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Subsea

about 9 years ago

McDermott Narrows Q4 Loss and Delivers Profit in 2016

Houston-based McDermott posted quarterly net loss of $0.5 million, or $0.00 per fully diluted share, compared to net loss of $18.7 million, or $0.08 per fully diluted share same time last year. Adjusted net income, before charges, came to 2 cents per share, against 5 cents in the corresponding perio

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Houston-based McDermott posted quarterly net loss of $0.5 million, or $0.00 per fully diluted share, compared to net loss of $18.7 million, or $0.08 per fully diluted share same time last year.

Adjusted net income, before charges, came to 2 cents per share, against 5 cents in the corresponding period in 2015.

For the twelve months ended December 31, 2016, McDermott booked $34.1 million profit, or 12 cents per share, versus $18 million loss in 2015. The company previously estimated full-year profit of some $28 million.

“2016 has proven to be a pivotal year for McDermott, as we turned the corner from stabilizing and optimizing the business to focusing on growth and building a sustainable, profitable business for the future,” said David Dickson , president and CEO of McDermott.

In the fourth quarter of 2016, McDermott generated revenues of $641.8 million, down from $667.4 million in the prior-year quarter. According to the company, revenue drop were mainly associated with Pemex PB Litoral project and extra costs on the INPEX Ichthys project caused by the failed subsea-pipe connector components.

McDermott’s full-year 2016 revenues were in line with expectations at $2.64 billion, compared to $3.07 billion in 2015.

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Order intake in the fourth quarter totaled $1 billion. As of December 31, 2016, McDermott’s backlog was $4.3 billion, of which approximately 84 percent is related to offshore operations and approximately 16 percent is related to subsea operations.

McDermott said it expects 2017 revenues at some $3.2 billion and earnings per share of approximately 29 cents.

Subsea World News Staff

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