McDermott Loss Narrows

McDermott, a provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments, has cut its net loss year-over-year despite lower revenues in the same quarter last year.

McDermott’s third quarter 2014 net loss was $34 million, or $0.14 per fully diluted share, compared to a net loss of $64 million, or $0.27 per diluted share, in the prior-year quarter.

Revenues decreased to $415 million, a drop of $272 million versus the $687 million revenues in the prior-year quarter, due to lower project activity.

The company narrowed its operating loss to $14 million in the third quarter 2014, compared to the prior-year operating loss of $53 million.

Additionally, McDermott’s backlog, as of September 30, 2014, was $4.0 billion, compared to $4.1 billion at June 30, 2014 and prior-year backlog of $ 4.6 billon. 61 percent of Q3 backlog is related to subsea operations.

David Dickson, President and Chief Executive Officer of McDermott, said: “We are pleased to report improved year-over-year financial results that we believe reflect considerable progress on our turnaround initiatives, improvement in our operations and stabilization of our financial results.”

“By restructuring the organization and management team and implementing a culture of accountability and performance, we believe we have improved McDermott’s long-term competitiveness, and we continue to focus on building profitable backlog.”

“With a recently recapitalized balance sheet and improved operating cash flow, we believe McDermott has the financial flexibility to execute its turnaround plan,” said Stuart Spence, Executive Vice President and Chief Financial Officer.

Subsea World News Staff