McDermott boosts profit as revenues drop
Houston-based provider of EPCI services McDermott boosted its profit during the second quarter of 2016 while revenues dropped.
The company’s net income for the quarter was $20.7 million, compared to $11.5 million for the prior-year second quarter.
McDermott generated second quarter 2016 adjusted net income of $22.8 million, excluding restructuring charges of $2.5 million, compared to an adjusted net income of $26.8 million, excluding restructuring charges of $15.4 million, in the prior-year second quarter.
Further, the company posted revenues of $706.6 million in 2Q 2016, a decrease of $339.9 million compared to $1.05 billion in the corresponding quarter last year.
The key projects driving revenue for the second quarter of 2016 were Inpex Ichthys and Saudi Aramco’s Marjan GOSP and LTA II Lump Sum projects. The decrease from the prior-year second quarter is primarily due to marine activity by the subcontractor Heerema on the Inpex Ichthys project in the second quarter of 2015 that was more substantial than activity in the second quarter of 2016.
As of June 30, 2016, McDermott’s backlog was $4.4 billion with approximately 80% related to offshore operations and approximately 20% related to subsea operations.
Offshore Energy Today Staff