Weatherford International Limited (Weatherford) reported a decline in its revenues and earnings in 2Q 09, reflecting a drop in Exploration and Production (E&P;) activity levels in North America. Margins were impacted by lower prices across all of its geographical segments. Going forward, we expect E&P;activity will improve as oil prices recover in 2H 09, enhancing demand for Weatherford’s products and services. In view of this, we maintain our HOLD rating for…

Weatherford International Limited (Weatherford) reported modest top-line growth in 1Q 09, in line with our estimate. However, margins were impacted by the decline in Exploration and Production (E&P;) activity in North America. Going forward, we expect the decline in rig counts in North America to continue to drive down the company’s margins, albeit partially offset by a better performance from its international business. We believe the NYSE common stock…

Although Management expects a decline in rig counts in North America and despite dropping prices for of the company’s products like rigs, tubulars and simulations, the company is confident it will generate double digit growth in international regions, as exploration spending there is largely dominated by major national oil companies. After having witnessed robust 20.8% GAGR growth between 2006 and 2008, we expect a decline in the company’s revenues during…