Willbros Group Now Sees Operating Profit In Q2; Backs FY13 Revenue Outlook

(RTTNews) - Willbros Group Inc. (WG) said it now expects to generate consolidated operating profit from continuing operations ranging from $3.0 million to $7.0 million in the second quarter 2013. Previously, the company expected operating loss from continuing operations to be in the range of $4.0 million to $7.0 million for the second quarter 2013.

The company attributes the expected operating profit to better than anticipated performance in its Utility Transmission & Distribution segment complemented by modest improvement in its Oil & Gas segment. Expected results for the second quarter in both the Canada and Professional Services segments, as well as in the Oil & Gas regions business, remain as previously indicated.

The anticipated operating improvements in the Utility Transmission & Distribution segment are related to expanding margins as a result of storm restoration work in Texas and Oklahoma and successfully closing out two more of the CREZ projects, in addition to an early start on a new transmission construction project. The Oil & Gas segment results are expected to be negatively impacted by an operating loss in the regional business, but the pipeline construction and downstream turnaround businesses performed better than expected.

The Canada segment is expected to generate an operating profit but with lower margins than in the first quarter due to the impact of normal spring break-up restrictions and unusually severe flooding conditions in the Fort McMurray area. The Professional Services segment continues to perform well with new contracts contributing to second quarter results.

The company continues to expect revenue for the full year 2013 to be in the range of $1.9 billion to $2.1 billion. Analysts polled by Thomson Reuters expected the company to report revenues of $2.04 billion for fiscal 2013. Analysts' estimates typically exclude special items.

The company has also recently signed a non-binding Letter of Intent for the potential sale of its Hawkeye business to a highly interested potential buyer. The company continues to believe that a mutually agreeable disposition of the Hawkeye business can be completed in 2013.