EXHIBIT 99
WILLBROS GROUP, INC. [LOGO]
CONTACT: Michael W. Collier
NEWS RELEASE Investor Relations Manager
Willbros USA, Inc.
(713) 403-8016
Jack Lascar / Partner
FOR IMMEDIATE RELEASE DRG&E
(713) 529-6600
WILLBROS REPORTS THIRD QUARTER 2004 RESULTS
o WILLBROS AWARDED NEW CONTRACTS FOR $287 MILLION DURING THE THIRD QUARTER
o BACKLOG GROWS 41% TO RECORD $584 MILLION
o CONFERENCE CALL SCHEDULED FOR NOVEMBER 2, 2004
HOUSTON, TEXAS - NOVEMBER 1, 2004 - Willbros Group, Inc. (NYSE: WG) reported
today a loss of $(0.24) per share on revenue of $118.5 million for the quarter
ended September 30, 2004. Also, the Company announced today that it has been
awarded three new contracts for projects in Nigeria and in Oman. The combined
value of these contracts is approximately $235 million and is included in our
September 30, 2004 backlog.
THIRD QUARTER 2004
Revenue for the third quarter of 2004 increased to $118.5 million from
$91.5 million for the third quarter of 2003. The improvement in revenue was led
by a combined increase in both Engineering & Construction ("E&C") and Facilities
Development and Operations ("Facilities"). E&C revenue for the third quarter
rose 22 percent to $110.7 million compared to $90.4 million for the same period
last year. The increase in E&C activity was mainly driven by the commencement of
two major projects in Nigeria. Facilities revenue for the quarter increased to
$7.8 million from $1.1 million in the third quarter of last year due primarily
to the revenue generated by the Opal Gas Plant which began operations at the end
of the first quarter of 2004.
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Net loss for the third quarter of 2004 was $5.0 million or $(0.24) per
share on 21.0 million shares, compared to a net loss of $8.7 million or $(0.42)
per share on 20.7 million shares during the same period last year. Higher
revenue and improved contract margins in both operating segments led to relative
improvement in this year's third quarter results. This period's results,
however, were negatively impacted by lower contract margins in Nigeria,
continued weakness in the North American markets, higher G&A expenses and income
taxes.
Contract margin was negatively affected by unresolved claims related to
work performed outside the scope of the initial contracts, contract variations
for which the price of the additional work has not been finalized, and revenue
generated in the period for which no contract margin was recognized due to our
application of percent-of-completion accounting regulations for long-term
contracts.
In the current quarter, the Company recognized $2.9 million in income tax
expense on $2.0 million of loss before income taxes primarily as a result of
accruing income taxes in Nigeria where taxes are calculated and paid based upon
revenue versus pre-tax income.
EBITDA(1) for the third quarter of 2004 was $5.5 million compared to a
negative $3.9 million in 2003.
Backlog(2) was $583.9 million as of September 30, 2004 and represents the
second consecutive quarter of record backlog. At June 30, 2004 backlog was
$415.3 million and at December 31, 2003, $224.7 million. Total new bookings for
the third quarter of 2004 stood at $287.0 million.
Michael F. Curran, Chairman and Chief Executive Officer, commented, "We
performed better than originally anticipated during the third quarter, as new
work assignments generated revenue earlier than expected. Our short-term focus
is on executing our new projects and delivering contract margins that more
closely reflect those imbedded in our backlog. Over the past two years, we have
been positioning
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ourselves for the recovery of the pipeline construction industry. Our record
backlog is evidence that we are emerging from one of the worst downturns in the
pipeline construction industry."
RECENT DEVELOPMENTS
Late in the third quarter, Willbros West Africa, Inc. (WWAI) and
Willbros (Offshore) Nigeria Ltd. (WONL) were each awarded a contract by a
major international E & P company for work associated with the retrofit and
revamp of existing platforms offshore Nigeria. WWAI and WONL commenced work
on this project under the terms of a Letter of Intent, which was announced
on September 7, 2004.
The scope of these contracts includes engineering, procurement,
construction and installation of new gathering and injection piping and
ancillary facilities on multiple platforms in fields offshore Nigeria near Qua
Iboe. The project is anticipated to be completed by the end of the first quarter
in 2006.
The Oman Construction Company (TOCO), a unit of Willbros based in Muscat,
Oman, has also recently been awarded a new five-year maintenance contract by
Oman LNG LLC at Qalhat. The scope of work includes mechanical, civil, electrical
and instrumentation maintenance, plant modification, scaffolding, insulation and
painting. This new contract replaces the initial maintenance assignment won five
years previously by TOCO.
YEAR-TO-DATE 2004
Revenue for the first nine months of 2004 increased to $336.8 million from
$313.3 million during 2003, driven by higher activity in both E&C and
Facilities. Year-to-date, E&C revenue was $320.8 million compared to $309.7
million for the same period in 2003. Year-to-date, Facilities revenue increased
to $16.0 million compared to $3.6 million in 2003.
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Net loss, for the first nine months of 2004, was $5.7 million or $(0.27)
per share on 20.9 million shares, compared to net loss of $9.2 million or
$(0.45) per share on 20.6 million shares during the same period last year.
Year-to-date EBITDA(1) in 2004 was $20.1 million compared to $4.7 million
for the same period last year. The increase in EBITDA(1) for the first nine
months of this year was due primarily to higher contract income on current
activity and the settlement of contract variations earlier this year.
OUTLOOK
"Based on the year-to-date results and on current information, our 2004
revenue expectation is now in the range of $450 to $475 million and our loss for
the year in the range of $(0.20) to $(0.27) per share," stated Warren L.
Williams, Senior Vice President and Chief Financial Officer.
Mr. Curran commented, "The Company remains in very strong financial
condition and should benefit as our markets improve. Worldwide bidding continues
to be very active and is now being complemented by an increasing pace of project
awards. We remain optimistic that our level of business and profitability will
improve during 2005 and 2006, driven by the pent-up demand for pipeline
engineering, construction and rehabilitation services worldwide. We continue to
view the current business environment as favorable to our strategic objective of
growing the Company and we remain alert to possibilities for expansion of our
service offerings and geographic reach."
CONFERENCE CALL
In conjunction with this release, Willbros has scheduled a conference
call, which will be broadcast live over the Internet, on Tuesday, November 2,
2004, at 9:00 a.m. Eastern Time (8:00 a.m. Central).
What: Willbros Third Quarter Earnings Conference Call
When: Tuesday, November 2, 2004 - 9:00 a.m. Eastern Time
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How: Live via phone - By dialing (303) 262-2130 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 November 9, 2004, and may be accessed by calling (303) 590-3000 using
pass code 11011819. Also, an archive of the webcast will be available shortly
after the call on www.willbros.com. for a period of 12 months.
Willbros Group, Inc. is one of the leading independent contractors 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
at www.willbros.com.
(1) 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.
(2) Backlog is anticipated contract revenue from projects for which
award is either in hand or assured.
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, 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.
(Table to Follow)
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WILLBROS GROUP, INC.
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
---------------------------- ----------------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Statement of Income Data
Contract revenue
Engineering & Construction $ 110,699 $ 90,365 $ 320,790 $ 309,683
Facilities Development & Operations 7,760 1,133 16,010 3,615
--------- --------- --------- ---------
118,459 91,498 336,800 313,298
Contract cost
Engineering & Construction 96,041 86,583 273,432 281,126
Facilities Development & Operations 5,360 120 10,601 901
--------- --------- --------- ---------
101,401 86,703 284,033 282,027
Contract income
Engineering & Construction 14,658 3,782 47,358 28,557
Facilities Development & Operations 2,400 1,013 5,409 2,714
--------- --------- --------- ---------
17,058 4,795 52,767 31,271
Depreciation and amortization 6,569 5,490 17,643 16,682
General and administrative 11,386 8,846 33,004 26,471
--------- --------- --------- ---------
Operating income (loss) (897) (9,541) 2,120 (11,882)
Other income (expense):
Interest - net (927) (349) (2,155) (1,135)
Other - net (217) 158 305 (130)
--------- --------- --------- ---------
(1,144) (191) (1,850) (1,265)
--------- --------- --------- ---------
Income (loss) before income taxes (2,041) (9,732) 270 (13,147)
Provision (benefit) for income taxes 2,930 (986) 5,966 (3,953)
--------- --------- --------- ---------
Net income (loss) $ (4,971) $ (8,746) $ (5,696) $ (9,194)
========= ========= ========= =========
Earnings (loss) per share:
Basic $ (.24) $ (.42) $ (.27) $ (.45)
========= ========= ========= =========
Diluted $ (.24) $ (.42) $ (.27) $ (.45)
========= ========= ========= =========
Cash Flow Data
Cash provided by (used in):
Operating activities $ 16,114 $ (4,127) $ 7,435 $ (6,941)
Investing activities (16,032) (17,632) (34,559) (30,920)
Financing activities (410) 7,862 52,355 8,639
Other Data
Weighted average shares outstanding:
Basic 20,976 20,681 20,868 20,650
Diluted 20,976 20,681 20,868 20,650
EBITDA $ 5,455 $ (3,893) $ 20,068 $ 4,670
Capital expenditures 15,954 17,976 34,773 31,978
Reconciliation of Non-GAAP Financial Measure
Net income (loss) (4,971) $ (8,746) $ (5,696) $ (9,194)
Interest - net 927 349 2,155 1,135
Income taxes 2,930 (986) 5,966 (3,953)
Depreciation and amortization 6,569 5,490 17,643 16,682
--------- --------- --------- ---------
EBITDA $ 5,455 $ (3,893) $ 20,068 $ 4,670
========= ========= ========= =========
- -----------------------------------------------------------------------------------------------------------------
Balance Sheet Data 09/30/04 06/30/04 12/31/03
--------- --------- ---------
Cash and cash equivalents $ 46,302 $ 46,528 $ 20,969
Working capital 133,479 146,691 90,366
Total assets 428,285 366,527 311,422
Total debt 73,796 74,088 18,322
Stockholders' equity 208,519 212,360 210,281
Backlog Data
By Geographic Area:
West Africa $ 463,498 $ 283,556 $ 49,942
Latin America 13,417 16,055 23,230
Middle East 2,743 14,720 57,853
North America 104,228 101,018 93,687
--------- --------- ---------
$ 583,886 $ 415,349 $ 224,712
========= ========= =========
By Reporting Segment:
Engineering & Construction 541,801 373,920 182,236
Facilities Development & Operations 42,085 41,429 42,476
--------- --------- ---------
$ 583,886 $ 415,349 $ 224,712
========= ========= =========
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