Petrofac Enters into Memorandum of Understanding with McDermott International to Form Strategic Marketing Alliance
Mar 3 15
Petrofac Ltd. has entered into a memorandum of understanding with McDermott International Inc. to form a strategic marketing alliance. Under the terms of the five year alliance, which is subject to any regulatory approvals, the two companies will jointly pursue opportunities in the deepwater subsea, umbilicals, risers and flowlines (SURF) sector. The aim is to develop a first-class SURF market position targeting EPCI projects in the US Gulf of Mexico, Mexico, West Africa, Brazil, Mediterranean and North Sea. The Alliance will give both parties a wider geographic reach and enhanced access to world-class opportunities. It will also offer a broader range of assets to widen the potential market and optimize asset use. Bringing together the combined expertise of the two companies will open up further EPCI opportunities for Petrofac's world-class JSD6000 offshore installation vessel. Integrating its J-Lay, S-Lay and Derrick functions in conjunction with McDermott's speciality and established SURF fleet, including its new Derrick Lay Vessel DLV2000 and strong subsea fabrication capability, the Alliance will offer access to high-end turnkey projects in the deepwater and SURF markets.
McDermott International Inc. Announces Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014; Provides Earnings Guidance for the Full Year of Fiscal 2015; Announces Asset Impairments for the Fourth Quarter Ended December 31, 2014
Mar 2 15
McDermott International Inc. announced consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company announced revenues of $806,400,000 compared to $517,338,000 for the same period a year ago. Operating income was $25,949,000 compared to operating loss of $317,896,000 for the same period a year ago. Income from continuing operations before provision for income taxes and non-controlling interests was $22,566,000 compared to loss from continuing operations before provision for income taxes and non-controlling interests of $315,794,000 for the same period a year ago. Net income was $12,234,000 compared to net loss of $319,352,000 for the same period a year ago. Net income attributable to the company was $8,175,000 or $0.03 per basic and diluted share compared to net loss attributable to the company of $326,236,000 or $1.38 per basic and diluted share for the same period a year ago. Capital expenditures were $104,661,000 compared to $58,565,000 for the same period a year ago. Cash flow from operations for the fourth quarter 2014 was $119.3 million compared to a net use of cash of $88.5 million for the fourth quarter 2013.
For the full year, the company announced revenues of $2,300,889,000 compared to $2,658,932,000 for the same period a year ago. Operating income was $8,554,000 compared to operating loss of $456,745,000 for the same period a year ago. Loss from continuing operations before provision for income taxes and non-controlling interests was $45,321,000 compared to $440,859,000 for the same period a year ago. Net loss was $65,394,000 compared to $489,910,000 for the same period a year ago. Net loss attributable to the company was $75,994,000 or $0.32 per basic and diluted share compared to $508,868,000 or $2.15 per basic and diluted share for the same period a year ago. Capital expenditures were $321,187,000 compared to $283,962,000 for the same period a year ago. Total cash provided by operating activities - continuing operations was $6,960,000 compared to total cash used in operating activities - continuing operations of $256,611,000 for the same period a year ago.
The company provided earnings guidance for the full year of fiscal 2015. For the year, the company expects revenues to be in the range of $3.3 billion to $3.6 billion and operating income to be in the range of $25 million to $50 million, including expected restructuring charges in the range of $25 million to $35 million. The company expects capital expenditures to be in the range of $275 million to $295 million, excluding capitalized interest of approximately $25 million. At year-end 2015, cash and restricted cash is expected to be in the range of $600 million to $650 million and debt to be $865 million, provided contracting terms and industry norms on working capital remain stable.
For the fourth quarter ended December 31, 2014, the company announced asset impairments of $9,002,000.
McDermott International Inc. Receives Initial Work for the Marjan Gas Oil Separation Plant Power Supply Generation System Offshore Saudi Arabia
Mar 2 15
McDermott Middle East Inc. announced that it has been awarded initial work for a significant power supply system replacement contract by Saudi Aramco for the Marjan field, offshore Saudi Arabia. Work is expected to be executed through the fourth quarter of 2016 and will be included in McDermott's first quarter 2015 backlog. The overall brownfield project comprises integrated engineering, procurement, construction, installation and replacement of the decks of two existing tie-in platforms, as well as the removal and salvage of existing gas turbine generators, and the installation of two new 115kV subsea power and communication cables. The initial scope of work, comprises the engineering, procurement, fabrication and load-out of the platforms and cable.