Weatherford Unveils Financial, Operational Results for 1st Quarter

Weatherford has reported first quarter 2009 income from continuing operations of $186 million, or $0.27 per diluted share, excluding an after tax loss of $0.04 for investigation and exit costs incurred in connection with the company's withdrawal from sanctioned countries and severance costs principally associated with restructuring activities in North America. First quarter diluted earnings per share from continuing operations reflect a decrease of 46 percent over the first quarter of 2008 diluted earnings per share from continuing operations of $0.50, before non-recurring items, mainly due to a sharp drop off in customer activity in North America.

First quarter revenues were $2,256 million, or three percent higher than the same period last year, against a backdrop of a 19 percent decrease in global rig count. While North America revenue declined 23 percent, in line with a 27 percent decline in rig count, international revenue was up 28 percent against a two percent decrease in international rig count. Company-wide revenue was negatively impacted by approximately $160 million due to the relative strengthening of the U.S. dollar compared to the year-ago period.

Sequentially, the company's first quarter diluted earnings per share from continuing operations, before non-recurring items, were $0.26 lower than the fourth quarter 2008 diluted earnings per share from continuing operations of $0.53, before non-recurring items. This decline was principally due to the abrupt curtailment of North American activity during the first three months of 2009.

North America

Revenues for the quarter were $837 million, which is a 23 percent decrease over the same quarter in the prior year, as compared to a 27 percent rig count decrease. Sequentially, revenues were down 29 percent as compared to a 28 percent rig count decrease.
Operating income of $123 million was 58 percent lower as compared to the same quarter in the prior year and sequentially, as margins were negatively impacted by pricing, volume and utilization erosion.

Middle East/North Africa/Asia

First quarter revenues of $582 million were 12 percent higher than the first quarter of 2008 and 14 percent lower than the prior quarter. A seasonal pull-back in product sales, coupled with project delays contributed to the decline.

The current quarter's operating income of $134 million improved 11 percent as compared to the same quarter in the prior year and decreased 18 percent as compared to the prior quarter due to lower pricing and sales volume.

Europe/West Africa/CIS

First quarter revenues of $369 million were six percent higher than the first quarter of 2008 and six percent lower than the prior quarter. The United Kingdom, Romania and Russia had the most significant declines on a sequential basis.

The current quarter's operating income of $75 million declined 20 percent as compared to the same quarter in the prior year and 15 percent sequentially due to reduced sales volume and lower pricing.

Latin America

First quarter revenues of $468 million were 98 percent higher than the first quarter of 2008 and 21 percent higher than the prior quarter. Mexico was the top performer on a sequential basis.

The current quarter's operating income of $92 million improved 52 percent as compared to the same quarter in the prior year and was four percent higher when compared to the fourth quarter of 2008.