ALERT: Pritchard's Morning Intelligence For Willbros Incorrectly Reported

Willbros Group, Inc. WG received an award for pipeline construction in Canada yesterday, and included engineering and procurement potions totaling $300M, which was incorrect. The actual estimated scope is around $30-50M, and the pump stations will add further dollars as reported to total the projected $440M cost for the pipeline, Pritchard reports. Pritchard published information this morning that indicated procurement estimates would be closer to $300M, which is in fact was incorrectly reported. Pritchard calculated a zero operating margin for the procurement portion of the work, and the same $0.03 increase remains for the the $0.84 estimate. Pritchard's thesis is that Canada will be close to capacity for the next several year and will drive earnings and demand towards complete pricing power in 2011 for 2012 projects. The $12 price target and Buy rating remain. Willbros Group, Inc. closed yesterday at $8.58.