Willbros Group

Willbros Group was a Houston-based engineering and construction company serving the energy infrastructure sector. Its roots reached back to Williams Brothers Company, established in 1908 by brothers Miller Williams and David Williams. Over time, the business developed from a regional construction contractor into an international provider of engineering, procurement and construction services for oil, gas, refining, pipelines and other infrastructure. The company’s activities included pipeline construction, pipeline integrity management, refinery turnarounds, engineering and procurement, geographic information systems consulting, and specialty construction and maintenance services. Its customers were primarily energy companies, utilities and industrial operators requiring the design, construction, repair or maintenance of large physical assets. The business model combined project-based contracting with recurring maintenance and integrity-management work, exposing the company to commodity cycles, infrastructure investment patterns, execution risk and government-contracting requirements. Willbros was organized under the laws of Panama and reorganized as a public company in 1996. It was initially headquartered in Tulsa, Oklahoma, before moving its headquarters to Houston, Texas, in 2000. During the 2000s, the company maintained substantial international exposure. Nigeria was particularly important to its operations and reportedly represented about one-quarter of global revenue in 2004. Political instability and militant attacks, including the hostage-taking of nine Willbros workers, contributed to the decision to discontinue operations in Nigeria and Venezuela in 2006. The company also experienced financial reporting and compliance difficulties. In 2005, Willbros announced that it would restate earlier financial statements and reduce its earnings outlook. In 2008, the United States Securities and Exchange Commission brought an enforcement action concerning alleged Foreign Corrupt Practices Act violations involving operations in Nigeria, Ecuador and Bolivia. Willbros agreed to pay $32.3 million in penalties, while two former managers later received prison sentences of more than one year. In 2010, Willbros broadened its infrastructure profile beyond traditional oil and gas services through the acquisition of InfrastruX Group, expanding into electric transmission and distribution. The acquisition increased the company’s exposure to utility infrastructure but also added integration and financing demands. Credit pressure later became visible when Standard & Poor’s lowered Willbros’ rating to B+ with a negative outlook in 2011. Michael Fournier, previously the company’s chief operating officer, became chief executive officer in 2015. Primoris Services Corporation announced in March 2018 that it would acquire Willbros Group, with completion expected during the second quarter of that year. Following the transaction, Willbros ceased to operate as an independent publicly traded company. Its historical activities and capabilities became part of the broader Primoris platform rather than continuing as a separate independent corporate brand.

Willbros Group originated with Williams Brothers Company, founded in 1908 by Miller Williams and David Williams. The enterprise developed as an engineering and construction contractor and later became associated with major energy infrastructure projects. Its historical capabilities included pipeline construction, refinery work, engineering and procurement, maintenance, integrity management and other specialty services. The company became a public company through a reorganization in 1996. It was organized under Panamanian law and initially based in Tulsa, Oklahoma. In 2000, it moved its headquarters to Houston, Texas, placing the company closer to the U.S. energy industry and the concentration of oil and gas engineering, construction and service companies in the region. During the early and mid-2000s, Willbros operated internationally as well as in the United States. Nigeria became a significant market; in 2004, it reportedly generated approximately 25 percent of the company’s global revenue. Security conditions deteriorated, however, and militant attacks affected the company’s ability to operate. Nine Willbros employees were taken hostage in Nigeria. Political and security concerns ultimately led Willbros to discontinue its Nigerian and Venezuelan operations in 2006. The company faced a separate period of financial and regulatory difficulty. On February 28, 2005, Willbros announced that it would restate financial reports dating from 2002 and revise its earnings outlook. The adjustments were expected to reduce reported 2002 profit by $900,000 and increase the 2003 loss by $2.6 million. In May 2008, the U.S. Securities and Exchange Commission filed a case against Willbros and former managers alleging multiple Foreign Corrupt Practices Act violations associated with business in Nigeria, Ecuador and Bolivia between 2003 and 2005. Willbros agreed to pay $32.3 million in penalties. Two former managers were subsequently sentenced to prison terms of more than a year. Seeking to diversify beyond oil and gas, Willbros acquired InfrastruX Group in 2010. The transaction, reported at approximately $480 million, added electric transmission and distribution services to the company’s portfolio. This broadened its exposure to utility and power infrastructure, although it also increased the scale and complexity of the business. In 2011, Standard & Poor’s lowered Willbros’ credit rating to B+ with a negative outlook. Michael Fournier became chief executive officer in November 2015 after serving as chief operating officer. In March 2018, Primoris Services Corporation announced an agreement to acquire Willbros Group. The transaction was expected to be completed in the second quarter of 2018. The acquisition brought Willbros’ operations into Primoris and ended the company’s independent corporate and public-market identity. Willbros is therefore best understood as a historical energy infrastructure contractor and former public company rather than an active standalone brand.

• 2018

  Primoris acquisition announced

  [1]Willbros Groupen.wikipedia.org

  Primoris Services Corporation announced its agreement to acquire Willbros Group.

• 2015

  Michael Fournier becomes CEO

  [1]Willbros Groupen.wikipedia.org

  Michael Fournier was appointed chief executive officer after serving as chief operating officer.

• 2010

  InfrastruX acquisition

  [1]Willbros Groupen.wikipedia.org

  The acquisition of InfrastruX expanded Willbros into electric transmission and distribution infrastructure.

• 2006

  Withdrawal from Nigeria and Venezuela

  [1]Willbros Groupen.wikipedia.org

  Willbros discontinued operations in Nigeria and Venezuela amid political instability and security threats.

• 2000

  Headquarters move to Houston

  [1]Willbros Groupen.wikipedia.org

  The company moved its headquarters from Tulsa, Oklahoma, to Houston, Texas.

• 1996

  Reorganized as a public company

  [1]Willbros Groupen.wikipedia.org

  Willbros was reorganized as a public company.

• 1908

  Williams Brothers Company is founded

  [1]Willbros Groupen.wikipedia.org

  Miller Williams and David Williams founded the business that later became associated with Willbros Group.

A project-based energy and infrastructure contractor combining engineering, procurement, construction, maintenance and specialty field services for large industrial and utility assets.

• Engineering, procurement and construction

  Energy infrastructure EPC

  Willbros provided integrated engineering, procurement and construction services for energy and industrial infrastructure. The work covered project design, equipment and materials procurement, construction management and field execution for customers developing or upgrading large-scale assets.

• Pipeline services

  Pipeline construction and integrity management

  Pipeline services formed a central part of Willbros’ historical portfolio. The company constructed pipeline infrastructure and provided integrity-management and related maintenance services intended to help operators inspect, preserve and extend the useful life of pipeline systems.

• Industrial maintenance

  Refinery turnaround services

  The company performed refinery turnaround work, involving planned shutdown, maintenance, repair and construction activities at refining facilities. These projects required coordinated engineering, procurement, labor and specialty field execution within tightly scheduled outage periods.

• Utility infrastructure · 2010

  Electric transmission and distribution services

  Following the InfrastruX acquisition, Willbros added electric transmission and distribution construction to its service mix. This broadened the company from an oil-and-gas-centered contractor into a provider with capabilities in power and utility infrastructure.

• Technical consulting

  GIS consulting

  Willbros offered geographic information systems consulting and related technical services for infrastructure and energy operators. These capabilities supported the mapping, management and analysis of physical assets and project information.

• 2008

  Foreign Corrupt Practices Act enforcement

  The U.S. Securities and Exchange Commission brought an enforcement action against Willbros Group and former managers concerning alleged Foreign Corrupt Practices Act violations in Nigeria, Ecuador and Bolivia during 2003–2005. Willbros agreed to pay $32.3 million in penalties, and two former managers received prison sentences of more than one year.

  Source

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• 2018

  Sale to Primoris Services CorporationM&A

  Background

  Willbros was operating as an energy and infrastructure contractor when Primoris Services Corporation announced plans to acquire it.

  Action taken

  Primoris announced an agreement to acquire Willbros Group, with closing expected in the second quarter of 2018.

  Aftermath

  Willbros ceased to exist as an independent public company and its operations were integrated into Primoris.

  Source

• 2015

  Appointment of Michael Fournier as CEOOther

  Background

  Michael Fournier had been serving as Willbros’ chief operating officer.

  Action taken

  The company promoted Fournier to chief executive officer.

  Aftermath

  Fournier led the company during its final years as an independent corporate entity.

  Source

• 2010

  Acquisition of InfrastruX GroupM&A

  Background

  Willbros sought to diversify its business beyond oil and gas services and enter the electric transmission and distribution market.

  Action taken

  The company acquired InfrastruX Group for approximately $480 million.

  Aftermath

  The acquisition added electric utility infrastructure capabilities to Willbros’ energy-services portfolio.

  Reported acquisition value. $480 million (2010)

  Source

• 2006

  Withdrawal from Nigeria and VenezuelaStrategy

  Background

  Political instability, militant attacks and the hostage-taking of nine workers created significant operating and security risks.

  Action taken

  Willbros discontinued its operations in Nigeria and Venezuela.

  Aftermath

  The decision reduced the company’s exposure to those markets and followed a period in which Nigeria had represented a substantial share of global revenue.

  Source

• 2005

  Restatement of historical financial reportsOther

  Background

  Willbros identified adjustments affecting financial reports from 2002 onward and said its expected 2005 earnings would be materially below analyst expectations.

  Action taken

  The company announced that it would restate prior-period financial reports and revise its earnings outlook.

  Aftermath

  The adjustments were expected to reduce 2002 profit by $900,000 and increase the 2003 loss by $2.6 million.

  Restatement adjustments. (2002–2003)

  Source

1. 1Willbros Groupen.wikipedia.org