Ishr Glbl Inf Discussion Threads

[disc0dave45] 07/10/2022 16:45

Looking oversold at the moment and decent inflationary hedge.

[energyi] 10/11/2008 14:59

McDermott is a leading engineering and construction company, with specialty manufacturing and service capabilities.The Company provides its services to a variety of customers in the energy and power industries, including the U.S. Government. McDermott operates in 23 countries and has over 20,000 employees.




McDermott reports Third Quarter 2008 Results; Net Income of $85.6 million, $0.37 per fully diluted share
Project Deteriorations in Offshore Oil & Gas Construction offset Strong Performance in Power Generation Systems & Government Operations

HOUSTON--(BUSINESS WIRE)--Nov. 5, 2008--McDermott International, Inc. (NYSE:MDR) ("McDermott" or the "Company") today reported net income of $85.6 million, or $0.37 per diluted share, for the 2008 third quarter, compared to net income of $140.4 million, or $0.61 per diluted share, for the corresponding period in 2007. Weighted average common shares outstanding on a fully diluted basis were approximately 230.5 million and 228.9 million in the quarters ended September 30, 2008 and September 30, 2007, respectively.

McDermott's revenues in the third quarter of 2008 were $1,664.9 million, an increase of 25.7 percent compared to $1,324.0 million in the corresponding period in 2007. Each of McDermott's three segments grew revenues in the 2008 third quarter compared to the 2007 third quarter, led by a 39.9 percent increase in the Offshore Oil & Gas Construction segment.

The Company's operating income was $92.0 million in the 2008 third quarter, compared to $155.2 million in the 2007 third quarter. A $44.4 million combined improvement from the Government Operations and Power Generation Systems segments was more than offset by a $107.8 million decline in the Offshore Oil & Gas Construction segment, primarily as a result of increased costs experienced and expected on three marine pipeline installation projects in Qatar.

"While I am pleased with the strong performance of our Power Generation Systems and Government Operations segments, clearly the overall results for McDermott are disappointing this quarter," said John A. Fees, who became Chief Executive Officer of McDermott on October 1, 2008. "We have experienced continued deterioration, and are forecasting lower future productivity, on a number of Offshore Oil & Gas Construction contracts, primarily Middle East marine pipeline installation projects. We have spent significant time analyzing these projects, which is reflected in our revised project estimates. Our Offshore Oil & Gas Construction segment's profitability over the next year will be affected by these projects, as we now expect to generate segment margins in the 6-8% range over the next 4-5 quarters. However, the overall market for new offshore projects in the oil & gas industry remains solid."