May 26, 2015, 9:14 AM
May 26, 2015, 7:47 AM
- McDermott (NYSE:MDR) +8.3% premarket on news it has been awarded a large brownfield contract by Saudi Aramco to build and install 12 jackets for offshore oil and gas fields in Saudi Arabian waters.
- Work is scheduled for completion by the end of Q1 2016 and will be included in MDR's Q2 2015 backlog; financial terms are not disclosed.
- Also, a Barron's profile over the weekend says MDR could rise more than 35% in the next year or so as it sheds more of its money-losing legacy deals and begins to profit from newer ones serving operators closer to shore.
May 12, 2015, 2:32 PM
- McDermott International (MDR -4.1%) says it has eliminated ~1,700 jobs, mostly skilled labor jobs in its global fabrication yards, as it reports a smaller than expected Q1 loss but an 8.8% Y/Y decline in revenues.
- MDR attributes some of the financial losses to seasonal weather problems and to project delays caused by third-party companies.
- MDR says its backlog as of March 31 was $3.75B, compared to $3.6B on Dec. 31; of the latest backlog, about half was related to offshore operations and the other half to subsea operations; Q1 order intake totaled $698M.
- Despite the losses, MDR says it is in a strong position moving forward with several new contracts in the Middle East and South America, despite the ongoing industry problems with low oil and gas prices.
May 4, 2015, 12:57 PM
- McDermott (MDR +4.5%) powers higher after securing a significantly enlarged workscope under an amendment to its existing contract for fabrication and modification work on the offshore Hout field in the neutral zone between Saudi Arabia and Kuwait.
- The scope includes engineering, procurement, construction and installation for a new platform and two bridges, including significant modifications at the existing complex.
- MDR expects work on the brownfield project to be executed through Q2 2017 and says it is included in its Q1 2015 backlog.
Apr. 7, 2015, 11:54 AM
- McDermott (MDR +8.8%) enjoys strong gains on news it was awarded the SURF engineering, product supply and installation scope for the Atlanta early production system in the Santos basin offshore Brazil.
- MDR will be responsible for the engineering and offshore installation of all subsea hardware, including flexible pipes, umbilicals, umbilical termination assemblies, subsea pump skids, suction piles and associated equipment.
- MDR says the award represents an important step for its strategic plan for Brazil, adding to its experience as a long-term charter subsea installation contractor and showing the technical expertise to perform EPCI work in the region.
Mar. 3, 2015, 12:45 PM
Mar. 3, 2015, 9:16 AM
Mar. 2, 2015, 6:49 PM
- McDermott (NYSE:MDR) +21.8% AH after reporting a surprise Q4 profit and better than expected revenues, as well as strong revenue guidance for 2015.
- MDR issues upside guidance for FY 2015, forecasting revenues of $3.3B-$3.6B vs. $2.79B analyst consensus estimate, and operating income of $25M-$50M; the company plans to lay off ~10% of its workers by the end of the year.
- MDR expects 2015 cash savings from its restructuring, before costs, of ~$50M, with cash savings of $100M/year beginning in 2016.
- At year-end 2014, contract backlog stood at $3.6B, down from $4B in Q3 and $4.8B at the end of 2013; 57% of the backlog is tied to subsea operations, and 43% to offshore operations.
- Also announces contract wins for two separate offshore construction projects in the Middle East: a significant power supply system replacement contract by Saudi Aramco for the Marjan field offshore Saudi Arabia, and a project for new jacket, temporary deck and replacement umbilical by Qatar Petroleum for the North Field Alpha gas development offshore Qatar.
Mar. 2, 2015, 5:37 PM
Jan. 21, 2015, 5:35 PM
Dec. 30, 2014, 5:36 PM
Nov. 11, 2014, 8:36 AM
- McDermott International (NYSE:MDR) +5.8% premarket on news it has been awarded a three-year contract by Brunei Shell Petroleum for shallow water pipeline work at a pair of offshore fields.
- The first scope of work consists of transportation and installation of more than 62 miles of pipelines including corrosion resistant alloy clad pipelines, as well as umbilicals and cables.
- No financial terms were released.
Apr. 1, 2014, 9:14 AM
Mar. 31, 2014, 6:32 PM
- In an operations update, McDermott (MDR) -2.8% AH after warning that Q1 results may "differ substantially from the company’s current expectation."
- MDR says it expects the operating profit margins of projects in backlog to be in the low single digits, which does not cover restructuring costs or a portion of fixed costs for direct operating expenses and G&A expenses.
- Also announces a public offering of 10M tangible equity units, each with a stated value of $25.
Mar. 24, 2014, 10:03 AM
- McDermott (MDR +2.7%) shares could grow 20% or more in a year, Barron's says in a weekend analysis, as new CEO David Dickson looks to restore profitability.
- MDR has struggled after it started bidding for sub-sea projects after previously being a provider of services to companies in shallow waters, but the new CEO has made a priority of working through the old contracts and restoring profitability, while newly-won profitable work could drive earnings, according to the report.
- Despite its problems, demand in the offshore and subsea markets remains strong with MDR's bidding pipeline at $16B over the next five quarters.
Mar. 6, 2014, 2:59 PM
- McDermott (MDR +5.9%) shares recover some of their losses from earlier in the week after the engineering and construction specialist for the oil industry wins a large contract in the Arabian Gulf.
- The contract includes engineering, fabrication, transportation and installation of four new offshore topsides facilities, plus modification of two existing production facilities; operations are expected to begin in Q4, with project completion expected in Q1 2015.
- Shares slid more than 9% earlier this week after Q4 results fell far short of expectations and the company withdrew its previous guidance.
McDermott International, Inc. is an engineering, procurement, construction and installation company, which focuses on designing and executing complex offshore oil and gas projects worldwide. It provides EPCI services and delivers fixed and floating production facilities, pipeline installations... More
Sector: Industrial Goods
Industry: Heavy Construction
Country: United States
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