EX-99.1 3 h00655exv99w1.txt PRESS RELEASE DATED OCTOBER 24, 2002 EXHIBIT 99.1 [WEATHERFORD LOGO] NEWS RELEASE WEATHERFORD REPORTS THIRD QUARTER RESULTS OF $0.28 PER SHARE BEFORE NON-RECURRING CHARGE HOUSTON, October 24, 2002 - - Weatherford International Ltd. (NYSE: WFT) today reported third quarter revenues of $584.9 million and net income of $34.6 million or $0.28 per diluted share, before a non-recurring charge. In the quarter, a one-time after tax charge of $156.2 million, consisting of a $146.2 million non-cash write down of an investment in Universal Compression Holdings, Inc. and $10.0 million related to planned severance and facility closures, was recorded. Including the non-recurring charge, there was a net loss in the quarter of $121.6 million ($1.01 per diluted share). In the third quarter of 2001, reported revenues and net income were $608.6 million and $60.2 million ($0.49 per diluted share), respectively. Prior year third quarter net income adjusted to exclude goodwill amortization net of taxes would have been $70.3 million ($0.56 per diluted share). In the first nine months of 2002, revenues were $1.75 billion and net income, excluding the non-recurring charge, was $118.6 million ($0.94 per diluted share). In 2001, reported revenues for the first nine months were $1.71 billion, and net income was $160.1 million ($1.32 per diluted share). Net income for this prior year period, excluding goodwill amortization net of taxes would have been $187.4 million ($1.53 per diluted share). Weatherford's quarterly revenues fell 4 percent from the prior year third quarter due largely to a global decline in drilling activity. North American rig activity fell by more than 25 percent year to year and international rig activity declined 6 percent. Over the same time frame, Weatherford's third quarter North American revenues fell 18 percent while international revenues increased 13 percent. The declines reflect the effects of lower offshore activity in the Gulf of Mexico and the UK sector of the North Sea and less drilling in North American land markets. 1 DRILLING & INTERVENTION SERVICES Third quarter revenues were $319.9 million, 12 percent below the prior year quarter and 3 percent higher than the preceding quarter. EBITDA of $99.6 million was 26 percent below the prior year quarter and 1 percent below the preceding quarter. Sequentially, Drilling & Intervention Services third quarter performance reflected the impact of tropical storm Isidore on activity in the Gulf of Mexico late in the quarter, slower activity in the UK sector of the North Sea and an unfavorable product mix. North American revenues were up slightly. While international revenues increased 5 percent sequentially, that growth was moderated by softening activity in the North Sea. COMPLETION SYSTEMS Third quarter revenues of $88.3 million were 2 percent higher than the prior year quarter and 16 percent below the preceding quarter. EBITDA of $18.2 million was 12 percent below the prior year and 31 percent below the preceding quarter. Sequentially, Completion Systems performance was affected by weather in the Gulf of Mexico and a temporary disruption in the commercialization of one size of expandable sand screen product. ARTIFICIAL LIFT SYSTEMS Third quarter revenues of $176.7 million were 12 percent higher than the prior year quarter and 2 percent below the preceding quarter. EBITDA of $30.2 million was 1 percent below the prior year and 5 percent below the preceding quarter. Sequentially, North American revenue improved 6 percent while international activity declined 12 percent due to lower activity in the Latin American and Asia Pacific regions. 2 Weatherford 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 approximately 15,000 people worldwide. # # # Contact: Don Galletly (713) 693-4148 Lisa Rodriguez (713) 693-4746 This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning, among other things, Weatherford's prospects for its operations and the successful integration of the plan of restructuring, all of which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Weatherford International Ltd.'s and Weatherford International, Inc.'s reports and registration statements filed with the SEC, include the impact of oil and natural gas prices and worldwide economic conditions on drilling activity, the demand for and pricing of Weatherford's products and services, domestic and international economic and regulatory conditions and changes in tax and other laws affecting the restructuring and our business. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. 3 WEATHERFORD INTERNATIONAL LTD. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In 000's, Except Per Share Amounts)

(A) Diluted earnings per share for the three and nine months ended September 30, 2001 excluding goodwill amortization, net of taxes, was $0.56 and $1.53, respectively. (B) For pro forma calculations of diluted earnings per share excluding the non-recurring charge, diluted weighted average shares outstanding were 125,138 and 131,568 for the three months and nine months ended September 30, 2002, respectively. WEATHERFORD INTERNATIONAL LTD. SUPPLEMENTAL INFORMATION (In 000's)

WEATHERFORD INTERNATIONAL INC /NEW/ 8-K