Weatherford Reports Fourth Quarter Earnings

30 Jan 2002
HOUSTON, Jan 30, 2002 /PRNewswire-FirstCall via COMTEX/ -- Weatherford International, Inc. (NYSE: WFT) today reported fourth quarter diluted earnings of $0.44 per share ($54.5 million), an increase of 42 percent over last year's diluted earnings from continuing operations, before charges related to the disposal of a business, of $0.31 per share ($35.3 million). Consolidated revenue for the fourth quarter was $620.9 million, 16 percent higher than the prior year level. Operating income for the quarter was $103.2 million, a 49 percent improvement over last year's fourth quarter level, excluding charges. The year on year improvement in results occurred despite a 6 percent decline in global drilling activity, and reflected the growing acceptance of Weatherford's new technologies as well as the benefits of M&A activities.

On a sequential basis, quarterly diluted earnings per share fell 10 percent due to the impact of an 18 percent decline in drilling rig activity in North America offset by higher revenue in Europe, the Middle East, Africa and Asia Pacific.

For the full year 2001, Weatherford's diluted earnings per share was $1.76 ($214.7 million), a 148 percent improvement over last year's diluted earnings per share from continuing operations, before charges, of $0.71 ($80.0 million). Revenues for the year were $2.3 billion, 28 percent higher than the prior year.

Due to a change in accounting rules, calendar year-end companies will be required to exclude the amortization of goodwill from the earnings calculation starting in 2002. On the new basis, Weatherford's previously reported 2001 diluted earnings per share would have been $0.44 in the first quarter; $0.52 in the second; $0.56 in the third; $0.51 in the fourth; and $2.04 for the full year.

Drilling & Intervention Services

Fourth quarter revenue for Weatherford's Drilling & Intervention Services division was $353.9 million, 34 percent higher than the prior year and 3 percent below the preceding quarter. Operating income was $75.3 million, 24 percent higher than the prior year and 16 percent below the third quarter. EBITDA was $112.6 million, up 28 percent from the prior year and down 12 percent from the preceding quarter.

On a sequential basis, the quarterly performance was impacted by declining activity in the North American market where revenues declined 11 percent on a rig count reduction of 18 percent. Key service lines, including drilling products and downhole services, declined in line with the activity slow down in North America. Somewhat offsetting that decline was a 7 percent improvement in revenues from international markets. Underbalanced Services revenue gained approximately 14 percent due to higher demand in international markets.

Completion Systems

Revenue for Weatherford's Completion Systems division was $111.0 million, 65 percent above the prior year and 28 percent higher than the preceding quarter. Operating income of $8.2 million was more than 9 times higher than the prior year and 14 percent better than the third quarter. EBITDA was $16.8 million, 97 percent better than the prior year and 8 percent better than the third quarter.

Sequentially, a revenue decline in North America of approximately 8 percent was more than offset by the effect of acquisitions completed in the fourth quarter and by regional gains in Europe and West Africa and the Middle East and North Africa. Fourth quarter revenue from Expandable Technology was up 43 percent over the third quarter.

Artificial Lift Systems

Fourth quarter revenue for Weatherford's Artificial Lift Systems division was $156.0 million, 14 percent higher than the prior year and 2 percent lower than the preceding quarter. Operating income of $22.9 million was 62 percent better than the fourth quarter of last year and 3 percent higher than the third quarter. EBITDA of $30.5 million was 41 percent higher than last year and 3 percent higher than the third quarter.

Sequentially, North American revenue, which accounted for approximately 65 percent of fourth quarter division revenue, declined 8 percent due to the slowdown in activity. Overall, the revenue decline was mitigated by gains in international markets, particularly Latin America and Asia Pacific. The division's principal product lines declined slightly while Production Optimization Systems reported higher revenue in the fourth quarter.

Houston-based Weatherford International, Inc. (http://www.weatherford.com ) 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 14,000 people worldwide.

     Contact:
     Don Galletly  (713) 693-4148
This press release may contain 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 integration of recent acquisitions, all of which are subject to certain risks, uncertainties and assumptions. These risks and uncertainties, which are more fully described in Weatherford International, Inc.'s Annual, Quarterly and Current Reports filed with the Securities and Exchange Commission, include the impact of oil and natural gas prices and worldwide economic conditions on drilling activity and the demand for and pricing of Weatherford's products. 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.

                       Weatherford International, Inc.
               Consolidated Condensed Statements of Operations
                     (In 000's, Except Per Share Amounts)

                                    Three Months Ended   Twelve Months Ended
                                        December 31,          December 31,
                                      2001      2000        2001       2000
    Net Revenues:
      Drilling and Intervention
       Services                     $353,943  $264,173  $1,340,140   $884,170
      Completion Systems             110,952    67,219     358,759    218,040
      Artificial Lift Systems        156,041   137,035     602,877    477,216
      Compression Services               ---    66,434      26,939    234,835
                                     620,936   534,861   2,328,715  1,814,261
    Operating Income (Loss):
      Drilling and Intervention
       Services                       75,289    60,776     320,092    169,836
      Completion Systems               8,236       871      26,797     (7,908)
      Artificial Lift Systems         22,880    14,149      81,323     41,569
      Compression Services               ---     1,934        (597)     6,723
      Equity in Earnings               6,820       942      21,528      3,402
      Corporate Expenses             (10,019)   (9,593)    (39,669)   (36,976)
      Charges Related to Disposal
       of Business                       ---   (56,318)        ---    (56,318)
                                     103,206    12,761     409,474    120,328
    Other Income (Expense):
      Other, Net                       2,168     1,235       3,119     10,209
      Interest Expense               (20,404)  (13,902)    (74,006)   (59,262)
    Income Before Income Taxes        84,970        94     338,587     71,275
    Provision for Income Taxes,
     Related to Disposal of
     Business                            ---   (76,517)        ---    (76,517)
    Provision for Income Taxes       (30,365)   (7,307)   (123,048)   (32,933)
    Income (Loss) Before Minority
     Interest                         54,605   (83,730)    215,539    (38,175)
    Minority Interest Income
     (Expense), Net of Taxes             (81)      118        (888)      (717)
    Net Income (Loss) from
     Continuing Operations            54,524   (83,612)    214,651    (38,892)
    Loss from Discontinued
     Operations, Net of Taxes            ---       ---         ---     (3,458)
    Net Income (Loss)                $54,524  $(83,612)   $214,651   $(42,350)

    Basic Earnings (Loss) Per Share:
      Income (Loss) from Continuing
       Operations                      $0.47    $(0.76)      $1.88     $(0.36)
      Loss from Discontinued
       Operations                        ---       ---         ---      (0.03)
      Net Income (Loss) Per Share      $0.47    $(0.76)      $1.88     $(0.39)
      Basic Weighted Average Shares
       Outstanding                   116,793   110,389     114,018    109,457

    Diluted Earnings (Loss) Per Share:
      Income (Loss) from Continuing
       Operations                      $0.44    $(0.76)      $1.76     $(0.36)
      Loss from Discontinued
       Operations                        ---       ---         ---      (0.03)
      Net Income (Loss) Per Share      $0.44    $(0.76)      $1.76     $(0.39)
      Diluted Weighted Average
       Shares Outstanding            137,540   110,389     133,255    109,457

    Other Information:
     Earnings Per Diluted Share
      from Continuing
        Operations, Before Charges     $0.44     $0.31       $1.76      $0.71
     Cash Earnings Per Diluted
      Share from Continuing
        Operations, Before Charges     $0.51     $0.39       $2.04      $1.01
     Depreciation and Amortization:
      Drilling and Intervention
       Services                      $37,325   $27,209    $137,816   $104,489
      Completion Systems               8,532     7,649      30,846     26,906
      Artificial Lift Systems          7,630     7,506      28,691     26,879
      Compression Services               ---     9,738       4,184     37,750
      Other                            1,797       668       6,592      3,085
                                     $55,284   $52,770    $208,129   $199,109

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SOURCE Weatherford International, Inc.

CONTACT:          Don Galletly of Weatherford International, Inc.,
                  +1-713-693-4148
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