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Teamsters: Willbros’ Mismanagement, Financial Crisis: Investors Urge Co. To Sell Oil & Gas Business


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 18th, 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.