McDermott Sees Profits Rise

Houston-based McDermott posted quarterly profit of $25.5 million, or 9 cents per fully diluted share, compared to $500K loss in the fourth quarter 2016.

McDermott’s result for the full-year 2017 was profit of $178.5 million or 63 cents diluted EPS, versus $34 million profit of 12 cents per diluted share in 2016.

The full-year profit beats McDermott’s own predictions at the end of Q3 2017 by 10 cents, while revenues were almost in line with expectations.

“I am extremely pleased to announce an exceptional set of financial results to close out 2017, which reflect a strategically and operationally successful year for McDermott and its employees,” said David Dickson, president and CEO of McDermott.

In the fourth quarter of 2017, McDermott generated revenues of $718 million, up from $642 million in the corresponding period in 2016. Full-year 2017 revenues came close to $3 billion, some $349 million more from the 2016.

According to the company, quarterly revenue increase was mainly associated with Saudi Aramco and Inpex projects.

Order intake in the fourth quarter totaled $2.2 billion. As of December 31, 2017, McDermott’s backlog was $3.9 billion, of which approximately 87 percent is related to offshore operations and approximately 13 percent is related to subsea operations.

Dickson added: “Our strong order intake in the fourth quarter gave McDermott a solid backlog heading into a new year, and we have continued the momentum with our recent announcement of the 13 jackets award from Saudi Aramco in the first quarter of 2018.”

Guidance for full-year 2018 has been set where McDermott said it expects revenues between $3.1 billion and $3.3 billion, and predicts earnings per share from 42 cents to 52 cents.

Subsea World News Staff