Willbros 8K Reports 2005 and First Quarter 2006 Results | WGRP 16 Jun 06

Willbros (WGRP) Inactive 8-KReports 2005 and First Quarter 2006 Results

Exhibit 99.1


WILLBROS GROUP, INC.
WILLBROS GROUP, INC.

WILLBROS BRINGS FINANCIAL FILINGS CURRENT AND

REPORTS 2005 AND FIRST QUARTER 2006 RESULTS

•

Company reports net loss of $4.6 million for first quarter 2006

•

March 31, 2006 backlog was $820 million, up from $816 million at year-end 2005

•

Conference Call scheduled for Monday, June 19, 2006 at 9:00 a.m. Eastern Time

HOUSTON, TEXAS – June 16, 2006—Willbros Group, Inc. (NYSE: WG) announced today that it has filed its results for third quarter 2005 on Form 10-Q, for the year ended December 31, 2005 on Form 10-K and for the first quarter 2006 on Form 10-Q. The 2005 and 2006 Forms will be available on the Company’s web site atwww.willbros.com. Financial results for the referenced periods are presented as tables to this press release. Willbros also reported that its backlog, adjusted for the sale of the Opal TXP-4 Plant, stood at $820 million at the end of March 2006, as compared to $816 million at December 31, 2005.

“We are moving beyond many of the challenges we have dealt with over the past eighteen months,” stated Michael F. Curran, Chairman and CEO. “After a lot of hard work, we believe we have become a more efficient company, and we are in the process of working through the majority of the remaining legacy work in Nigeria. We continue to see increasing opportunities to expand both our backlog and our revenue at improved contract margins.”

First Quarter 2006

For the quarter ended March 31, 2006, the Company posted operating income of $0.5 million on revenue of $248.5 million. Contract costs were $227.1 million, resulting in a gross margin of 8.6 percent. General and Administrative costs were $15.7 million (or 6.3 percent of revenue). The tax provision was $6.0 million primarily due to taxes payable on a deemed profit basis in Nigeria. Net loss was $(4.6) million, or $(0.22) per share, compared to a net loss of $(9.9) million, or $(0.47) per share, in the first quarter of 2005.

International revenue of $149.9 million increased by $62.9 million over the same period in 2005, primarily due to increased work in Nigeria. In theUnited States & Canada, revenue of $98.6 million was up $54.0 million as compared to results for the same period in 2005, primarily as a result of increased engineering activities in Tulsa, increased construction activity at Willbros RPI and increased work in the oil sands region of Canada.

The increase in contract income of $4.6 million to $21.4 million in the first quarter of 2006 compared to the same quarter last year was almost evenly split between ourInternational andUnited States & Canada business segments. However, contract margin was down 4.1 percentage points primarily due to the recent events in Nigeria that resulted in project delays and additional costs on virtually all projects in Nigeria.

General and Administrative (“G&A”) costs were $15.7 million for the first quarter of 2006. This was a decrease of $1.4 million or eight percent compared to the same quarter of 2005. This reduction in G&A costs included increased insurance and additional staffing costs totaling approximately $1.5 million.

Depreciation and amortization costs for the period ending March 31, 2006 were approximately $5.2 million, compared to $5.3 million for the same period in 2005.

The Company recognized a gain of $2.4 million on the sale of equipment, primarily the TXP-4 Plant in Opal, Wyoming, partially offset by net interest and other expense of approximately $1.6 million, resulting in other income of $0.8 million.

Full Year 2005

For the year ended December 31, 2005, Willbros reported an operating loss of $(16.1) million on $706.5 million in revenue. Contract costs were $624.6 million, resulting in a gross margin of 11.6 percent. G&A costs were $75.4 million (or 10.7 percent of revenue). The tax provision was $18.3 million primarily due to taxes payable on a deemed profit basis in Nigeria. Net loss was $(38.8) million, or $(1.82) per share, compared to a net loss of $(20.8) million, or $(0.99) per share, in 2004.

The increase in revenue is attributable to the following:

•

Increased construction activity in Nigeria on four large EPC contracts with major oil companies partially offset by work completed in 2004 in Iraq, Venezuela, Oman, Bolivia and Ecuador;

•

Commencement of work on new engineering and pipeline construction projects in the United States; and

•

Continuation of work relating to maintenance and fabrication contracts in the Canadian oil sands.

Contract income increased $16.3 million to $82.0 million in 2005 compared to the previous year due to the increase in revenue. However, contract margin decreased 2.0 percentage points to 11.6 percent. The decrease in contract margin was primarily due to low margin projects in Nigeria, start-up costs and cost overruns in Canada and interruptions

of work in progress in the United States by Hurricanes Katrina and Rita. Contract income and contract margin percentage in both segments were negatively impacted in 2005 by unresolved change orders which are expected to be resolved in future periods.

G&A expense increased $28.8 million to $75.4 million in 2005 compared to $46.6 million in 2004. The increase in G&A expense in 2005 was primarily related to the costs associated with the investigations, restatement of prior periods financial results and shareholders’ lawsuits.

Depreciation and amortization costs for the year ended December 31, 2005 were $21.6 million, compared to $16.7 million for the same period in 2005.

Other expense decreased $5.1 million to $4.3 million for the year ended December 31, 2005. Net interest expense increased $1.3 million to $3.9 million in 2005 compared to the prior year. Other expenses decreased $6.4 million to $0.4 million primarily as a result of a reduction in bad debt expense in 2005.

Detailed explanations of the results for the reported periods and factors which impacted them are provided in the Company’s filings, which were filed today.

BACKLOG⁽¹⁾

Willbros reported backlog⁽¹⁾ at March 31, 2006 of approximately $820 million with an embedded margin of 13.6 percent as compared to $816 million with an embedded margin of 15.5 percent at December 31, 2005.

CONFERENCE CALL

In conjunction with this release, Willbros has scheduled a conference call, which will be broadcast live over the Internet, on Monday, June 19, 2006, at 9:00 a.m. Eastern Time (8:00 a.m. Central).


What:		Willbros Earnings Conference Call

When:		Monday, June 19, 2006 – 9:00 a.m. Eastern Time

How:		Live via phone—By dialing (303) 262-2211 and asking for the Willbros call 10 minutes prior to the start time. Or live over the Internet by logging on to the web address below.

Where:		http://www.willbros.com. The webcast can be accessed from the home page.

For those who cannot listen to the live call, a replay will be available through July 3, 2006, and may be accessed by calling
(303) 590-3000 using pass code 11064166. Also, an archive of the webcast will be available shortly after the call onwww.willbros.com for a period of 12 months.

Willbros Group, Inc. is an independent contractor serving the oil, gas and power industries, providing engineering and construction, and facilities development and operations services to industry and government entities worldwide. For more information on Willbros, please visit our web site atwww.willbros.com.

This announcement contains forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward-looking statements. A number of risks and uncertainties could cause actual results to differ materially from these statements, including those discussed above and such things as the potential for additional investigations, fines and penalties by government agencies, the financial impact of the internal investigation, litigation that may arise from the investigation, the outcome of the current Securities and Exchange Commission, Office of Foreign Assets Control and Department of Justice investigations; the identification of one or more other issues that require restatement of one or more prior period financial statements; the existence of material weaknesses in internal controls over financial reporting; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; ability to remain in compliance with, or obtain waivers under, the Company’s loan agreements and indentures; the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures, oil, gas, gas liquids and power prices and demand, the amount and location of planned pipelines, the effective tax rate of the different countries where the work is being conducted, development trends of the oil, gas and power industries, changes in the political and economic environment of the countries in which the Company has operations, as well as other risk factors described from time to time in the Company’s documents and reports filed with the SEC. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

TABLES TO FOLLOW

WILLBROS GROUP, INC.

(In Thousands, Except Per Share Amounts)


	Three Months Ended March 31
	2006			2005
Statement of Income Data
Contract revenue
International	$	149,901		$	87,034
United States & Canada		98,595			44,568

		248,496			131,602
Contract cost
International		133,898			73,580
United States & Canada		93,229			41,255

		227,127			114,835
Contract income
International		16,003			13,454
United States & Canada		5,366			3,313

		21,369			16,767
Depreciation and amortization		5,175			5,307
General and administrative		15,651			17,068
Other operating costs		—			1,084

Operating income (loss)		543			(6,692	)

Other income (expense):
Interest—net		(1,582	)		(546	)
Other—net		2,414			104

		832			(442	)

Income (loss) before income taxes		1,375			(7,134	)
Provision (benefit) for income taxes		5,968			2,764

Net income (loss)	$	(4,593	)	$	(9,898	)

Earnings (loss) per share:
Basic	$	(.22	)	$	(.47	)

Diluted	$	(.22	)	$	(.47	)

Cash Flow Data
Cash provided by (used in):
Operating activities	$	(19,754	)	$	(1,455	)
Investing activities		15,513			(7,234	)
Financing activities		14,581			(2,410	)
Foreign exchange effects		40			280

Other Data
Weighted average shares outstanding:
Basic		21,346			21,250
Diluted		21,346			21,250
EBITDA⁽²⁾	$	8,132		$	(1,281	)
Capital expenditures		5,713			7,275

Reconciliation of Non-GAAP Financial Measure
Net income (loss)	$	(4,593	)	$	(9,898	)
Interest—net		1,582			546
Income taxes		5,968			2,764
Depreciation and amortization		5,175			5,307

EBITDA⁽²⁾	$	8,132		$	(1,281	)


	3/31/2006		12/31/2005
Balance Sheet Data
Cash and cash equivalents	$	75,961	$	65,581
Working capital		149,948		116,713
Total assets		513,620		498,981
Total debt		165,193		138,020
Stockholders' equity		141,184		145,234

Backlog Data⁽¹⁾
By Geographic Area:
West Africa	$	475,618	$	564,343
Latin America		—		11,639
Middle East		46,653		47,196
North America		297,462		193,177

	$	819,733	$	816,355

By Reporting Segment:
International		522,271		623,178
United States & Canada		297,462		193,177

	$	819,733	$	816,355

WILLBROS GROUP, INC.

(In Thousands, Except Per Share Amounts)


	Three Months Ended December 31						Year Ended December 31
	2005			2004			2005			2004
Statement of Income Data
Contract revenue
International	$	133,432		$	89,926		$	412,761		$	290,524
United States & Canada		118,445			57,608			293,761			192,794

		251,877			147,534			706,522			483,318
Contract cost
International		114,064			77,338			362,327			249,660
United States & Canada		104,486			48,569			262,229			168,011

		218,550			125,907			624,556			417,671
Contract income
International		19,368			12,588			50,434			40,864
United States & Canada		13,959			9,039			31,532			24,783

		33,327			21,627			81,966			65,647
Depreciation and amortization		5,814			4,833			21,586			16,747
General and administrative		19,538			13,382			75,430			46,614
Other operating costs		—			725			1,084			3,571

Operating income (loss)		7,975			2,687			(16,134	)		(1,285	)

Other income (expense):
Interest—net		(1,230	)		(625	)		(3,856	)		(2,534	)
Other—net		(411	)		(6,861	)		(482	)		(6,932	)

		(1,641	)		(7,486	)		(4,338	)		(9,466	)

Income (loss) before income taxes		6,334			(4,799	)		(20,472	)		(10,751	)
Provision (benefit) for income taxes		7,744			4,243			18,308			10,064

Net income (loss)	$	(1,410	)	$	(9,042	)	$	(38,780	)	$	(20,815	)

Earnings (loss) per share:
Basic	$	(.07	)	$	(.43	)	$	(1.82	)	$	(.99	)

Diluted	$	(.07	)	$	(.43	)	$	(1.82	)	$	(.99	)

Cash Flow Data
Cash provided by (used in):
Operating activities	$	(20,461	)	$	41,004		$	(33,022	)	$	40,969
Investing activities		(10,358	)		(9,660	)		(36,964	)		(36,751	)
Financing activities		59,966			2,006			56,830			54,362
Foreign exchange effects		(458	)		(932	)		17			(829	)

Other Data
Weighted average shares outstanding:
Basic		21,274			21,083			21,258			20,922
Diluted		21,274			21,083			21,258			20,922
EBITDA⁽²⁾	$	13,378		$	659		$	4,970		$	8,530
Capital expenditures		10,414			10,425			38,888			38,479

Reconciliation of Non-GAAP Financial Measure
Net income (loss)	$	(1,410	)	$	(9,042	)	$	(38,780	)	$	(20,815	)
Interest—net		1,230			625			3,856			2,534
Income taxes		7,744			4,243			18,308			10,064
Depreciation and amortization		5,814			4,833			21,586			16,747

EBITDA⁽²⁾	$	13,378		$	659		$	4,970		$	8,530


	12/31/2005		9/30/2005		12/31/2004
Balance Sheet Data
Cash and cash equivalents	$	65,581	$	36,892	$	78,720
Working capital		116,713		57,105		108,643
Total assets		498,981		421,489		417,110
Total debt		138,020		70,659		73,495
Stockholders' equity		145,234		145,804		180,044

Backlog Data⁽¹⁾
By Geographic Area:
West Africa	$	564,343	$	661,236	$	554,692
Latin America		11,639		11,880		12,211
Middle East		47,196		18,769		2,500
North America		193,177		293,354		91,529

	$	816,355	$	985,239	$	660,932

By Reporting Segment:
International		623,178		691,885		569,403
United States & Canada		193,177		293,354		91,529

	$	816,355	$	985,239	$	660,932

WILLBROS GROUP, INC.

(In Thousands, Except Per Share Amounts)


	Three Months Ended September 30						Nine Months Ended September 30
	2005			2004			2005			2004
Statement of Income Data
Contract revenue
International	$	94,115		$	75,678		$	279,329		$	200,598
United States & Canada		64,732			42,255			175,316			135,186

		158,847			117,933			454,645			335,784

Contract cost
International		87,601			70,887			248,263			172,322
United States & Canada		59,045			35,990			157,743			119,442

		146,646			106,877			406,006			291,764

Contract income
International		6,514			4,791			31,066			28,276
United States & Canada		5,687			6,265			17,573			15,744

		12,201			11,056			48,639			44,020
Depreciation and amortization		5,515			4,242			15,772			11,914
General and administrative		20,050			11,614			55,892			33,232
Other operating costs		—			1,238			1,084			2,846

Operating income (loss)		(13,364	)		(6,038	)		(24,109	)		(3,972	)

Other income (expense):
Interest—net		(1,561	)		(822	)		(2,626	)		(1,909	)
Other—net		(310	)		(359	)		(71	)		(71	)

		(1,871	)		(1,181	)		(2,697	)		(1,980	)

Income (loss) before income taxes		(15,235	)		(7,219	)		(26,806	)		(5,952	)
Provision (benefit) for income taxes		2,318			2,785			10,564			5,821

Net income (loss)	$	(17,553	)	$	(10,004	)	$	(37,370	)	$	(11,773	)

Earnings (loss) per share:
Basic	$	(.83	)	$	(.48	)	$	(1.76	)	$	(.56	)

Diluted	$	(.83	)	$	(.48	)	$	(1.76	)	$	(.56	)


Cash Flow Data
Cash provided by (used in):
Operating activities	$	(7,135	)	$	11,476		$	(12,561	)	$	(35	)
Investing activities		(10,918	)		(11,210	)		(26,606	)		(27,091	)
Financing activities		(84	)		(561	)		(3,136	)		52,356
Foreign exchange effects		577			68			475			103

Other Data
Weighted average shares outstanding:
Basic		21,255			20,976			21,253			20,868
Diluted		21,255			20,976			21,253			20,868
EBITDA⁽²⁾	$	(8,159	)	$	(2,155	)	$	(8,408	)	$	7,871
Capital expenditures		11,248			11,881			28,474			28,054

Reconciliation of Non-GAAP Financial Measure
Net income (loss)	$	(17,553	)	$	(10,004	)	$	(37,370	)	$	(11,773	)
Interest—net		1,561			822			2,626			1,909
Income taxes		2,318			2,785			10,564			5,821
Depreciation and amortization		5,515			4,242			15,772			11,914


EBITDA⁽²⁾	$	(8,159	)	$	(2,155	)	$	(8,408	)	$	7,871


	9/30/2005			6/30/2005			12/31/2004
Balance Sheet Data
Cash and cash equivalents	$	36,892		$	54,452		$	78,720
Working capital		57,105			78,395			108,643
Total assets		421,489			429,401			417,110
Total debt		70,659			70,727			73,495
Stockholders' equity		145,804			161,096			180,044

Backlog Data⁽¹⁾
By Geographic Area:
West Africa	$	661,236		$	611,085		$	554,692
Latin America		11,880			12,026			12,211
Middle East		18,769			12,243			2,500
North America		293,354			81,180			91,529

	$	985,239		$	716,534		$	660,932

By Reporting Segment:
International		691,885			635,354			569,403
United States & Canada		293,354			81,180			91,529

	$	985,239		$	716,534		$	660,932

(1)	Backlog is anticipated contract revenue from projects for which award is either in hand or assured.

(2)

EBITDA is earnings before net interest, income taxes and depreciation and amortization. EBITDA as presented may not be comparable to other similarly titled measures reported by other companies. The Company believes EBITDA is a useful measure of evaluating its financial performance because of its focus on the Company’s results from operations before net interest, income taxes, depreciation and amortization. EBITDA is not a measure of financial performance under generally accepted accounting principles. However, EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies. A reconciliation of EBITDA to net income is included in the exhibit to this release.

Michael W. Collier

NEWS RELEASE

Vice President Investor Relations
Willbros USA, Inc.
(713) 403-8016

FOR IMMEDIATE RELEASE

Jack Lascar / Partner
DRG^&E
(713) 529-6600