McDermott swings to 3Q profit
- Business & Finance
McDermott International, an engineering and construction company supporting offshore oil and gas industry, has reported a profitable third quarter of 2015.
The company’s net profit for the quarter was $3.67 million, compared to a net loss of $30 million a year ago.
McDermott reported third quarter 2015 revenues of $805.9 million, an increase of $391.3 million, compared to revenues of $414.6 million for the prior-year third quarter.
Revenues for the third quarter of 2015 were positively impacted by, the company says, strong revenue recognition at the INPEX Ichthys project, three Middle East projects, the Brunei Shell Petroleum project and the PB Litoral project in Mexico.
As of September 30, 2015, the Company’s backlog was $4.4 billion, compared to $3.1 billion at June 30, 2015.
Of the September 30, 2015 backlog, approximately 73% is related to offshore operations, and approximately 27% is related to subsea operations. Order intake in the third quarter 2015 totaled $2.1 billion and included the new LTA lump sum award from Saudi Aramco and two awards in Qatar.
At September 30, 2015, the Company was targeting to bid approximately $16.6 billion in projects that it expects to be awarded to the market through December 31, 2016. In total, the Company’s potential revenue pipeline, including backlog, was $23.6 billion as of September 30, 2015.