Willbros Announces Multiple Awards Valued at $151 Million
Executed contracts total $106 million
Pipeline written notification of award for $45 million
HOUSTON, March 07, 2017 (GLOBE NEWSWIRE) -- Willbros Group, Inc. (NYSE:WG) today announced that it has executed two contracts and finalized an extension of another Master Service Agreement (“MSA”) in Canada. These awards have an estimated value of $106 million and will be added to backlog during the first quarter of 2017:
Our Utility Transmission & Distribution segment has been awarded a $37 million contract to construct a 110-mile transmission line for a new client. Our Chapman business unit will commence construction immediately and anticipates completion by the end of 2017.
In addition to the five year MSA award announced in December 2016, the Construction & Maintenance business unit in our Canada segment was awarded a three-year extension on an existing MSA contract to continue maintenance work in the Alberta oil sands region with an estimated value of $56 million over the duration of the extension. Work under this extension commenced March 1, 2017.
Also, our Canada segment finalized the $13 million contract to construct a 48-inch, eight kilometer pipeline that was announced as a written notice of award in December 2016. Construction has begun and is anticipated to be completed during the third quarter of 2017.
Further, a unit of our Oil & Gas segment has received a written notification of award to construct a pipeline in the Northeast. Terms for this $45 million award are near agreement and we anticipate contract signing to occur within the next week. Work is expected to commence in mid-March and is anticipated to be completed during the third quarter of 2017.
Mike Fournier, President and CEO, said “These awards, coupled with the increase in our Q4 2016 backlog, reflect the ongoing efforts across the organization to build quality backlog. While a significant portion of this work will be completed during Q2 and Q3 2017, we sense strong markets for our services and continue to see bidding opportunities that look appealing.
The above awards are in addition to our January 2017 twelve-month and total backlog amounts of $426 million and $776 million, respectively.”
About Willbros
Willbros is a specialty energy infrastructure contractor serving the oil and gas and power industries with offerings that primarily include construction, maintenance and facilities development services. For more information on Willbros, please visit our web site at www.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 unanticipated accounting or other issues regarding any material weaknesses in internal control over financial reporting; inability of the Company or its independent auditor to confirm relevant information or data; unanticipated issues that prevent or delay the Company’s independent auditor from completing its review of financial statements or that require additional efforts, procedures or review; the untimely filing of financial statements; pending and potential investigations and lawsuits; the identification of one or more issues that require restatement of one or more other prior period financial statements; ability to remain in compliance with, or obtain additional waivers or amendments under, the Company's existing loan agreements; the existence of other material weaknesses in internal control over financial reporting; contract and billing disputes; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; 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; development trends of the oil and gas, and power industries; 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, except as may be required by law.
CONTACT:
Stephen W. Breitigam
VP Investor Relations
Willbros
713-403-8172
