McDermott International, Inc. Wins Lump Sum Contract by Saudi Aramco for Brownfield Work in Various Fields Offshore Saudi Arabia
Aug 27 15
McDermott International Inc. announced that it has been awarded a lump sum contract by Saudi Aramco for brownfield work in various fields offshore Saudi Arabia. Work on the contract is expected to be executed through the second quarter of 2018. The award follows the June 2015 signing of a second Long Term Agreement (LTA) between McDermott and Saudi Aramco for engineering, procurement, construction and installation (EPCI) opportunities in various fields offshore Saudi Arabia. The package of various EPCI projects that make up the lump sum award represent the single award for McDermott's Middle East Area operations in company history. Revenue from the fixed-price award will be included in McDermott's third quarter 2015 backlog. During the execution of the projects under the fixed price contract, McDermott plans to maximize in-Kingdom execution activities with a significant portion of the engineering and fabrication scope expected to be carried out by its engineering office in Al Khobar and fabrication facility in Dammam, respectively. Additional services are expected to be provided by McDermott engineering teams in Dubai, United Arab Emirates and Chennai, India. Procurement is expected to be managed by McDermott's Global Procurement Office based in Dubai and vessels from the McDermott global fleet, including specialized shallow-water installation vessels, are scheduled to undertake offshore installation.
McDermott International Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2015; Revises Earnings Guidance for the Year 2015
Aug 10 15
McDermott International Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2015. For the quarter, the company reported revenues for the second order were $1,046,537,000, up $496 million over the sequential quarter and up $571 million from second 2014 revenues of $476,083,000. The key factors affecting the current quarter were strong revenue recognition on several projects in Asian and Middle East areas. Operating income totaled $41.6 million during the quarter and included $15.4 million of restructuring expenses and $8.7 million of onetime losses on the impairment and disposal of assets. Operating income for the second quarter was positively impacted by revenue improvement, a closeout item in Papa Terra project in Brazil and higher marine utilization during the quarter. Cash flow from operations was a use of $7.6 million for the second quarter, driven primarily by changes to working capital. Net interest expense during the second quarter totaled $13 million. This includes $18.4 million of gross interest expense, capitalization of $5.2 million of interest for remaining vessel under construction, the DLV2000, and $0.2 million of interest income. Net income was $11.5 million or $0.04 per fully diluted share against net loss of $7.397 million or $0.03 per fully diluted share a year ago. Net of restructuring charges and onetime losses on the impairment and disposal of assets, the second quarter net income would have improved by $24.1 million or $0.08 per fully diluted share. Capital expenditures for the second quarter were $24 million, which includes $5.2 million of capitalized interest. Income before provision for income taxes and non-controlling interests was $30,231,000 against loss before provision for income taxes and non-controlling interests of $910,000 a year ago.
For the six months, the company reported revenues of $1,597,000,000 against $1,079,894,000 a year ago. Operating income was $48,197,000 against operating loss of $6,684,000 a year ago. Income before provision for income taxes and non-controlling interests was $23,052,000 against loss before provision for income taxes and non-controlling interests of $43,405,000 a year ago. Net loss attributable to the company reported $2,981,000 against $53,917,000 a year ago. Diluted net loss per share was $0.01 against $0.23 a year ago. Capital expenditures were $47,985,000 against $154,957,000 a year ago. Total cash used in operating activities was $26,066,000 against $92,911,000 a year ago.
For 2015, the company expects CapEx to be in the range of $130 million to $140 million for the year, including maintenance and project CapEx of $30 million to $40 million against $275 million to $295 million expected previously. CapEx to be in the range of $100 million to $140 million, excluding capitalized interest, of which $30 million to $40 million represents maintenance and project CapEx for the year. Capitalized interest is now revised an expected $23 million for the full year. The company expects revenues to be in the range of $3.0 billion to $3.3 billion against $3.3 billion to $3.6 billion expected previously. Operating income expects to be in the range of $50 million to $70 million against $25 million to $50 million expected previously.
McDermott International Inc. Announces Resignation of Scott V. Cummins as Senior Vice President, Commercial
Jul 30 15
McDermott International Inc. announced that Mr. Scott V. Cummins, Senior Vice President, Commercial, has resigned from his positions with McDermott, effective July 28, 2015. Mr. Cummins will be pursuing other business opportunities.