Willbros Group Inc. (WG) is one of today’s notable stocks in decline, down more than 66% intraday to $1.50. The nosedive came after the specialty energy infrastructure contractor warned that the downturn in its oil-and-gas business could lead to credit defaults.
“The Company does not expect to be in compliance with its Maximum Leverage Ratio and Minimum Interest Coverage Ratio for the period from March 31, 2015 through March 31, 2016, Willbros said in a press release. “As a result, the Company is in discussions with its lenders regarding amendments and waivers to its credit agreements. Without a definitive waiver or amendment, all indebtedness under its credit agreements would become due in the next twelve months.”
Willbros also said it expects to miss the deadline for its annual financial report, saying that it has determined that it is” unable to file its Form 10-K for the year ended December 31, 2014 within the prescribed time period without unreasonable effort or expense.” The news comes on a strong volume too with the issue currently trading more than 6 million shares, well ahead of its three month daily average of 411K shares. Separately, analysts at DA Davidson downgraded the name this morning to ‘Underperform’ from ‘Neutral’ and reduced their 12-month base case estimate to $3.00 from $6.50.
Willbros Group is a Houston, Texas-based engineering company serving the oil, gas, refinery, petrochemical, and power industries worldwide. Its stock has a low consensus analyst price target of $3.00 from $4.50 with a high target of $7.00, and a 52-week trading range of $1.50 to $13.69.
The T-12 profit margin at Willbros Group Inc is (1.41%). WG‘s revenue for the same period is $2.21 billion.
Willbros Group has market cap of $117.84 million.