McDermott bounces back to 2Q profit

McDermott International, Inc. on Monday reported second quarter 2015 net income of $11.5 million, compared to a net loss of $7.4 million for the same period in 2014.

The company said on Tuesday that, had it not been for restructuring charges and one-time losses on the impairment and disposal of assets, the second quarter income would have been increased by $24.1 million.

The U.S.-based oilfield services supplier reported second quarter 2015 revenues of $1.05 billion, an increase of $570.5 million, compared to revenues of $476.1 million for the prior-year second quarter.

Revenues for the second quarter of 2015 were positively impacted by strong revenue recognition at the INPEX Ichthys project, Brunei Shell Petroleum project and three Middle East projects, McDermott explained.

David Dickson, President and Chief Executive Officer of McDermott, said: “This was another positive quarter for McDermott as we experienced excellent execution on our existing portfolio of projects and all of our areas returned to profitability.”

“While the timing of new order intake remains volatile as commodity prices remain low, we continue to leverage McDermott’s vertically integrated model and win contracts in our key markets, including a new project for Saudi Aramco and two new projects in the Americas. Additionally, we remain disciplined in bidding new projects and continue to actively manage our cost structure,” he said.

As of June 30, 2015, the Company’s backlog was $3.1 billion, compared to $3.75 billion at March 31, 2015.

Of the June 30, 2015 backlog, approximately 52% related to offshore operations and approximately 48% related to subsea operations. Order intake in the second quarter 2015 totaled $428.5 million and included new awards for Saudi Aramco in the MEA area, as well as PEMEX and LLOG in the AEA area.

Providing guidance for the full year, McDermott said revenues for the year were expected to be slightly lower at $3.0 – $3.3 billion range than original 2015 guidance of $3.3 – $3.6 billion because of the delays at Ichthys gas field development in Australia during the first quarter and customer initiated project schedule changes.