Mismanagement of Willbros’ Oil & Gas division (which includes the company’s pipeline construction operations) has created a financial and strategic crisis for the company.

In October, 2014 Willbros announced it would have to restate its 2Q financials due to more than $22 million in losses associated with just one pipeline project in OH. These loses wiped out more than 65% of the company’s operating income and sparked class action shareholder litigation.

Despite changes in management and efforts to reorganize, Willbros’ problems have gone from bad to worse.

On March 18^th, 2015 Willbros warned investors that the downturn in its oil-and-gas business could lead to credit defaults that could raise doubts about its ability to continue as a going concern. The company also said it expects to miss the deadline for its annual financial report. Shares fell 51% to $2.70 in late-afternoon trading, after hitting an all-time low of $1.50 earlier.

The Teamsters’ Capital Strategies Department is issuing a report to Willbros’ investors recommending that the company take immediate steps to sell its Oil & Gas division which has long been a drain on the company and drag on its stock price.

 

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