Exhibit 99
[WILLBROS GROUP, INC. LETTERHEAD]
CONTACT: Michael W. Collier
Investor Relations Manager
Willbros USA, Inc.
(713) 403-8016
WILLBROS GROUP ANNOUNCES PRELIMINARY
FIRST QUARTER RESULTS AND REVISED 2003 OUTLOOK
o ANNOUNCES CONFERENCE CALL FOR THURSDAY, APRIL 24, 2003
AT 9:00 A.M. EASTERN TIME
o ANNOUNCES FIRST QUARTER EARNINGS RELEASE FOR MAY 7, 2003
HOUSTON - APRIL 23, 2003 - Willbros Group, Inc. (NYSE: WG) today
announced that after a preliminary review of its 2003 first quarter results, it
now expects to report a first quarter net loss per fully diluted share to range
between ($0.20) and ($0.25) compared to the previously discussed earnings per
share expectations of $0.10 to $0.15. Preliminary results include approximately
$7.0 million ($0.36 per fully diluted share) in unforeseen costs related to
Bolivia, Chad/Cameroon and North America. These costs relate to contract
variations, increased demobilization costs related to the war in Iraq and
project delays. Willbros accounting policy requires us to record contract
variation costs as incurred and to defer recognition of anticipated revenue
until it is reasonably assured. Management believes a significant amount of the
costs incurred in the first quarter will be recovered as additional revenue in
future periods.
In Bolivia, client-supplied valves, jointly determined by the client
and Willbros to be defective from the manufacturer, delayed completion of the
project and created additional costs. Increased demobilization costs in Cameroon
partially caused by delays as a result of lack of availability of suitable ships
due to the conflict in Iraq also reduced earnings during the period. In North
America, weather delays and delays in contract awards impacted first quarter
results. In addition, the Company experienced reduced productivity from the
impact of social unrest in both Venezuela and Nigeria. The combination of these
factors resulted in the recognition of costs without offsetting revenue and an
earnings shortfall in the first quarter.
"While we are disappointed in Willbros' first quarter results, the
majority of the increased, unforeseen costs that we experienced during the
quarter were due to external factors,
which are now behind us," commented Michael F. Curran, President and Chief
Executive Officer. "In fact, our preliminary results show that the month of
March was profitable. Our conservative accounting method results in increased
costs being recognized immediately without the corresponding revenue from
contract variations being accrued at the same time. In the aggregate, we have
documented and presented contract variations in excess of $50 million from
multiple projects to our clients according to the terms and conditions of our
contracts, which we believe fully support our requests for additional revenue."
Primarily as a result of the expected first quarter loss and also due
to continued delays in project bidding and awards, especially in Nigeria and
North and South America, Willbros is revising its 2003 outlook. "Based on
current information and excluding any revenue from the contract variations
discussed above, we now expect our 2003 revenue to be in the range of $440 to
$460 million and our earnings to be in the range of $0.50 to $0.65 per fully
diluted share," stated Warren L. Williams, Senior Vice President and Chief
Financial Officer. "We have also identified $3 million in cost savings that will
partially offset the impact of the reduced revenue."
Mr. Curran added, "Our medium and long-term fundamentals remain solid.
The Opal gas processing facility, announced in March 2003, is underway and
should start contributing to earnings early next year. We are establishing
relationships with new customers, and we currently have outstanding bids and
prospects in excess of $1.2 billion. We expect that the contract bidding and
awards delays we are experiencing in Africa, North and South America will
improve during the second half of 2003, giving us momentum into 2004."
In conjunction with this release, Willbros has scheduled a conference
call, which will be broadcast live over the Internet, on Thursday, April 24,
2003 at 9:00 a.m. eastern time (8:00 a.m. central).
What: Willbros Preliminary First Quarter 2003 Results Conference Call
When: Thursday, April 24, 2003 - 9:00 a.m. eastern time
How: Live via phone - By dialing (303) 262-2192 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 May 1, 2003, and may be accessed by calling (303) 590-3000
using pass code 535651. Also, an archive
of the web cast will be available shortly after the call on www.willbros.com.
for a period of 12 months.
Willbros also announced today that it will release its first quarter
2003 results on Wednesday, May 7, 2003 after the market closes.
Willbros Group, Inc. is one of the leading independent contractors
serving the oil, gas and power industries, providing construction, engineering
and other specialty oilfield-related services to industry and government
entities worldwide.
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 such things
as future E&P capital expenditures, oil, gas 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.
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