related restatement of historical financial
     statements.  These suits name the Company as well as current and
     former members of management and our directors.  We cannot predict
     the ultimate outcome of these claims.
    Other Disputes
    Additionally, we are aware of various disputes and potential claims
     and are a party in various litigation involving claims against us,
     some of which are covered by insurance.  For claims, disputes and
     pending litigation in which we believe a negative outcome is
     probable and a loss can be reasonably estimated, we have recorded a
     liability for the expected loss.  These liabilities are immaterial
     to our financial condition and results of operations.  In addition
     we have certain claims, disputes and pending litigation in which we
     do not believe a negative outcome is probable or for which we can
     only estimate a range of liability.  If one or more negative
     outcomes were to occur, the impact to our financial condition could
     be as high as $20 million.



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

Karen David-Green +1.713.836.7430

Vice President - Investor Relations

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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-0- Nov/13/2012 03:17 GMT

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