McDermott International Inc.
Company Summary
Financial Data:
NYSE:MDR from Google FinanceTickers:
-
MDR - New York Stock Exchange
Related Entities
Recent news
- 4/1/2024 - McDermott Completes... (subscriber access)
- 3/29/2023 - McDermott is Awarded... (subscriber access)
- 5/19/2022 - ADNOC Awards McDermott a... (subscriber access)
- 3/24/2022 - McDermott Delivers Gas... (subscriber access)
- 1/3/2022 - McDermott Awarded EPCI... (subscriber access)
Investor Presentations
- 1Q19 Earnings Presentation
- 4Q18 Earnings Presentation (subscriber access)
- 3Q18 Earnings Presentation (subscriber access)
- 2Q18 Earnings Presentation (subscriber access)
- 1Q18 Earnings Presentation (subscriber access)
- 4Q17 Earnings Presentation (subscriber access)
- 3Q17 Earnings Presentation (subscriber access)
- 2Q17 Earnings Presentation (subscriber access)
- 1Q17 Earnings Presentation (subscriber access)
- 4Q16 Earnings Presentation (subscriber access)
- 3Q16 Earnings Presentation (subscriber access)
- September 2016 Johnson Rice Energy Conference (subscriber access)
- March 2016 Weil Energy Conference (subscriber access)
Company Transactions
Date: 6/30/2018
Type: Merger
NOTES:
The transaction is expected to close at the end of 2Q18.
The transaction is expected to close at the end of 2Q18.
REGIONS:
Worldwide
News & Press Releases
Criterion News
- 4/1/2024 - McDermott Completes... (subscriber access)
- 3/29/2023 - McDermott is Awarded... (subscriber access)
- 5/19/2022 - ADNOC Awards McDermott a... (subscriber access)
- 3/24/2022 - McDermott Delivers Gas... (subscriber access)
- 1/3/2022 - McDermott Awarded EPCI... (subscriber access)
- 11/29/2021 - McDermott Completes... (subscriber access)
- 11/29/2021 - Woodfibre LNG Signs EPFC... (subscriber access)
- 10/13/2021 - Shell-led Group Selected... (subscriber access)
- 6/3/2021 - McDermott Completes Work... (subscriber access)
- 5/12/2021 - G2 LNG Signs Letter of... (subscriber access)
- 5/12/2021 - BHP Selects McDermott to... (subscriber access)
- 1/14/2021 - McDermott Brings Online... (subscriber access)
- 1/12/2021 - McDermott Completes... (subscriber access)
- 8/10/2020 - Cameron LNG Train 3... (subscriber access)
- 7/6/2020 - McDermott Awarded EPC... (subscriber access)
- 7/1/2020 - McDermott Completes... (subscriber access)
- 5/4/2020 - Freeport Train 3 Begins... (subscriber access)
- 4/29/2020 - McDermott Awarded EPCF... (subscriber access)
- 4/1/2020 - McDermott Reaches First... (subscriber access)
- 3/13/2020 - McDermott Recieves... (subscriber access)
- 3/10/2020 - McDermott Introduced... (subscriber access)
- 3/2/2020 - Cameron LNG Train 2... (subscriber access)
- 1/24/2020 - McDermott Secures Court... (subscriber access)
- 1/21/2020 - McDermott to Sell Lummus... (subscriber access)
- 1/21/2020 - McDermott to File for... (subscriber access)
- 1/16/2020 - McDermott Lenders Hold... (subscriber access)
- 12/30/2019 - McDermott Reportedly In... (subscriber access)
- 12/26/2019 - McDermott & Chiyoda... (subscriber access)
- 12/18/2019 - EPC Firms Ship Freeport... (subscriber access)
- 12/16/2019 - McDermott Recieves... (subscriber access)
Press Releases
- The benefit of a settlement agreement on the Cameron LNG project, under which $110 million of progress incentives were recognized during the quarter;
- $38 million on the Freeport LNG project as a result of increased construction and subcontractor costs; and
- $33 million on the company's offshore projects for Pemex in the Gulf of Mexico related to disagreements with the customer that have arisen coincident with changes in that company's leadership team and the country's political landscape.
- Provides the opportunity for incentive bonus payments for achieving construction and commissioning milestones on specified dates for Trains 2 and 3
- Aligns the start dates for any schedule-related liquidated damages to be consistent with the current schedule
- Fully aligns and strengthens the commitment of CCJV to complete the project in accordance with the current schedule
- A $2.2 billion goodwill impairment charge due in part to a change in the Company's cost of capital and risk premium assumptions included in the discount rates utilized to derive the present value of our cash flows.
- A $190 million reduction in the carrying value of the Company's deferred tax assets, due to the impact of a full valuation allowance against all net deferred tax assets as a result of the goodwill impairment creating a three-year cumulative loss position.
- A non-cash impairment charge of $58 million on two of the Company's marine vessels, primarily related to lower levels of planned future utilization.
- Annual fourth quarter, non-cash, actuarial mark-to-market adjustment of $47 million related to the Company's pension obligations.
- Transaction, restructuring and integration costs of $32 million.
- A $168 million change in estimated costs on the Company's Cameron LNG project, as previously disclosed, due to unfavorable labor productivity, and subcontract, commissioning and construction management costs.
- A $31 million change in estimated costs on the Company's Calpine project.
- $54 million of expense on the Abkatun-A2 offshore project in Mexico, caused by a schedule-driven change in the fabrication plan carrying work offshore, subsequent weather delays and lack of contractually promised accommodations for offshore crew.
- $25 million of corporate expense reported as unallocated direct operating expense for costs incurred to make alternate arrangements for a third-party vessel charter because the previously designated vessel was withdrawn from the market.
- $33 million of increased SG&A expense associated with information technology costs, self-insurance programs and other items.
- $28 million of additional expense, due in part to an unplanned warranty repair, increased bid expenses and costs associated with commencement of new projects in APAC.
- Cameron LNG Project – Operationally, the project continues to progress well and in line with the schedule presented in the third quarter of 2018. The gas turbine solo run was completed ahead of schedule, cold circulation of hot oil in Train 1 was completed during the fourth quarter and flare ignition testing was successfully completed on all flares. All of these events are crucial steps in the commissioning of Train 1, and we expect to achieve a major milestone with feed gas into the facility in the first quarter of 2019. As of the end of the fourth quarter of 2018, the project was 85% complete and had approximately $445 million of McDermott's portion of expected revenues remaining until expected completion. During the quarter, the project contributed $116 million to revenues and used $39 million of cash flows from operations. Phase 1 of the Cameron LNG project is scheduled for completion in Q2 2019; Trains 2 and 3 are expected to be completed in Q4 2019 and Q1 2020, respectively. The $168 million change in estimate resulted from unfavorable labor productivity and subcontract, commissioning and construction management costs.
- Calpine Gas Turbine Power Project – First fire was achieved in December 2018, the steam blows have been completed successfully and systems have been turned over to commissioning. During the fourth quarter of 2018, the project contributed $3 million to revenues and used $28 million of cash flows from operations. As of the end of the fourth quarter of 2018, the project was 95% complete, and substantial completion is expected in March 2019. The $31 million change in estimate resulted from increased labor construction costs associated with achieving first fire and substantial completion.
- Gary Luquette, non-executive Chairman of the Board of Directors, purchased approximately $500,000 of McDermott stock, bringing his total shares owned to 90,250.
- David Dickson, President and Chief Executive Officer, purchased approximately $400,000 of McDermott stock, bringing his total shares owned to 459,889.
- Stuart Spence, Executive Vice President and Chief Financial Officer, purchased approximately $250,000 of the company's stock, bringing his total shares owned to 141,961.
- Cameron LNG Project — At the end of the second quarter of 2018, the project was approximately 88% complete, with substantive progress made during the quarter. As of the end of the second quarter, piping was over 65% complete and electrical was over 50% complete. All process and utility powerhouses were energized and pipe testing is substantially complete for Phase 1. Substantial completion of Phase 1 pre-commissioning related activities is expected during the third quarter, which will position the facility to bring in fuel gas and commence start up activities in the fourth quarter. Prior to the combination, the decision was made to increase the workforce on the project. This resulted in declining productivity and increased costs, and we have therefore implemented a reduction in workforce to improve productivity and maintain schedule. The Company is currently targeting completion dates of Q1 2019 for Phase 1, Q3 2019 for Train 2 and very early Q1 2020 for Train 3 in accordance with customer requirements. Considering that the successful execution of each train is a three-step process involving mechanical completion, commissioning and commencement of operations, McDermott believes that all three trains will be producing gas by the end of 2019. Additionally, as part of the Company's One McDermott Way, we are working to strengthen our stakeholder relationships on Cameron LNG and all of the acquired projects.
- Freeport LNG Project — At the end of the second quarter of 2018, the project was approximately 83% complete. Significant progress has been made on the project operationally. All critical process and utility powerhouses have been energized and pipe testing is progressing rapidly on Train 1, with strong progress achieved on construction activities. Pre-commissioning related activities are anticipated to begin during the third quarter with plans to begin full commissioning activities in the fourth quarter of 2018. McDermott expects Train 1 to be complete in Q3 2019, Train 2 completion in Q1 2020 and Train 3 completion in Q2 2020. A claim to recover associated costs due to Hurricane Harvey has been filed with the customer and substantially all costs related to Hurricane Harvey are expected to be recovered under the contractual provisions, including force majeure.
- Calpine Gas Turbine Power Project — At the end of the second quarter of 2018, the project was approximately 89% complete. Construction work progressed during the second quarter and commissioning activities commenced. First fire is anticipated later in 2018. As of the end of the second quarter of 2018, the Company had targeted substantial completion by the end of the year.
- IPL Gas Turbine Power Project – The project has been completed and is now in the warranty period.
- Chris Lim, +65 68646264, chris.lim@bhge.com
- Gavin Roberts, +44 1224 349679, gavin.roberts@bhge.com
McDermott International, Inc. Announces Comprehensive Prepackaged Restructuring Transaction to De-Lever Balance Sheet and Immediately Position Company for Long-Term Growth
Source: PR Newswire
HOUSTON, Jan. 21, 2020 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) ("McDermott") today announced that it has the support of more than two-thirds of all its funded debt creditors for a restructuring transaction that will equitize nearly all the Company's funded debt, eliminating over $4.6 billion of debt.
The restructuring transaction will be implemented through a prepackaged Chapter 11 process that will be financed by a debtor-in-possession ("DIP") financing facility of $2.81 billion. Subject to court approval, McDermott expects the DIP financing, combined with cash generated by McDermott, to enable the Company to stabilize its cash flows, continue operating in the normal course and fulfill its commitments to key stakeholders, including customers, suppliers, joint-venture partners, business partners and employees.
The Company also has secured committed exit financing of over $2.4 billion in letter of credit facility capacity and will emerge from Chapter 11 with approximately $500 million in funded debt. The restructuring transaction will strengthen the Company's balance sheet, normalize its trade debt and position the Company for long-term growth.
All of McDermott's businesses are expected to continue to operate as normal for the duration of the restructuring. McDermott expects to continue to pay employee wages and health and welfare benefits, and to pay all suppliers in full. All customer projects are expected to continue uninterrupted on a global basis.
This morning, the Company commenced solicitation of votes from its lenders and bondholders in support of a prepackaged Chapter 11 Plan of Reorganization ("the Plan"). The Company intends to commence the prepackaged Chapter 11 filing in the U.S. Bankruptcy Court for the Southern District of Texas ("the Court") later today. The Company's support from all of its creditor constituencies is memorialized in a Restructuring Support Agreement. The Company plans to move swiftly toward Court approval of the Plan, with confirmation expected within approximately two months from filing.
As part of the restructuring transaction, subsidiaries of McDermott have entered into a share and asset purchase agreement (the "Agreement") with a joint partnership between The Chatterjee Group and Rhône Group (the "Joint Partnership") pursuant to which the Joint Partnership will serve as the "stalking-horse bidder" in a court-supervised sale process for Lummus Technology.
Under the terms of the Agreement, the Joint Partnership has agreed, and is committed, to acquire Lummus Technology for a base purchase price of $2.725 billion. McDermott will have the option to retain or purchase, as applicable, a 10 percent common equity ownership interest in the entity purchasing Lummus Technology. McDermott expects to hold an auction in approximately 45 days to solicit higher or better bids for the Lummus Technology business. Either the Joint Partnership or the winning bidder at the auction will purchase Lummus Technology as part of the Chapter 11 process, subject to regulatory and court approval.
Proceeds from the sale of Lummus Technology are expected to repay the DIP financing in full, as well as fund emergence costs and provide cash to the balance sheet for long-term liquidity.
"The restructuring transaction, which has the full support from all of our funded creditors, including our unsecured bondholders, is further recognition of McDermott's fundamentally solid operating business and proven strategy," said David Dickson, President and Chief Executive Officer of McDermott. "Our record backlog, the majority of which has been booked in the last two years, and high rate of new project awards demonstrates our customers' continued confidence in our business, the demand for our skills and our long-term opportunities ahead."
Mr. Dickson continued, "This financial restructuring will create a sustainable capital structure that matches the strength of our operating business. As a result of the transaction, we are eliminating over $4.6 billion in debt from our balance sheet and we will emerge with robust liquidity and significant financing to execute on customer projects in our backlog. Throughout this process, which we expect to complete expeditiously, McDermott will continue all business operations as normal and deliver on our commitments to our customers. I would like to thank our customers, employees, suppliers and partners for their ongoing dedication, and our lenders for their continued collaboration in reaching this comprehensive and definitive balance sheet solution. McDermott will emerge a stronger, more competitive company with a solid financial foundation, and we will build upon our reputation as a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry."
As a result of the upcoming Chapter 11 filing, McDermott expects to be delisted from the New York Stock Exchange within the next 10 days. McDermott common stock will continue to trade in the over-the-counter marketplace throughout the pendency of the Chapter 11 process. The shares are proposed to be cancelled as part of McDermott's restructuring.
Upon the Chapter 11 filing, more information about McDermott's restructuring, including access to Court documents, will be available at https://cases.primeclerk.com/McDermott or contact Prime Clerk, the Company's noticing and claims agent, at 877-426-7705 (for toll-free domestic calls) and 917-994-8380 (for tolled international calls), or email McDermottInfo@primeclerk.com.
Kirkland & Ellis LLP is serving as legal counsel to McDermott, Evercore Group L.L.C. is serving as the Company's financial advisor and AP Services, LLC, an affiliate of AlixPartners, is serving as operational advisor. Jackson Walker L.L.P. is serving as local legal counsel, Baker Botts L.L.P. is serving as corporate legal counsel, Arias, Fabrega & Fabrega is serving as Panamanian legal counsel and Prime Clerk is serving as administrative agent.
Davis Polk & Wardwell LLP is serving as legal counsel to the Term Loan Lenders, Centerview Partners LLC is serving as financial advisor to the Term Loan Lenders, Barclays is serving as agent to the Term Loan Lenders and Latham & Watkins LLP is serving as legal counsel to the agent to the Term Loan Lenders.
Linklaters LLP is serving as legal counsel to the Revolving Lenders, Crédit Agricole Corporate and Investment Bank is serving as agent to the Revolving Lenders, Bracewell LLP is serving as legal counsel to the agent to the Revolving Lenders and FTI Consulting is serving as financial advisor to the agent to the Revolving Lenders.
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Brown Rudnick LLP are serving as legal counsel to the bondholders. Houlihan Lokey, Inc. is serving as financial advisor to the bondholders.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include more than 42,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about improving McDermott's capital structure, McDermott's ability to effect its restructuring as expected, or at all, the inability of McDermott to execute on contracts in backlog successfully, intended use of proceeds from a transaction involving a sale of all or part of the Lummus Technology business and strengthening of McDermott's balance sheet. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: negotiations with third parties; regulatory and other approvals; adverse changes in the markets in which McDermott operates or credit or capital markets; and actions by lenders, other creditors, customers and other business counterparties of McDermott. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission, including McDermott's annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 646 805 2849
Media@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-international-inc-announces-comprehensive-prepackaged-restructuring-transaction-to-de-lever-balance-sheet-and-immediately-position-company-for-long-term-growth-300990241.html
SOURCE McDermott International, Inc.
Article Date
1/21/20201/17/2020 - Freeport LNG Train 2 Begins Commercial Operation
Freeport LNG Train 2 Begins Commercial Operation
Source: PR Newswire
HOUSTON, Jan. 17, 2020 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) with its partners, Chiyoda International Corporation and Zachry Group, today announced the beginning of commercial operation of Train 2 of the Freeport LNG project, owned by Freeport LNG Development, L.P.
"We continue to advance the Freeport LNG Project with another significant accomplishment, the commercial operation of Train 2," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "Congratulations to the joint venture project team who has maintained a commitment to safety and quality. Now we turn our full attention to delivery of the final train."
Zachry Group, as the joint venture lead, partnered with McDermott for the Pre-FEED in 2011, followed by FEED works to support the early development stage of the project as a one-stop shop solution provider for Trains 1 and 2. Later Chiyoda joined the joint venture partnership for work related to Train 3. The project scope includes three pre-treatment trains, a liquefaction facility with three trains, a second loading berth and a 165,000 m3 full containment LNG storage tank.
Freeport LNG Train 3 remains on track to meet its previously announced schedule, with initial production of LNG scheduled for Q1 of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing and scope on the Freeport LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/freeport-lng-train-2-begins-commercial-operation-300989013.html
SOURCE McDermott International, Inc.
Article Date
1/17/2020McDermott and Chiyoda Announce First Liquid from Cameron LNG Train 2
Source: PR Newswire
HOUSTON, Dec. 23, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and its joint venture partner, Chiyoda International Corporation, a U.S.-based wholly-owned subsidiary of Chiyoda Corporation, Japan, today announced that Train 2 of the Cameron LNG project in Hackberry, La., has begun producing liquefied natural gas (LNG). While production is in the initial phases, this significant project accomplishment is a precursor to substantial completion of Train 2.
"This accomplishment is attributable to the entire team's unwavering commitment to project delivery and steadfast focus on safety and quality performance as we work toward completion of Train 2," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "We are confident their hard work and focus will continue through the remainder of the project."
McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project since the project's initial award in 2014. The project includes three liquefaction trains with a projected export of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
Cameron LNG is jointly owned by affiliates of Sempra LNG LLC, Total, Mitsui & Co., Ltd. and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope and timing of the Cameron LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-and-chiyoda-announce-first-liquid-from-cameron-lng-train-2-300978887.html
SOURCE McDermott International, Inc.
Article Date
12/23/2019McDermott Awarded Technology Contract by Naftna Industrija Srbije in Serbia
Source: PR Newswire
HOUSTON, Dec. 17, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by Naftna Industrija Srbije (NIS) for the modernization of its existing Fluid Catalytic Cracking (FCC) unit to be implemented at their refinery in Pancevo, Serbia.
As part of this project, McDermott's Lummus Technology will provide the license and basic engineering for the Indmax FCC technology and a grassroots CDEtbe® unit for production of bio ethanol base Ethyl Tertiary Butyl Ether (ETBE). The state-of-the-art Indmax FCC technology, which was jointly developed by Indian Oil Corporation (IOCL) and Lummus, will shift the yield of the existing FCC unit toward production of valuable olefins and higher-octane naphtha. Part of the olefins will be converted with bio-ethanol to ETBE using Lummus' CDEtbe® technology, which is used as a clean, octane-boosting gasoline-blending component.
"We are extremely pleased that NIS has again selected Lummus Technology to upgrade their refinery," said Leon de Bruyn, Senior Vice President of Lummus Technology. "This award represents the first license of the Indmax FCC technology in Europe, demonstrating the increasing interest in Indmax FCC globally. It also demonstrates our ability to supply integrated and optimized solutions to our clients from our broad portfolio of technologies. NIS will benefit from the added process flexibility and improved economics for many years to come."
Previously, NIS has also selected the hydrocracking technology from Lummus Technology's joint venture, Chevron Lummus Global (CLG), as well as, more recently, Lummus Technology's delayed coking technology.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
The award for the license and basic engineering will be reflected in McDermott's fourth quarter 2019 backlog.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected scope of the contract discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Lummus Technology Media Relations
Chris Huk
Manager, Marketing & Communications, Lummus Technology
+ 1 281 588 5675
chuk@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-technology-contract-by-naftna-industrija-srbije-in-serbia-300975537.html
SOURCE McDermott International, Inc.
Article Date
12/17/2019McDermott Receives Continued Listing Standard Notice from NYSE
Source: PR Newswire
HOUSTON, Dec. 13, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) ("McDermott" or the "Company") announced that it was formally notified today by the New York Stock Exchange (the "NYSE") that the average closing price of the Company's shares of common stock had fallen below $1.00 per share over a period of 30 consecutive trading days, which is the minimum average share price for continued listing on the NYSE.
The Company plans to notify the NYSE of its intent to cure the deficiency and return to compliance with the NYSE continued listing requirements. Under the NYSE's rules, the cure period extends for six months following today's receipt of the notification.
The company's shares of common stock continue to trade on the NYSE, subject to compliance with other continued listing requirements.
Under the NYSE rules, the Company can regain compliance at any time during the six-month cure period if, on the last trading day of any calendar month during the cure period, its common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month. Failure to satisfy the conditions of the cure period or to maintain other listing requirements could lead to a delisting.
Today's NYSE notification does not affect the Company's business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company's material debt or other agreements.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about: the Company's expectation to regain compliance with NYSE listing rules; and the non-acceleration of the Company's debt. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: risks attendant to ongoing negotiations with various third parties; adverse changes in the markets in which we operate or credit markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-receives-continued-listing-standard-notice-from-nyse-300974803.html
SOURCE McDermott International, Inc.
Article Date
12/13/201912/12/2019 - McDermott Awarded Technology Contract for Project Traveler Grassroots Alkylate Production Facility in Texas
McDermott Awarded Technology Contract for Project Traveler Grassroots Alkylate Production Facility in Texas
Source: PR Newswire
HOUSTON, Dec. 12, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract for Next Wave Energy Partners, LP's grassroots alkylate production facility, known as Project Traveler, in Pasadena, Texas.
McDermott's Lummus Technology is providing the PDP and license for its unique ethylene dimerization process. Lummus Technology's proprietary Dimer® process converts ethylene to an unmatched high purity butene-2 feed stream ideal for producing an alkylate with a higher-octane value. Higher quality alkylate is used for blending cleaner-burning gasoline required by the demands of modern and future high-performance engines.
"Lummus' vast portfolio of petrochemical and refining options is enabling producers to produce an array of higher-value products from available feed streams. The innovative approach to producing alkylate from ethylene for Project Traveler is one such example,'' said Leon de Bruyn, Senior Vice President, Lummus Technology. "Alkylate is one of the cleanest petroleum products that is high in octane, yet low in vapor pressure, sulfur and aromatics. As the world transitions to more sustainable energy sources, Lummus will continue to deliver innovative solutions that help customers and end users lower their carbon footprints."
When operational in mid-2022, the facility will have the capability to consume 1.2 billion pounds per year of ethylene feedstock producing an estimated 28,000 barrels per day of alkylate.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
The award for the license and PDP will be reflected in McDermott's fourth quarter 2019 backlog.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value and scope of the contract discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Lummus Technology Media Relations
Chris Huk
Manager, Marketing & Communications, Lummus Technology
+ 1 281 588 5675
chuk@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-technology-contract-for-project-traveler-grassroots-alkylate-production-facility-in-texas-300973580.html
SOURCE McDermott International, Inc.
Article Date
12/12/201912/9/2019 - Freeport LNG Train 1 Begins Commercial Operation
Freeport LNG Train 1 Begins Commercial Operation
Source: PR Newswire
HOUSTON, Dec. 9, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) along with its partners, Chiyoda International Corporation and Zachry Group, today announced the beginning of commercial operation of Train 1 by owner Freeport LNG Development, L.P.
"The past few months have brought significant accomplishments for Train 1 of the Freeport LNG project—starting with introduction of feed gas in July, first liquid in August, shipment of first cargo in September and now commercial operation," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "Congratulations to the joint venture project team whose commitment to safety and quality has remained strong throughout the project."
Zachry Group, as the joint venture lead, partnered with McDermott for the Pre-FEED in 2011, followed by FEED works to support the early development stage of the project as a one-stop shop solution provider for Trains 1 and 2. Later Chiyoda joined the joint venture partnership for work related to Train 3. The project scope includes three pre-treatment trains, a liquefaction facility with three trains, a second loading berth and a 165,000 m3 full containment LNG storage tank.
Freeport LNG Trains 2 and 3 remain on track to meet their previously announced schedules, with first liquid from Train 2 being announced on Dec. 6 and Train 3 initial production of LNG scheduled for Q1 of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Zachry Group
Zachry Group is North America's pacesetter in turnkey construction, engineering, maintenance, turnaround and fabrication services to the power, energy, chemicals, manufacturing and industrial sectors.
We work with customers to plan, build and renew their most critical facilities, so they can achieve their immediate and long-term goals, all at the highest safety standards. We operate in more than 30 offices, and our 20,000 employees work in more than 400 locations nationwide, united by a shared set of values and the desire to deliver the very best outcome for our customers.
Visit www.zachrygroup.com for more information.
About Chiyoda
Chiyoda Corporation, headquartered in Yokohama, Japan provides services in the fields of engineering, procurement and construction on a global basis for petroleum refineries, petrochemical complexes, other hydrocarbon or industrial plants, particularly LNG plants in the USA, South East Asia, the Oceania regions, the Middle East and Russia.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing and scope on the Freeport LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/freeport-lng-train-1-begins-commercial-operation-300971737.html
SOURCE McDermott International, Inc.
Article Date
12/9/2019McDermott Awarded EPC Company of the Year in India
Source: PR Newswire
HOUSTON, Dec. 9, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR), today announced that the Federation of Indian Petroleum Industry recently named McDermott the Engineering, Procurement, Construction (EPC) Company of the Year at an awards ceremony held in New Delhi, India.
The award honored McDermott for introducing a new reel lay method and advanced digital techniques in the deepwater subsea installation of the Vashishta and S1 Field Development project, offshore the East Coast of India.
"Being honored as the EPC Company of the Year is an outstanding achievement," said Ian Prescott, Senior Vice President, Asia Pacific. "This award further substantiates McDermott's expertise in deepwater subsea projects and bolsters our reputation within a region that we have identified as a valuable growth market."
McDermott and consortium partner, Larsen & Toubro Hydrocarbon Engineering (LTHE), were awarded the project in April 2015 and completed works for ONGC, in April 2018.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Relations
Miki O'Farrell
Manager Marketing Asia Pacific
+6012 305 3609
mofarrell@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-company-of-the-year-in-india-300971049.html
SOURCE McDermott International, Inc.
Article Date
12/9/2019McDermott, Chiyoda and Zachry Group Announce First Liquid from Freeport LNG Train 2
Source: PR Newswire
HOUSTON, Dec. 6, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) with its partners, Chiyoda International Corporation and Zachry Group, today announced that Train 2 of the Freeport LNG project on Quintana Island in Freeport, Texas, has begun producing liquefied natural gas (LNG). This significant project achievement is a precursor to first cargo.
"First liquid for Train 2 is another great accomplishment for the Freeport LNG project," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "As we progress to first cargo for Train 2, we applaud the diligence and commitment of the project team for driving Freeport LNG toward a safe completion."
Zachry Group, as the joint venture lead, partnered with McDermott for the Pre-FEED in 2011, followed by FEED works to support the early development stage of the project as a one-stop shop solution provider for Trains 1 and 2. Later Chiyoda joined the joint venture partnership for work related to Train 3. The project scope includes three pre-treatment trains, a liquefaction facility with three trains, a second loading berth and a 165,000 m3 full containment LNG storage tank.
Freeport LNG Trains 2 and 3 remain on schedule with Train 3 initial production of LNG scheduled for Q1 of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Zachry Group
Zachry Group is North America's pacesetter in turnkey construction, engineering, maintenance, turnaround and fabrication services to the power, energy, chemicals, manufacturing and industrial sectors.
We work with customers to plan, build and renew their most critical facilities, so they can achieve their immediate and long-term goals, all at the highest safety standards. We operate in more than 30 offices, and our 20,000 employees work in more than 400 locations nationwide, united by a shared set of values and the desire to deliver the very best outcome for our customers.
Visit www.zachrygroup.com for more information.
About Chiyoda
Chiyoda Corporation, headquartered in Yokohama, Japan provides services in the fields of engineering, procurement and construction on a global basis for petroleum refineries, petrochemical complexes, other hydrocarbon or industrial plants, particularly LNG plants in the USA, South East Asia, the Oceania regions, the Middle East and Russia.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing and scope on the Freeport LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-chiyoda-and-zachry-group-announce-first-liquid-from-freeport-lng-train-2-300970415.html
SOURCE McDermott International, Inc.
Article Date
12/6/201912/2/2019 - McDermott to Access $350 Million Tranche B Financing Under Superpriority Senior Secured Credit Facility
McDermott to Access $350 Million Tranche B Financing Under Superpriority Senior Secured Credit Facility
Source: PR Newswire
HOUSTON, Dec. 2, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) ("McDermott" or the "Company") announced today that it has been granted access to the second tranche ("Tranche B") of the $1.7 billion superpriority senior secured credit facility (the "Agreement") announced on October 21, 2019. Tranche B provides McDermott with a $250 million Term Loan Facility and a $100 million Letter of Credit Facility. The Company expects to utilize the amounts available under Tranche B to continue financing working capital and support the issuance of required performance guarantees on new projects.
McDermott also announced that it has entered into a forbearance agreement with holders of over 35 percent of McDermott's 10.625 percent senior notes due 2024 (the "2024 Notes"). Under the terms of the forbearance agreement, the applicable holders of the 2024 Notes have agreed to forbear from exercising any rights related to the interest payment due on November 1, 2019, subject to certain conditions. The forbearance period extends through January 15, 2020, and may be extended further by a majority of the holders party to the forbearance agreement. McDermott is in discussions with additional holders of the 2024 Notes and anticipates that additional holders may execute the forbearance agreement in the coming days.
The Tranche B funding is expected to allow McDermott to continue collaborative discussions regarding a long-term balance sheet solution. In connection with the Tranche B funding, the required lenders have agreed to amendments to the Agreement that would waive certain conditions and modify cross-default provisions in order to facilitate the Tranche B funding.
McDermott continues to pursue the previously announced strategic alternatives process for Lummus Technology.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about: the expected use of credit available under the Agreement; measures being taken with respect to the Company's capital structure, balance sheet, liquidity and strategic transactions; the non-acceleration of the 2024 Notes; and satisfaction of conditions. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: risks attendant to ongoing negotiations with various third parties; adverse changes in the markets in which we operate or credit markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-to-access-350-million-tranche-b-financing-under-superpriority-senior-secured-credit-facility-300967358.html
SOURCE McDermott International, Inc.
Article Date
12/2/2019McDermott and Chiyoda Introduce Feed Gas to Train 2 at Cameron LNG
Source: PR Newswire
HOUSTON, Dec. 2, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and its joint venture partner, Chiyoda International Corporation, a U.S.-based wholly-owned subsidiary of Chiyoda Corporation, Japan, today announced that Train 2 of the Cameron project, located in Hackberry, La., has reached the final commissioning stage. This includes the introduction of pipeline feed gas into Train 2 of the liquefaction export facility, the precursor for the production of liquefied natural gas (LNG). This achievement is yet another significant milestone during 2019 and the first for Train 2.
McDermott announced introduction of feed gas to Train 1 on April 15, 2019, which was followed by first liquid on May 14 and first cargo from Train 1 on May 31. On August 19, Cameron LNG announced that Train 1 began commercial operation, following its substantial completion.
"Congratulations to the entire Cameron LNG project team who continues to make strides on this project and remains focused on providing stellar project delivery as we reach another notable milestone," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America.
McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project since the project's initial award in 2014. The project includes three liquefaction trains with a projected export of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
Cameron LNG is jointly owned by affiliates of Sempra LNG LLC, Total, Mitsui & Co. Ltd. and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope and timing of the Cameron LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-and-chiyoda-introduce-feed-gas-to-train-2-at-cameron-lng-300967086.html
SOURCE McDermott International, Inc.
Article Date
12/2/201911/18/2019 - McDermott Awarded Ethylene Technology and Extended Basic Engineering Contract in Russia for Two Ethylene Crackers
McDermott Awarded Ethylene Technology and Extended Basic Engineering Contract in Russia for Two Ethylene Crackers
Source: PR Newswire
HOUSTON, Nov. 18, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it has been awarded a *sizeable technology contract from Baltic Chemical Company (BCC) and a *sizeable Extended Basic Engineering (EBE) contract from China National Chemical Engineering No. 7 Construction Company Limited (CC7). The ethane cracking project is owned by Baltic Chemical Complex LLC, a subsidiary of RusGazDobycha.
McDermott's Lummus Technology will provide both the Process Design Package (PDP) Engineering and the license for its olefin production and recovery technology. Lummus Technology's proprietary ethylene steam cracking process is the most widely-applied process for the production of polymer-grade ethylene, representing approximately 40 percent of the world's capacity.
"Lummus Technology has been present in Russia for many years where we have been—and will continue to be—a reliable partner to our many clients here,'' said Leon de Bruyn, Senior Vice President, Lummus Technology. "We are excited to be selected for two world-scale ethylene plants by BCC and bring our reliable, high-yield and energy-efficient steam cracking technology to a project that has so much visibility in the petrochemicals industry."
The project is the largest ethylene integration project in the world. Located near Russia's shores at the Gulf of Finland, the natural gas processing chemical plant will be comprised of two ethylene cracking facilities, each with an annual capacity of 1.4 million tons.
"McDermott's end-to-end infrastructure and technology solutions are an important differentiator for operators in Russia,'' said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. "The potential future pull-through opportunities related to the Lummus Technology portfolio make us uniquely positioned to execute this phase and future phases of the project."
McDermott has previously partnered with CC7 on the Afipsky Hydrocracker project and the ongoing Lukoil Delayed Coker Unit project.
The extended basic engineering work will primarily be executed from McDermott's downstream Centers of Excellence in The Hague and Brno, Czech Republic.
Work on the project will begin immediately and the contract award will be reflected in McDermott's fourth quarter 2019 backlog.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
* - McDermott defines a sizeable contract as between USD $1 million and $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope and timing of the project and the potential future pull-through opportunities discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Zoe Keenan
Communications Manager
Europe, Africa, Russia and Caspian
+447917581727
zakeenan@mcdermott.com
Lummus Technology Media Relations
Chris Huk
Manager, Marketing & Communications, Lummus Technology
+ 1 281 588 5675
chuk@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-ethylene-technology-and-extended-basic-engineering-contract-in-russia-for-two-ethylene-crackers-300959683.html
SOURCE McDermott International, Inc.
Article Date
11/18/2019McDermott's Lummus Technology Awarded Petrochemicals Contract in China
Source: PR Newswire
HOUSTON, Nov. 7, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by Formosa Chemicals Industries Ningbo Limited for the technology license and basic engineering services for a grassroots alpha-methylstyrene (AMS) recovery unit in Ningbo, China. This 10,000 MTA unit will utilize AMS technology jointly licensed by Versalis and McDermott's Lummus Technology to recover specialty chemicals for niche market sale.
"This award represents the first license of this AMS technology," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "The commercialization of this technology illustrates the effectiveness of our continuous innovation process. Lummus works to provide our customers market-leading solutions to enhance their competitiveness; the addition of the AMS recovery unit will enable Formosa to recover this specialty chemical with unmatched purity, ultimately enhancing the operating margins while lessening the environmental footprint."
The award strengthens the ongoing collaboration, dating back to 1995, between the Formosa organization and Lummus Technology. This technology incorporates many decades of operating and design experience by Versalis with Lummus design expertise.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector. Versalis (the chemical company of Italian energy major Eni) and Lummus have a long-standing collaboration to develop and offer a variety of petrochemical process licenses.
This award was reflected in McDermott's second quarter 2019 backlog.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Lummus Technology Media Relations
Chris Huk
Manager, Marketing & Communications, Lummus Technology
+1 281 588 5675
chuk@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermotts-lummus-technology-awarded-petrochemicals-contract-in-china-300953390.html
SOURCE McDermott International, Inc.
Article Date
11/7/201911/4/2019 - McDermott Reports Third Quarter 2019 Results
McDermott Reports Third Quarter 2019 Results
Source: PR Newswire
HOUSTON, Nov. 4, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today reported revenues of $2.1 billion, a net loss of $1.9 billion, or $(10.37) per diluted share, and an operating loss of $1.7 billion for the third quarter of 2019. The net loss was due primarily to non-cash accounting charges of $1.5 billion related to impairments of goodwill and intangible assets and $256 million of changes in project gross profit on specified projects identified in a covenant of our new Superpriority Credit Agreement.
Operationally, four of our five operating segments reported solid performance during the third quarter, led by the Middle East and North Africa (MENA), which reported operating income of $69 million and an operating margin of 13.3%, both sharply improved from the second quarter of 2019. Additionally, we reported backlog of $20.1 billion, new awards of $1.7 billion and a revenue opportunity pipeline of a near-record $89.1 billion for the third quarter of 2019.
David Dickson, President and Chief Executive Officer of McDermott, said: "We experienced continued strong backlog, with several significant customer project awards, including the Ichthys Phase 2a Gas Field Development Project in Australia, which we developed in conjunction with our integrated subsea-solutions partner, Baker Hughes, as well as a large LNG tank project on the U.S. Gulf Coast. We also achieved solid operating results in our MENA, Asia Pacific (APAC), Europe, Africa, Russia and Caspian (EARC) and Technology segments. At the same time, our capital structure continues to be pressured by certain legacy CB&I projects. Our recently announced $1.7 billion financing agreement with our lenders signals their confidence in our underlying business. We continue working with them to achieve a long-term balance sheet solution as we remain focused on delivering value for our customers, employees, subcontractors, and suppliers."
Capital Structure and Liquidity
As announced on October 21, 2019, we have obtained a $1.7 billion financing agreement from certain of our first-lien lenders, of which $650 million has been accessed.
We elected to enter into the 30-day grace period with respect to a November 1, 2019 interest payment on our 10.625% senior notes due in 2024 in order to continue collaborative discussions with our lenders and noteholders to find a long-term balance sheet solution.
Third Quarter 2019 Operating Performance
Our adjusted operating loss in the third quarter of 2019 was $125 million. The solid performance of our MENA, APAC, EARC and Technology segments was more than offset by the $256 million of changes in project gross profit on specified projects identified in a covenant of our new Superpriority Credit Agreement.
Our operating loss of $1.7 billion was primarily due to the $1.5 billion goodwill and intangible assets impairments in addition to the $256 million of changes in project gross profit on specified projects. The goodwill impairment of $1.4 billion primarily resulted from updates to the 2019 management budget and increases in discount rate assumptions driven by increases in our cost of capital and risk premium assumptions associated with forecasted cash flows. The intangible assets impairment of $0.1 billion primarily resulted from a reduction in the estimated remaining useful life of the trade names associated with our NCSA segment, causing a decrease in future attributable cash flow expectations.
Financial Highlights | |||||||||||||||||||||||
Three months Ended | Delta | Nine months Ended | Delta | ||||||||||||||||||||
Sep 30, | Sep 30, | Qtr-on-Qtr | Sep 30, | Sep 30, | YTD-on-YTD | ||||||||||||||||||
($ in millions, except per share amounts) | |||||||||||||||||||||||
Revenues | $ | 2,121 | $ | 2,289 | $ | (168) | $ | 6,469 | $ | 4,632 | $ | 1,837 | |||||||||||
Operating (Loss) Income | (1,684) | 129 | (1,813) | (1,732) | 242 | (1,974) | |||||||||||||||||
Operating Margin | -79.4 | % | 5.6 | % | -85.0 | % | -26.8 | % | 5.2 | % | -32.0 | % | |||||||||||
Net (Loss) Income | (1,887) | 2 | (1,889) | (2,103) | 84 | (2,187) | |||||||||||||||||
Diluted EPS1 | (10.37) | 0.01 | (10.38) | (11.62) | 0.60 | (12.22) | |||||||||||||||||
Total Intangibles Amortization2 | 31 | 68 | (37) | 100 | 90 | 10 | |||||||||||||||||
Adjusted Operating (Loss) | (125) | 232 | (357) | 32 | 483 | (451) | |||||||||||||||||
Adjusted Operating Margin3 | -5.9 | % | 10.1 | % | -16.0 | % | 0.5 | % | 10.4 | % | -9.9 | % | |||||||||||
Adjusted Net (Loss) Income3,4 | (328) | 89 | (417) | (339) | 197 | (536) | |||||||||||||||||
Adjusted Diluted EPS1,3,4 | (1.80) | 0.20 | (2.00) | (1.87) | 1.28 | (3.15) | |||||||||||||||||
Adjusted EBITDA3 | (71) | 275 | (346) | 205 | 586 | (381) | |||||||||||||||||
Cash (Used) Provided by | (114) | (221) | 107 | (563) | 214 | (777) | |||||||||||||||||
Capital Expenditures | 32 | 19 | 13 | 65 | 62 | 3 | |||||||||||||||||
Free Cash Flow3 | (146) | (240) | 94 | (628) | 152 | (780) | |||||||||||||||||
Working Capital5 | (2,050) | (1,915) | (135) | (2,050) | (1,915) | (135) | |||||||||||||||||
1 | Diluted (Loss) Earnings Per Share ("EPS") and Adjusted Diluted EPS were calculated using weighted average diluted shares of 182 million and 181 million for the three months ended September 30, 2019 and 2018, respectively, and weighted average diluted shares of 181 million and 141 million for the nine months ended September 30, 2019 and 2018, respectively. |
2 | Total intangibles amortization includes the sum of project-related intangibles amortization, other intangibles amortization and amortization of intangible assets resulting from investments in unconsolidated affiliates, all of which are associated with the intangible assets and liabilities acquired in the business combination with CB&I (the "Combination"). |
3 | Adjusted operating (loss) income, adjusted operating margin, adjusted net (loss) income, adjusted diluted EPS and adjusted EBITDA reflect adjustments to Operating Income and Net Income computed in accordance with U.S. generally accepted accounting principles ("GAAP"). The reconciliations of these non-GAAP measures, as well as free cash flow, to the respective most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Non-GAAP to GAAP Financial Measures." |
4 | The calculations of adjusted net (loss) income and adjusted diluted EPS reflect the tax effects of non-GAAP adjustments during each applicable period. In jurisdictions in which we currently do not pay taxes, no tax impact is applied to non-GAAP adjusting items. |
5 | Working capital = (current assets, less cash and cash equivalents, restricted cash and project-related intangibles) – (current liabilities, less debt and project-related intangible liabilities). |
Asset Sales
We continue to pursue the previously announced strategic alternatives process for our Lummus Technology business and the sale process for the remaining portion of our pipe fabrication business. As previously announced, we decided to terminate the sale process for our industrial storage tank business.
Cash and Liquidity
Cash used by operating activities in the third quarter of 2019 was $(114) million. Total unrestricted cash at the end of the third quarter, prior to receipt of the first tranche of the $1.7 billion financing agreement, was $677 million. As of September 30, 2019, we had approximately $754 million of combined availability under our principal letter of credit facilities, uncommitted bilateral letter of credit facilities and surety arrangements. Our uncommitted bilateral letter of credit and surety arrangements, totaling $724 million of the combined availability at September 30, 2019, are agreed to by the facility counterparties on a case by case basis based upon their consideration of the beneficiary, financial or performance guarantee amount, and term of the guarantee, among other factors. Our uncommitted bilateral credit facility and surety bond providers have no obligation to issue letters of credit or bank guarantees, or to post surety bonds, on our behalf, and they may be able to demand that we provide them with cash or other collateral to backstop these liabilities. Our Credit Agreement, as amended on October 21, 2019, does not require testing of any financial covenants for the period ending September 30, 2019.
Reporting Segment Update
Our segment reporting is presented as: North, Central and South America, or NCSA; Europe, Africa, Russia and Caspian, or EARC; Middle East and North Africa, or MENA; Asia Pacific, or APAC; and Technology, or TECH. We also report results for Corporate. Segment and Corporate results are summarized below.
Segment Financial Highlights | |||||||||||||||||||||||||||
Three Months Ended Sep 30, 2019 | |||||||||||||||||||||||||||
Segment Operating Results | |||||||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Corporate | Total | |||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
New Orders | $ | 581 | $ | - | $ | 446 | $ | 468 | $ | 164 | $ | - | $ | 1,659 | |||||||||||||
Backlog1 | 7,614 | 3,782 | 6,464 | 1,632 | 592 | - | 20,084 | ||||||||||||||||||||
Revenues | 1,090 | 248 | 520 | 125 | 138 | - | 2,121 | ||||||||||||||||||||
Book-to-Bill | 0.5 | x | 0.0 | x | 0.9 | x | 3.7 | x | 1.2 | x | - | 0.8 | x | ||||||||||||||
Operating (Loss) Income | (1,405) | (250) | 69 | 1 | 30 | (129) | (1,684) | ||||||||||||||||||||
Operating Margin | -128.9 | % | -100.8 | % | 13.3 | % | 0.8 | % | 21.7 | % | - | -79.4 | % | ||||||||||||||
Adjusted Operating (Loss) | (152) | 10 | 69 | 1 | 30 | (83) | (125) | ||||||||||||||||||||
Adjusted Operating Margin2 | -13.9 | % | 4.0 | % | 13.3 | % | 0.8 | % | 21.7 | % | - | -5.9 | % | ||||||||||||||
Capex | 1 | 1 | 3 | 1 | 1 | 25 | 32 | ||||||||||||||||||||
Note: All amounts have been rounded to the nearest million. Individual line items may not sum to totals as a result of rounding. | |
1 | Our backlog is equal to our Remaining Performance Obligations (RPOs) as determined in accordance with U.S. GAAP. |
2 | Adjusted Operating Income (Loss) and Margin, by segment, are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Segment Non-GAAP to GAAP Financial Measures." |
Product Offering Financial Highlights | |||||||||||||||||||
Three Months Ended Sep 30, 2019 | |||||||||||||||||||
Offshore & | LNG | Downstream | Power | Total | |||||||||||||||
($ in millions) | |||||||||||||||||||
New Orders | $ | 956 | $ | 390 | $ | 292 | $ | 21 | $ | 1,659 | |||||||||
Backlog | 9,070 | 6,563 | 4,122 | 329 | 20,084 | ||||||||||||||
Revenues | 728 | 334 | 854 | 205 | 2,121 | ||||||||||||||
North, Central and South America (NCSA)
Revenues of $1.1 billion were primarily driven by the Cameron LNG, Freeport LNG, Total Ethane Cracker and Entergy power projects. Additional contributors were the Golden Pass LNG, Borstar Bay3 petrochemical and BP Cassia C offshore projects. The operating loss of $1.4 billion was primarily due to the goodwill and intangible assets impairments of $1.3 billion. The adjusted operating loss of $152 million was impacted by $220 million of changes in project gross profit on specified NCSA projects identified in a covenant of our new Superpriority Credit Agreement. Operating results for the third quarter included $90 million of incentives recognized on the Cameron project and close-out improvements and settlements of claims on our substantially completed projects.
Significant operational achievements and milestones were achieved during the third quarter. The Freeport LNG project achieved initial production on Train 1 and has loaded three tankers to date; substantial completion is expected in the fourth quarter of 2019. The Cameron LNG project achieved Phase 1 substantial completion, and Trains 2 and 3 are progressing on schedule, including Train 2 pipe installation and testing. The Golden Pass LNG project progress included the commencement of initial ground preparation. The Total Ethane Cracker project achieved an important milestone with the installation of all cracking heaters. The Duke Energy Asheville power project achieved key milestones as both power blocks have now completed steam blows, and project completion is estimated to be the middle of the fourth quarter of 2019. Finally, the Abkatun offshore project was accepted by Pemex in early October, and platform operations have been fully assumed by the customer.
Europe, Africa, Russia and Caspian (EARC)
Revenues of $248 million were primarily driven by progress on the Total Tyra, Lukoil, Afipsky, Tortue and Mozambique LNG projects. The operating loss of $250 million was primarily due to a goodwill impairment of $260 million. Adjusted operating income of $10 million was favorably impacted by a scope amendment on the Afipsky refinery project in Russia.
Early engineering and procurement progress was made during the third quarter on the Mozambique LNG contract awarded in the second quarter, and the EPC team has been mobilized to the job site. We believe our execution of this project will continue to demonstrate our ability to deliver comprehensive EPC solutions for world-scale LNG developments. Other key operational achievements in the third quarter included the Orpic Liwa JV achieving a safety milestone of 60 million-man hours without a lost-time incident. In addition, our Brno office completed its ISO recertification.
Middle East and North Africa (MENA)
MENA reported revenues of $520 million and operating income and margin of $69 million and 13.3%, respectively. Key contributors to revenues and operating income were primarily the Saudi Aramco Safaniya Phase 5 and 6, Marjan TP10, NFPS and NFE jackets, LTA II, 3 CRPOs, QP Bul Hanine, ADNOC Crude Flexibility, SASREF and Liwa projects.
The ADNOC Crude Flexibility project is on schedule with the commencement of critical equipment deliveries; isometric production has started to support the piping program, and teams have mobilized to the site with first tank courses being erected. The SASREF MMG Light project has recovered from earlier construction delays, and start-up of the refinery is expected in November, achieving 3 million man-hours without a lost-time incident. Following the September 2019 attacks on the Abqaiq oil processing facility in Saudi Arabia, we mobilized an emergency response team to assess requirements and immediately carried out repairs to damaged spheroid vessels.
Asia Pacific (APAC)
APAC reported revenues of $125 million and operating income and margin of $1 million and 0.8%, respectively. Revenues were primarily driven by the Pan Malaysia, SVDN, ONGC SURF 98/2 and Reliance KDG6 projects. Operating income was driven by progress on various active projects, project closeouts and higher utilization of engineering offices, partially offset by lower vessel productivity.
During the third quarter, the DB30 vessel continued its strong performance, with the execution of various pipelines as well as the successful completion of the transport, launch and installation of the Sao Vang Jacket for Idemitsu/PTSC, enabling the customer to commence drilling work. The Reliance KGD6 and the ONGC98/2 projects are preparing to mobilize various marine assets for offshore installation with active utilization through the end of 2019. The INPEX ICHTHYS project Phase 2a has successfully commenced with mobilization of key personnel. Fabrication activities at both Batam, Indonesia and QMW, China continue to intensify, with both facilities ramping up resources to support international works from the MENA, NCSA and EARC segments. Onshore activity remained steady, with the JG Summit Tanks scope being executed in the Philippines. As of the end of the third quarter of 2019, the project had achieved 1.4 million man-hours without a lost-time incident, and it remains on schedule to complete in the third quarter of 2020.
Technology (TECH)
TECH reported revenues of $138 million and operating income and margin of $30 million and 21.7%, respectively. Revenues were driven by licensing and propriety supply in the petrochemicals and refining markets, including catalyst. Operating income was driven by catalyst shipments, execution progress, earned fees and process performance.
Other key achievements during the third quarter included 1) being awarded a large master licensor contract by Amiral, including license, basic engineering package, extended basic engineering, training, technical services and supply of proprietary equipment, for what will be one of the world's largest mixed feed crackers; 2) being nominated as one of the top finalists by Hydrocarbon Processing magazine as best EPC/Licensor of the Year and best Petrochemical Technology; 3) remaining on pace for a potential record year in terms of the number of awarded projects; 4) continuing to make progress on the potential JDA TC2C™ (Thermal Crude to Chemicals) project with Aramco, with first implementation award expected in the fourth quarter of 2019 and with additional deployments under study; and 5) receiving a contract award for TECH's first license sale related to an alpha-methylstyrene unit, adding another technology to the TECH portfolio.
Corporate
Corporate expenses include various corporate and other non-operating activities. Corporate expense in the third quarter of 2019 was $129 million, mainly attributable to: selling, general, administrative and other expenses of $20 million; $60 million of unallocated operating costs; $14 million of restructuring and integration costs; $14 million of transaction-related costs associated with the sale process for the remaining portion of the pipe fabrication business and the now-terminated effort to sell the storage tank business and fees paid to external advisors retained to help us evaluate strategic and capital structure alternatives; and $18 million for vessel and other marine assets impairment due to underutilization.
Revenue Opportunity Pipeline
Our revenue opportunity pipeline consists of Backlog, Bids & Change Orders Outstanding and Target Projects, which are those projects we expect to be awarded in the market in the next five quarters. We define Backlog as Remaining Performance Obligations (RPOs) as determined in accordance with GAAP.
At the end of the third quarter of 2019, our revenue opportunity pipeline was approximately $89.1 billion, primarily driven by MENA and NCSA with continuing momentum in the offshore/subsea, downstream and LNG markets.
Revenue Opportunity Pipeline | As of | ||||||||||||||||||||||||||
Sep 30, 2019 | Jun 30, 2019 | Mar 31, | Dec 31, 2018 | Sep 30, 2018 | |||||||||||||||||||||||
($ in billions) | |||||||||||||||||||||||||||
Backlog | $ | 20.1 | $ | 20.5 | $ | 15.4 | $ | 10.9 | $ | 11.5 | |||||||||||||||||
Bids & Change Orders Outstanding1 | 11.8 | 15.6 | 17.7 | 20.3 | 20.7 | ||||||||||||||||||||||
Targets2 | 57.2 | 54.1 | 58.0 | 61.9 | 48.1 | ||||||||||||||||||||||
Total | 89.1 | 90.2 | 91.1 | 93.1 | 80.3 | ||||||||||||||||||||||
Revenue Opportunity Pipeline by | As of Sep 30, 2019 | ||||||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Total | ||||||||||||||||||||||
($ in billions) | |||||||||||||||||||||||||||
Backlog | $ | 7.6 | $ | 3.8 | $ | 6.5 | $ | 1.6 | $ | 0.6 | $ | 20.1 | |||||||||||||||
Bids & Change Orders Outstanding1 | 2.4 | 4.7 | 1.9 | 2.8 | - | 11.8 | |||||||||||||||||||||
Targets2 | 17.6 | 3.1 | 26.3 | 8.4 | 1.8 | 57.2 | |||||||||||||||||||||
Total | 27.6 | 11.6 | 34.7 | 12.8 | 2.4 | 89.1 | |||||||||||||||||||||
Note: All amounts have been rounded to the nearest tenth of a billion. Individual line items may not sum to totals as a result of rounding. | |
1 | There is no assurance that bids outstanding will be awarded to us or that outstanding change orders ultimately will be approved and paid by the applicable customers in the full amounts requested or at all. |
2 | Target projects are those that we have identified as anticipated to be awarded by customers or prospective customers in the next five quarters through competitive bidding processes and are capable of being performed by us. There is no assurance that target projects will be awarded to us or at all. |
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include approximately 32,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Non-GAAP Measures
This communication includes several "non-GAAP" financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with GAAP but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of those operations. The forecast non-GAAP measures we have presented in this communication include forecast EBITDA, adjusted operating income (loss), adjusted operating income margin, adjusted net income, adjusted diluted EPS, free cash flow, EBITDA and adjusted EBITDA. We believe these forward-looking financial measures are within reasonable measure.
Non-GAAP measures include adjusted operating income (loss), adjusted operating margin, adjusted net income (loss), adjusted diluted EPS, free cash flow, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that our management does not consider to be representative of our normal operations. We believe that these metrics are useful for investors to review, because they provide more consistent measures of the underlying financial results of our ongoing business and, in our management's view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, our management uses each of these metrics as measures of the performance of our operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for operating income, net income or other data prepared and reported in accordance with GAAP and should be viewed in addition to our reported results prepared in accordance with GAAP.
We define free cash flow as cash flows from operations less capital expenditures. We believe investors consider free cash flow as an important measure, because it generally represents funds available to pursue opportunities that may enhance stockholder value, such as making acquisitions or other investments. Our management uses free cash flow for that reason. We define EBITDA as net income plus depreciation and amortization, interest expense, net, provision for income taxes and accretion and dividends on redeemable preferred stock. We define adjusted EBITDA as EBITDA adjusted to exclude significant, non-recurring transactions to our operating income, both gains and charges. We have included EBITDA and adjusted EBITDA disclosures in this communication because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry. Our management also uses EBITDA and adjusted EBITDA to monitor and compare the financial performance of our operations. EBITDA and adjusted EBITDA do not give effect to the cash that we must use to service our debt or pay our income taxes, and thus do not reflect the funds actually available for capital expenditures, dividends or various other purposes. Our presentations of free cash flow, EBITDA and adjusted EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider free cash flow, EBITDA and adjusted EBITDA in isolation from, or as substitutes for, net income or cash flow measures prepared in accordance with U.S. GAAP.
Reconciliations of these non-GAAP financial measures and forecast non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included in this communication.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of McDermott. These forward-looking statements include, among other things, statements about: achieving a long-term balance sheet solution with our lenders and noteholders; the effects of our decision to not pay, when due, the November 1, 2019 interest payment on the 2024 Notes; our ability to deliver comprehensive EPC solution for world-scale LNG developments; project milestones and percentage of completion and expected timetables; cost estimates on identified projects; assessments and beliefs with respect to legacy CB&I projects (including the Cameron and Freeport LNG projects) and the Mozambique LNG project; backlog, bids and change orders outstanding, target projects and revenue opportunity pipeline, to the extent these may be viewed as indicators of future revenues or profitability; and the contemplated strategic alternatives process for our Lummus Technology business and sale of our pipe fabrication business. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which McDermott operates or credit or capital markets; the inability of McDermott to execute on contracts in backlog successfully; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; negotiations with lenders and noteholders; change orders and other modifications and actions by customers and other business counterparties of McDermott; changes in industry norms; negotiations with third parties with respect to the strategic alternatives process for our Lummus Technology business and the sale of our pipe fabrication business; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission, including McDermott's annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contact: | |
Investors & Financial Media | Global Media Relations |
Scott Lamb | Gentry Brann |
Vice President, Investor Relations | Senior Vice President, Communications, |
+1 832.513.1068 | Marketing and Administration |
+1 281 870 5269 | |
START OF APPENDIX
McDERMOTT INTERNATIONAL, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Revenues | $ | 2,121 | $ | 2,289 | $ | 6,469 | $ | 4,632 | ||||||||
Costs and Expenses: | ||||||||||||||||
Cost of operations | 2,173 | 1,986 | 6,140 | 3,948 | ||||||||||||
Project intangibles and inventory-related amortization | 7 | 30 | 27 | 42 | ||||||||||||
Total cost of operations | 2,180 | 2,016 | 6,167 | 3,990 | ||||||||||||
Research and development expenses | 9 | 8 | 25 | 13 | ||||||||||||
Selling, general and administrative expenses | 40 | 64 | 189 | 188 | ||||||||||||
Other intangibles amortization | 21 | 25 | 65 | 35 | ||||||||||||
Transaction costs | 14 | 5 | 29 | 45 | ||||||||||||
Restructuring and integration costs | 14 | 31 | 103 | 106 | ||||||||||||
Goodwill impairment | 1,370 | - | 1,370 | - | ||||||||||||
Intangible assets impairment | 143 | - | 143 | - | ||||||||||||
Other asset impairments | 18 | - | 18 | - | ||||||||||||
Loss on asset disposals | - | 1 | 103 | 2 | ||||||||||||
Total expenses | 3,809 | 2,150 | 8,212 | 4,379 | ||||||||||||
Income from investments in unconsolidated affiliates | 7 | 3 | 19 | 2 | ||||||||||||
Investment in unconsolidated affiliates-related | (3) | (13) | (8) | (13) | ||||||||||||
Operating (loss) income | (1,684) | 129 | (1,732) | 242 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (108) | (86) | (300) | (169) | ||||||||||||
Other non-operating income (expense), net | - | 1 | (1) | (13) | ||||||||||||
Total other expense, net | (108) | (85) | (301) | (182) | ||||||||||||
(Loss) income before provision for income taxes | (1,792) | 44 | (2,033) | 60 | ||||||||||||
Income tax expense (benefit) | 72 | 44 | 2 | (19) | ||||||||||||
Net (loss) income | (1,864) | - | (2,035) | 79 | ||||||||||||
Less: Net income (loss) attributable to | 9 | (2) | 26 | (5) | ||||||||||||
Net (loss) income attributable to McDermott | $ | (1,873) | $ | 2 | $ | (2,061) | $ | 84 | ||||||||
Dividends on redeemable preferred stock | (10) | - | (30) | - | ||||||||||||
Accretion of redeemable preferred stock | (4) | - | (12) | - | ||||||||||||
Net (loss) income attributable to common | (1,887) | 2 | (2,103) | 84 | ||||||||||||
Net (loss) income per share attributable to common | ||||||||||||||||
Basic | $ | (10.37) | $ | 0.01 | $ | (11.62) | $ | 0.60 | ||||||||
Diluted | $ | (10.37) | $ | 0.01 | $ | (11.62) | $ | 0.60 | ||||||||
Shares used in the computation of net (loss) income | ||||||||||||||||
Basic | 182 | 180 | 181 | 140 | ||||||||||||
Diluted | 182 | 181 | 181 | 141 | ||||||||||||
McDERMOTT INTERNATIONAL, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
September 30, | December 31, | |||||||
(In millions, except per share | ||||||||
Assets | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents ($256 and $146 related to variable interest entities | $ | 677 | $ | 520 | ||||
Restricted cash and cash equivalents | 333 | 325 | ||||||
Accounts receivable—trade, net ($107 and $29 related to VIEs) | 935 | 932 | ||||||
Accounts receivable—other ($36 and $57 related to VIEs) | 209 | 175 | ||||||
Contracts in progress ($223 and $144 related to VIEs) | 1,063 | 704 | ||||||
Project-related intangible assets, net | 68 | 137 | ||||||
Inventory | 52 | 101 | ||||||
Other current assets ($32 and $24 related to VIEs) | 149 | 139 | ||||||
Total current assets | 3,486 | 3,033 | ||||||
Property, plant and equipment, net | 2,118 | 2,067 | ||||||
Operating lease right-of-use assets | 361 | - | ||||||
Accounts receivable—long-term retainages | 49 | 62 | ||||||
Investments in unconsolidated affiliates | 450 | 452 | ||||||
Goodwill | 1,335 | 2,654 | ||||||
Other intangibles, net | 790 | 1,009 | ||||||
Other non-current assets | 165 | 163 | ||||||
Total assets | $ | 8,754 | $ | 9,440 | ||||
Liabilities, Mezzanine Equity and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Revolving credit facility | $ | 801 | $ | - | ||||
Debt | 3,450 | 30 | ||||||
Lease obligations | 161 | 8 | ||||||
Accounts payable ($322 and $277 related to VIEs) | 1,421 | 595 | ||||||
Advance billings on contracts ($497 and $717 related to VIEs) | 1,359 | 1,954 | ||||||
Project-related intangible liabilities, net | 24 | 66 | ||||||
Accrued liabilities ($66 and $136 related to VIEs) | 1,517 | 1,564 | ||||||
Total current liabilities | 8,733 | 4,217 | ||||||
Long-term debt | - | 3,393 | ||||||
Long-term lease obligations | 301 | 66 | ||||||
Deferred income taxes | 51 | 47 | ||||||
Other non-current liabilities | 778 | 664 | ||||||
Total liabilities | 9,863 | 8,387 | ||||||
Commitments and contingencies | ||||||||
Mezzanine equity: | ||||||||
Redeemable preferred stock | 271 | 230 | ||||||
Stockholders' equity: | ||||||||
Common stock, par value $1.00 per share, authorized 255 shares; issued 185 and 183 | 185 | 183 | ||||||
Capital in excess of par value | 3,554 | 3,539 | ||||||
Accumulated deficit | (4,822) | (2,719) | ||||||
Accumulated other comprehensive loss | (222) | (107) | ||||||
Treasury stock, at cost: 3 and 3 shares, respectively | (96) | (96) | ||||||
Total McDermott Stockholders' Equity | (1,401) | 800 | ||||||
Noncontrolling interest | 21 | 23 | ||||||
Total stockholders' equity | (1,380) | 823 | ||||||
Total liabilities and stockholders' equity | $ | 8,754 | $ | 9,440 | ||||
McDERMOTT INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2019 | 2018 | |||||||
(In millions) | ||||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (2,035) | $ | 79 | ||||
Non-cash items included in net (loss) income: | ||||||||
Loss on disposal of APP | 101 | - | ||||||
Goodwill impairment | 1,370 | - | ||||||
Intangible assets impairment | 143 | - | ||||||
Other asset impairment | 18 | - | ||||||
Depreciation and amortization | 200 | 187 | ||||||
Debt issuance cost amortization | 30 | 27 | ||||||
Stock-based compensation charges | 16 | 36 | ||||||
Deferred taxes | 4 | (86) | ||||||
Other non-cash items | - | 2 | ||||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | ||||||||
Accounts receivable | (78) | 130 | ||||||
Contracts in progress, net of advance billings on contracts | (955) | (318) | ||||||
Inventory | (23) | 4 | ||||||
Accounts payable | 680 | 123 | ||||||
Other current and non-current assets | (42) | (52) | ||||||
Investments in unconsolidated affiliates | (7) | (2) | ||||||
Other current and non-current liabilities | 15 | 84 | ||||||
Total cash (used in) provided by operating activities | (563) | 214 | ||||||
Cash flows from investing activities: | ||||||||
Business combinations, net of cash acquired | (7) | (2,374) | ||||||
Proceeds from asset disposals, net | 83 | 55 | ||||||
Purchases of property, plant and equipment | (65) | (62) | ||||||
Advances related to proportionately consolidated consortiums | (277) | (155) | ||||||
Investments in unconsolidated affiliates | (3) | (14) | ||||||
Total cash used in investing activities | (269) | (2,550) | ||||||
Cash flows from financing activities: | ||||||||
Revolving credit facility borrowings | 2,451 | - | ||||||
Revolving credit facility repayments | (1,650) | - | ||||||
Structured equipment financing | 32 | - | ||||||
Proceeds from issuance of long-term debt | - | 3,560 | ||||||
Repayment of debt and finance lease obligations | (26) | (531) | ||||||
Advances related to equity method joint ventures and proportionately consolidated | 248 | 67 | ||||||
Debt and letter of credit issuance costs | (3) | (209) | ||||||
Debt extinguishment costs | - | (10) | ||||||
Repurchase of common stock | (4) | (14) | ||||||
Distributions to joint venture members | (18) | - | ||||||
Total cash provided by financing activities | 1,030 | 2,863 | ||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (33) | (30) | ||||||
Net increase in cash, cash equivalents and restricted cash | 165 | 497 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 845 | 408 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 1,010 | $ | 905 | ||||
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||
EARNINGS PER SHARE COMPUTATION | |||||||||||||||
Three months Ended September | Nine months Ended September | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Net (loss) income attributable to McDermott | $ | (1,873) | $ | 2 | $ | (2,061) | $ | 84 | |||||||
Dividends on redeemable preferred stock | (10) | - | (30) | - | |||||||||||
Accretion of redeemable preferred stock | (4) | - | (12) | - | |||||||||||
Net (loss) income attributable to common stockholders | $ | (1,887) | $ | 2 | $ | (2,103) | $ | 84 | |||||||
Weighted average common stock (basic) | 182 | 180 | 181 | 140 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock-based awards | - | 1 | - | 1 | |||||||||||
Warrants and preferred stock | - | - | - | - | |||||||||||
Weighted average common stock (diluted) | 182 | 181 | 181 | 141 | |||||||||||
Net (loss) income per share attributable to common | |||||||||||||||
Basic: | $ | (10.37) | $ | 0.01 | $ | (11.62) | $ | 0.60 | |||||||
Diluted: | $ | (10.37) | $ | 0.01 | $ | (11.62) | $ | 0.60 | |||||||
SUPPLEMENTARY DATA | |||||||||||||||
Three months Ended September | Nine months Ended September | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions, except per share amounts) | |||||||||||||||
Depreciation & amortization | $ | 63 | $ | 107 | $ | 200 | $ | 187 | |||||||
Capital expenditures | 32 | 19 | 65 | 62 | |||||||||||
Backlog | 20,084 | 11,512 | 20,084 | 11,512 | |||||||||||
We report our financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also includes several Non-GAAP financial measures as defined under the SEC's Regulation G. The following tables reconcile certain Non-GAAP financial measures used in this press release to comparable GAAP financial measures. Additional reconciliations are provided in the accompanying tables.
McDERMOTT INTERNATIONAL, INC. | ||||||||||||||||||||||||||||
RECONCILIATION OF SEGMENT NON-GAAP TO GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||
Three Months Ended Sep 30, 2019 | ||||||||||||||||||||||||||||
Segment Operating Results | ||||||||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Corporate | Total | ||||||||||||||||||||||
($ in millions) | ||||||||||||||||||||||||||||
Revenues | $ | 1,090 | $ | 248 | $ | 520 | $ | 125 | $ | 138 | - | $ | 2,121 | |||||||||||||||
GAAP Operating (Loss) Income | (1,405) | (250) | 69 | 1 | 30 | (129) | (1,684) | |||||||||||||||||||||
GAAP Operating Margin | -128.9 | % | -100.8 | % | 13.3 | % | 0.8 | % | 21.7 | % | - | -79.4 | % | |||||||||||||||
Adjustments | ||||||||||||||||||||||||||||
Goodwill, intangibles & asset | 1,253 | 260 | - | - | - | 18 | 1,531 | |||||||||||||||||||||
Restructuring, Integration & | - | - | - | - | - | 28 | 28 | |||||||||||||||||||||
Total Non-GAAP Adjustments | 1,253 | 260 | - | - | - | 46 | 1,559 | |||||||||||||||||||||
Non-GAAP Operating (Loss) Income | $ | (152) | $ | 10 | $ | 69 | $ | 1 | $ | 30 | $ | (83) | $ | (125) | ||||||||||||||
Non-GAAP Adjusted Operating Margin | -13.9 | % | 4.0 | % | 13.3 | % | 0.8 | % | 21.7 | % | - | -5.9 | % | |||||||||||||||
Note: Individual line items may not sum to totals as a result of rounding. | |
1 | The goodwill impairment of $1.37 billion resulted from updates to the 2019 management budget and increases in our discount rate assumptions driven by increases in our cost of capital and risk premium assumptions associated with forecasted cash flows. The intangible assets impairment of $0.14 billion primarily resulted from a reduction in the estimated remaining useful life of the trade names associated with our NCSA segment, causing a decrease in future attributable cash flow expectations. The vessel impairment of $18 million is due to lack of future utilization plans. |
2 | Restructuring, integration and transactions costs of $28 million, which included $14 million of office and employee relocation and external consulting fees. Transaction fees of $14 million are due to legal fees associated the sale process for the remaining portion of the pipe fabrication business and the now-terminated effort to sell the storage tank business as well as fees to external advisors retained to help us evaluate strategic and capital structure alternatives. |
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES | |||||||||||||||
Three months Ended | Nine months Ended | ||||||||||||||
Sep 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||
($ in millions, except share and per share amounts) | |||||||||||||||
GAAP Net (Loss) Income Attributable to Common | $ | (1,887) | $ | 2 | $ | (2,103) | $ | 84 | |||||||
Less: Adjustments | |||||||||||||||
Loss on disposal of APP1 | - | - | 101 | - | |||||||||||
Goodwill impairment2 | 1,370 | - | 1,370 | - | |||||||||||
Intangible assets impairment3 | 143 | - | 143 | - | |||||||||||
Other asset impairments4 | 18 | - | 18 | - | |||||||||||
Transaction costs5 | 14 | 5 | 29 | 45 | |||||||||||
Restructuring and integration costs6 | 14 | 31 | 103 | 105 | |||||||||||
Intangibles amortization7 | - | 68 | - | 90 | |||||||||||
Total Non-GAAP Adjustments to Operating (Loss) Income | 1,559 | 104 | 1,764 | 241 | |||||||||||
Debt extinguishment costs8 | - | - | - | 14 | |||||||||||
Tax benefit on intercompany transfer of IP9 | - | - | - | (117) | |||||||||||
Tax Effect of Non-GAAP Gains and/or Charges10 | - | (17) | - | (25) | |||||||||||
Total Non-GAAP Adjustments | 1,559 | 87 | 1,764 | 113 | |||||||||||
Non-GAAP Adjusted Net (Loss) Income Attributable to | $ | (328) | $ | 89 | $ | (339) | $ | 197 | |||||||
GAAP Operating (Loss) Income | $ | (1,684) | $ | 129 | $ | (1,732) | $ | 242 | |||||||
Non-GAAP Adjustments to Operating (Loss) Income11 | 1,559 | 104 | 1,764 | 241 | |||||||||||
Non-GAAP Adjusted Operating (Loss) Income | $ | (125) | $ | 232 | $ | 32 | $ | 483 | |||||||
Non-GAAP Adjusted Operating Margin | -5.9 | % | 10.1 | % | 0.5 | % | 10.4 | % | |||||||
GAAP Diluted EPS | $ | (10.37) | $ | 0.01 | $ | (11.62) | $ | 0.60 | |||||||
Non-GAAP Adjustments | 8.57 | 0.19 | 9.75 | 0.68 | |||||||||||
Non-GAAP Adjusted Diluted EPS12 | $ | (1.80) | $ | 0.20 | $ | (1.87) | $ | 1.28 | |||||||
Shares used in computation of income per share: | |||||||||||||||
Basic | 182 | 180 | 181 | 140 | |||||||||||
Diluted | 182 | 181 | 181 | 141 | |||||||||||
Net (Loss) Income Attributable to Common Stockholders | $ | (1,887) | $ | 2 | $ | (2,103) | $ | 84 | |||||||
Depreciation and Amortization | 63 | 107 | 200 | 187 | |||||||||||
Interest Expense, Net | 108 | 86 | 300 | 169 | |||||||||||
Provision for Income Taxes | 72 | 44 | 2 | (19) | |||||||||||
Accretion and Dividends on redeemable preferred stock | 14 | - | 42 | - | |||||||||||
EBITDA13 | (1,630) | 239 | (1,559) | 421 | |||||||||||
Non-GAAP Adjustments effecting EBITDA | 1,559 | 36 | 1,764 | 165 | |||||||||||
Adjusted EBITDA14 | $ | (71) | $ | 275 | $ | 205 | $ | 586 | |||||||
Cash flows from operating activities | $ | (114) | $ | (221) | $ | (563) | $ | 214 | |||||||
Capital expenditures | (32) | (19) | (65) | (62) | |||||||||||
Free cash flow | $ | (146) | $ | (240) | $ | (628) | $ | 152 | |||||||
GAAP Revenues | $ | 2,121 | $ | 2,289 | $ | 6,469 | $ | 4,632 | |||||||
Note: Individual line items may not sum to totals as a result of rounding. | |
1 | Loss on the APP asset disposal during Q2 2019. |
2 | Goodwill impairment resulting from updates to the 2019 management budget and increases in our discount rate assumptions driven by increases in our cost of capital and risk premium assumptions associated with forecasted cash flows. |
3 | Intangible assets impairment primarily resulted from a reduction in the estimated remaining useful life of the trade names associated with our NCSA segment, causing a decrease in future attributable cash flow expectations. |
4 | Marine asset impairment of one vessel and two offshore diving operations saturation support systems due to lack of future utilization plans. |
5 | Transaction costs in Q3 2019 due to legal fees associated the sale process for the remaining portion of the pipe fabrication business and the now-terminated effort to sell the storage tank business as well as fees to external advisors to improve our capital structure by securing a Superpriority Credit Agreement and the exploration of strategic alternatives. Transaction costs in Q3 2018 were associated with the Combination. |
6 | Restructuring and integration costs in Q3 2019 related to office and employee relocation expenses and external consulting fees. Restructuring and integration costs in Q3 2018 were associated with as costs to achieve our combination profitability initiative ("CPI") program. |
7 | Intangibles amortization in Q3 2018 includes the amortization of all acquired intangibles from the Combination, including project-related intangibles, other intangible assets (including process technologies, trade names, trademarks and customer relationships, and amortization in intangibles associated with investments in unconsolidated affiliates. In Q4 2018, we changed our policy of considering the amortization of these intangible assets a Non-GAAP adjustment. |
8 | Prepayment of our prior credit facility and senior secured notes, including a make-whole premium and the accelerated write-off of debt issuance costs as part of financing of the combination during Q2 2018. |
9 | Tax benefit resulting from the internal transfer of certain intellectual property rights during Q2 2018 in conjunction with the combination. |
10 | The adjustments to GAAP Net (Loss) Income have been income tax effected when included in net income based upon the respective tax jurisdictions the adjustments were incurred in. No income tax effect has been taken on Non-GAAP charges incurred in the United States, where we do not expect to receive income tax benefits. |
11 | Includes the non-GAAP adjustments described in footnotes 1 through 7 above. Adjustments to operating income do not include Non-GAAP adjustments described in footnotes 8 through 10 above, as those items are not included in the computation of operating income. |
12 | Adjusted EPS includes the intangibles amortization, net of tax, described in footnote 7 above. |
13 | We define EBITDA as net income plus depreciation and amortization, interest expense, net, provision for income taxes and accretion and dividends on redeemable preferred stock. We define adjusted EBITDA as EBITDA adjusted to exclude significant, non-recurring transactions, both gains and charges, to our operating income as described in footnotes 1 through 6 and footnote 8 above. We have included EBITDA and adjusted EBITDA disclosures in this press release because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry and because adjusted EBITDA provides a consistent measure of EBITDA relating to our underlying business. Our management also uses EBITDA and adjusted EBITDA to monitor and compare the financial performance of our operations. EBITDA and adjusted EBITDA do not give effect to the cash that we must use to service our debt or pay our income taxes, and thus do not reflect the funds actually available for capital expenditures, dividends or various other purposes. In addition, our presentation of EBITDA and adjusted EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider EBITDA or adjusted EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP. |
14 | Includes the non-GAAP adjustments described in footnotes 1 through 6 and footnote 8 above. Adjustments to EBITDA do not include Non-GAAP adjustments described in footnotes 7, 9 and 10 above, as those items are not included in the computation of EBITDA. |
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-reports-third-quarter-2019-results-300951030.html
SOURCE McDermott International, Inc.
Article Date
11/4/2019McDermott Signs Memorandum of Understanding with Darwin Clean Fuels
Source: PR Newswire
HOUSTON, Oct. 30, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced the signing of a Memorandum of Understanding (MOU) with Darwin Clean Fuels Pty Ltd. The MOU is for the feasibility study, technology, front-end engineering design (FEED) and engineering procurement and construction (EPC) for a Clean Fuels Condensate Processing Plant in Darwin, in the Northern Territory, Australia.
"The refinery would leverage our proprietary technologies, including alkylation and sulfur recovery, and is evidence of McDermott's technology-led EPC capabilities," said Ian Prescott, Senior Vice President of Asia Pacific. "Our engineering feasibility studies often serve as the essential underpinning of client decisions about moving forward with major investments."
Condensate is a cleaner fuel; it is a light petroleum liquid that condenses from natural gas, requiring less processing to create quality transport fuels. Australia is a major producer of condensate which is forecast to export 260,000 barrels per1 day by 2020 growing to 305,000 bpd by 2030. Darwin Clean Fuels plans to design, build and operate the condensate plant which has 75 percent lower CO² emissions than crude oil refineries. Australia consumes some 1,000,000 barrels a day of transport fuels and currently imports 600,000 barrels per day to meet its transport fuel needs.
"Darwin Clean Fuels looks forward to the next phase of the project with McDermott to move it toward a final investment decision," said Tony Debenham, Darwin Clean Fuels, Managing Director. "The Clean Fuels Condensate Refinery is a great, long-term investment in Australia, creating jobs and contributing to the economy by reducing the reliance on fuel imports. It also creates an opportunity to maximize both the output and use of this great resource by refining condensate onshore in Australia rather than exporting it overseas for processing it into petrochemicals or refinery blendstock, helping to address the long-term fuel security issues that Australia faces."
As part of the initial contract, McDermott will undertake the feasibility study and FEED through to final investment decision. Upon final investment decision, McDermott will be the lead EPC contractor for the refinery. Early phase engineering work will commence immediately and be completed by quarter one in 2020.
About Darwin Clean Fuels
Darwin Clean Fuels Pty Ltd (DCF) is seeking to develop, construct and operate a 60,000 / 100,000 barrels per day (bpd) condensate processing facility to be located in Darwin, Northern Territory, Australia. This will be the first petroleum refinery of significant size to be built in Australia for over 45 years and the first in Australasia to be utilizing entirely condensate as its feedstock. DCF aims to take advantage of the, low sulphur, and high-quality condensate feedstock for processing into transport fuels that meet the stringent Australian clean fuel standards introduced in 2008/09 but will also meet Euro 6 standards which are mandated for 2027. In strategic alliance with BP, DCF will replace imports of fuel to the Northern Territory and imports of petrol to the Australian east coast markets. Australia has become a net importer of refined fuels, shifting from being a net exporter, through a combination of demand growth and shrinking refining capacity with further refinery plant closures forecast. Refining industry capital expenditure in Australia in recent years has been applied to meet the new clean fuel standards rather than increase refining capacity.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, timing and benefits of the Memorandum of Understanding discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Relations
Miki O'Farrell
Manager, Marketing APAC
+6012 305 3609
mofarrell@McDermott.com
1 FGE Condensate Annual 2019
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-signs-memorandum-of-understanding-with-darwin-clean-fuels-300947786.html
SOURCE McDermott International, Inc.
Article Date
10/30/2019McDermott Announces Substantial Completion of PEMEX Abkatun-A2 Platform
Source: PR Newswire
HOUSTON, Oct. 28, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced substantial completion of PEMEX Exploracion y Produccion's Abkatun-A2 Platform. The production platform is located in Mexico's Bay of Campeche in the Gulf of Mexico. This milestone means the platform has now been turned over to the owner to begin commercial operations.
"With substantial completion of the Abkatun-A2 Platform project successfully achieved, PEMEX is ready to begin commercial operations," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "The project demonstrates our ability to deliver a vertically integrated, turnkey EPCI solution to build and commission platforms and associated structures utilizing our project management, engineering and fabrication teams in Mexico."
The Abkatun-A2 Platform is McDermott's largest project in size and total value to date for PEMEX. The platform will provide replacement and expansion capabilities to the existing Ku-Maloob-Zaap, Cantarell and Ayatsil facilities. McDermott performed fabrication for the Abkatun-A2 project at its Altamira, Mexico fabrication facility and used its Derrick Barge 50 and Intermac 650 vessels to transport and install the platform. The Altamira yard is strategically positioned as a free trade zone and provides fabrication services for the Gulf of Mexico and Americas. The yard is known for its high-quality craftsmanship and exemplary safety standards.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-substantial-completion-of-pemex-abkatun-a2-platform-300945990.html
SOURCE McDermott International, Inc.
Article Date
10/28/201910/24/2019 - McDermott Awarded Fabrication Subcontract for Greater Tortue Ahmeyim Natural Gas Project
McDermott Awarded Fabrication Subcontract for Greater Tortue Ahmeyim Natural Gas Project
Source: PR Newswire
HOUSTON, Oct. 24, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a sizeable* fabrication subcontract for the Greater Tortue Ahmeyim natural gas project.
"This award reflects the value of holistic project planning to get the best outcomes for the project and the customer. Fabrication for both the SPS and subsea, umbilicals, risers and flowlines (SURF) scope for the Greater Tortue Ahmeyim project will now be undertaken in McDermott's yard in Batam, which enables a fast-tracked fabrication schedule to be delivered," said Ian Prescott, Senior Vice President for Asia Pacific.
The scope of work for fabrication of the SPS includes: project management; fabrication engineering; procurement; pre-assembly; fabrication; acceptance tests; and system-integration tests. The work is scheduled to begin in the third quarter 2019 and is expected to be completed by third quarter 2020 in McDermott's fabrication facility in Batam, Indonesia. As part of a previous award, McDermott is also fabricating the pipeline structures and riser structure for the Greater Tortue Ahmeyim Project in Batam.
The award will be reflected in McDermott's third quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected scope, value, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Relations
Miki O'Farrell
Manager, Marketing Asia Pacific
+60 12 305 3609
mofarrell@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-fabrication-subcontract-for-greater-tortue-ahmeyim-natural-gas-project-300944459.html
SOURCE McDermott International, Inc.
Article Date
10/24/201910/22/2019 - McDermott Awarded Large Contract for Mixed Feed Cracker for the Amiral Complex to be located in Saudi Arabia
McDermott Awarded Large Contract for Mixed Feed Cracker for the Amiral Complex to be located in Saudi Arabia
Source: PR Newswire
HOUSTON, Oct. 22, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a large* contract by Saudi Aramco and Total Raffinage Chimie (Total) to provide licenses, basic engineering package, extended basic engineering, training, technical services and supply of proprietary equipment for what will be one of the world's largest mixed feed crackers.
As part of the contract, McDermott's Lummus Technology will provide licensing and engineering services for its olefins technology, low pressure recovery (refinery off-gas recovery and treating), pygas hydrotreating, CDMtbe® Methyl Tertiary Butyl Ether (MTBE) (production technology using catalytic distillation), CDIB® (back cracking of MTBE to produce high purity isobutylene and methanol) and the BASF NMP (N-methylpyrrolidone-based butadiene extraction process). In addition, Lummus will provide its proprietary Short Residence Time (SRT®) heaters.
"Lummus has a reputation for innovation and reliability in the market and this award strengthens our industry-leading ethylene position by taking on the role of master licensor for multiple licensed units," said Leon de Bruyn, Senior Vice President, Technology. "The award is also a testament of our long-standing relationship with Aramco and Total and our commitment to the Kingdom of Saudi Arabia."
Linh Austin, Senior Vice President, Middle East and North Africa, added that the award further demonstrates McDermott's ability to support the Kingdom's stated objective of increasing petrochemical production.
"This award sets the foundation for Saudi Aramco and Total to deliver a world-scale integrated refinery and petrochemicals complex," Austin said.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,400 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
The award will be reflected in McDermott's third quarter 2019 backlog.
* McDermott defines a large contract as between USD $50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Lummus Technology Media Relations
Chris Huk
Manager, Marketing & Communications, Lummus Technology
+ 1 281 588 5675
chuk@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-large-contract-for-mixed-feed-cracker-for-the-amiral-complex-to-be-located-in-saudi-arabia-300942369.html
SOURCE McDermott International, Inc.
Article Date
10/22/2019McDermott International Enters into Agreement for up to $1.7 Billion of New Financing
Source: PR Newswire
HOUSTON, Oct. 21, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) (collectively with its subsidiaries, the "Company") today announced that it has entered into an agreement (the "Agreement") with certain of its secured lenders (the "Lenders") under which the Company will have access to up to $1.7 billion of additional financing, including letter of credit capacity. Under the terms of the Agreement, McDermott will have immediate access to $650 million of financing comprised of $550 million under a term loan facility and $100 million under a letter of credit facility, before reduction for related transaction fees and expenses.
The Company expects to utilize the amounts available under the Agreement to finance working capital and support the issuance of required performance guarantees on new projects.
"This new credit agreement is a continued signal from our lenders that they support McDermott, our underlying business, growth strategy and ability to achieve a long-term balance sheet solution," said David Dickson, President and Chief Executive Officer of McDermott. "The Agreement provides near-term liquidity for the Company to manage working capital and provide performance guarantees on expected new awards. We remain focused on serving our customers' needs, supporting our dedicated employees and maintaining our valued relationships with our subcontractors, suppliers and other business counterparties, all as part of our efforts to enhance our position as a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry."
McDermott continues to pursue the previously announced strategic alternatives process for Lummus Technology and the sale process for the remaining portion of the pipe fabrication business. McDermott has decided to terminate its previously announced sale process for its industrial storage tank business.
The Company's ability to access the remaining amount of financing under the Agreement is subject to various conditions that are at the discretion of the Lenders. Those conditions are detailed in the Form 8-K that the Company filed with the U.S. Securities and Exchange Commission today (the "Form 8-K").
McDermott also announced that it is withdrawing its previously stated guidance for full-year 2019. Separately, the presentation material used by the Company in discussions with the Lenders regarding the new financing is included as an exhibit to the Form 8-K.
Kirkland & Ellis LLP is serving as legal counsel to McDermott in connection with the new financing and related matters, Evercore is serving as financial advisor and AP Services, LLC, an affiliate of AlixPartners, is serving as operational advisor. Barclays is acting as lead arranger on the financing.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about: the expected use of credit available under the Agreement; measures being taken with respect to the Company's capital structure, balance sheet, liquidity and strategic transactions; and satisfaction of conditions. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: risks attendant to ongoing negotiations with various third parties; adverse changes in the markets in which we operate or credit markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by our customers and other business counterparties; changes in industry norms; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-international-enters-into-agreement-for-up-to-1-7-billion-of-new-financing-300941906.html
SOURCE McDermott International, Inc.
Article Date
10/21/2019McDermott Awarded FEED Contract for Shwe Phase 3 Development
Source: PR Newswire
HOUSTON, Sept. 24, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced that it was awarded a sizeable* front-end engineering design (FEED) contract by POSCO INTERNATIONAL Corporation for the Shwe Phase 3 gas field development, located offshore Myanmar.
"This award is a testament to McDermott's excellent FEED and EPCIC project delivery capability on large central production platform facilities. We look forward to continuing to work with POSCO INTERNATIONAL Corporation to meet Myanmar's growing energy demands," said Ian Prescott, Senior Vice President, Asia Pacific.
The Shwe field is approximately 44 miles (70 kilometers) offshore Myanmar. The scope of work includes FEED services for a new compression platform, a bridge link and modifications in existing platform.
Commencing in Q3 2019, the work will be undertaken in McDermott's Center of Engineering Excellence in Kuala Lumpur and is scheduled for completion in the second quarter 2020.
The award will be reflected in McDermott's third quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Relations
Miki O'Farrell
Manager, Marketing Asia Pacific
+60 12 305 3609
mofarrell@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-feed-contract-for-shwe-phase-3-development-300923669.html
SOURCE McDermott International, Inc.
Article Date
9/24/2019McDermott to Explore Strategic Alternatives for Lummus Technology
Source: PR Newswire
HOUSTON, Sept. 20, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced it recently received unsolicited approaches to acquire all or part of Lummus Technology, McDermott's industry-leading technology business, with valuation exceeding $2.5 billion. Based on the receipt of these approaches, McDermott is exploring strategic alternatives to unlock the value of Lummus Technology while maintaining the strategic rationale of engineering, procurement and construction (EPC) pull-through.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
"Lummus is an excellent business, with incredibly impressive employees, that has earned a reputation for expertise, innovation and reliability in the refining and petrochemical industries," said David Dickson, President and Chief Executive Officer of McDermott. "The process of exploring strategic alternatives is part of our ongoing efforts intended to improve McDermott's capital structure, and we plan to use the proceeds from any transaction involving Lummus Technology to strengthen our balance sheet. While Lummus is an important business within McDermott, we have decided to undertake a process to fully realize its strategic and financial value."
Separately, McDermott's previously announced processes to sell the remaining portion of its pipe fabrication business and its industrial storage tank business are ongoing.
McDermott has retained Evercore as the lead advisor on the strategic alternatives process for Lummus Technology.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. These forward-looking statements include, among other things, statements about improving McDermott's capital structure, intended use of proceeds from a transaction involving a sale of all or part of the Lummus Technology business and strengthening of McDermott's balance sheet. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: negotiations with third parties; regulatory and other approvals; adverse changes in the markets in which McDermott operates or credit or capital markets; and actions by lenders, other creditors, customers and other business counterparties of McDermott. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission, including McDermott's annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-to-explore-strategic-alternatives-for-lummus-technology-300922266.html
SOURCE McDermott International, Inc.
Article Date
9/20/20199/18/2019 - McDermott Statement
McDermott Statement
Source: PR Newswire
HOUSTON, Sept. 18, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) routinely hires external advisors to evaluate opportunities for the Company. The Company is taking positive and proactive measures, as we have done in the past, intended to improve its capital structure and the long-term health of its balance sheet.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about measures being taken with respect to the Company's capital structure and balance sheet. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-statement-300921007.html
SOURCE McDermott International, Inc.
Article Date
9/18/2019Qingdao McDermott Wuchuan Awarded Module Fabrication Contract for Arctic LNG Project
Source: PR Newswire
HOUSTON, Sept. 17, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that its joint venture Qingdao McDermott Wuchuan Offshore Engineering Co. Ltd (QMW) in Qingdao, China, has been awarded a large* contract to provide three complex modules for the Arctic LNG 2 Project in the Yamal-Nenets Autonomous Region in Russia.
"This award recognizes QMW's experience and excellent performance in the Arctic on an earlier Yamal LNG project. It is further evidence that QMW is a tier one module fabricator in the LNG market. Fabrication will be completed in QMW's mega module workshop which provides increased certainty for safety, schedule and successful project delivery," said McDermott's Senior Vice President Asia Pacific, Ian Prescott.
The scope includes the fabrication of three Pre-Assembled Unit Complex Process Modules. QMW will undertake fabrication engineering, partial procurement, construction and pre-commissioning scope. Fabrication for the modules is scheduled to commence at the end of 2019 and be completed in mid-2022.
* - McDermott defines a large contract as between USD $50 million and USD $250 million. The designation refers to McDermott's share of the award via its joint venture. Because QMW is accounted for as an equity method joint venture, its associated backlog is not included in McDermott's publicly reported RPO backlog (Remaining Performance Obligation backlog).
About Qingdao McDermott Wuchuan
QMW is a joint venture between a McDermott and state-owned CSIC and offers integrated Engineering, Procurement, construction and Commissioning solutions for the Floating Production Storage and Offloading ("FPSO"), onshore and offshore modules market and fabrication capabilities through an 111-acre fabrication yard located in the Huangdao District in Qingdao (Shandong Province), China. Adjacent to two large shipbuilding and repair yards operated by CSIC, QMW focuses on high quality, cost-competitive FPSO topsides construction and integration, onshore and offshore module fabrication and large integrated deck fabrication.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Relations
Miki O'Farrell
Manager, Marketing Asia Pacific
+60 12 305 3609
mofarrell@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/qingdao-mcdermott-wuchuan-awarded-module-fabrication-contract-for-arctic-lng-project-300919257.html
SOURCE McDermott International, Inc.
Article Date
9/17/2019McDermott, Chiyoda and Zachry Group Announce First Cargo from Freeport LNG Train 1
Source: PR Newswire
HOUSTON, Sept. 4, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) along with its partners, Chiyoda International Corporation and Zachry Group, announced today that the first commissioning cargo of liquefied natural gas (LNG) has been shipped from the Freeport LNG project on Quintana Island in Freeport, Texas. Feed gas was introduced into Freeport LNG Train 1 on July 22 and today's announcement of first cargo is a precursor to completion of Train 1.
"We continue to make great strides on the Freeport LNG project with the shipping of the first cargo from Train 1, which is a major milestone for the joint venture project team," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "Congratulations to everyone for their hard work and dedication in reaching this project achievement and for their strong focus on safety and quality throughout the project. For 2019 alone, the team worked more than 11 million work hours with no lost time incidents, an outstanding accomplishment."
Zachry Group, as the joint venture lead, partnered with McDermott for the Pre-FEED in 2011, followed by FEED works to support the early development stage of the project as a one-stop shop solution provider. Later Chiyoda joined the partnership and the joint team provided engineering, procurement and facility construction as well as commissioning and initial operations for the project. The project includes three liquefaction trains with a projected export capacity of approximately 15 million tons per annum of LNG, a second loading berth and a 165,000 m3 full containment LNG storage tank.
Freeport LNG Trains 2 and 3 remain on track to meet their previously announced schedules, with Train 2 initial production of LNG scheduled for Q4 of 2019 and Train 3 initial production of LNG scheduled for Q1 of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Zachry Group
Zachry Group is North America's pacesetter in turnkey construction, engineering, maintenance, turnaround and fabrication services to the power, energy, chemicals, manufacturing and industrial sectors.
We work with customers to plan, build and renew their most critical facilities, so they can achieve their immediate and long-term goals, all at the highest safety standards. We operate in more than 30 offices, and our 20,000 employees work in more than 400 locations nationwide, united by a shared set of values and the desire to deliver the very best outcome for our customers.
Visit www.zachrygroup.com for more information.
About Chiyoda
Chiyoda Corporation, headquartered in Yokohama, Japan provides services in the fields of engineering, procurement and construction on a global basis for petroleum refineries, petrochemical complexes, other hydrocarbon or industrial plants, particularly LNG plants in the USA, South East Asia, the Oceania regions, the Middle East and Russia.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing and scope on the Freeport LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-chiyoda-and-zachry-group-announce-first-cargo-from-freeport-lng-train-1-300911784.html
SOURCE McDermott International, Inc.
Article Date
9/4/2019McDermott, Chiyoda and Zachry Group Announce First Liquid from Freeport LNG Train 1
Source: PR Newswire
HOUSTON, Aug. 19, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) along with its partners, Chiyoda International Corporation and Zachry Group, today announced that Train 1 of the Freeport LNG project on Quintana Island in Freeport, Texas, has begun producing liquefied natural gas (LNG). While production is in the initial phases, this significant project milestone is a precursor to first cargo, which is expected later this month.
"When a facility starts producing a product, it is always a notable achievement, especially for large-scale projects, such as Freeport LNG," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "We are proud of the project team, which has worked hard to accomplish this milestone with exceptional safety performance during the construction phase. We look forward to celebrating first cargo for Train 1 soon with the same focus to safety and quality."
Zachry Group, as the joint venture lead, partnered with McDermott for the Pre-FEED in 2011, followed by FEED works to support the early development stage of Trains 1 and 2 of the project as a one-stop shop solution provider. Later Chiyoda joined the venture and the joint team provided engineering, procurement and facility construction as well as commissioning and initial operations for Train 3 of the project. The project scope includes three pre-treatment trains, a liquefaction facility with three trains, a second loading berth and a 165,000 m3 full containment LNG storage tank.
Freeport LNG Trains 2 and 3 remain on track to meet their previously announced schedules, with Train 2 initial production of LNG scheduled for Q4 of 2019 and Train 3 initial production of LNG scheduled for Q1 of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Zachry Group
Zachry Group is North America's pacesetter in turnkey construction, engineering, maintenance, turnaround and fabrication services to the power, energy, chemicals, manufacturing and industrial sectors.
We work with customers to plan, build and renew their most critical facilities, so they can achieve their immediate and long-term goals, all at the highest safety standards. We operate in more than 30 offices, and our 20,000 employees work in more than 400 locations nationwide, united by a shared set of values and the desire to deliver the very best outcome for our customers.
Visit www.zachrygroup.com for more information.
About Chiyoda
Chiyoda Corporation, headquartered in Yokohama, Japan provides services in the fields of engineering, procurement and construction on a global basis for petroleum refineries, petrochemical complexes, other hydrocarbon or industrial plants, particularly LNG plants in the USA, South East Asia, the Oceania regions, the Middle East and Russia.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing and scope on the Freeport LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-chiyoda-and-zachry-group-announce-first-liquid-from-freeport-lng-train-1-300903817.html
SOURCE McDermott International, Inc.
Article Date
8/19/2019PetroLogistics Awards McDermott with FEED Contract for 500 KTA Gulf Coast PDH Project
Source: PR Newswire
HOUSTON, Aug. 12, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a sizeable* contract by PetroLogistics ll LLC to perform the front-end engineering design (FEED) services for a propane dehydrogenation (PDH) facility planned for the U.S. Gulf Coast.
Under the scope of the contract, McDermott will assist in the development of a PDH plant to be constructed on the U.S. Gulf Coast. The plant has a design basis of 500 KTA.
"McDermott is pleased to be working with PetroLogistics II in the development of a facility that will support the growth of propylene in the U.S.," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "We will pull from our vast expertise in engineering to complete the FEED."
"The shale revolution has resulted in a significant decline in co-product propylene production from the sources that historically supplied the majority of US propylene: petroleum refineries and heavy feed ethylene crackers," said Nathan Ticatch, PetroLogistics II President. "As a result, future growth in propylene demand will need to be supplied largely via on-purpose propane dehydrogenation. We are excited to work with McDermott to develop a facility that can supply a solution to this need."
McDermott was selected due to its strength in engineering and extensive knowledge in executing fluid catalytic cracking (FCC) projects. "We have had excellent experience working with McDermott in the past and we are pleased to be collaborating with them again on this very important project," said David Lumpkins, PetroLogistics Chairman.
This award was reflected in McDermott's second quarter 2019 backlog.
* McDermott defines a sizable contract as between $1 million and $50 million (USD).
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About PetroLogistics II LLC
PetroLogistics II is a Houston based company focused on acquiring, developing and operating petrochemical manufacturing, processing and logistics assets in North America. PetroLogistics II is owned by affiliates of Quantum Energy Partners and certain members of the Company's management. For more information with respect to the FCDh project or the Company, please contact David Lumpkins, Chairman, at 713-265-6302 or Nathan Ticatch, President, at 713-265-6303.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected scope and value of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/petrologistics-awards-mcdermott-with-feed-contract-for-500-kta-gulf-coast-pdh-project-300899595.html
SOURCE McDermott International, Inc.
Article Date
8/12/2019McDermott Awarded Offshore EPCI Contract by Saudi Aramco
Source: PR Newswire
HOUSTON, Aug. 1, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a large* contract by Saudi Aramco to provide engineering, procurement, construction and installation (EPCI) of a production deck module (PDM) in the Hasbah gas field with hook-up and modification works in Saudi Arabia's Karan fields located offshore in the Arabian Gulf.
The scope of work includes EPCI of Wellhead PDM for four wells, 3.75 miles (6 kilometres) of 16-inch corrosion resistant alloy (CRA) cladded flowline, 4 miles (6.5 kilometres) of subsea umbilical cable, offshore tie-ins to existing facilities and electrical modifications to existing PDMs.
"This award is confirmation that the McDermott execution model we call the One McDermott Way gives clients confidence that we consistently deliver quality," said Linh Austin, Senior Vice President, Middle East and North Africa.
Engineering of the project will be performed in Saudi Arabia and fabrication will take place at McDermott's Jebel Ali yard in the United Arab Emirates. Fabrication is expected to begin in the second quarter of 2020 and the contract award will be reflected in McDermott's third quarter 2019 backlog.
* - McDermott defines a large contract as between USD $50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected value, scope and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Media Relations
Barbara Knight
Senior Director, Area Communications and Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
BBknight@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-offshore-epci-contract-by-saudi-aramco-300894428.html
SOURCE McDermott International, Inc.
Article Date
8/1/2019McDermott and BHGE awarded contracts for Ichthys Gas Field Development
Source: PR Newswire
HOUSTON, July 30, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) and Baker Hughes, a GE company (NYSE: BHGE) announced today that the companies were awarded contracts to provide a joint URF and SPS solution for the INPEX-operated Ichthys Liquefied Natural Gas (LNG) field development, located off the northwest coast of Western Australia.
The award includes a joint URF and SPS EPCI solution, comprising a new subsea well gathering system (GS4), tied back to the existing central processing facility. In addition to the GS4 scope, the award includes in-fill URF EPCI scope involving the development of new subsea wells tied-in to the existing gathering systems. Water depths in the field range from 787 to 885 feet (240 to 270 meters).
McDermott and BHGE will lead the project from the joint Project Management and Engineering office in Perth, Australia. Fabrication of the subsea URF equipment will be carried out at McDermott's fabrication facility in Batam, Indonesia. Utilizing the Subsea Connect execution model, BHGE will deliver the SPS scope, including vertical christmas trees, associated production control systems, distribution equipment and topside controls as well as associated installation and commissioning support services. This award follows an earlier award granted to BHGE in 1Q 2019, including four christmas trees and associated SPS equipment for in-fill development. Offshore installation of the URF and SPS equipment will commence in 2020 and be completed in 2023. The field development will be carried out using state-of-the-art assets, including McDermott's derrick lay vessel, DLV 2000.
"McDermott's alliance with BHGE is a combination of two leaders in subsea development. McDermott's majority share of this award is a testament to our expertise in executing large and complex subsea EPCI projects. Our experience will ensure delivery during the next phase of this key gas field development," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific.
Graham Gillies, BHGE Regional OFE Vice President, said, "We have brought together core elements of our Subsea Connect approach, leveraging early engagement, advanced technology, and our flexible partnership model to deliver improved project economics and certainty for Ichthys LNG. This award is a true example of how the industry is changing its approach to subsea projects."
About Ichthys LNG
Ichthys LNG is one of the largest and most complex resource developments in the world. Located about 136 miles (220 kilometers) off the northwest coast of Western Australia, Ichthys LNG is effectively three mega-projects in one. The development has an expected operational life of 40 years and involves some of the largest offshore facilities in the industry and state-of-the-art onshore LNG processing and exporting facilities.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Baker Hughes, a GE company
Baker Hughes, a GE company (NYSE: BHGE) is the world's first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a start-up – inventing smarter ways to bring energy to the world. Visit us at BHGE.com
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
McDermott International Inc.
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Relations
Miki O'Farrell
Manager, Marketing
Asia Pacific
+60 12 305 3609
mofarrell@mcdermott.com
Baker Hughes, a GE company
Investor Relations
+1 281 809 9088
investor.relations@BHGE.com
OFE Media Relations
Kelly Russell
+1 713 548 4176
kelly.russell2@bhge.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-and-bhge-awarded-contracts-for-ichthys-gas-field-development-300893369.html
SOURCE McDermott International, Inc.; Baker Hughes, a GE company
Article Date
7/30/20197/30/2019 - McDermott Announces Chevron Lummus Global Technology Award for Indian Oil Corporation Ltd.'s Haldia Refinery
McDermott Announces Chevron Lummus Global Technology Award for Indian Oil Corporation Ltd.'s Haldia Refinery
Source: PR Newswire
HOUSTON, July 30, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, has been awarded a sizeable* license and engineering contract for a 270 TMTPA (thousand metric tons per annum) Lubricants Base Oil plant at Indian Oil Corporation Ltd.'s Haldia Refinery in West Bengal, India. The plant will use CLG's ISODEWAXING and ISOFINISHING technologies.
The Haldia unit will be designed to primarily produce premium API Group III base oils by processing unconverted oil from an upstream hydrocracking unit. Growth is projected in India's base oil market, and the new unit will help reduce dependence on imported base oils.
"CLG's lubricants technologies provide worldwide licensees with vast commercial experience, superior performance and optimum utilization of existing assets," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business.
This contract was signed in the second quarter of 2019.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
* McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-chevron-lummus-global-technology-award-for-indian-oil-corporation-ltds-haldia-refinery-300892691.html
SOURCE McDermott International, Inc.
Article Date
7/30/2019McDermott Reports Second Quarter 2019 Financial and Operational Results
Source: PR Newswire
HOUSTON, July 29, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today reported revenues of $2.1 billion, a net loss of $(146) million, or $(0.80) per diluted share, and an operating loss of $(61) million for the second quarter of 2019.
Excluding a $101 million non-cash loss on the sale of its Alloy Piping Products (APP) business, as well as restructuring, integration and transaction costs of $31 million, as outlined in an accompanying table, McDermott's adjusted net loss for the second quarter of 2019 was $(14) million, or $($0.07) per diluted share, and its adjusted operating income was $71 million.
David Dickson, President and Chief Executive Officer of McDermott, said: "Although the company reported mixed results for the second quarter of 2019, we are encouraged by the record-setting level of backlog and new awards. We are also pleased with the visibility we have into expected 2020 revenues, of which $7.4 billion was already in backlog as of the end of the second quarter of 2019. This is well above the $4.2 billion of 2019 revenues we had in backlog this time last year. This strong market posture continues to demonstrate the benefits of our combination with CB&I and the opportunities available in a strong market environment. McDermott has booked more than $19 billion of awards since the May 2018 combination with CB&I, demonstrating continued customer confidence and healthy end markets. Importantly, as of the end of the second quarter of 2019, legacy CB&I projects represented only about 14% of the current backlog. All the awards we've won since the combination were booked under McDermott's stringent risk management protocols, which we believe pave the way for us to deliver consistent margin performance through the application of the One McDermott Way in the execution of this backlog. The company continues to remain on schedule executing the Cameron and Freeport LNG projects. The Cameron settlement agreement we signed earlier this month is a testament to the mutually productive relationship we have built with this customer since the combination – and the associated incentives provided a meaningful contribution to our second quarter results.
"This is a year of transition as we position McDermott to fully optimize the benefits of our combination with CB&I and as we steadily advance toward completion of the Cameron and Freeport projects," added Dickson. "Nevertheless, the company today has updated its guidance for 2019. The reduction in our guidance is due to four main factors: 1) the weaker than expected operating results for the second quarter of 2019; 2) the impact of reduced revenues and higher unallocated operating expenses due to slippage in certain new awards and customer changes to schedule on several projects; 3) changes in our assumptions about the expected performance of legacy CB&I projects in our NCSA operating segment; and 4) a shift from the fourth quarter of 2019 to 2020 in the assumed timing of remaining incentives on the Cameron LNG project. Even so, we expect to see a sharp improvement in the company's operating income by the fourth quarter of this year, as we build momentum heading into 2020.
"Looking ahead, our revenue opportunity pipeline remains near a historic high and, more specifically, we are seeing steady upward momentum in a number of key areas. For example, in the strategic area of front end engineering design (FEED), our awards through the first half of 2019 are already more than double what we won in all of 2018 – in terms of both man-hours and dollar value – and that's especially important as FEED work positions us for EPC opportunities. This year we have booked $1.5 billion of EPC work as a result of FEED work that's been done since the combination. Further, in our Technology business, we are forecasting the number of license sales to increase by 25% this year versus 2018. One of the recent highlights was our selection as the Master Licensor by S-OIL, an affiliate of Saudi Aramco, in support of its ethylene cracker and downstream petrochemicals complex, being developed as a major expansion of S-OIL's existing refinery in South Korea. Our Technology business gives us unparalleled insight into upcoming EPC opportunities, and we see roughly $40 billion of potential EPC pull-through opportunities in the refining and petrochemical markets over the next five years. We believe the petrochemical market, in particular, is poised for another wave of investment in the next 12 to 24 months, with world ethylene capacity expected to increase by more than 40% between 2019 and 2028."
Second Quarter 2019 Operating Performance
McDermott's adjusted operating income in the second quarter of 2019 was $71 million, which included:
Three months Ended | Delta | Six months Ended | Delta | ||||||||||||||||||||
June 30, | June 30, | Qtr-on-Qtr | June 30, | June 30, | YTD-on- | ||||||||||||||||||
($ in millions, except per share amounts) | |||||||||||||||||||||||
Revenues | $ | 2,137 | $ | 1,735 | $ | 402 | $ | 4,348 | $ | 2,343 | $ | 2,005 | |||||||||||
Operating (Loss) Income | (61) | 49 | (110) | (48) | 113 | (161) | |||||||||||||||||
Operating Margin | -2.9 | % | 2.8 | % | -5.7 | % | -1.1 | % | 4.8 | % | -5.9 | % | |||||||||||
Net (Loss) Income | (146) | 47 | (193) | (216) | 82 | (298) | |||||||||||||||||
Diluted EPS1 | $ | (0.80) | 0.33 | (1.13) | (1.19) | 0.68 | (1.87) | ||||||||||||||||
Total Intangibles Amortization2 | 32 | 22 | 10 | 64 | 22 | 42 | |||||||||||||||||
Adjusted Operating Income (Loss)3 | 71 | 149 | (78) | 157 | 228 | (71) | |||||||||||||||||
Adjusted Operating Margin3 | 3.3 | % | 8.6 | % | -5.3 | % | 3.6 | % | 9.7 | % | -6.1 | % | |||||||||||
Adjusted Net (Loss) Income3,4 | (14) | 40 | (54) | (11) | 90 | (101) | |||||||||||||||||
Adjusted Diluted (Loss) Earnings Per Share1,3,4 | $ | (0.07) | 0.28 | (0.36) | (0.06) | 0.75 | (0.80) | ||||||||||||||||
Adjusted EBITDA3 | 112 | 85 | 27 | 416 | 190 | 226 | |||||||||||||||||
Cash Provided by Operating Activities | (205) | 398 | (603) | (449) | 435 | (884) | |||||||||||||||||
Capital Expenditures | 15 | 24 | (9) | 33 | 43 | (10) | |||||||||||||||||
Free Cash Flow3 | (220) | 374 | (594) | (482) | 392 | (874) | |||||||||||||||||
Working Capital5 | (1,844) | (1,444) | (400) | (1,844) | (1,444) | (400) | |||||||||||||||||
1 | Diluted (Loss) Earnings Per Share and adjusted diluted (loss) earnings per share were calculated using weighted average diluted shares of 182 million and 144 million for the three months ended June 30, 2019 and 2018, respectively, and weighted average diluted shares of 181 million and 120 million for the six months ended June 30, 2019 and 2018, respectively. |
2 | Total intangibles amortization includes the sum of project-related intangibles amortization, other intangibles amortization and amortization of intangible assets resulting from investments in unconsolidated affiliates, all of which are associated with the intangible assets and liabilities acquired in the business combination with CB&I (the "Combination"). |
3 | Adjusted operating (loss) income, adjusted operating margin, adjusted net (loss) income, adjusted diluted (loss) earnings per share and adjusted EBITDA reflect adjustments to Operating Income and Net Income computed in accordance with U.S. generally accepted accounting principles ("GAAP"). The reconciliations of these non-GAAP measures, as well as free cash flow, to the respective most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Non-GAAP to GAAP Financial Measures." |
4 | The calculations of adjusted net (loss) income and adjusted diluted EPS reflect the tax effects of non-GAAP adjustments during each applicable period. In jurisdictions in which we currently do not pay taxes, no tax impact is applied to non-GAAP adjusting items. |
5 | Working capital = (current assets, less cash and cash equivalents, restricted cash and project-related intangibles) – (current liabilities, less current maturities of long-term debt and project-related intangible liabilities). |
Asset Sales
During the second quarter of 2019, McDermott completed the sale of the APP business, the distribution and manufacturing arm of its pipe fabrication business. McDermott continues to pursue a sale of the remaining portion of its pipe fabrication business.
We have identified potential buyers for our industrial storage tank business, and sales efforts with respect to that business remain ongoing. In connection with that contemplated sale, we may retain a continuing minority ownership or other economic interest in the business. Our anticipated aggregate net cash proceeds from the pipe fabrication and storage tank transactions are now expected to be lower than the approximately $1 billion we previously estimated. Our ongoing competitive sale process is now expected to result in a closing of the sale of the storage tank business in the fourth quarter of 2019.
Cash and Liquidity
Cash used by operating activities in the second quarter of 2019 was $(205) million. This primarily reflected the company's net loss and the usage of cash on the Cameron LNG project. Total cash availability was $1.0 billion at June 30, 2019, consisting of $455 million of unrestricted cash and $568 million of availability under McDermott's revolving credit facility. As of June 30, 2019, McDermott had approximately $1.4 billion of combined availability under its principal letter of credit facilities, uncommitted bilateral credit facilities and surety arrangements. McDermott was in compliance with all financial covenants under its financing arrangements as of June 30, 2019.
Reporting Segment Update
McDermott's segment reporting is presented as: North, Central and South America, or NCSA; Europe, Africa, Russia and Caspian, or EARC; Middle East and North Africa, or MENA; Asia Pacific, or APAC; and Technology, or TECH. The company also reports results for Corporate. Segment and Corporate results are summarized below.
Segment Financial | Three months Ended June 30, 2019 | ||||||||||||||||||||||||||
Segment Operating Results | |||||||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Corporate | Total | |||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
New Orders | $ | 800 | $ | 2,309 | $ | 4,057 | $ | 21 | $ | 118 | $ | - | $ | 7,306 | |||||||||||||
Backlog1 | 8,123 | 4,032 | 6,538 | 1,289 | 565 | - | 20,547 | ||||||||||||||||||||
Revenue | 1,259 | 192 | 399 | 133 | 154 | - | 2,137 | ||||||||||||||||||||
Book-to-Bill | 0.6 | x | 12.0 | x | 10.2 | x | 0.2 | x | 0.8 | x | - | 3.4 | x | ||||||||||||||
Operating Income (Loss) | 15 | 4 | 29 | 2 | 35 | (146) | (61) | ||||||||||||||||||||
Operating Margin | 1.2 | % | 2.1 | % | 7.3 | % | 1.5 | % | 22.7 | % | - | -2.9 | % | ||||||||||||||
Adjusted Operating Income (Loss)2 | 117 | 4 | 29 | 2 | 35 | (115) | 71 | ||||||||||||||||||||
Adjusted Operating Margin2 | 9.3 | % | 2.1 | % | 7.3 | % | 1.5 | % | 22.7 | % | - | 3.3 | % | ||||||||||||||
Capex | 2 | 0 | 5 | 0 | 0 | 8 | 15 | ||||||||||||||||||||
Note: All amounts have been rounded to the nearest million. Individual line items may not sum to totals as a result of rounding. | |||||||||||||||||||||||||||
1 | Our backlog is equal to our Remaining Performance Obligations (RPOs) as determined in accordance with U.S. GAAP. |
2 | Adjusted Operating Income (Loss) and Margin, by segment, are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Segment Non-GAAP to GAAP Financial Measures." |
Product Offering Financial | Three months Ended June 30, 2019 | ||||||||||||||||||
Offshore & Subsea | LNG | Downstream | Power | Total | |||||||||||||||
($ In millions) | |||||||||||||||||||
New Orders | $ | 4,423 | $ | 2,170 | $ | 624 | $ | 89 | $ | 7,306 | |||||||||
Backlog | 8,906 | 6,264 | 4,889 | 487 | $ | 20,547 | |||||||||||||
Revenue | 661 | 411 | 740 | 325 | $ | 2,137 | |||||||||||||
North, Central and South America (NCSA)
NCSA reported revenues of $1.3 billion and operating income and margin of $15 million and 1.2%, respectively. Excluding the loss on the sale of the APP business, adjusted operating income and margin for NCSA were $117 million and 9.3%, respectively. Results for the quarter included the benefit of a settlement agreement on the Cameron LNG project, under which $110 million of progress incentives were recognized during the quarter. The results also reflected increased cost estimates on a number of projects, including the $38 million on the Freeport LNG project and $33 million on offshore projects in the Gulf of Mexico.
NCSA achieved significant operational milestones during the second quarter. The first cargo was shipped from Cameron's Train 1 during the quarter, with substantial completion of Phase 1 expected in the third quarter. Trains 2 and 3 continue to progress on schedule, with the overall project reaching 93% completion (on a cumulative basis) during the quarter. Freeport continues to progress well, reaching 95% completion (on a cumulative basis) for all three trains. Commissioning of Train 1 continued with the introduction of feed gas early in the third quarter. The first cargo shipment is expected in the third quarter. First gas was achieved on the Abkatun project during the second quarter, with first oil achieved in early July and substantial completion expected in the third quarter. The Entergy St. Charles power project was completed and turned over to the owner during the quarter. Additionally, NCSA booked several new awards during the quarter, including the Petrobras Sepia Phase 1 field development in Brazil and the ENI Amoca EPC project in Mexico.
Europe, Africa, Russia and Caspian (EARC)
EARC reported revenues of $192 million and operating income and margin of $4 million and 2.1%, respectively. Key contributors to revenues and operating income were the Total Tyra, Lukoil refinery and Afipsky refinery projects.
As the LNG cycle continues to show momentum, the Mozambique LNG EPC contract was awarded to McDermott's joint venture with Saipem and Chiyoda after Anadarko reached final investment decision (FID) during the quarter. We believe our execution of this project will continue to demonstrate the company's ability to deliver comprehensive EPC solutions for world-scale LNG developments. Work on the BP Tortue EPC project commenced during the quarter, with engineering and early procurement activities. The Total Tyra project continued to progress with engineering, procurement and construction, including the delivery of structural steel plates, bulk piping material and electrical equipment. The project reached 38% completion during the quarter. Construction progress continued on the Lukoil refinery project, which reached 25% completion during the quarter.
Middle East and North Africa (MENA)
MENA reported revenues of $399 million and operating income and margin of $29 million and 7.3%, respectively. Key contributors were the Saudi Aramco Safaniya Phases 5 and 6, QP Bul Hanine, ADNOC Crude Flexibility, Sasref and Liwa projects. Operating income was impacted by transitioning from mature backlog to newer contracts.
MENA demonstrated McDermott's continued strength in the region by booking record-level order intake during the second quarter, resulting in the highest level of backlog ever attained by McDermott in the area. Among the new awards during the quarter were two mega projects for Saudi Aramco located in the Marjan field. Safaniya Phase 5 continued with close-out activities, with substantial completion expected in the third quarter. Safaniya Phase 6 continues to progress, with fabrication of 8 out of 11 decks and 7 out of 10 jackets completed and the achievement of an impressive 8 million man hours without a lost-time incident. The QP Bul Hanine project completed the initial pipelay campaign, with installation continuing through the third quarter.
Asia Pacific (APAC)
APAC reported revenues of $133 million and operating income and margin of $2 million and 1.5%, respectively. Operating income was driven by various active projects and closeout-related savings in Australia and India.
During the second quarter of 2019, APAC made significant operational progress across the region. The first of two offshore campaigns for Reliance KG-D6 was successfully completed using the DLV 2000 to perform its first piggy-back pipelay. The second campaign is expected to commence in the fourth quarter of 2019. The ONGC KG 98/2 project continues to progress well, with preparations for the first offshore season well underway and environmental approvals and nearshore work well advanced. The DB 30 mobilized during the quarter to execute the Pan Malaysia field development project. The Posco International Schwe Phase 2 development is well advanced, with preparations underway for work to commence on the Shwe CRP platform in early 2020.
Technology (TECH)
TECH reported revenues of $154 million and operating income and margin of $35 million and 22.7%, respectively, primarily driven by catalyst shipments, execution progress, earned fees and process performance.
In July 2019, the business strengthened its leadership role in process technology with the acquisition of the assets and intellectual property of Siluria Technologies. The acquisition gives McDermott ownership of a proprietary catalytic process that transforms methane—one of the most abundant, inexpensive and widely available hydrocarbons on earth—into valuable commodity chemicals in an efficient, scalable manner using processes that can be integrated into existing industry infrastructure or placed as modules at locations where stranded methane gas is available such as the Permian. Included in the acquisition was a commercial demonstration-scale unit currently operating at a petrochemical facility in Texas.
Corporate
Corporate expenses include various corporate and other non-operating activities. Corporate expense in the second quarter of 2019 was $146 million, mainly attributable to: selling, general, administrative and other expenses of $52 million; $59 million of unallocated operating costs; $20 million of costs for restructuring and integration; and $11 million of transaction-related costs associated with the ongoing process to sell the company's non-core storage tank and pipe fabrication businesses.
Revenue Opportunity Pipeline
McDermott's revenue opportunity pipeline consists of Backlog, Bids & Change Orders Outstanding and Target Projects, which are those projects McDermott expects to be awarded in the market in the next five quarters. McDermott defines Backlog as Remaining Performance Obligations (RPOs) as determined in accordance with GAAP.
At the end of the second quarter of 2019, McDermott's revenue opportunity pipeline was approximately 90.2 billion, primarily driven by MENA, NCSA and EARC with continuing momentum in the offshore/subsea, downstream and LNG markets.
Revenue Opportunity Pipeline | As of | ||||||||||||||||||||||
June 30, | Mar 31, | Dec 31, | Sep 30, | Jun 30, | |||||||||||||||||||
($ in billions) | |||||||||||||||||||||||
Backlog | $ | 20.5 | $ | 15.4 | $ | 10.9 | $ | 11.5 | $ | 10.2 | |||||||||||||
Bids & Change Orders Outstanding1 | 15.6 | 17.7 | 20.3 | 20.7 | 19.0 | ||||||||||||||||||
Targets2 | 54.1 | 58.0 | 61.9 | 48.1 | 49.3 | ||||||||||||||||||
Total | 90.2 | 91.1 | 93.1 | 80.3 | 78.5 | ||||||||||||||||||
Revenue Opportunity Pipeline | As of June 30, 2019 | ||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Total | ||||||||||||||||||
($ in billions) | |||||||||||||||||||||||
Backlog | $ | 8.1 | $ | 4.0 | $ | 6.5 | $ | 1.3 | $ | 0.6 | $ | 20.5 | |||||||||||
Bids & Change Orders Outstanding1 | 1.0 | 10.7 | 1.0 | 2.8 | - | $ | 15.6 | ||||||||||||||||
Targets2 | 14.7 | 6.2 | 25.3 | 6.3 | 1.6 | $ | 54.1 | ||||||||||||||||
Total | 23.8 | 20.9 | 32.9 | 10.4 | 2.2 | 90.2 | |||||||||||||||||
Note: All amounts have been rounded to the nearest tenth of a billion. Individual line items may not sum to totals as a result of rounding. | |||||||||||||||||||||||
1 | There is no assurance that bids outstanding will be awarded to McDermott or that outstanding change orders ultimately will be approved and paid by the applicable customers in the full amounts requested or at all. |
2 | Target projects are those that McDermott has identified as anticipated to be awarded by customers or prospective customers in the next five quarters through competitive bidding processes and are capable of being performed by McDermott. There is no assurance that target projects will be awarded to McDermott or at all. |
2019 Guidance
The company today has updated its guidance for 2019 driven by four main factors: 1) the weaker than expected operating results for the second quarter of 2019; 2) the impact of reduced revenues and higher unallocated operating expenses due to slippage in certain new awards and customer changes to schedule on several projects; 3) changes in our assumptions about the expected performance of legacy CB&I projects in our NCSA operating segment; and 4) a shift from the fourth quarter of 2019 to 2020 in the assumed timing of remaining incentives on the Cameron LNG project. Full-year guidance assumes a sharp improvement in operating income in the fourth quarter of 2019, as the company builds momentum heading into 2020. (Guidance below is based on the company's existing portfolio of businesses.)
Full Year 2019 Guidance Revised | ||
($ in millions, except per share | ||
Revenues | ~$9.5B | |
Operating Income | ~$220 | |
Operating Margin | ~2.3% | |
Net Interest Expense1 | ~$395 | |
Income Tax Expense | ~$65 | |
Accretion on Redeemable Preferred Stock | ~$15 | |
Dividends on Redeemable Preferred Stock | ~$36 | |
Net Loss | ~$(310) | |
Diluted Net Loss, Per Share | ~$(1.65) | |
Diluted Share Count | ~188 | |
EBITDA2 | ~$475 | |
Corporate and Other Operating Expense3 | ~$(550) | |
Adjustment | ||
Restructuring and Integration Costs4 | ~$120 | |
Transaction Costs5 | ~$30 | |
APP Loss on Sale | ~$100 | |
Adjusted Earnings Metrics | ||
Adjusted Operating Income2 | ~$470 | |
Adjusted Operating Margin2 | ~4.9% | |
Adjusted Net Loss2 | ~$(60) | |
Adjusted Diluted Net Loss Per Share2 | ~$(0.32) | |
Adjusted EBITDA2 | ~$725 | |
Cash Flow & Other Metrics | ||
Cash used in Operating Activities | ~$(495) | |
Capex | ~$145 | |
Free Cash Flow2 | ~$(640) | |
Cash Interest / DIC Amortization Interest | ~$350 / ~$40 | |
Cash Taxes | ~$65 | |
Cash, Restricted Cash and Cash Equivalents | ~$545 | |
Gross Debt6 | ~$3.8B | |
Net Working Capital | ~$(1.4)B |
1 | Net interest expense is gross interest expense less capitalized interest and interest income. |
2 | The calculations of EBITDA, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS, adjusted EBITDA and free cash flow, which are non-GAAP measures, are shown in the appendix entitled "Reconciliation of Forecast Non-GAAP Financial Measures to Forecast GAAP Financial Measures." |
3 | Corporate and Other Operating Income (expense) represents the operating income (expense) from corporate and non-operating activities, including certain centrally managed initiatives, such as restructuring and integration costs and costs to achieve the Combination Profitability Initiative (CPI), impairments, annual mark-to-market pension adjustments, costs not attributable to a particular reporting segment and unallocated direct operating expenses associated with the underutilization of vessels, fabrication facilities and engineering resources. |
4 | Restructuring and integration costs, including costs to achieve the CPI. |
5 | Transaction costs associated with the ongoing process to sell the company's non-core storage tank and pipe fabrication businesses. |
6 | Ending gross debt excludes debt issuance costs and operating and finance lease obligations. |
Conference Call
McDermott has scheduled a conference call and webcast related to its second quarter 2019 results at 4:00 p.m., U.S. Central time, today. Shareholders and other interested parties are invited to listen to the call by visiting www.mcdermott-investors.com or by calling 1-706-634-2259 (Conference ID: 9386389). A presentation of supplemental financial information will be available on McDermott's Investor Relations site at that time. A replay of the webcast will be available on McDermott's website for seven days after the call.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include approximately 32,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Non-GAAP Measures
This communication includes several "non-GAAP" financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with GAAP but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of those operations. The forecast non-GAAP measures we have presented in this communication include forecast EBITDA, adjusted operating income (loss), adjusted operating income margin, adjusted net income, adjusted diluted EPS, free cash flow, EBITDA and adjusted EBITDA. We believe these forward-looking financial measures are within reasonable measure.
Non-GAAP measures include adjusted operating income (loss), adjusted operating income margin, adjusted net income, adjusted diluted EPS, free cash flow, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that our management does not consider to be representative of our normal operations. We believe that these metrics are useful for investors to review, because they provide more consistent measures of the underlying financial results of our ongoing business and, in our management's view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, our management uses each of these metrics as measures of the performance of our operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for operating income, net income or other data prepared and reported in accordance with GAAP and should be viewed in addition to our reported results prepared in accordance with GAAP.
We define free cash flow as cash flows from operations less capital expenditures. We believe investors consider free cash flow as an important measure, because it generally represents funds available to pursue opportunities that may enhance stockholder value, such as making acquisitions or other investments. Our management uses free cash flow for that reason. We define EBITDA as net income plus depreciation and amortization, interest expense, net, provision for income taxes and accretion and dividends on redeemable preferred stock. We define adjusted EBITDA as EBITDA adjusted to exclude significant, non-recurring transactions to our operating income, both gains and charges. We have included EBITDA and adjusted EBITDA disclosures in this communication because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry. Our management also uses EBITDA and adjusted EBITDA to monitor and compare the financial performance of our operations. EBITDA and adjusted EBITDA do not give effect to the cash that we must use to service our debt or pay our income taxes, and thus do not reflect the funds actually available for capital expenditures, dividends or various other purposes. Our presentations of free cash flow, EBITDA and adjusted EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider free cash flow, EBITDA and adjusted EBITDA in isolation from, or as substitutes for, net income or cash flow measures prepared in accordance with U.S. GAAP.
Reconciliations of these non-GAAP financial measures and forecast non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included in this communication.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of McDermott. These forward-looking statements include, among other things, statements about 2019 guidance, earnings and cashflow into 2020, project milestones and percentage of completion and expected timetables, cost estimates on identified projects, cost recoveries and schedule-based incentives on projects, assessments and beliefs with respect to legacy CB&I projects (including the Cameron and Freeport LNG projects) and the Mozambique LNG project, the market outlook for our various market sectors, backlog, bids and change orders outstanding, target projects and revenue opportunity pipeline, to the extent these may be viewed as indicators of future revenues or profitability, Technology license sales, pull-through opportunities, the contemplated sales of the pipe fabrication and storage tank businesses and the anticipated timing of those transactions, our potential and our beliefs with respect to the benefits of our combination with CB&I. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which McDermott operates or credit or capital markets; the inability of McDermott to execute on contracts in backlog successfully; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by customers and other business counterparties of McDermott; changes in industry norms; negotiations with third parties with respect to the sale of the pipe fabrication and storage tank businesses; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission, including McDermott's annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contact:
Investors & Financial Media
Scott Lamb
Vice President, Investor Relations
+1 832.513.1068
scott.lamb@mcdermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
START OF APPENDIX
McDERMOTT INTERNATIONAL, INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In millions, except per share amounts) | ||||||||||||||||
Revenues | $ | 2,137 | $ | 1,735 | $ | 4,348 | $ | 2,343 | ||||||||
Costs and Expenses: | ||||||||||||||||
Cost of operations | 1,949 | 1,486 | 3,967 | 1,962 | ||||||||||||
Project intangibles and inventory-related amortization | 10 | 12 | 20 | 12 | ||||||||||||
Total cost of operations | 1,959 | 1,498 | 3,987 | 1,974 | ||||||||||||
Research and development expenses | 8 | 5 | 16 | 5 | ||||||||||||
Selling, general and administrative expenses | 77 | 75 | 149 | 124 | ||||||||||||
Other intangibles amortization | 22 | 10 | 44 | 10 | ||||||||||||
Transaction costs | 11 | 37 | 15 | 40 | ||||||||||||
Restructuring and integration costs | 20 | 63 | 89 | 75 | ||||||||||||
Loss on asset disposals | 102 | 1 | 103 | 1 | ||||||||||||
Total expenses | 2,199 | 1,689 | 4,403 | 2,229 | ||||||||||||
Income (loss) from investments in unconsolidated affiliates | 3 | 3 | 12 | (1) | ||||||||||||
Investment in unconsolidated affiliates-related | (2) | - | (5) | - | ||||||||||||
Operating (loss) income | (61) | 49 | (48) | 113 | ||||||||||||
Other expense: | ||||||||||||||||
Interest expense, net | (100) | (72) | (192) | (83) | ||||||||||||
Other non-operating expense, net | (2) | (16) | (1) | (14) | ||||||||||||
Total other expense, net | (102) | (88) | (193) | (97) | ||||||||||||
(Loss) income before provision for income taxes | (163) | (39) | (241) | 16 | ||||||||||||
Income tax benefit | (49) | (84) | (70) | (63) | ||||||||||||
Net (loss) income | (114) | 45 | (171) | 79 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling | 18 | (2) | 17 | (3) | ||||||||||||
Net (loss) income attributable to McDermott | $ | (132) | $ | 47 | $ | (188) | $ | 82 | ||||||||
Dividends on redeemable preferred stock | (10) | - | (20) | - | ||||||||||||
Accretion of redeemable preferred stock | (4) | - | (8) | - | ||||||||||||
Net (loss) income attributable to common stockholders | (146) | 47 | (216) | 82 | ||||||||||||
Net (loss) income per share attributable to common stockholders | ||||||||||||||||
Basic | $ | (0.80) | $ | 0.33 | $ | (1.19) | $ | 0.68 | ||||||||
Diluted | $ | (0.80) | $ | 0.33 | $ | (1.19) | $ | 0.68 | ||||||||
Shares used in the computation of net (loss) income per | ||||||||||||||||
Basic | 182 | 144 | 181 | 120 | ||||||||||||
Diluted | 182 | 144 | 181 | 120 | ||||||||||||
McDERMOTT INTERNATIONAL, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
June 30, 2019 | December 31, | |||||||
(In millions, except per share amounts) | ||||||||
Assets | (Unaudited) | |||||||
Current assets: | ||||||||
Cash and cash equivalents ($252 and $146 related to variable interest entities | $ | 455 | $ | 520 | ||||
Restricted cash and cash equivalents | 327 | 325 | ||||||
Accounts receivable—trade, net ($45 and $29 related to VIEs) | 1,002 | 932 | ||||||
Accounts receivable—other ($61 and $57 related to VIEs) | 235 | 175 | ||||||
Contracts in progress ($167 and $144 related to VIEs) | 932 | 704 | ||||||
Project-related intangible assets, net | 94 | 137 | ||||||
Inventory | 42 | 101 | ||||||
Other current assets ($31 and $24 related to VIEs) | 152 | 139 | ||||||
Total current assets | 3,239 | 3,033 | ||||||
Property, plant and equipment, net | 2,054 | 2,067 | ||||||
Operating lease right-of-use assets | 383 | - | ||||||
Accounts receivable—long-term retainages | 68 | 62 | ||||||
Investments in unconsolidated affiliates | 446 | 452 | ||||||
Goodwill | 2,704 | 2,654 | ||||||
Other intangibles, net | 948 | 1,009 | ||||||
Other non-current assets | 156 | 163 | ||||||
Total assets | $ | 9,998 | $ | 9,440 | ||||
Liabilities, Mezzanine Equity and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Revolving credit facility | $ | 379 | $ | - | ||||
Short-term borrowing and current maturities of long-term debt | 62 | 30 | ||||||
Current portion of long-term lease obligations | 96 | 8 | ||||||
Accounts payable ($307 and $277 related to VIEs) | 1,206 | 595 | ||||||
Advance billings on contracts ($389 and $717 related to VIEs) | 1,438 | 1,954 | ||||||
Project-related intangible liabilities, net | 38 | 66 | ||||||
Accrued liabilities ($76 and $136 related to VIEs) | 1,467 | 1,564 | ||||||
Total current liabilities | 4,686 | 4,217 | ||||||
Long-term debt | 3,388 | 3,393 | ||||||
Long-term lease obligations | 379 | 66 | ||||||
Deferred income taxes | 46 | 47 | ||||||
Other non-current liabilities | 705 | 664 | ||||||
Total liabilities | 9,204 | 8,387 | ||||||
Commitments and contingencies | ||||||||
Mezzanine equity: | ||||||||
Redeemable preferred stock | 257 | 230 | ||||||
Stockholders' equity: | ||||||||
Common stock, par value $1.00 per share, authorized 255 shares; | ||||||||
issued 185 and 183 shares, respectively | 185 | 183 | ||||||
Capital in excess of par value | 3,549 | 3,539 | ||||||
Accumulated deficit | (2,935) | (2,719) | ||||||
Accumulated other comprehensive loss | (181) | (107) | ||||||
Treasury stock, at cost: 3 and 3 shares, respectively | (96) | (96) | ||||||
Total McDermott Stockholders' Equity | 522 | 800 | ||||||
Noncontrolling interest | 15 | 23 | ||||||
Total stockholders' equity | 537 | 823 | ||||||
Total liabilities and stockholders' equity | $ | 9,998 | $ | 9,440 | ||||
McDERMOTT INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Six Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
(In millions) | ||||||||
Cash flows from operating activities: | ||||||||
Net (loss) income | $ | (171) | $ | 79 | ||||
Non-cash items included in net (loss) income: | ||||||||
Loss on disposal of APP | 101 | - | ||||||
Depreciation and amortization | 137 | 80 | ||||||
Debt issuance cost amortization | 21 | 17 | ||||||
Stock-based compensation charges | 11 | 28 | ||||||
Deferred taxes | (1) | (100) | ||||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | ||||||||
Accounts receivable | (164) | 278 | ||||||
Contracts in progress, net of advance billings on contracts | (745) | (141) | ||||||
Accounts payable | 545 | 129 | ||||||
Other current and non-current assets | (71) | 12 | ||||||
Investments in unconsolidated affiliates | - | 1 | ||||||
Other current and non-current liabilities | (112) | 52 | ||||||
Total cash (used in) provided by operating activities | (449) | 435 | ||||||
Cash flows from investing activities: | ||||||||
CB&I consideration, net of cash of $498 acquired | - | (2,374) | ||||||
Proceeds from asset disposals, net | 83 | 2 | ||||||
Purchases of property, plant and equipment | (33) | (43) | ||||||
Advances related to proportionately consolidated consortiums | (234) | (45) | ||||||
Investments in unconsolidated affiliates | (1) | (3) | ||||||
Other | - | 2 | ||||||
Total cash used in investing activities | (185) | (2,461) | ||||||
Cash flows from financing activities: | ||||||||
Revolving credit facility borrowings | 1,699 | - | ||||||
Revolving credit facility repayments | (1,320) | - | ||||||
Structured equipment financing | 32 | - | ||||||
Proceeds from issuance of long-term debt | - | 3,560 | ||||||
Repayment of debt and finance lease obligations | (19) | (515) | ||||||
Advances related to equity method joint ventures and proportionately consolidated consortiums | 190 | (42) | ||||||
Debt and letter of credit issuance costs | - | (208) | ||||||
Debt extinguishment costs | - | (10) | ||||||
Repurchase of common stock | (4) | (14) | ||||||
Distribution to joint venture member | (5) | - | ||||||
Total cash provided by financing activities | 573 | 2,771 | ||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (2) | (15) | ||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | (63) | 730 | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 845 | 408 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 782 | $ | 1,138 | ||||
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||
EARNINGS PER SHARE COMPUTATION | |||||||||||||||
Three months Ended June | Six months Ended June 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
($ in millions, except share and per share amounts) | |||||||||||||||
Net (loss) income attributable to McDermott | $ | (132) | $ | 47 | $ | (188) | $ | 82 | |||||||
Dividends on redeemable preferred stock | (10) | - | (20) | - | |||||||||||
Accretion of redeemable preferred stock | (4) | - | (8) | - | |||||||||||
Net (loss) income attributable to common stockholders | $ | (146) | $ | 47 | $ | (216) | $ | 82 | |||||||
Weighted average common stock (basic) | 182 | 144 | 181 | 120 | |||||||||||
Weighted average common stock (diluted) | 182 | 144 | 181 | 120 | |||||||||||
Net (loss) income per share attributable to common | |||||||||||||||
Basic: | $ | (0.80) | $ | 0.33 | $ | (1.19) | $ | 0.68 | |||||||
Diluted: | $ | (0.80) | $ | 0.33 | $ | (1.19) | $ | 0.68 | |||||||
SUPPLEMENTARY DATA | |||||||||||||||
Three months Ended Jun | Six months Ended Jun 30 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
($ in millions) | |||||||||||||||
Depreciation & amortization | $ | 61 | $ | 57 | $ | 137 | $ | 80 | |||||||
Capital expenditures | 15 | 24 | 33 | 43 | |||||||||||
Backlog | 20,547 | 10,186 | 20,547 | 10,186 | |||||||||||
McDermott reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also includes several Non-GAAP financial measures as defined under the SEC's Regulation G. The following tables reconcile certain Non-GAAP financial measures used in this press release to comparable GAAP financial measures. Additional reconciliations are provided in the accompanying tables.
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||||||||||||||
RECONCILIATION OF SEGMENT NON-GAAP TO GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
Three months Ended June 30, 2019 | |||||||||||||||||||||||||||
Segment Operating Results | |||||||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Corporate | Total | |||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Revenues | $ | 1,259 | $ | 192 | $ | 399 | $ | 133 | $ | 154 | - | $ | 2,137 | ||||||||||||||
GAAP Operating Income (Loss) | 15 | 4 | 29 | 2 | 35 | (146) | (61) | ||||||||||||||||||||
GAAP Operating Margin | 1.2 | % | 2.1 | % | 7.3 | % | 1.5 | % | 22.7 | % | - | -2.9 | % | ||||||||||||||
Adjustments | |||||||||||||||||||||||||||
Restructuring, Integration & | 1 | - | - | - | - | 31 | 31 | ||||||||||||||||||||
Loss on disposal of APP | 101 | - | - | - | - | - | 101 | ||||||||||||||||||||
Total Non-GAAP Adjustments | 102 | - | - | - | - | 31 | 132 | ||||||||||||||||||||
Non-GAAP Operating Income | $ | 117 | $ | 4 | $ | 29 | $ | 2 | $ | 35 | $ | (115) | $ | 71 | |||||||||||||
Non-GAAP Adjusted Operating | 9.3 | % | 2.1 | % | 7.3 | % | 1.5 | % | 22.7 | % | - | 3.3 | % | ||||||||||||||
Note: Individual line items may not sum to totals as a result of rounding. | |||||||||||||||||||||||||||
1 | Restructuring and integration costs of $20 million, which included costs to implement our CPI program, change in control, severance, professional fees and settlement of litigation – as well as $11 million of transaction costs associated with the ongoing process to sell the company's non-core storage tank and pipe fabrication businesses during the three months ended June 30, 2019. |
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES | |||||||||||||||
Three months Ended | Six months Ended | ||||||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||||
($ in millions, except share and per share amounts) | |||||||||||||||
GAAP Net (Loss) Income Attributable to Common | $ | (146) | $ | 47 | $ | (216) | $ | 82 | |||||||
Less: Adjustments | |||||||||||||||
Transaction costs1 | 11 | 37 | 15 | 40 | |||||||||||
Restructuring and integration costs2 | 20 | 63 | 89 | 75 | |||||||||||
Debt extinguishment costs3 | - | 14 | - | 14 | |||||||||||
Tax benefit on intercompany transfer of IP4 | - | (117) | - | (117) | |||||||||||
Loss on sale of APP5 | 101 | - | 101 | - | |||||||||||
Total Non-GAAP Adjustments | 132 | (3) | 205 | 12 | |||||||||||
Tax Effect of Non-GAAP Gains and/or Charges6 | - | (4) | - | (4) | |||||||||||
Total Non-GAAP Adjustments (After Tax) | 132 | (7) | 205 | 8 | |||||||||||
Non-GAAP Adjusted Net (Loss) Income Attributable to | $ | (14) | $ | 40 | $ | (11) | $ | 90 | |||||||
GAAP Operating (Loss) Income | $ | (61) | $ | 49 | $ | (48) | $ | 113 | |||||||
Non-GAAP Adjustments7 | 132 | 100 | 205 | 115 | |||||||||||
Non-GAAP Adjusted Operating Income | $ | 71 | $ | 149 | $ | 157 | $ | 228 | |||||||
Non-GAAP Adjusted Operating Margin | 3.3 | % | 8.6 | % | 3.6 | % | 9.7 | % | |||||||
GAAP Diluted (Loss) Earnings Per Share | $ | (0.80) | $ | 0.33 | $ | (1.19) | $ | 0.68 | |||||||
Non-GAAP Adjustments | 0.73 | (0.05) | 1.13 | 0.07 | |||||||||||
Non-GAAP Adjusted (Loss) Earnings Per Share | $ | (0.07) | $ | 0.28 | $ | (0.06) | $ | 0.75 | |||||||
Shares used in computation of (loss) income per share: | |||||||||||||||
Basic | 182 | 144 | 181 | 120 | |||||||||||
Diluted | 182 | 144 | 181 | 120 | |||||||||||
Net (Loss) Income Attributable to Common Stockholders | $ | (146) | $ | 47 | $ | (216) | $ | 82 | |||||||
Depreciation and Amortization | 61 | 57 | 137 | 80 | |||||||||||
Interest Expense, Net | 100 | 72 | 192 | 83 | |||||||||||
Provision for Income Taxes | (49) | (84) | 70 | (63) | |||||||||||
Accretion and Dividends on redeemable preferred stock | 14 | - | 28 | - | |||||||||||
EBITDA8 | (20) | 92 | 211 | 182 | |||||||||||
Non-GAAP Adjustments | 132 | (7) | 205 | 8 | |||||||||||
Adjusted EBITDA8 | $ | 112 | $ | 85 | $ | 416 | $ | 190 | |||||||
Cash flows from operating activities | $ | (205) | $ | 398 | $ | (449) | $ | 435 | |||||||
Capital expenditures | (15) | (24) | (33) | (43) | |||||||||||
Free cash flow | $ | (220) | $ | 374 | $ | (482) | $ | 392 | |||||||
GAAP Revenues | $ | 2,137 | $ | 1,735 | $ | 4,348 | $ | 2,343 | |||||||
Note: Individual line items may not sum to totals as a result of rounding. | |||||||||||||||
1 | Transaction costs in Q2 2019 were associated with the ongoing process to sell our non-core storage tank and pipe fabrication businesses. Transaction costs in Q2 2018 were associated with the Combination. |
2 | Restructuring and integration costs, including costs to achieve the CPI. |
3 | As part of financing of the combination and the establishment of new capital structure, we recognized expense during the second quarter of 2018 for prepayment of our prior credit facility and senior secured notes, including a make-whole premium and the accelerated write-off of debt issuance costs. |
4 | Tax benefit resulting from the internal transfer of certain intellectual property rights during the second quarter of 2018 in conjunction with the combination. |
5 | We recognized a $101 million loss on the APP asset disposal in our Statement of Operations during Q2 2019. |
6 | The adjustments to GAAP Net Income (Loss) have been income tax effected when included in net income based upon the respective tax jurisdictions the adjustments were incurred in. No income tax effect has been taken on Non-GAAP charges incurred in the United States, where we do not expect to receive income tax benefits. |
7 | Includes the non-GAAP adjustments described in footnotes 1, 2 and 5 above. Adjustments to operating income do not include non-GAAP adjustments described in footnotes 3 and 4 above, as those items are not included in the computation of operating income. |
8 | We define EBITDA as net income plus depreciation and amortization, interest expense, net, provision for income taxes and accretion and dividends on redeemable preferred stock. We define adjusted EBITDA as EBITDA adjusted to exclude significant, non-recurring transactions, both gains and charges, to our operating income as described in footnotes 1 through 6 above. We have included EBITDA and adjusted EBITDA disclosures in this press release because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry and because adjusted EBITDA provides a consistent measure of EBITDA relating to our underlying business. Our management also uses EBITDA and adjusted EBITDA to monitor and compare the financial performance of our operations. EBITDA and adjusted EBITDA do not give effect to the cash that we must use to service our debt or pay our income taxes, and thus do not reflect the funds actually available for capital expenditures, dividends or various other purposes. In addition, our presentation of EBITDA and adjusted EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider EBITDA or adjusted EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP. |
McDERMOTT INTERNATIONAL, INC. | ||
RECONCILIATION OF FORECAST NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | ||
Full Year 2019 Guidance Revised | ||
($ in millions, except per share | ||
Revenues | ~$9.5B | |
Operating Income | ~$220 | |
Operating Margin | ~2.3% | |
Restructuring, integration & transaction costs | ~$150 | |
Loss on Sale of APP | ~$100 | |
Total Non-GAAP Adjustments | ~$250 | |
Adjusted Operating Income | ~$470 | |
Adjusted Operating Margin | ~4.9% | |
Net Loss | ~$(310) | |
Total Non-GAAP Adjustments | ~$250 | |
Tax Impact of Adjustments | ~$ - | |
Adjusted Net Loss | ~$(60) | |
Diluted Share Count | ~188 | |
Adjusted Diluted Loss Per Share | ~$(0.32) | |
Cash Flows from Operating Activities | ~$(495) | |
Capital Expenditures | ~$145 | |
Free Cash Flow | ~$(640) | |
GAAP Net Income (Loss) Attributable to Common Stockholders | ~$(310) | |
Add: | ||
Depreciation and amortization | ~$274 | |
Interest expense, net | ~$395 | |
Provision for taxes | ~$65 | |
Accretion on Redeemable Preferred Stock | ~$15 | |
Dividends on Redeemable Preferred Stock | ~$36 | |
EBITDA | ~$475 | |
Restructuring, integration & transaction costs | ~$150 | |
APP Loss on Sale | ~$100 | |
Adjusted EBITDA | ~$725 | |
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-reports-second-quarter-2019-financial-and-operational-results-300892294.html
SOURCE McDermott International, Inc.
Article Date
7/29/20197/25/2019 - McDermott Awarded Contract for INDMAX Technology for a Fluid Catalytic Cracking Unit in India
McDermott Awarded Contract for INDMAX Technology for a Fluid Catalytic Cracking Unit in India
Source: PR Newswire
HOUSTON, July 25, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by Indian Oil Corporation Limited (IOCL) for the technology license, basic engineering, proprietary equipment, training and technical services for a grassroots Fluid Catalytic Cracking (FCC) unit using INDMAX Technology, licensed by McDermott's Lummus Technology and developed in partnership with IOCL. This FCC unit is part of a refinery expansion project for IOCL to grow into petrochemicals at the complex in Panipat, Haryana, India. Lummus Technology is the exclusive worldwide licensor of INDMAX Technology, which is a unique solution for vertical integration of refinery and petrochemical complexes and offers better product yields with lower capital and operating expenditures.
The INDMAX Technology combines the proprietary and innovative INDMAX catalyst and process concepts developed by the premier Research & Development Centre of IOCL with state-of-the-art FCC technology and hardware design features of Lummus Technology. "IOCL has been an important partner to us for many years and we look forward to the continued relationship by participating in this refinery expansion project," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "IOCL currently operates INDMAX units at their Paradip and Guwahati refineries, and they are in the process of commissioning another at their Bongaigaon refinery."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award will be reflected in McDermott's second quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-contract-for-indmax-technology-for-a-fluid-catalytic-cracking-unit-in-india-300890580.html
SOURCE McDermott International, Inc.
Article Date
7/25/2019McDermott, Chiyoda and Zachry Group Introduce Feed Gas to Train 1 at Freeport LNG
Source: PR Newswire
HOUSTON, July 22, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) along with its partners, Chiyoda International Corporation and Zachry Group, announced today that Train 1 of the Freeport LNG Liquefaction project on Quintana Island in Freeport, Texas, has reached the final commissioning stage. This includes the introduction of feed gas into Train 1 of the natural gas liquefaction and LNG export facility.
"We are extremely proud of the Freeport LNG project team for reaching this major milestone at this unique LNG production facility," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "First of its kind in the US, with the largest electric motor driven refrigeration compressors, the Freeport LNG facility will significantly improve the energy export capabilities we have in the U.S., and McDermott is pleased to be part of its development from the ground up. Once Train 1 is fully operational, it will have the capacity to produce more than 5 million tonnes of LNG per year."
Zachry Group, as the joint venture lead, engaged McDermott for the Pre-FEED in 2011, followed by FEED works to support the early development stage of the project as a one-stop shop solution provider. Later Chiyoda joined the partnership and the joint team provided engineering, procurement and facility construction as well as commissioning and initial operations for the project. The project includes three pre-treatment trains, a liquefaction facility with three trains, a second loading berth and a 165,000 m3 full containment LNG storage tank.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About Zachry Group
Zachry Group is North America's pacesetter in turnkey construction, engineering, maintenance, turnaround and fabrication services to the power, energy, chemicals, manufacturing and industrial sectors.
We work with customers to plan, build and renew their most critical facilities, so they can achieve their immediate and long-term goals, all at the highest safety standards. We operate in more than 30 offices, and our 20,000 employees work in more than 400 locations nationwide, united by a shared set of values and the desire to deliver the very best outcome for our customers. Visit www.zachrygroup.com for more information.
About Chiyoda
Chiyoda Corporation, headquartered in Yokohama, Japan provides services in the fields of engineering, procurement and construction on a global basis for petroleum refineries, petrochemical complexes, other hydrocarbon or industrial plants, particularly LNG plants in the USA, South East Asia, the Oceania regions, the Middle East and Russia.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-chiyoda-and-zachry-group-introduce-feed-gas-to-train-1-at-freeport-lng-300888343.html
SOURCE McDermott International, Inc.
Article Date
7/22/2019McDermott Awarded Pre-FEED Contract by YPF for Vaca Muerta LNG in Argentina
Source: PR Newswire
HOUSTON, July 19, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a sizeable* contract by Argentina-based YPF, S.A. to provide pre-front-end engineering design (Pre-FEED) services for a five million tonnes per annum (MTPA) LNG Liquefaction Facility, with a potential expansion to 10 MTPA, at the Vaca Muerta Shale field in Argentina.
The scope of work is a continuation of a previous conceptual study developed for the YPF LNG Export Facility in Argentina under a contract in 2018. McDermott's London office will provide engineering services while the Houston office will perform project management and estimation services.
"The award of this Pre-FEED project is a testimony of McDermott's technical expertise in LNG and our successful partnership with YPF over the years," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "Our experience as the EPC contractor for the Peru LNG Facility in which YPF was involved – combined with McDermott's modularization capabilities – were key factors that made us uniquely qualified to win and execute this contract."
The project will promote the development of the Vaca Muerta Shale field in The Neuquen region Argentina.
Work on the project will begin immediately, and the contract award will be reflected in McDermott's second quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations:
Kristi Krupala
Manager, North, Central and South America (NCSA) Area Communications & Marketing
+1 281 870 5447
Kkrupala2@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-pre-feed-contract-by-ypf-for-vaca-muerta-lng-in-argentina-300887952.html
SOURCE McDermott International, Inc.
Article Date
7/19/2019McDermott Awarded FEED Contract for Sohar LNG Bunkering Project in Oman
Source: PR Newswire
HOUSTON, July 15, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a sizeable* contract by Total Oman E&P Development B.V. in partnership with Oman Oil Company S.O.A.C. to provide front-end engineering design (FEED) services for the Sohar LNG Bunkering Project in Oman. This project is intended to establish Oman as a regional LNG bunkering hub capable of supplying LNG as a fuel to marine vessels.
The scope of work during the FEED phase includes fully defining the onshore mid-scale LNG facilities and preparing a competitive tender for the engineering, procurement, supply, construction and commissioning phase. The global LNG bunkering market is entering a rapid growth period driven largely by the International Maritime Organization's legislation to significantly limit sulphur emissions.
"This award is a reflection of McDermott's 60-year history of delivering innovative LNG solutions worldwide, beginning with our tank storage solutions in the 1950s, to our liquefaction capabilities today," said Linh Austin, Senior Vice President, Middle East and North Africa.
Work on the project will begin immediately and the contract award will be reflected in McDermott's second quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected value, scope and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Media Relations
Barbara Knight
Senior Director, Area Communications and Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
BBknight@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-feed-contract-for-sohar-lng-bunkering-project-in-oman-300884176.html
SOURCE McDermott International, Inc.
Article Date
7/15/2019McDermott Announces Date for Second Quarter 2019 Financial Results and Conference Call
Source: PR Newswire
HOUSTON, July 15, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) will report financial results for the second quarter of 2019 on Monday, July 29, 2019 after the close of the U.S. markets.
President and Chief Executive Officer David Dickson and Executive Vice President and Chief Financial Officer Stuart Spence will discuss the company's results during a conference call that same day at 4:00 p.m. Central time.
Shareholders and other interested parties are invited to listen to the call by visiting www.mcdermott-investors.com or by calling 1-706-634-2259 (Conference ID: 9386389). A presentation of supplemental financial information will be available on McDermott's Investor Relations site at that time.
A replay of the webcast will be available on McDermott's website for seven days after the call.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-date-for-second-quarter-2019-financial-results-and-conference-call-300884375.html
SOURCE McDermott International, Inc.
Article Date
7/15/2019McDermott Awarded Sizeable Offshore Engineering Contract by Qatar Petroleum
Source: PR Newswire
HOUSTON, July 11, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a sizeable* contract by Qatar Petroleum (QP) to carry out front-end engineering and design (FEED) work for offshore wellhead platforms, pipelines and cables associated with the North Field Expansion (NFE) project.
The scope includes the design of four offshore trunk lines with intra-field pipelines, eight wellhead platforms and power and fiber optic (PFO) subsea cable rings. The FEED contract will be executed from McDermott's Doha offices, with drafting to be executed in Chennai.
Work on the project will begin immediately, and the contract award will be reflected in McDermott's second quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Senior Director, Area Communications and Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-sizeable-offshore-engineering-contract-by-qatar-petroleum-300881101.html
SOURCE McDermott International, Inc.
Article Date
7/11/20197/11/2019 - McDermott Announces Successful Startup of World's Largest Catalytic Dehydrogenation Plant
McDermott Announces Successful Startup of World's Largest Catalytic Dehydrogenation Plant
Source: PR Newswire
HOUSTON, July 11, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced the recent successful startup of the world's largest catalytic dehydrogenation plant, which is located at Hengli Petrochemical (Dalian) Refinery Co., Ltd.'s site in Liaoning Province, China, and uses McDermott's Lummus CATOFIN® technology.
This single-train dehydrogenation unit uses CATOFIN catalyst and Heat Generating Material (HGM) from Lummus Technology's catalyst partner, Clariant, to process 500 KTA of propane and 800 KTA of isobutene for the production of propylene and isobutylene. In addition to the technology license, McDermott also provided the process design package, training, and technical support for this plant.
"Lummus CATOFIN technology continues to be the dehydrogenation technology of choice, continually exceeding customer expectations for overall performance," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "This technology offers lower capital and operational costs for our customers, combined with unmatched reliability and optimization."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-successful-startup-of-worlds-largest-catalytic-dehydrogenation-plant-300882942.html
SOURCE McDermott International, Inc.
Article Date
7/11/2019McDermott Awarded EPCI Mega-Project by Saudi Aramco for Marjan Package 4
Source: PR Newswire
HOUSTON, July 10, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a contract in excess of $1.5 billion for Package 4 of Saudi Aramco's Marjan Increment Development Project to provide engineering, procurement, construction and installation (EPCI) of offshore gas facilities and pipelines.
Marjan Package 4 represents the second largest EPCI offshore contract awarded by Saudi Aramco in the Marjan Increment Development Project. The Marjan field lies in the Arabian Gulf, off Saudi Arabia's East Coast.
"The award of Marjan Package 4, in addition to Marjan Package 1, is further evidence of Aramco's confidence in McDermott's ability to deliver on a project of this scale," said Linh Austin, Senior Vice President, Middle East and North Africa. "Our locally focused and globally-integrated approach we refer to as the One McDermott Way, is integral to our ability to provide effective, innovative solutions for our clients."
The contract includes the fabrication of three tie-in platforms and seven wellhead platforms with a total weight of more than 61,400 tons (55,700 metric tons). The scope also includes the installation of subsea trunk lines and in-field pipelines in excess of 330 miles (540 kilometers), and the laying of more than 55 miles (90 kilometers) of subsea cables.
Project management will be based out of Dubai, United Arab Emirates, with engineering support from McDermott offices in Al Khobar, Saudi Arabia and Chennai, India. Fabrication will take place at McDermott's Batam, Jebel Ali and Dammam yards. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott's second quarter 2019 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Media Relations
Barbara Knight
Senior Director, Area Communications and Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
BBknight@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epci-mega-project-by-saudi-aramco-for-marjan-package-4-300882439.html
SOURCE McDermott International, Inc.
Article Date
7/10/2019McDermott Awarded Record EPCI Mega-Project by Saudi Aramco for Marjan Package 1
Source: PR Newswire
HOUSTON, July 10, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a contract in excess of $3 billion for Package 1 of Saudi Aramco's Marjan Increment Development Mega-Project to provide engineering, procurement, construction and installation (EPCI) of the Gas-Oil Separation Plant (GOSP), in a consortium with China Offshore Oil Engineering Company (COOEC).
McDermott will lead the consortium with COOEC in an integrated execution model utilizing McDermott's extensive global assets and facilities. The consortium will leverage McDermott's extensive project management, engineering, global procurement, fabrication, In-Kingdom field-operations and marine knowledge of the Marjan field with COOEC's fabrication capability and marine vessels. The Package 1 GOSP separation platform is located offshore in the eastern flank of the Arabian Gulf. This is the operational center of the Marjan increment development mega-project and will draw upon McDermott's extensive interface and logistics management capabilities.
The award represents the single largest EPCI offshore contract awarded by Aramco. The Marjan Increment Project will increase production from 500,000 to 800,000 barrels of oil per day, with Package 1 GOSP facilities at the core of the development.
"This award signifies Aramco's confidence in McDermott's project management expertise and ability to meet the interface, logistics and coordination challenges that an EPCI project of this vast scale represents," said Linh Austin, Senior Vice President, Middle East and North Africa. "The award is validation of the One McDermott Way, our locally focused and globally-integrated approach to deliver certainty to the most complex projects."
The contract includes the fabrication of over 165,000 tons (150,000 metric tons) consisting of six major topside platforms and jackets, 12 bridges and six bridge support platforms and jackets, as well as over 40 miles (70 kilometers) of 36-inch oil export trunk lines and more than 55 miles (90 kilometers) of 230kV composite subsea cables.
The project management and engineering teams will be centrally located in McDermott's Asia-Pacific Headquarters in Kuala Lumpur, Malaysia, in close proximity to our Batam Island fabrication facility in Indonesia and the COOEC facility in China. The engineering phase is scheduled to begin in the third quarter of 2019 and fabrication is scheduled to begin in the first quarter of 2020, with overall completion planned for the fourth quarter of 2022. The contract award will be reflected in McDermott's second quarter 2019 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Media Relations
Barbara Knight
Senior Director, Area Communications and Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
BBknight@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-record-epci-mega-project-by-saudi-aramco-for-marjan-package-1-300882433.html
SOURCE McDermott International, Inc.
Article Date
7/10/2019McDermott Announces Agreement with Cameron LNG
Source: PR Newswire
HOUSTON, July 5, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced it and its joint venture member Chiyoda have reached an agreement with Cameron LNG related to the construction of its LNG liquefaction project in Louisiana.
The agreement includes the following key components:
"Over the past year, we have further strengthened our relationship with Cameron LNG and our leadership, oversight, execution, forecasting and reporting on the project. In the last few months, the joint venture project team has made tremendous progress, including first liquid and first cargo from Train 1," said Samik Mukherjee, Group Senior Vice President, Projects. "We are extremely pleased with the agreement, which is a testament to the progress and the strong performance of our project team. It was crafted with the full support and collaboration of Cameron LNG to optimize the timing and cost-effectiveness of the remaining work – and it does so in a way that we believe will benefit all involved parties."
The favorable financial impact of the agreement is incorporated in McDermott's previously issued guidance for 2019.
Since the initial award in 2014, McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project. The project includes three liquefaction trains with a projected export capacity of more than 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
As previously disclosed, the project was approximately 90 percent complete as of the end of the first quarter of 2019. The company expects initial production from Trains 2 and 3 in the first quarter of 2020 and the second quarter of 2020, respectively.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about McDermott's beliefs with respect to the benefits to be realized from the agreement with Cameron LNG and about the expected scope, and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018, and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-agreement-with-cameron-lng-300880235.html
SOURCE McDermott International, Inc.
Article Date
7/5/2019McDermott Completes First of Two Offshore Campaigns for Reliance KG-D6 R Cluster Project
Source: PR Newswire
HOUSTON, July 2, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced it has completed the first of two offshore campaigns for Reliance Industries Ltd. KG-D6 R-Cluster subsea field development, in the Krishna Godavari Basin, located off the East Coast of India.
The campaign included McDermott's piggy-back pipelay in S-lay mode (18-inch plus a 4-inch) offshore in India in approximately 4,265 feet (1,300 meters) water depth and the installation of 6-inch lines, PLETs and manifolds to water depths of approximately 6,300 feet (1,920 meters). McDermott used its derrick lay vessel, DLV 2000 to perform its first S-lay piggy-back pipelay. Other vessels were also used to complete subsea installation activities. In addition, McDermott also installed India's longest dual riser.
"The safe completion of season one activities, in the challenging offshore environments off the East Coast of India and mitigated disruptions from two cyclones, demonstrates McDermott's expertise in engineering and execution of complex subsea projects in ultra-deepwater depths," said Ian Prescott, Senior Vice President for Asia Pacific. "We will build on our success to help ensure the second campaign is accomplished safely with the highest quality."
McDermott's first offshore campaign completion comes at a time when McDermott continues to expand its operations in India, with over 1,500 personnel across offices in Gurgaon, Chennai, Pune and Mumbai. The McDermott Chennai and Gurgaon offices are Centers of Engineering Excellence and Multiple Office Project Execution Centers that support a range of front-end engineering design to engineering, procurement, construction and installation global projects.
The second offshore campaign includes the installation of manifolds, manifold piles, pipelines, PLETs, jumpers and umbilicals in ultra-deepwater depths, together with major brownfield modifications to Reliance's' control and riser platform. The significant* contract with Reliance on KG-D6 R-Cluster is scheduled for completion in the second quarter of 2020. Satellite cluster development, which was awarded as a separate stand-alone contract in July 2018, is scheduled for completion in the first quarter of 2021.
* - McDermott defines a significant contract as between USD $250 million and USD $500 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Asia Contact
Miki O'Farrell
Manager, Marketing Asia Pacific
+603 2856 5806
MOFarrell@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-completes-first-of-two-offshore-campaigns-for-reliance-kg-d6-r-cluster-project-300878873.html
SOURCE McDermott International, Inc.
Article Date
7/2/2019McDermott Provides Update on Asset Sale Process
Source: PR Newswire
HOUSTON, July 1, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today provided an update on its asset sale process.
The company has completed the sale of Alloy Piping Products (APP), the distribution and manufacturing arm of its U.S. pipe fabrication business. APP maintains, distributes and manufactures an extensive inventory of commodity fittings and specialty piping components.
McDermott continues to pursue a sale of the remaining portion of the U.S. pipe fabrication business, with an objective of concluding a transaction by the end of the third quarter of 2019.
The company aims to complete the sale of the storage tank business by the end of the third quarter of 2019.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of McDermott. These forward-looking statements include, among other things, statements about the expected timing of the sale of the remaining portion of the pipe fabrication business and of the Storage Tank business. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which McDermott operates or credit markets; the inability of McDermott to execute on contracts in backlog successfully; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by customers and other business counterparties of McDermott; changes in industry norms; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission, including McDermott's annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-provides-update-on-asset-sale-process-300878341.html
SOURCE McDermott International, Inc.
Article Date
7/1/20196/19/2019 - McDermott Announces Substantial Completion of Entergy Louisiana's St. Charles Power Station
McDermott Announces Substantial Completion of Entergy Louisiana's St. Charles Power Station
Source: PR Newswire
HOUSTON, June 19, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it successfully achieved substantial completion of Entergy Louisiana's St. Charles Power Station, a combined-cycle gas power station in Montz, Louisiana. This milestone means the plant has now been turned over to the owner and has begun commercial operations.
"McDermott is pleased to announce that the St. Charles Power Station project is substantially completed and that Entergy Louisiana has already begun commercial operations," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "We were able to deliver this project ahead of schedule and on budget for Entergy Louisiana, and we continue to work with Entergy companies on two other projects: Lake Charles Power Station for Entergy Louisiana and Montgomery County Power Station for Entergy Texas."
The St. Charles Power Station project is a 980-megawatt combined-cycle gas turbine power station that is expected to reduce carbon dioxide emissions on average about 40 percent below Entergy's older natural gas-fired units. Because of the plant's high efficiency, Entergy Louisiana estimates the new plant will result in customer savings of more than $1.3 billion over the anticipated 30-year life of the unit.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-substantial-completion-of-entergy-louisianas-st-charles-power-station-300870771.html
SOURCE McDermott International, Inc.
Article Date
6/19/2019McDermott Awarded Paraxylene (pX) Technology Contract in China
Source: PR Newswire
HOUSTON, June 13, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by Ningbo Union King Polyester Material Limited for the technology license, process design engineering, and operator training services for a large-scale, grassroots 1,600 KTA paraxylene (pX) plant at Ningbo Union King's petrochemicals facility in Ningbo, China. Lummus Technology is the exclusive licensor of BP's pX technology, which offers pX production at purities of 99.8 percent with lower energy consumption and lower capital costs compared to more traditional pX technologies.
"Paraxylene is a critical component in various polymers such as polyester and thus an important piece of the worldwide petrochemicals market," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "This large-scale pX plant will help meet growing petrochemicals demand, particularly in China."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award was reflected in McDermott's first quarter 2019 backlog.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-paraxylene-px-technology-contract-in-china-300866820.html
SOURCE McDermott International, Inc.
Article Date
6/13/2019McDermott Announces Contract Agreement for Mozambique LNG Development
Source: PR Newswire
HOUSTON, June 5, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that CCS JV, a joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) Development.
CCS JV's project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure. Previously, CCS JV provided front-end engineering design (FEED) services for this LNG development.
McDermott's initial portion of the EPC contract award is approximately $2 billion.
"LNG is helping to shape an entirely new era of energy solutions, and McDermott is playing a significant role in this global shift," said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian.
"The Area 1 Mozambique LNG project will build on McDermott's industry-leading experience and demonstrate our ability to deliver comprehensive EPC solutions globally for world-scale LNG developments," said Samik Mukherjee, McDermott's Group Senior Vice President, Projects.
McDermott and Saipem have established a new office in Milan, Italy, where a team from both companies will lead the project management, engineering and procurement in advance of sharing on-site construction management responsibilities. McDermott will perform engineering from both London and Gurgaon, India. Chiyoda will only provide advisory services for the joint venture. Work at the site is expected to commence when Anadarko issues a Notice to Proceed after it takes a Final Investment Decision (FID).
As the operator of Offshore Area 1, Anadarko is the primary project sponsor. Additional sponsors include ENH Rovuma Área Um, S.A, Mitsui E&P Mozambique Area1 Ltd., ONGC Videsh Ltd., Beas Rovuma Energy Mozambique Limited, BPRL Ventures Mozambique B.V., and PTTEP Mozambique Area 1 Limited.
The contract award will be reflected in McDermott's backlog once Anadarko approves FID, which is expected in June 2019.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
About Saipem
Saipem is a leading company in engineering, drilling and construction of major projects in the energy and infrastructure sectors. It is "One-Company" organized in five business divisions (Offshore E&C, Onshore E&C, Offshore Drilling, Onshore Drilling and XSight, dedicated to conceptual design). Saipem is a global solution provider with distinctive skills and competences and high-tech assets, which it uses to identify solutions aimed at satisfying customer requirements. Listed on the Milan Stock Exchange, it is present in over 60 countries worldwide and has 32 thousand employees of 120 different nationalities.
About Chiyoda
Chiyoda Corporation, is a world-leading, fully integrated international engineering company and EPC contractor. Since its founding in 1948, Chiyoda has provided engineering, procurement, construction, operation and maintenance services in a wide range of business fields including oil & gas, chemicals and petrochemicals in over 60 countries around the world.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, statements about the expected value, scope, execution and timing of the project discussed in this press release and statements about the expected timing of FID for the project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Zoe Keenan
Communications Manager
Europe, Africa, Russia and Caspian
+447917581727
zakeenan@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-contract-agreement-for-mozambique-lng-development-300862392.html
SOURCE McDermott International, Inc.
Article Date
6/5/2019McDermott Announces First Cargo from Cameron LNG Train 1
Source: PR Newswire
HOUSTON, May 31, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that the first cargo of liquefied natural gas (LNG) has been shipped from the Cameron LNG project in Hackberry, La. On May 14, McDermott announced first liquid from Cameron LNG Train 1 and today's announcement of first cargo is a precursor to completion of Train 1.
"Shipping the first cargo from Train 1 is a tremendous achievement for McDermott and the joint venture project team, especially while maintaining a very strong safety record on such a large-scale and complex project," said Samik Mukherjee, Group Senior Vice President of Projects for McDermott. "Moreover, this an impressive contribution to the needs of a growing, global LNG infrastructure market—something our entire organization is proud to be a part of."
Since the initial award in 2014, McDermott and its joint venture member on the project, Chiyoda, have provided the engineering, procurement, construction and commissioning for the project. The project includes three liquefaction trains with a projected export capacity of more than 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
Cameron LNG is jointly owned by affiliates of Sempra LNG, LLC, Total, Mitsui & Co. Ltd. and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope of the project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-first-cargo-from-cameron-lng-train-1-300859725.html
SOURCE McDermott International, Inc.
Article Date
5/31/2019McDermott Reaffirms Schedule for Freeport LNG Project
Source: PR Newswire
HOUSTON, May 23, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today reaffirmed its previously disclosed schedule for the Freeport LNG project in Freeport, Texas.
As disclosed on April 29, 2019, McDermott expects initial LNG production from the third and final train to occur in the first quarter of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing of initial LNG production from the third and final train on the Freeport LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-reaffirms-schedule-for-freeport-lng-project-300856250.html
SOURCE McDermott International, Inc.
Article Date
5/23/2019McDermott Awarded Petrochemicals Technology Contract in Hungary
Source: PR Newswire
HOUSTON, May 23, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by MOL Petrochemicals for the basic engineering, technology license, catalyst and Front End Engineering Design (FEED) for an Olefins Conversion Technology (OCT) unit at MOL's petrochemicals complex in Tiszaújvaros, Hungary. Once complete, this unit will have a production capacity of 100,000 MTA of polymer grade propylene from steam cracker and refinery feedstocks, utilizing Lummus' proprietary OCT, and CDHydro® Deisobutenizer. The unit will also produce an isobutene-rich stream.
Lummus Technology's OCT is the most economical and commercially proven route to on-purpose propylene production, with very low energy consumption due to its energy-neutral chemistry, and low feedstock consumption due to high selectivity.
"We are honored by MOL's selection to use OCT for integration into their petrochemicals business," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "OCT is recognized as the most economical route for utilizing C4 and C5 feeds from a steam cracker or refinery to increase propylene production in a petrochemicals complex."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award will be reflected in McDermott's second quarter 2019 backlog.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-petrochemicals-technology-contract-in-hungary-300855434.html
SOURCE McDermott International, Inc.
Article Date
5/23/2019McDermott Reaffirms Schedule for Cameron LNG Project
Source: PR Newswire
HOUSTON, May 22, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today reaffirmed its previously disclosed schedule for the Cameron LNG project in Hackberry, Louisiana.
As disclosed on April 29, 2019, McDermott expects initial LNG production from the third and final train to occur in the second quarter of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing of initial production of LNG on the third train on the Cameron LNG project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-reaffirms-schedule-for-cameron-lng-project-300855366.html
SOURCE McDermott International, Inc.
Article Date
5/22/2019McDermott Announces First Liquid from Cameron LNG Train 1
Source: PR Newswire
HOUSTON, May 14, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that Train 1 of the Cameron LNG project in Hackberry, La., has begun producing liquefied natural gas (LNG). While production is in the initial phases, this significant project milestone is a precursor to first cargo, which is expected later this quarter.
"When a facility starts producing a product, it is always a significant accomplishment, especially for such a large-scale project like Cameron LNG," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "We are proud of our project team for this achievement and for their exceptional safety performance during the construction phase. Once Train 1 is at full production and we have completed Trains 2 and 3, this facility will be one of the largest producers and exporters of LNG to markets around the world."
Since the initial award in 2014, McDermott and its joint venture partner on the project, Chiyoda, have provided the engineering, procurement and construction for the Cameron LNG project. The project includes three liquefaction trains with a projected export capacity of more than 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
Cameron LNG is jointly owned by affiliates of Sempra LNG, LLC, Total, Mitsui & Co. Ltd. and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing of full LNG production on the Cameron project and the expected scope of the project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-first-liquid-from-cameron-lng-train-1-300849707.html
SOURCE McDermott International, Inc.
Article Date
5/14/2019McDermott Awarded EPCI Contract by Petrobras for Sepia Field Project
Source: PR Newswire
HOUSTON, May 14, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced the award of a significant* contract by Petrobras for engineering, procurement, construction and installation of subsea risers and flowlines for the first phase of the Sepia field, located 174 miles (280 kilometers) from the Rio de Janeiro coastline in Brazil.
The project scope includes detailed engineering, surveys, supply, installation and pre-commissioning of rigid pipelines, jumpers, buoyance modules, strakes and riser monitoring systems for seven-riser wells (3 producers and 4 injector wells) connected to the floating production, storage and offloading (FPSO) Carioca vessel.
"McDermott has had a strong presence in Brazil going back more than four decades, and we see tremendous opportunity for growth in the region," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "We will use our first-class assets and proven track record to deliver the highest levels of safety, quality and cost-efficiency during the first phase of this important greenfield development."
McDermott's Rio de Janeiro office will perform the work with support from its Houston office. McDermott plans to use five vessels for the installation work at ultra-deepwater depths up to 7,021 feet (2,140 meters).
The engineering work is expected to begin immediately, and the contract will be reflected in McDermott's second quarter 2019 backlog.
The first phase is part of a 15 well Sepia field development located in the pre-salt layer of the Santos Basin in Block BM-S-24. First oil is expected in 2021.
* - McDermott defines a significant contract as between USD $250 million and USD $500 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epci-contract-by-petrobras-for-sepia-field-project-300849084.html
SOURCE McDermott International, Inc.
Article Date
5/14/2019McDermott Awarded Polypropylene Technology Contract in India
Source: PR Newswire
HOUSTON, May 13, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by Chennai Petroleum Corporation Limited (CPCL), a group company of IndianOil, for the license, basic engineering design and proprietary catalyst supply for a 475 KTA (Kilo Tons per Annum) polypropylene plant in Nagapattinam, Tamil Nadu, India. The plant will use Lummus' proprietary Novolen® reactors and proprietary NHP® catalyst and will have the capability to produce a full range of leading polypropylene products for the Indian and regional markets
"This license award is our fourth recent polypropylene technology award in India, and places Novolen technology number one for licensed polypropylene capacity in India, with a total capacity of 3,100 kilo tons per annum," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "The unique compactness of the Novolen reactor technology and resulting efficiencies in capital investment and operating costs allow our clients to be more competitive in the global polypropylene markets."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award was reflected in McDermott's first quarter 2019 backlog.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Adminsitration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-polypropylene-technology-contract-in-india-300848585.html
SOURCE McDermott International, Inc.
Article Date
5/13/2019McDermott Awarded Sizeable Offshore Contract by ADNOC
Source: PR Newswire
HOUSTON, May 9, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a sizeable* contract by ADNOC to provide FEED services on a design-competition basis for phase one of the Umm Shaif Gas Cap Condensate Development Project. The scope of work also includes the preparation and submission of an EPCI proposal reflecting the design of the offshore facilities developed by McDermott through this FEED work.
"This award reflects the market's recognition that McDermott is well qualified to provide execution-focused engineering design services to clients," said Linh Austin, McDermott's Senior Vice President, Middle East and North Africa. "Our extensive EPCI experience allows us to deliver technically robust engineering design to clients as a 'one-stop-shop' on a global scale."
The FEED project is scheduled to be executed from McDermott's London office with support from its Dubai and Chennai locations.
Work on the project will begin immediately and the contract award was reflected in McDermott's first quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Senior Director, Area Communications and Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-sizeable-offshore-contract-by-adnoc-300846722.html
SOURCE McDermott International, Inc.
Article Date
5/9/2019McDermott Comments on Cost Position of Cameron Project
Source: PR Newswire
HOUSTON, May 7, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today reiterated the position it had announced on April 29, 2019, that its Cameron LNG project did not experience any material change in its cost position in the first quarter of 2019.
The company's statement comes in response to an announcement yesterday by Chiyoda Corporation, McDermott's joint venture partner in executing the contract, that Chiyoda had recorded an unquantified change in estimate on the Cameron project in the first quarter of 2019, along with charges on other projects, pending arbitration cases and other matters.
McDermott is not involved in Chiyoda's new Strategy & Risk Integration Division, which was mentioned in its news release.
Over the past year, through the company's active management of the project, McDermott has strengthened leadership, oversight, execution, forecasting and reporting. And more recently, McDermott has taken an expanded role in the commissioning activities. This expanded oversight has given the company additional leverage to drive the project forward through the commissioning process.
McDermott and Chiyoda are executing the project under a 50-50 joint venture arrangement. The Cameron LNG project, currently under construction in Hackberry, Louisiana, is a world-scale facility incorporating proven technology designed to produce nearly 14 million tons per year of liquefied natural gas. In April 2019, Train 1 of the Cameron LNG project reached the final commissioning stage. This included the introduction of pipeline feed gas into Train 1 of the liquefaction export facility, the precursor for the production of liquefied natural gas (LNG), which is expected by mid May. As of the end of the first quarter of 2019, the Cameron project was approximately 90 percent complete.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected timing of initial production of LNG on the Cameron project, McDermott's ability to drive the project through the commissioning phase and the expected scope of the project. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281-870-5269
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-comments-on-cost-position-of-cameron-project-300845156.html
SOURCE McDermott International, Inc.
Article Date
5/7/2019McDermott Announces Results of Annual Stockholders' Meeting
Source: PR Newswire
HOUSTON, May 2, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today the results of its Annual Meeting of Stockholders held Thursday, May 2, 2019 in London, England.
Based on the voting results from the meeting, stockholders elected Forbes I.J. Alexander, Philippe C. Barril, John F. Bookout, III, David Dickson, L. Richard Flury, W. Craig Kissel, Gary P. Luquette, James H. Miller, William H. Schumann, III, Mary L. Shafer-Malicki and Marsha C. Williams to McDermott's Board of Directors, each for a term extending until McDermott's 2020 Annual Meeting of Stockholders.
In addition, stockholders approved, on an advisory basis, McDermott's named executive officer compensation, approved the 2019 McDermott International, Inc. Long-Term Incentive Plan and ratified the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the year ending December 31, 2019.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include approximately 32,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Senior Vice President, Communications, Marketing and Administration
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-results-of-annual-stockholders-meeting-300843021.html
SOURCE McDermott International, Inc.
Article Date
5/2/2019McDermott Awarded FEED Contract by ADNOC Refining
Source: PR Newswire
HOUSTON, May 1, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has been awarded a sizeable* contract by ADNOC Refining to provide front-end engineering design (FEED) services for the Refinery Offgases (ROG) project at the Ruwais Refinery in Abu Dhabi.
The scope of work in the concept study phase includes evaluating various technology configurations and options for the recovery of hydrogen, ethane and sales-grade LPG or C3 and C4. The ROG FEED services will be used as the basis for the preparation of the engineering, procurement and construction management (EPCM) estimate and inquiry phase.
Work on the project will begin immediately, and the contract award will be reflected in McDermott's second quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Senior Director, Global Area Communications & Marketing
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-feed-contract-by-adnoc-refining-300840929.html
SOURCE McDermott International, Inc.
Article Date
5/1/2019McDermott Completes Final Offshore Campaign for Ichthys LNG Project
Source: PR Newswire
HOUSTON, April 29, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) announced today it has recently successfully completed the final offshore campaign for the INPEX-operated Ichthys LNG Project, located offshore Western Australia.
This was the second of two remaining work packages left under McDermott's contract, which was the largest subsea contract ever awarded at the time. Most of the EPCI for the SURF contract awarded in January 2012 was completed by the end of 2017.
The final offshore campaign involved subsea tiebacks to new drill centers and was executed by McDermott's Lay Vessel 108 (LV 108). The vessel has recorded 813,694 hours without any lost time incidents (LTI) since its first campaign in 2015.
"The final campaign was executed in a live producing field, and as such, we put in place additional risk and controls management that ensured our success and met all of the customer expectations. This has demonstrated McDermott's execution capability on a large-scale, complex SURF EPCI scope," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "Our outstanding record of accomplishment confirms our expertise and ability to execute one of the world's largest subsea contracts to date."
McDermott recorded more than 500,000 engineering workhours from offices across the world, including a Perth led Project Management team that was in place from 2012 and consisted of 160 personnel at its peak in 2017; procured over USD $600 million in-field equipment; built 48 subsea structures weighing a total of approximately 28,660 tons (26,000 metric tons) that included one of the largest riser support structures in the world at the time and used three of the company's deepwater installation vessels (DLV 2000, LV 108 and Intermac 650) and other contracted vessels to execute the project.
McDermott has a small fabrication scope remaining to be completed at its fabrication yard in Batam, Indonesia, which will conclude its work packages for the Ichthys LNG Project in its entirety in 2019.
About the Ichthys LNG Project
The Ichthys LNG Project is one of the largest and most complex resource developments in the world. Located about 136 miles (220 kilometers) offshore Western Australia, it lies in an average water depth of 820 feet (250 meters). The Ichthys LNG Project is effectively three mega-projects rolled into one, involving some of the largest offshore facilities in the industry, a state-of-the-art onshore processing facility and a 553 mile (890 kilometer) pipeline uniting them for an expected operational life of 40 years.
The project involves liquefying natural gas lifted from the Ichthys gas-condensate field offshore Western Australia at an onshore gas liquefaction plant constructed in Darwin, Northern Territory, and producing and shipping approximately 8.9 million tons of liquefied natural gas (LNG) and approximately 1.65 million tons of liquefied petroleum gas (LPG) per year, along with approximately 100,000 barrels of condensate per day at peak. Approximately 70 percent of the LNG produced by Ichthys LNG is scheduled to be supplied to Japanese customers. Ichthys LNG will help to meet growing energy demand in the region, while contributing to the Australian way of life.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications and Marketing
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Contact
Miki O'Farrell
Manager, Marketing APAC
+60 12 305 3609
mofarrell@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-completes-final-offshore-campaign-for-ichthys-lng-project-300839266.html
SOURCE McDermott International, Inc.
Article Date
4/29/2019McDermott Awarded Petrochemicals Contract in Kuwait
Source: PR Newswire
HOUSTON, April 22, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and Kuwait Integrated Petroleum Industries Company (KIPIC), a subsidiary of Kuwait Petroleum Corporation (KPC), today announced that KIPIC has awarded McDermott a technology contract for the basic engineering, technology license and catalyst for an integrated Low Pressure Recovery (LPR) and Olefins Conversion Technology (OCT) unit at KIPIC's Petrochemical Refinery Integration Project (PRIZe) in Al Zour, Kuwait. Once complete, this unit will produce 330,000 metric tons per annum of polymer grade propylene using refinery by-product streams.
"This award marks the 50th OCT unit that Lummus Technology has licensed, and we are honored to celebrate this milestone with KIPIC," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "This is a significant achievement that highlights the trust that our customers have in our industry-leading technologies."
The Petrochemical Refinery Integration project (PRIZe) will add a gasoline block, an aromatics block, OCT unit, polypropylene units, associated utility and offsite facilities to the existing refinery site. The new units will be closely integrated with the ZOR Refinery and LNGI projects which will be operated as an integrated facility once complete.
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award will be reflected in McDermott's first quarter 2019 backlog.
About KIPIC
Kuwait Integrated Petroleum Industries Company (KIPIC) is responsible for operating and managing the integrated complex for refining, petrochemicals manufacture businesses and liquefied natural gas import facilities at Al-Zour complex which is located about 70km south of Kuwait City. KIPIC planning to implement a world scale petrochemicals and gasoline manufacturing facility adjacent to the Al Zour refinery and LNG import facilities which are currently under construction.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-petrochemicals-contract-in-kuwait-300835506.html
SOURCE McDermott International, Inc.
Article Date
4/22/2019McDermott Announces Date for First Quarter 2019 Financial Results and Conference Call
Source: PR Newswire
HOUSTON, April 16, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) will report financial results for the first quarter of 2019 on Monday, April 29, 2019 before the opening of the New York Stock Exchange.
President and Chief Executive Officer David Dickson and Executive Vice President and Chief Financial Officer Stuart Spence will discuss the company's results during a conference call that same day at 7:30 a.m. Central time.
Shareholders and other interested parties are invited to listen to the call by visiting www.mcdermott-investors.com or by calling 1-706-634-2259 (Conference ID: 8784976). A presentation of supplemental financial information will be available on McDermott's Investor Relations site at that time.
A replay of the webcast will be available on McDermott's website for seven days after the call.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications & Marketing
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-date-for-first-quarter-2019-financial-results-and-conference-call-300832384.html
SOURCE McDermott International, Inc.
Article Date
4/16/2019McDermott and Chiyoda Introduce Feed Gas to Train 1 at Cameron LNG
Source: PR Newswire
HOUSTON, April 15, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and its joint venture partner, Chiyoda International Corporation, a U.S.-based wholly-owned subsidiary of Chiyoda Corporation, Japan, today announced that Train 1 of the Cameron LNG project in Hackberry, La., has reached the final commissioning stage. This includes the introduction of pipeline feed gas into Train 1 of the liquefaction export facility, the precursor for the production of liquefied natural gas (LNG).
"We are extremely proud of the Cameron LNG project team for this achievement and their remarkable safety performance," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "Their accomplishment is more than just a project milestone; it is an impressive feat of engineering and construction. Once Train 1 is fully operational, it will have the capacity to produce 4 million tonnes of LNG per year."
Since the initial award in 2014, McDermott and Chiyoda have provided the engineering, procurement and construction for the Cameron LNG project. The project includes three liquefaction trains with a projected export of 12 million tonnes per annum of LNG, or approximately 1.7 billion cubic feet per day.
Cameron LNG is jointly owned by affiliates of Sempra LNG LLC, Total, Mitsui & Co. Ltd. and Japan LNG Investment, LLC, a company jointly owned by Mitsubishi Corporation and Nippon Yusen Kabushiki Kaisha (NYK).
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications and Marketing
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-and-chiyoda-introduce-feed-gas-to-train-1-at-cameron-lng-300832354.html
SOURCE McDermott International, Inc.
Article Date
4/15/2019McDermott Awarded Large Offshore EPCI Jackets Contract by Qatargas
Source: PR Newswire
HOUSTON, April 12, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a large* contract award from Qatargas for engineering, procurement, construction and installation (EPCI) for expansion of the North Field offshore facilities in the State of Qatar.
The contract for new facilities includes the full suite of EPCI services for eight new offshore jackets.
McDermott plans to use its project management and engineering teams in Doha, Qatar, with fabrication primarily taking place at McDermott's facilities in Batam, Indonesia. Vessels Derrick Barge 50 and Derrick Barge 27 from McDermott's global fleet are scheduled to undertake the installation and completions work.
The work is expected to begin immediately and will be booked into McDermott's second quarter 2019 backlog.
* - McDermott defines a large contract as between USD $50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Head of Communications & Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-large-offshore-epci-jackets-contract-by-qatargas-300830972.html
SOURCE McDermott International, Inc.
Article Date
4/12/2019McDermott Announces Chevron Lummus Global Technology Award in India
Source: PR Newswire
HOUSTON, April 3, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, has been has been awarded a sizeable* technology contract by Chennai Petroleum Corporation Limited (CPCL) for the license and basic engineering design of a 2,500 KTA delayed coker at its planned Cauvery Basin Refinery at Nagapattinam in Tamilnadu, India. The unit will utilize the proprietary CLG delayed coking technology which maximizes value from the vacuum residue stream.
"This award represents the continued trust in our advanced delayed coking technology by Indian refiners and CPCL in particular," said Leon de Bruyn, Senior Vice President of McDermott's Lummus Technology business. "High flexibility of our coking technology to process opportunity crudes while maximizing yield of valuable products is beneficial for improved refinery margins."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This contract was signed in the first quarter of 2019.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-chevron-lummus-global-technology-award-in-india-300823345.html
SOURCE McDermott International, Inc.
Article Date
4/3/20194/2/2019 - McDermott Signs Joint Venture Agreement with Zamil Offshore to Address MMO Market in Saudi Arabia
McDermott Signs Joint Venture Agreement with Zamil Offshore to Address MMO Market in Saudi Arabia
Source: PR Newswire
HOUSTON, April 2, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced it has signed a Joint Venture Agreement with Zamil Offshore to target the Maintenance, Modifications and Operations (MMO) market in Saudi Arabia.
McDermott and Zamil will work together on an exclusive basis to provide Saudi Aramco with comprehensive offshore brownfield EPCI solutions and asset maintenance services. The new joint venture will be uniquely positioned to offer integrated, cost effective MMO services, to address the rising market demand in Saudi Arabia.
Zamil is renowned as the largest offshore and marine services provider in the Middle East. The partnership with Zamil will provide McDermott access to a new revenue stream in the maintenance, turnaround, inspection, and asset integrity services market in Saudi Arabia.
"Our partnership with Zamil reflects McDermott's commitment to supporting Saudi Aramco across the oil and gas production life cycle," said Linh Austin, McDermott's Senior Vice President, Middle East and North Africa. "Building on the strengths and distinguished track-record of both companies and fueled by McDermott's technology and digital-ready solutions," added Austin, "we will enable our customers to maximize the performance of offshore assets by increasing reliability and production uptime."
The joint venture bolsters McDermott's long-term growth plans in Saudi Arabia and is expected to significantly contribute to the in-Kingdom Total Value Add (IKTVA) program and local content commitments, ultimately supporting Saudi Vision 2030.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected benefits of McDermott's joint venture with Zamil Offshore discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Head of Communications & Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-signs-joint-venture-agreement-with-zamil-offshore-to-address-mmo-market-in-saudi-arabia-300822211.html
SOURCE McDermott International, Inc.
Article Date
4/2/2019McDermott Awarded EPCM Contract for Unipetrol Refinery
Source: PR Newswire
HOUSTON, March 26, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award from Unipetrol RPA for engineering, procurement and construction management (EPCM) services for its refinery in Litvinov, Czech Republic.
The contract includes the full suite of EPCM services for the upgrade of Unipetrol's hydrocracking unit. McDermott previously completed the feasibility study and basic engineering design and will now execute the procurement and installation phase.
"This award is testament to McDermott's long-standing relationship and extensive track record with Unipetrol," said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. "We believe our ability to combine local knowledge and global expertise makes us uniquely positioned to execute this project."
During the last two decades, McDermott has successfully executed a number of feasibility studies, front end engineering and design (FEED) and EPCM projects for Unipetrol at their refineries and petrochemical facilities in the Czech Republic.
The project is scheduled to be fully executed from McDermott's Brno, Czech Republic, office with completion expected in second quarter 2020.
Work on the project will begin immediately and the contract award will be reflected in McDermott's first quarter 2019 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
About Unipetrol
The Unipetrol Group is the largest refinery and petrochemical company in the Czech Republic. It focuses primarily on crude oil processing, distribution and sale of fuel and petrochemical products — particularly plastics and fertilisers. In all these fields, the group is a key player on both the Czech and Central European market. The Unipetrol Group includes refineries and production plants in Litvínov and Kralupy nad Vltavou, Paramo with the Mogul brand in Pardubice and Kolín, Spolana in Neratovice, and two research centres in Litvínov and Brno. Unipetrol also owns the Benzina network of petrol stations with 409 stations, which is the largest chain in the Czech Republic. Unipetrol is one of the largest companies in the Czech Republic in terms of turnover. The group created revenue of over CZK 130 billion last year and employs more than 4,700 people. In 2005, Unipetrol became part of the PKN Orlen Group, the largest crude oil processor in Central Europe.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Unipetrol
Pavel Kaidl
Spokesperson
+420 225 001 407 or +420 736 502 520
pavel.kaidl@unipetrol.cz
McDermott International, Inc.
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Zoe Keenan
Communications Manager
Europe, Africa, Russia and Caspian
+447917581727
zakeenan@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epcm-contract-for-unipetrol-refinery-300818074.html
SOURCE McDermott International, Inc.
Article Date
3/26/2019McDermott Awarded Substantial Offshore EPCI Contract in the Middle East
Source: PR Newswire
HOUSTON, March 21, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a substantial* contract award from a Middle East customer for engineering, procurement, construction and installation (EPCI) services in the Arabian Gulf.
The contract for new facilities includes the full suite of EPCI services for six new offshore jackets as well as three associated topsides. The project scope also includes eight kilometers (4.9 miles) of 28-inch corrosion resistant alloy cladded pipeline, two inter-platform bridges, eight kilometers (4.9 miles) of composite cables as well as brownfield works at the existing offshore facilities.
The duration of the work is expected to be approximately 34 months and the contract award will be reflected in McDermott's first quarter 2019 backlog.
McDermott plans to use its engineering teams in the Middle East and Chennai, with fabrication primarily taking place at McDermott's facilities in Batam, Indonesia. Vessels Emerald Sea, Derrick Barge 30, and Derrick Barge 50 from McDermott's global fleet are scheduled to undertake the installation and completions work.
* - McDermott defines a substantial contract as between USD $500 million and USD $750 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Head of Communications & Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-substantial-offshore-epci-contract-in-the-middle-east-300815888.html
SOURCE McDermott International, Inc.
Article Date
3/21/20193/20/2019 - McDermott Announces Ethylene Award in Russia
McDermott Announces Ethylene Award in Russia
Source: PR Newswire
HOUSTON, March 20, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a large* technology contract for the basic engineering and licensing of Irkutsk Oil Company's (IOC) 650 KTA ethylene plant in Russia, plus the detailed engineering and material supply of six SRT® (Short Residence Time) pyrolysis heaters for the plant. The plant will be designed to produce 650 KTA of polymer grade ethylene from ethane and propane, and will also produce high-purity hydrogen and C5 by-products.
"This contract is a significant award for us in Russia," said Daniel M. McCarthy, Executive Vice President of McDermott's Lummus Technology business. "The remote location and harsh winter conditions presented constraints on the target project completion date that are being minimized through careful planning of the equipment design and specification schedule."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award was reflected in McDermott's fourth quarter 2018 backlog.
*McDermott defines a large contract as between USD $50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value and scope of the award discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-ethylene-award-in-russia-300815160.html
SOURCE McDermott International, Inc.
Article Date
3/20/20193/19/2019 - McDermott to Present at the Scotia Howard Weil 47th Annual Energy Conference in New Orleans
McDermott to Present at the Scotia Howard Weil 47th Annual Energy Conference in New Orleans
Source: PR Newswire
HOUSTON, March 19, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) Executive Vice President and Chief Financial Officer Stuart Spence is scheduled to speak at the Scotia Howard Weil 47th Annual Energy Conference in New Orleans, Louisiana, on March 25, 2019 at 3:45 p.m. Central time.
McDermott will post the slides to be used prior to the presentation in the Investor Relations area at www.mcdermott.com.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-to-present-at-the-scotia-howard-weil-47th-annual-energy-conference-in-new-orleans-300813324.html
SOURCE McDermott International, Inc.
Article Date
3/19/20193/18/2019 - McDermott Announces Substantial Completion of Calpine's York 2 Energy Center Combined-Cycle Power Station
McDermott Announces Substantial Completion of Calpine's York 2 Energy Center Combined-Cycle Power Station
Source: PR Newswire
HOUSTON, March 18, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it successfully achieved substantial completion at Calpine's York 2 Energy Center, a combined-cycle gas power station in Peach Bottom Township, Pennsylvania. This milestone means the plant has now been turned over to the owner to begin commercial operations.
"McDermott is pleased to announce that the York 2 Energy Center Combined-Cycle EPC power station project is substantially completed and as such Calpine has commenced commercial operations," said Mark Coscio, McDermott's Senior Vice President for North, Central and South America. "Thank you to the McDermott project team who has maintained the highest levels of focus, dedication and safety to achieve this milestone on this world-class power station."
York 2 Energy Center project is an 828-megawatt, dual-fueled, combined-cycle gas turbine power station owned by Calpine Mid-Merit, LLC, an affiliate of Calpine Corp.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-substantial-completion-of-calpines-york-2-energy-center-combined-cycle-power-station-300814054.html
SOURCE McDermott International, Inc.
Article Date
3/18/2019McDermott Announces Successful Startup of Largest Ever CDAlky® Reactor in China
Source: PR Newswire
HOUSTON, March 14, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced the successful commercialization and startup of its single largest CDAlky® reactor to date at PetroChina's refinery in Jilin, China. The 350,000 metric ton per annum (9,000 barrels per day) plant is one of four CDAlky projects awarded to the company by PetroChina and had an unusually fast schedule from design to operation, with startup occurring just 17 months after initial design.
Lummus' CDAlky technology provides a safe, clean and economical route to low sulfur, high octane alkylate blendstock used to fuel smaller, lighter and high compression transportation engines. One of the key features of the CDAlky technology is its scalability. Competing processes would require multiple reactors to achieve the same capacity, adding complexity and plot space in comparison with CDAlky.
"Lummus technology's CDAlky is the most advanced alkylation process for the production of motor fuel alkylate," said Daniel M. McCarthy, Executive Vice President of McDermott's Lummus Technology business. "The CDAlky process provides a higher quality product with lower capital and operating expenditures, offering the best overall solution for the clean fuel production of alkylate."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-successful-startup-of-largest-ever-cdalky-reactor-in-china-300811885.html
SOURCE McDermott International, Inc.
Article Date
3/14/20193/11/2019 - BP Awards Contracts to McDermott and BHGE for Greater Tortue Ahmeyim Natural Gas Project
BP Awards Contracts to McDermott and BHGE for Greater Tortue Ahmeyim Natural Gas Project
Source: PR Newswire
HOUSTON, March 11, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and Baker Hughes, a GE company (NYSE: BHGE) have announced today that they have been awarded subsea umbilicals, risers and flowlines (SURF) and subsea production system (SPS) equipment contracts by BP for the Greater Tortue Ahmeyim natural gas project, located offshore Mauritania and Senegal. BP, BHGE and McDermott are working together to realize efficiencies, synergies and enhanced delivery times.
McDermott was awarded a substantial* engineering, procurement, construction and installation (EPCI) SURF contract. McDermott plans to use its upgraded Amazon vessel, DLV 2000, North Ocean 102 (NO 102) and third-party vessels to support installation scheduled to begin in late 2020. The Amazon modifications are scheduled to be completed before the installation campaign begins and will include a multi-joint (hex) J-Lay system to handle the most challenging ultra-deepwater projects as well as the addition of a multi-joint facility, dual pipe loading cranes and additional power generation. McDermott-designed pipeline and riser structures will be fabricated at its yard in Batam, Indonesia.
BHGE is demonstrating the benefits of early-engagement and collaboration – some of the key components of Subsea Connect – as well as bringing its expertise in deepwater, long-offset gas projects. The company will provide five large-bore deepwater horizonal xmas trees (DHXTs), a 6-slot dual bore manifold, a pipeline end manifold, subsea distribution units (SDUs), three subsea isolation valves (SSIVs), diverless connections and subsea production control systems, specifically designed to enable the future integration of additional wells for the first phase of the development.
"This contract marks a number of firsts: our first significant subsea EPCI project in West Africa; the first project using our state of the art pipelay vessel Amazon; and our support of BP's first entry into Senegal and Mauritania. This project is also of significant importance in support of our aspirations in this region," said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. "Our collaboration with BHGE allows us to offer BP an integrated approach that builds on our proven solutions. We look forward, along with BHGE, to deliver this landmark project to BP with the highest levels of safety and quality."
"Together with McDermott, we will deliver the best-in-class solution to BP with cost-efficiency and industry-leading safety. These awards demonstrate the value of early-engagement, collaborative partnerships and holistic project planning, which are very much central to our new approach to subsea developments, Subsea Connect," said Graham Gillies, BHGE's Vice President, Subsea Production Systems & Services. "This major deepwater gas development is strategically important for Mauritania and Senegal's domestic and global gas supply, and supports the industry's drive for a more sustainable, lower carbon future."
These latest awards follow an initial front-end engineering and design (FEED) phase, awarded in March 2018, during which BHGE and McDermott worked together to define the technology and equipment scope for a four-well development phase. Project management and engineering teams from BP, BHGE and McDermott will remain co-located at McDermott's London offices for this next phase.
BHGE has also signed an agreement to become a "Country Partner" of Invest in Africa's (IIA) Senegal chapter, of which BP is a founding member. The IIA helps local suppliers to connect with international oil and gas companies, increasing the opportunities for local businesses to support large-scale projects, and training African suppliers on core business skills and entrepreneurship.
Project Details
The initial subsea infrastructure connects the first four of 12 wells consolidated through production pipelines leading to a floating production, storage, and offloading (FPSO) vessel. From here liquids are removed and the export gas is transported via a pipeline to the floating liquid natural gas (FLNG) hub terminal where the gas is liquefied.
* - McDermott defines a substantial contract as between $500 million to $750 million. The contract award will be reflected in McDermott's first quarter 2019 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
About Baker Hughes, a GE company
Baker Hughes, a GE company (NYSE: BHGE) is the world's first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a start-up – inventing smarter ways to bring energy to the world. Visit us at BHGE.com
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
McDermott International, Inc.
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
Baker Hughes, a GE company
Investor Relations
Philipp Mueller
+1 281 809 9088
investor.relations@BHGE.com
Media Relations
Lynne Turnbull
+44 7771996140
lynne.turnbull@bhge.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/bp-awards-contracts-to-mcdermott-and-bhge-for-greater-tortue-ahmeyim-natural-gas-project-300809498.html
SOURCE McDermott International, Inc.; Baker Hughes, a GE company
Article Date
3/11/20192/26/2019 - McDermott Awarded EPC Contract for Largest Hydrogen Cryogenic Sphere Ever Built for NASA
McDermott Awarded EPC Contract for Largest Hydrogen Cryogenic Sphere Ever Built for NASA
Source: PR Newswire
HOUSTON, Feb. 26, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it was awarded a sizeable* contract by Precision Mechanical, Inc. for a double wall liquid hydrogen sphere at the John F. Kennedy Space Center in Cape Canaveral, Florida. The scope of the contract includes the engineering, procurement and construction of the sphere, which will be the largest ever built for NASA.
"McDermott's CB&I Storage Tank Solutions has more than a century of experience delivering innovative and complex storage solutions," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This liquid hydrogen sphere will be utilized for NASA's new Space Launch System/Orion program – a space frontier program focused on missions to Mars."
Using its proprietary Hortonsphere® pressure sphere vessel design, McDermott will engineer, procure, fabricate and construct a 1,400,000-gallon cryogenic double wall sphere. The outer sphere has a diameter of 83 feet and an internal sphere of 71.6 feet – making the new sphere 50 percent larger than any sphere that has supported NASA's space shuttle program over the last 30 years. Additionally, the EPC project scope includes insulation (glass microspheres), internal heat exchanger, as well as painting, cleaning and testing.
Once completed, the sphere will arm NASA with the largest cryosphere constructed to date with the combined site capabilities to store and process over two million usable gallons of liquid hydrogen for launch support.
The contract has been reflected in McDermott's fourth quarter 2018 backlog.
* McDermott defines a sizeable contract between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent that backlog may be viewed as an indicator of future revenues or profitability, and the expected scope of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-largest-hydrogen-cryogenic-sphere-ever-built-for-nasa-300801605.html
SOURCE McDermott International, Inc.
Article Date
2/26/2019McDermott Reports Fourth Quarter and Full Year 2018 Financial and Operational Results
Source: PR Newswire
HOUSTON, Feb. 25, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today reported revenues of $2.1 billion and net loss of $(2.8) billion, or $(15.33) per diluted share, for the fourth quarter of 2018.
"Our results for the fourth quarter of 2018 were marked by several significant non-recurring charges, including those related to goodwill and deferred tax assets," said David Dickson, President and Chief Executive Officer. "Additionally, our operating performance was unfavorably impacted by a change in estimate on the Calpine gas turbine project, the previously announced change in estimate on the Cameron LNG project and a number of other discrete operating items as noted below. We also recorded an unfavorable change in estimate related to the claim associated with damages sustained from Hurricane Harvey on the Freeport LNG project as an adjustment to the purchase price allocation for the combination with CB&I.
"Although the headline numbers distract from the Company's underlying fundamental strength, McDermott is continuing to progress toward the realization of its full potential as a premier, fully integrated provider of technology, engineering and construction solutions," said Dickson.
"Having closed the book on 2018, we have many reasons for optimism about the Company's future. In particular, we are pleased today to introduce robust earnings guidance for 2019, with a sharp improvement in most of our key metrics, including an expectation for 2019 EBITDA of approximately $1 billion, which is broadly consistent with the expectations outlined at the time of the Combination with CB&I. The market outlook is exceptionally robust for McDermott, and elements of our playbook are generating substantial results. Customer confidence in McDermott is as strong as it has ever been, as demonstrated by robust order intake of approximately $5.5 billion early in the first quarter of 2019 – as well as the 16% sequential-quarter increase in our revenue opportunity pipeline in the fourth quarter of 2018, to approximately $93 billion – which is a record level for us. The LNG cycle is here and continuing, our planned sale of the pipe fabrication and storage tank businesses is progressing well, and our liquidity was $1.4 billion at the end of the fourth quarter."
McDermott's net loss for the fourth-quarter of 2018 was primarily the result of a number of significant non-recurring charges, including:
Adjusting for these items, as shown in an accompanying table, McDermott's net loss for the fourth quarter was $(280) million, or $(1.55) per diluted share.
The Company's operating loss for the fourth quarter of 2018 was $(2.5) billion. The adjusted operating loss, as shown in an accompanying table, was $(241) million. The operating results include $339 million of discrete operating items, as listed below:
Separately, a $102 million change in estimate on the Freeport LNG project, due primarily to a reduction in the expected recoveries on a claim related to the impacts of Hurricane Harvey, did not impact the income statement, as the effects were reflected in purchase accounting adjustments.
For the full year 2018, the Company reported a net loss of $(2.7) billion, or $(17.94) per diluted share, due primarily to the factors that impacted fourth quarter results as described above. As detailed in an accompanying table, the adjusted net loss for 2018 was $(148) million, or $(0.99) per diluted share. Our business combination with Chicago Bridge & Iron Company N.V. (the "Combination") was completed on May 10, 2018. Accordingly, results for the full year include legacy McDermott from January 1 through May 10, 2018 and the combined McDermott-CB&I organization for the period from May 11, 2018 through December 31, 2018.
Financial Highlights | |||||||||||||||||||||||
Three months Ended | Delta | Full Year Ended | Delta | ||||||||||||||||||||
Dec 31, | Dec 31, | Qtr-on-Qtr | Dec 31, | Dec 31, | Year-on- | ||||||||||||||||||
($ in millions, except per share amounts) | |||||||||||||||||||||||
Revenues | $ | 2,073 | $ | 718 | $ | 1,355 | $ | 6,705 | $ | 2,985 | $ | 3,720 | |||||||||||
Operating Income (Loss) | (2,499) | 45 | (2,544) | (2,256) | 307 | (2,563) | |||||||||||||||||
Operating Margin | -120.5 | % | 6.3 | % | -126.8 | % | -33.6 | % | 10.3 | % | -43.9 | % | |||||||||||
Net Income (Loss) | (2,775) | 26 | (2,801) | (2,691) | 179 | (2,870) | |||||||||||||||||
Diluted EPS1 | (15.33) | 0.27 | (15.60) | (17.94) | 1.88 | (19.82) | |||||||||||||||||
Total Intangibles Amortization2 | 67 | - | 67 | 157 | - | 157 | |||||||||||||||||
Adjusted Operating Income (Loss)3 | (241) | 54 | (295) | 152 | 316 | (164) | |||||||||||||||||
Adjusted Operating Margin3 | -11.6 | % | 7.5 | % | -19.1 | % | 2.3 | % | 10.6 | % | -8.3 | % | |||||||||||
Adjusted Net Income (Loss)3,4 | (280) | 30 | (310) | (148) | 183 | (331) | |||||||||||||||||
Adjusted Diluted EPS1,3,4 | (1.55) | 0.32 | (1.87) | (0.99) | 1.92 | (2.91) | |||||||||||||||||
Adjusted EBITDA3 | (162) | 80 | (242) | 424 | 416 | 8 | |||||||||||||||||
Cash Provided by Operating Activities | (285) | - | (285) | (71) | 136 | (207) | |||||||||||||||||
Capital Expenditures | 24 | 22 | 2 | 86 | 119 | (33) | |||||||||||||||||
Free Cash Flow3 | (309) | (22) | (287) | (157) | 17 | (174) | |||||||||||||||||
Working Capital5 | (2,062) | 344 | (2,406) | (2,062) | 344 | (2,406) | |||||||||||||||||
Note: Results for the full year ended December 31, 2018 include McDermott for the full period and CB&I for the period from May 11 to December 31, 2018. 2017 figures are as originally reported by McDermott and do not reflect a presentation of combined results. |
1 Diluted EPS and adjusted diluted EPS were calculated using weighted average diluted shares of 181 million and 95 million for the three months ended December 31, 2018 and 2017, respectively, and weighted average diluted shares of 150 million and 95 million for the full year ended December 31, 2018 and 2017, respectively. |
2 Total intangibles amortization includes the sum of project-related intangibles amortization, other intangibles amortization and amortization of intangible assets resulting from investments in unconsolidated affiliates, all of which are associated with the intangible assets and liabilities acquired in the Combination. |
3 Adjusted operating income (loss), adjusted operating margin, adjusted net income (loss), adjusted diluted net income (loss) per share ("adjusted diluted EPS") and adjusted EBITDA reflect adjustments to Operating Income and Net Income computed in accordance with U.S. generally accepted accounting principles ("GAAP"). The reconciliations of these non-GAAP measures, as well as free cash flow, to the respective most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Non-GAAP to GAAP Financing Measures". |
4 The calculations of adjusted net income and adjusted diluted EPS reflect the tax effects of non-GAAP adjustments during each applicable period. In jurisdictions in which we currently do not pay taxes, no tax impact is applied to non-GAAP adjusting items. |
5 Working capital is defined as current assets, less cash and cash equivalents, restricted cash, and project-related intangibles, minus current liabilities, less current maturities of long-term debt, current portion of long-term lease obligations and project-related intangible liabilities. |
Update on Estimated Costs on Selected Projects
For the fourth quarter of 2018, McDermott recorded a total of $199 million of changes in estimates on the Cameron LNG and Calpine Gas Turbine Power projects. The changes directly impacted McDermott's income statement for the fourth quarter. Expected completion dates for the projects are unchanged.
Separately, McDermott recorded a change in estimate of $102 million on the Freeport LNG project in the fourth quarter of 2018. The change in estimate related primarily to McDermott's view of a reduction in the assumed recovery of the claim and liquidated damages estimates that were filed with the customer relating to damages sustained as a result of Hurricane Harvey. That claim was outstanding at the time of the Combination and, as a result, the reduction in the claim has been recorded under the provisions of purchase accounting as a change in intangible assets. As such, the change in estimate did not directly impact McDermott's statements of operations. Expected completion dates for the project are unchanged.
Operationally, the project continues to perform well, with the completion of lube oil flushing of the propane compressors on Train 1 and beginning of the lube oil flushing on Train 2. As of December 31, 2018, Freeport LNG was approximately 88% complete and had approximately $411 million of McDermott's portion of expected revenues remaining until completion. During the fourth quarter of 2018, the project contributed $175 million to revenues and used $186 million of cash flows from operations. Trains 1, 2 and 3 are expected to be completed in Q3 2019, Q1 2020 and Q2 2020, respectively.
Cash and Liquidity
McDermott's cash from operating activities during the fourth quarter of 2018 was $(285) million, due largely to the continued funding of previously announced cost increases on the Cameron, Freeport and Calpine projects. Total cash availability was $1.4 billion at December 31, 2018, consisting of $520 million of unrestricted cash and $889 million of availability under McDermott's revolving credit facility. McDermott had $2.0 billion of combined availability under its principal letter of credit facilities, uncommitted bilateral credit facilities and surety arrangements. McDermott's cash and liquidity position reflects the receipt of proceeds from the fourth quarter 2018 private placement of $300 million of redeemable preferred stock and warrants to purchase common stock and reflects a $230 million increase in its primary letter-of-credit facilities. The Company was in compliance with all financial covenants under its financing arrangements as of December 31, 2018.
Pipe and Tank Sale
The sale processes for each of the pipe fabrication and tank businesses is going well and as planned. The official sale process has launched for both businesses and there has been a high level of interest for both, and the Company expects proceeds in excess of $1 billion for the two businesses. The Company expects to use a majority of the proceeds for debt reduction. The sale of the pipe fabrication business is expected to close in Q2 2019 and the sale of the tank business is expected to close in Q3 2019.
Combination Profitability Initiative (CPI)
McDermott's integration is largely complete, with primarily IT systems updates remaining. CPI is nearing full implementation with $444 million of the targeted $475 million of annualized cost synergies actioned as of December 31, 2018. McDermott's operating results for the three months ended December 31, 2018 include approximately $62 million of such savings. The CPI target annualized run rate is expected to be fully actioned by the end of 2019. Associated costs of $29 million were recognized in the fourth quarter of 2018 and were $134 million, cumulatively for the year ended December 31, 2018.
Reporting Segment Update
McDermott's segment reporting is presented as: North, Central and South America, or NCSA; Europe, Africa, Russia and Caspian, or EARC; Middle East and North Africa, or MENA; Asia Pacific, or APAC; and Technology, or TECH. The Company also reports results for Corporate. Segment and Corporate results are summarized below.
Segment Financial Highlights | Three Months Ended Dec 31, 2018 | ||||||||||||||||||||||||||
Segment Operating Results | |||||||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Corporate | Total | |||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
New Orders | $ | 404 | $ | (34) | $ | 118 | $ | 786 | $ | 159 | $ | - | $ | 1,433 | |||||||||||||
Backlog1 | 5,646 | 1,378 | 1,834 | 1,420 | 632 | - | 10,910 | ||||||||||||||||||||
Revenue | 1,319 | 120 | 417 | 80 | 137 | - | 2,073 | ||||||||||||||||||||
Book-to-Bill | 0.3 | x | -0.3 | x | 0.3 | x | 9.8 | x | 1.2 | x | - | 0.7 | x | ||||||||||||||
Operating Income (Loss) | (1,686) | (49) | 72 | (69) | (564) | (203) | (2,499) | ||||||||||||||||||||
Operating Margin | -127.8 | % | -40.8 | % | 17.3 | % | -86.3 | % | -411.7 | % | - | -120.5 | % | ||||||||||||||
Goodwill & Asset Impairment | 1,485 | 40 | (0) | 52 | 591 | 58 | 2,226 | ||||||||||||||||||||
Intangibles Amortization | 18 | 5 | 10 | - | 32 | - | 67 | ||||||||||||||||||||
Adjusted Operating Income (Loss)2 | (201) | (10) | 72 | (17) | 27 | (112) | (241) | ||||||||||||||||||||
Adjusted Operating Margin2 | -15.2 | % | -8.3 | % | 17.3 | % | -21.3 | % | 19.7 | % | - | -11.6 | % | ||||||||||||||
Capex | - | - | 8 | 4 | - | 12 | 24 | ||||||||||||||||||||
Product Offering Financial Highlights | Three Months Ended Dec 31, 2018 | ||||||||||||||||||
Offshore & Subsea | LNG | Downstream | Power | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
New Orders | $ | 940 | $ | (13) | $ | 625 | $ | (119) | $ | 1,433 | |||||||||
Backlog | 3,353 | 1,184 | 5,208 | 1,165 | 10,910 | ||||||||||||||
Revenue | 480 | 375 | 870 | 348 | 2,073 | ||||||||||||||
Note: All amounts have been rounded to the nearest million. Individual line items may not sum to totals as a result of rounding. |
1 Our backlog is equal to our Remaining Performance Obligations (RPOs) as determined in accordance with U.S. GAAP. |
2 Adjusted Operating Income and Margin, by segment, are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Segment Non-GAAP to GAAP Financial Measures." |
North, Central and South America (NCSA)
Revenues of $1.3 billion in NCSA were primarily driven by the Cameron LNG, Freeport LNG, LACC and Total Ethane Cracker projects. Additional contributors were the MOX project, the Entergy power projects and the Shintech petrochemical project. The operating loss of $(1.7) billion during the quarter was unfavorably impacted by the $1.5 billion impairment charge, the $199 million in change in estimates on the Cameron and Calpine projects, $54 million of expense driven by weather downtime and related issues on the Abkatun-A2 project in Mexico and the timing of revenue recognition on several other projects. Excluding the impact of goodwill impairment of $1.5 billion, adjusted operating loss for the fourth quarter of 2018 was $(201) million.
Key operational achievements in the quarter included successfully achieving first fire on the Calpine project. Freeport LNG completed lube oil flushing of the propane compressors on Train 1 and began the lube oil flushing on Train 2. The gas turbine solo run was completed ahead of schedule on the Cameron LNG project. LACC continues to work towards achieving mechanical completion. Despite weather delays, the platform float over on Abkatun-2 was successfully achieved during the quarter. Engineering, procurement and construction are ahead of plan on the Montgomery Power Station, and the St. Charles Power Station achieved systems turn over.
Europe, Africa, Russia and Caspian (EARC)
Revenues of $120 million in EARC were primarily driven by progress on the offshore Total Tyra project and continuing activities on two downstream projects in Russia. The operating loss of $(49) million was impacted by the $40 million impairment charge and the impact of fixed costs. Excluding the impact of the impairment charge of $40 million, the adjusted operating loss for the fourth quarter of 2018 was $(10) million.
The Total Tyra project continued to progress on schedule with procurement activities continuing and with material deliveries to our Batam fabrication yard supporting the commencement of fabrication during the fourth quarter. Commencement of engineering and procurement activities on the Lukoil DCU project in Russia took place in the quarter. The segment is executing multiple FEEDs that have the potential to convert to full EPC/I awards, including BP Tortue, Anadarko LNG Mozambique, Rovuma LNG Mozambique and the GALP new reformer unit.
Middle East and North Africa (MENA)
Revenues of $417 million in MENA were primarily driven by procurement, fabrication and hook-up activity on several offshore projects and engineering and procurement activities on various onshore projects. Key offshore contributors were Saudi Aramco Safaniya Phases 5 and 6, LTA II, 13 Jackets and QP Bul Hanine. Key Onshore projects were the ADNOC Crude Flexibility project, Liwa petrochemical EPC lump sum and the DUQM storage tank project. Operating income was $72 million, with an operating income margin of 17.3%, primarily driven by activities on offshore projects.
During the fourth quarter, offshore work on Safaniya Phase 5 was completed with only a few close-out items remaining. Fabrication on the Safaniya Phase 6 project is proceeding as per schedule and dredging of the necessary channel is scheduled to start in the first quarter of 2019. Fabrication on the Bul Hanine project is underway in the Batam fabrication yard and the NKOM fabrication yard in Doha and is currently proceeding as per the project plan. All 13 Jackets on the Saudi Aramco 13 Jackets project have been installed, and all related offshore work has been completed. The ADNOC Crude Flexibility project is progressing well, and engineering, procurement and manufacturing activities on the critical equipment remain on schedule. The SASREF refinery upgrade project is progressing well, reaching over 95% completion on the engineering and procurement scopes.
Asia Pacific (APAC)
Revenues of $80 million in APAC were driven by continuing activities on the Reliance KG-D6 project and activities on the JG Summit storage tank project in the Philippines. The operating loss of $(69) million was impacted by the goodwill impairment of $52 million, reduced close-out opportunities, an unplanned warranty repair, increased bid expenses and costs associated with commencement of work on new projects. Excluding the impact of the goodwill impairment, the adjusted operating loss for the fourth quarter of 2018 was $(17) million.
Key operational achievements in the quarter included the commencement of engineering on the KG-DWN 98/2 SURF project and early procurement of critical items. The DLV 2000 and support vessels were mobilized on the Reliance KG-D6 project to commence the first pipelay campaign and installation activities. The Posco Daewoo Shwe project continues to progress well and the JG Summit Storage tank project continues to achieve good progress with a strong safety record in the Philippines.
Technology (TECH)
Revenues of $137 million were primarily driven by licensing, heater and catalyst sales in the petrochemical and refining markets. The operating loss of $(564) million was due largely to the goodwill impairment of $591 million and intangibles amortization of $32 million. Excluding the impact of the goodwill impairment, adjusted operating income for the fourth quarter of 2018 was $27 million, representing an adjusted operating income margin of 19.7%. Adjusted operating income was positively impacted by strong execution progress, earned fees and process performance.
Highlights from the quarter include successful start-up of CDAlky (gasoline alkylate) projects in Korea and China and several new awards, including ethylene heaters for Irkutsk Oil and two petrochemical license contracts in China.
Corporate
Corporate expenses include various corporate and other non-operating activities. Corporate expense in the fourth quarter of 2018 was $203 million, mainly attributable to selling, general, administrative and other expenses of $47 million; impairment of two marine vessels of $58 million due to lower levels of planned future utilization; $62 million of certain unallocated operating costs, including expenses related to unplanned vessel substitution; and $32 million of costs for restructuring, integration and transaction-related costs from the Combination.
Revenue Opportunity Pipeline
McDermott's revenue opportunity pipeline consists of Backlog, Bids & Change Orders Outstanding and Target Projects, which are those projects McDermott expects to be awarded in the market in the next five quarters. McDermott defines Backlog as Remaining Performance Obligations (RPOs) as determined in accordance with GAAP.
At the end of the fourth quarter of 2018, McDermott's revenue opportunity pipeline was approximately $93 billion, primarily driven by NCSA and MENA with anticipated market inflection in the offshore/subsea, downstream and LNG markets.
Revenue Opportunity Pipeline | As of | ||||||||||||||||||||||
Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | |||||||||||||||||||
($ in billions) | |||||||||||||||||||||||
Backlog | $ | 10.9 | $ | 11.5 | $ | 10.2 | $ | 3.4 | $ | 3.9 | |||||||||||||
Bids & Change Orders Outstanding1 | 20.3 | 20.7 | 19.0 | 7.5 | 4.4 | ||||||||||||||||||
Targets2 | 61.9 | 48.1 | 49.3 | 14.1 | 16.2 | ||||||||||||||||||
Total | 93.1 | 80.3 | 78.5 | 25.0 | 24.5 | ||||||||||||||||||
Revenue Pipeline by Segment | As of Dec 31, 2018 | ||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Total | ||||||||||||||||||
($ in billions) | |||||||||||||||||||||||
Backlog | $ | 5.6 | $ | 1.4 | $ | 1.8 | $ | 1.4 | $ | 0.6 | $ | 10.9 | |||||||||||
Bids & Change Orders Outstanding1 | 8.3 | 6.1 | 3.5 | 2.4 | - | 20.3 | |||||||||||||||||
Targets2 | 23.6 | 11.1 | 20.2 | 5.4 | 1.6 | 61.9 | |||||||||||||||||
Total | 37.5 | 18.6 | 25.5 | 9.2 | 2.2 | 93.1 | |||||||||||||||||
Note: All amounts have been rounded to the nearest tenth of a billion. Individual line items may not sum to totals as a result of rounding. |
1 There is no assurance that bids outstanding will be awarded to McDermott or that outstanding change orders ultimately will be approved and paid by the applicable customers in the full amounts requested or at all. |
2 Target projects are those that McDermott has identified as anticipated to be awarded by customers or prospective customers in the next five quarters through competitive bidding processes and capable of being performed by McDermott. There is no assurance that target projects will be awarded to McDermott or at all. |
2019 Guidance
McDermott is introducing guidance for 2019, based on its current portfolio of businesses. The Company expects that its first quarter of 2019 is likely to be the softest quarter of the year and that operating performance in the second half of 2019 is likely to be stronger than the first half, reflecting the cumulative benefit of the execution of newly booked backlog, cost synergies under the Combination Profitability Initiative and an expected reduction in the negative cash flow associated with the three focus projects.
Full Year 2019 Guidance | ||
Full Year 2019 Guidance | ||
($ in millions, except per share | ||
Revenues | $9.5 - 10.5B | |
Operating Income | $725 - $775 | |
Operating Margin | 7.0 - 8.0% | |
Net Interest Expense1 | ~$380 | |
Income Tax Expense | ~$65 | |
Accretion of Redeemable Preferred Stock | ~$15 | |
Dividends on Redeemable Preferred Stock | ~$36 | |
Net Income | $250 - $275 | |
Diluted Net Income, Per Share | $1.40 - $1.50 | |
Diluted Share Count | ~187 | |
EBITDA2 | $1.0 - $1.05B | |
Adjustment | ||
Costs to Achieve CPI3 | $40 - $50 | |
Adjusted Earnings Metrics | ||
Adjusted Operating Income2 | $765 - $825 | |
Adjusted Operating Margin2 | 7.5 - 8.5% | |
Adjusted Net Income2 | $290 - $325 | |
Adjusted Diluted EPS2 | $1.65 - $1.75 | |
Adjusted EBITDA2 | $1.04 - $1.1B | |
Cash Flow & Other Metrics | ||
Cash from Operating Activities | $(100) - $(50) | |
Capex | ~$165 | |
Free Cash Flow2 | $(265) - $(215) | |
Cash Interest / DIC Amortization Interest | ~$345 / ~$40 | |
Cash Taxes | ~$65 | |
Corporate and Other Operating Income4 | $(370) - $(400) | |
Cash, Restricted Cash and Cash Equivalents | $510 - $560 | |
Gross Debt5 | ~$3,530 | |
Net Working Capital | ~$(1.3B) |
1 Net interest expense is gross interest expense less capitalized interest and interest income. |
2 The calculations of EBITDA, adjusted operating income, adjusted operating margin, adjusted net income, adjusted diluted EPS, adjusted EBITDA and free cash flow, which are non-GAAP measures, are shown in the appendix entitled "Reconciliation of Forecast Non-GAAP Financial Measures to Forecast GAAP Financial Measures." |
3 Costs to achieve CPI include restructuring and integration costs. |
4 Corporate and Other Operating Income represents the operating income (loss) from corporate and non-operating activities, including corporate expenses, certain centrally managed initiatives, impairments, year-end actuarial mark-to-market pension adjustment, costs not attributable to a particular reporting segment, and unallocated direct operating expenses associated with the underutilization of marine vessels. |
5 Ending gross debt excludes debt issuance costs and finance lease obligations. |
Conference Call
McDermott has scheduled a conference call and webcast related to its fourth quarter 2018 results at 7:30 a.m., U.S. Central time, today. Shareholders and other interested parties are invited to listen to the call by visiting www.mcdermott-investors.com or by calling 1-706-634-2259 (Conference ID: 5780117). A presentation of supplemental financial information will be available on McDermott's Investor Relations site at that time. A replay of the webcast will be available on McDermott's website for seven days after the call.
About the Company
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally integrated resources include approximately 32,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Non-GAAP Measures
This communication includes several "non-GAAP" financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with GAAP but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of those operations. The forecast non-GAAP measures we have presented in this communication include forecast EBITDA, adjusted operating income, adjusted operating income margin, adjusted net income, adjusted diluted EPS, free cash flow and adjusted EBITDA. We believe these forward-looking financial measures are within reasonable measure.
Non-GAAP measures include adjusted operating income, adjusted operating income margin, adjusted net income, adjusted diluted EPS, free cash flow, EBITDA and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that our management does not consider to be representative of our normal operations. We believe that these metrics are useful for investors to review, because they provide more consistent measures of the underlying financial results of our ongoing business and, in our management's view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, our management uses each of these metrics as measures of the performance of our operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for operating income, net income or other data prepared and reported in accordance with GAAP and should be viewed in addition to our reported results prepared in accordance with GAAP.
We define free cash flow as cash flows from operations less capital expenditures. We believe investors consider free cash flow as an important measure, because it generally represents funds available to pursue opportunities that may enhance stockholder value, such as making acquisitions or other investments. Our management uses free cash flow for that reason. We define EBITDA as net income plus depreciation and amortization, interest expense, net, and provision for income taxes. We define adjusted EBITDA as EBITDA adjusted to exclude significant, non-recurring transactions to our operating income, both gains and charges. We have included EBITDA and adjusted EBITDA disclosures in this communication because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry. Our management also uses EBITDA and adjusted EBITDA to monitor and compare the financial performance of our operations. EBITDA and adjusted EBITDA do not give effect to the cash that we must use to service our debt or pay our income taxes, and thus do not reflect the funds actually available for capital expenditures, dividends or various other purposes. Our presentations of free cash flow, EBITDA and adjusted EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider free cash flow, EBITDA and adjusted EBITDA in isolation from, or as substitutes for, net income or cash flow measures prepared in accordance with U.S. GAAP.
Reconciliations of these non-GAAP financial measures and forecast non-GAAP financial measures to the most comparable GAAP measures are provided in the tables included in this communication.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of McDermott. These forward-looking statements include, among other things, statements about 2019 guidance, project milestones and percentage of completion and expected timetables, cost estimates on identified projects, cost recoveries and schedule-based incentives on projects, assessments and beliefs with respect to legacy CB&I projects (including the three Focus projects), the market outlook, backlog, bids and change orders outstanding, target projects and revenue opportunity pipeline, to the extent these may be viewed as indicators of future revenues or profitability, the potential for FEEDs to convert to full EPCI awards, the contemplated sale of the U.S. pipe fabrication and tank storage businesses and the anticipated timing and total proceeds, and the use of proceeds, from those transactions, targeted savings from cost synergies and the other expected impacts of the CPI, including anticipated CPI implementation costs, the expected timing for completion of the CPI, the Company's potential and our beliefs with respect to the combination with CB&I. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: the possibility that the expected CPI savings will not be realized, or will not be realized within the expected time period; adverse changes in the markets in which McDermott operates or credit markets; the inability of McDermott to execute on contracts in backlog successfully; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by customers and other business counterparties of McDermott; changes in industry norms; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission, including McDermott's annual report on Form 10-K for the year ended December 31, 2018. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contact:
Investors & Financial Media
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@mcdermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@mcdermott.com
START OF APPENDIX
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
Three months Ended Dec 31 | Full Year Ended Dec 31 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
($ in millions, except per share amounts) | |||||||||||||||
Revenues | $ | 2,073 | $ | 718 | $ | 6,705 | $ | 2,985 | |||||||
Costs and Expenses: | |||||||||||||||
Cost of operations | 2,156 | 597 | 6,104 | 2,449 | |||||||||||
Project related intangibles amortization | 41 | - | 83 | - | |||||||||||
Total cost of operations | 2,197 | 597 | 6,187 | 2,449 | |||||||||||
Research and development expenses | 7 | 2 | 20 | 5 | |||||||||||
Selling, general and administrative expenses | 94 | 62 | 282 | 204 | |||||||||||
Other intangibles amortization | 27 | - | 62 | - | |||||||||||
Transaction costs | 3 | 9 | 48 | 9 | |||||||||||
Restructuring and integration costs | 29 | - | 134 | - | |||||||||||
Goodwill impairment | 2,168 | - | 2,168 | - | |||||||||||
Impairment loss | 58 | 1 | 58 | 1 | |||||||||||
Other operating expenses (income), net | 1 | - | 3 | (2) | |||||||||||
Total expenses | 4,584 | 671 | 8,962 | 2,666 | |||||||||||
Income (loss) from investments in unconsolidated affiliates | 11 | (2) | 13 | (12) | |||||||||||
Investment in unconsolidated affiliates-related amortization | 1 | - | (12) | - | |||||||||||
Operating income (loss) | (2,499) | 45 | (2,256) | 307 | |||||||||||
Other expense: | |||||||||||||||
Interest expense, net | (89) | (11) | (259) | (63) | |||||||||||
Other non-operating income (expense), net | (43) | 7 | (56) | 5 | |||||||||||
Total other expense, net | (132) | (4) | (315) | (58) | |||||||||||
Income (loss) before provision for income taxes | (2,631) | 41 | (2,571) | 249 | |||||||||||
Income tax expense (benefit) | 123 | 16 | 104 | 69 | |||||||||||
Non-operating loss from investments in unconsolidated affiliates | (3) | (3) | (3) | (2) | |||||||||||
Net income (loss) | (2,757) | 28 | (2,678) | 178 | |||||||||||
Less: Net (loss) income attributable to noncontrolling interests | 14 | (2) | 9 | (1) | |||||||||||
Net income (loss) attributable to McDermott | (2,771) | 26 | (2,687) | 179 | |||||||||||
Dividends on redeemable preferred stock | (3) | - | (3) | - | |||||||||||
Accretion of redeemable preferred stock | (1) | - | (1) | - | |||||||||||
Net income (loss) attributable to common stockholders | $ | (2,775) | $ | 26 | $ | (2,691) | $ | 179 | |||||||
Net income per share attributable to common stockholders | |||||||||||||||
Basic | $ | (15.33) | $ | 0.28 | $ | (17.94) | $ | 1.97 | |||||||
Diluted | $ | (15.33) | $ | 0.27 | $ | (17.94) | $ | 1.88 | |||||||
Shares used in the computation of net income per share: | |||||||||||||||
Basic | 181 | 91 | 150 | 91 | |||||||||||
Diluted | 181 | 95 | 150 | 95 | |||||||||||
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||
EARNINGS PER SHARE COMPUTATION | |||||||||||||||
Three months Ended Dec 31 | Full Year Ended Dec 31 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
($ in millions, except share and per share amounts) | |||||||||||||||
Net income (loss) attributable to common stockholders | $ | (2,775) | $ | 26 | $ | (2,691) | $ | 179 | |||||||
Weighted average common shares (basic) | 181 | 91 | 150 | 91 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Tangible equity units | - | 3 | - | 3 | |||||||||||
Stock options, restricted stock and restricted stock units | - | 1 | - | 1 | |||||||||||
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) | 181 | 95 | 150 | 95 | |||||||||||
Net income (loss) attributable to common stockholders | |||||||||||||||
Basic | $ | (15.33) | $ | 0.28 | $ | (17.94) | $ | 1.97 | |||||||
Diluted | $ | (15.33) | $ | 0.27 | $ | (17.94) | $ | 1.88 | |||||||
SUPPLEMENTARY DATA | |||||||||||||||
Three months Ended Dec 31 | Full Year Ended Dec 31 | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
($ in millions) | |||||||||||||||
Depreciation & amortization | $ | 92 | $ | 23 | $ | 279 | $ | 101 | |||||||
Capital expenditures | 24 | 22 | 86 | 119 | |||||||||||
Backlog | 10,910 | 3,901 | 10,910 | 3,901 | |||||||||||
McDERMOTT INTERNATIONAL, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, | ||||||||
2018 | 2017 | |||||||
(In millions, except per share amounts) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents ($146 and $0 related to variable interest entities ("VIEs")) | $ | 520 | $ | 390 | ||||
Restricted cash and cash equivalents | 325 | 18 | ||||||
Accounts receivable—trade, net ($29 and $0 related to VIEs) | 932 | 328 | ||||||
Accounts receivable—other ($57 and $0 related to VIEs) | 175 | 42 | ||||||
Contracts in progress ($144 and $0 related to VIEs) | 704 | 621 | ||||||
Project-related intangible assets, net | 137 | - | ||||||
Inventory | 101 | - | ||||||
Other current assets ($24 and $0 related to VIEs) | 139 | 36 | ||||||
Total current assets | 3,033 | 1,435 | ||||||
Property, plant and equipment, net | 2,067 | 1,666 | ||||||
Accounts receivable—long-term retainages | 62 | 39 | ||||||
Investments in unconsolidated affiliates | 452 | 8 | ||||||
Goodwill | 2,654 | - | ||||||
Other intangibles, net | 1,009 | - | ||||||
Deferred income taxes | - | 18 | ||||||
Other non-current assets | 163 | 57 | ||||||
Total assets | $ | 9,440 | $ | 3,223 | ||||
Liabilities, Mezzanine Equity and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Current maturities of long-term debt | $ | 30 | $ | 24 | ||||
Current portion of long-term lease obligations | 8 | - | ||||||
Accounts payable ($277 and $0 related to VIEs) | 595 | 279 | ||||||
Advance billings on contracts ($717 and $0 related to VIEs) | 1,954 | 32 | ||||||
Project-related intangible liabilities, net | 66 | - | ||||||
Accrued liabilities ($136 and $0 related to VIEs) | 1,564 | 372 | ||||||
Total current liabilities | 4,217 | 707 | ||||||
Long-term debt | 3,393 | 512 | ||||||
Long-term lease obligations | 66 | 1 | ||||||
Deferred income taxes | 47 | 28 | ||||||
Other non-current liabilities | 664 | 186 | ||||||
Total liabilities | 8,387 | 1,434 | ||||||
Commitments and contingencies | ||||||||
Mezzanine equity: | ||||||||
Redeemable preferred stock | 230 | - | ||||||
Stockholders' equity: | ||||||||
Common stock, par value $1.00 per share, authorized 255 shares; issued 183 and 98 shares, respectively | 183 | 98 | ||||||
Capital in excess of par value | 3,539 | 1,858 | ||||||
Accumulated deficit | (2,719) | (48) | ||||||
Accumulated other comprehensive loss | (107) | (51) | ||||||
Treasury stock, at cost: 3 and 3 shares, respectively | (96) | (96) | ||||||
Total McDermott Stockholders' Equity | 800 | 1,761 | ||||||
Noncontrolling interest | 23 | 28 | ||||||
Total stockholders' equity | 823 | 1,789 | ||||||
Total liabilities and stockholders' equity | $ | 9,440 | $ | 3,223 | ||||
McDERMOTT INTERNATIONAL, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
Year ended December 31, | ||||||||
2018 | 2017 | |||||||
(In millions) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | (2,678) | $ | 178 | ||||
Non-cash items included in net income: | ||||||||
Depreciation and amortization | 279 | 101 | ||||||
Debt issuance cost amortization | 36 | 13 | ||||||
Stock-based compensation charges | 44 | 23 | ||||||
Deferred taxes | 21 | 7 | ||||||
Goodwill impairment | 2,168 | - | ||||||
Other asset impairments | 58 | 1 | ||||||
Actuarial pension (loss) gain | 47 | (5) | ||||||
Other non-cash items | - | (6) | ||||||
Changes in operating assets and liabilities, net of effects of businesses acquired: | ||||||||
Accounts receivable | 300 | 91 | ||||||
Contracts in progress, net of Advance billings on contracts | (278) | (450) | ||||||
Accounts payable | (156) | 105 | ||||||
Other current and non-current assets | 63 | (22) | ||||||
Investments in unconsolidated affiliates | (9) | 14 | ||||||
Other current and non-current liabilities | 34 | 86 | ||||||
Total cash (used in) provided by operating activities | (71) | 136 | ||||||
Cash flows from investing activities: | ||||||||
CB&I combination consideration, net of cash acquired of $498 | (2,374) | - | ||||||
Purchases of property, plant and equipment | (86) | (119) | ||||||
Advances related to proportionately consolidated consortiums | (241) | - | ||||||
Proceeds from asset dispositions | 69 | 56 | ||||||
Investments in unconsolidated affiliates | (16) | (2) | ||||||
Total cash used in investing activities | (2,648) | (65) | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of long-term debt | 3,560 | - | ||||||
Repayment of debt and capital lease obligations | (545) | (235) | ||||||
Debt and letter of credit issuance costs | (217) | (21) | ||||||
Proceeds from issuance of redeemable preferred stock | 290 | - | ||||||
Dividends paid to holders of redeemable preferred stock | (3) | - | ||||||
Redeemable preferred stock issuance costs | (18) | - | ||||||
Advances related to equity method joint ventures and proportionately consolidated consortiums | 158 | - | ||||||
Debt extinguishment costs | (10) | - | ||||||
Repurchase of common stock | (14) | (7) | ||||||
Acquisition of NCI | - | (11) | ||||||
Dividends paid to NCI | - | (1) | ||||||
Total cash provided by (used in) financing activities | 3,201 | (275) | ||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (45) | - | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 437 | (204) | ||||||
Cash, cash equivalents and restricted cash at beginning of period | 408 | 612 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 845 | $ | 408 | ||||
McDermott reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also includes several Non-GAAP financial measures as defined under the SEC's Regulation G. The following tables reconcile certain Non-GAAP financial measures used in this press release to comparable GAAP financial measures. Additional reconciliations are provided in the accompanying tables.
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||||||||||||||
RECONCILIATION OF SEGMENT NON-GAAP TO GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
Three Months Ended Dec 31, 2018 | |||||||||||||||||||||||||||
Segment Operating Results | |||||||||||||||||||||||||||
NCSA | EARC | MENA | APAC | TECH | Corporate | Total | |||||||||||||||||||||
($ in millions) | |||||||||||||||||||||||||||
Revenues | $ | 1,319 | $ | 120 | $ | 417 | $ | 80 | $ | 137 | - | $ | 2,073 | ||||||||||||||
GAAP Operating Income (Loss) | (1,686) | (49) | 72 | (69) | (564) | (203) | (2,499) | ||||||||||||||||||||
GAAP Operating Margin | -127.8 | % | -40.8 | % | 17.3 | % | -86.3 | % | -411.7 | % | - | -120.5 | % | ||||||||||||||
Adjustments | |||||||||||||||||||||||||||
Goodwill impairment1 | 1,485 | 40 | - | 52 | 591 | - | 2,168 | ||||||||||||||||||||
Marine assets impairment2 | - | - | - | - | - | 58 | 58 | ||||||||||||||||||||
Restructuring, Transaction & Integration Costs3 | - | - | - | - | - | 32 | 32 | ||||||||||||||||||||
Total Non-GAAP Adjustments | 1,485 | 40 | - | 52 | 591 | 90 | 2,258 | ||||||||||||||||||||
Non-GAAP Operating Income (Loss) | $ | (201) | $ | (10) | $ | 72 | $ | (17) | $ | 27 | $ | (112) | $ | (241) | |||||||||||||
Non-GAAP Adjusted Operating Margin | -15.2 | % | -8.3 | % | 17.3 | % | -21.3 | % | 19.7 | % | - | -11.6 | % | ||||||||||||||
Note: Individual line items may not sum to totals as a result of rounding. |
1 Goodwill impairment is due in part to a change in our cost of capital and risk premium assumptions included in the discount rates utilized to derive the present value of our cash flows. The goodwill impairment was allocated to the segments based on the amount by which the carrying value of that segment exceeded its fair value. |
2 Marine assets impairment on two vessels related to lower levels of planned future utilization. |
3 Restructuring, transaction and integration costs associated with the Combination during the three months ended December 31, 2018. |
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||
RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES | |||||||||||||||
Three months Ended | Full Year Ended | ||||||||||||||
Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2018 | Dec 31, 2017 | ||||||||||||
($ in millions, except share and per share amounts) | |||||||||||||||
GAAP Net Income Attributable to Common Stockholders | $ | (2,775) | $ | 26 | $ | (2,691) | $ | 179 | |||||||
Less: Adjustments | |||||||||||||||
Goodwill impairment1 | 2,168 | - | 2,168 | - | |||||||||||
Marine asset impairment2 | 58 | - | 58 | - | |||||||||||
Transaction costs3 | 3 | 9 | 48 | 9 | |||||||||||
Costs to achieve CPI4 | 29 | - | 134 | - | |||||||||||
Non-cash actuarial loss (gain) on benefit plans5 | 47 | (5) | 47 | (5) | |||||||||||
Deferred tax asset adjustment for three-year cumulative loss6 | 190 | - | 190 | - | |||||||||||
Tax benefit on intercompany transfer of IP7 | - | - | (111) | - | |||||||||||
Debt extinguishment costs8 | - | - | 14 | - | |||||||||||
Total Non-GAAP Adjustments | 2,495 | 4 | 2,548 | 4 | |||||||||||
Tax Effect of Non-GAAP Changes9 | - | - | (5) | - | |||||||||||
Total Non-GAAP Adjustments (After Tax) | 2,495 | 4 | 2,543 | 4 | |||||||||||
Non-GAAP Adjusted Net Income Attributable to Common Stockholders | $ | (280) | $ | 30 | $ | (148) | $ | 183 | |||||||
GAAP Operating Income (Loss) | $ | (2,499) | $ | 45 | $ | (2,256) | $ | 307 | |||||||
Non-GAAP Adjustments10 | 2,258 | 9 | 2,408 | 9 | |||||||||||
Non-GAAP Adjusted Operating Income | $ | (241) | $ | 54 | $ | 152 | $ | 316 | |||||||
Non-GAAP Adjusted Operating Margin | -11.6 | % | 7.5 | % | 2.3 | % | 10.6 | % | |||||||
GAAP Diluted EPS | $ | (15.33) | $ | 0.27 | $ | (17.94) | $ | 1.88 | |||||||
Non-GAAP Adjustments | 13.78 | 0.05 | 16.95 | 0.04 | |||||||||||
Non-GAAP Adjusted Diluted EPS | $ | (1.55) | $ | 0.32 | $ | (0.99) | $ | 1.92 | |||||||
Shares used in computation of income per share: | |||||||||||||||
Basic | 181 | 91 | 150 | 91 | |||||||||||
Diluted | 181 | 95 | 150 | 95 | |||||||||||
Net Income Attributable to Common Stockholders | $ | (2,775) | $ | 26 | $ | (2,691) | $ | 179 | |||||||
Depreciation & Amortization | 92 | 23 | 279 | 101 | |||||||||||
Interest Expense, Net | 89 | 11 | 259 | 63 | |||||||||||
Provision for Income Taxes | 123 | 16 | 104 | 69 | |||||||||||
Accretion and Dividends on redeemable preferred stock | 4 | - | 4 | - | |||||||||||
EBITDA11 | (2,467) | 76 | (2,045) | 412 | |||||||||||
Non-GAAP Adjustments | 2,305 | 4 | 2,469 | 4 | |||||||||||
Adjusted EBITDA11 | $ | (162) | $ | 80 | $ | 424 | $ | 416 | |||||||
Cash flows from operating activities | $ | (285) | $ | - | $ | (71) | $ | 136 | |||||||
Capital expenditures | (24) | (22) | (86) | (119) | |||||||||||
Free cash flow | $ | (309) | $ | (22) | $ | (157) | $ | 17 | |||||||
GAAP Revenues | $ | 2,073 | $ | 718 | $ | 6,705 | $ | 2,985 | |||||||
Note: Individual line items may not sum to totals as a result of rounding. |
1 Goodwill impairment is due in part to a change in our cost of capital and risk premium assumptions included in the discount rates utilized to derive the present value of our cash flows. The goodwill impairment was allocated to each of the segments based on the amount by which the carrying value of that segment exceeded its fair value. |
2 Marine asset impairment on two vessels related to lower levels of planned future utilization. |
3Transaction costs associated with the private placement of preferred stock and warrants to purchase common stock during the three months ended December 31, 2018 and the Combination for the full year ended December 31, 2018. |
4 Costs to achieve CPI include integration and restructuring costs. |
5 Non-cash actuarial mark-to-market pension plan adjustment. Actuarial gains and losses are primarily driven by changes in the actuarial assumptions, discount rates and actual return on pension assets. |
6 Adjustment relates to the impact of a full valuation allowance against net deferred tax assets as a result of the goodwill impairment, creating a three-year cumulative loss position. |
7 Tax benefit resulting from the internal transfer of certain intellectual property rights during the second quarter of 2018 in conjunction with the Combination. |
8 As part of financing of the Combination and establishment of new capital structure, expense recognized during the second quarter of 2018 for prepayment of our prior credit facility and senior secured notes, including a make-whole premium and the accelerated write-off of debt issuance costs. |
9 The adjustments to GAAP Net Income have been income tax effected when included in net income based upon the respective tax jurisdictions the adjustments were incurred in. |
10 Includes the non-GAAP adjustments described in footnotes 1 through 4 above. Adjustments to operating income do not include non-GAAP adjustments described in footnotes 5 through 9 above, as those items are not included in the computation of operating income. |
11 We define EBITDA as net income plus depreciation and amortization, interest expense, net, and provision for income taxes. We define adjusted EBITDA as EBITDA adjusted to exclude significant, non-recurring transactions, both gains and charges, to our operating income as described in footnotes 1 through 4 above. We have included EBITDA and adjusted EBITDA disclosures in this press release because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry and because adjusted EBITDA provides a consistent measure of EBITDA relating to our underlying business. Our management also uses EBITDA and adjusted EBITDA to monitor and compare the financial performance of our operations. EBITDA and adjusted EBITDA do not give effect to the cash that we must use to service our debt or pay our income taxes, and thus do not reflect the funds actually available for capital expenditures, dividends or various other purposes. In addition, our presentation of EBITDA and adjusted EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider EBITDA or adjusted EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP. |
McDERMOTT INTERNATIONAL, INC. | ||
RECONCILIATION OF FORECAST NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | ||
Full Year 2019 Guidance | ||
($ in millions, except per share | ||
Revenues | $9.5 - 10.5B | |
Operating Income | $725 - $775 | |
Operating Margin | 7.0 - 8.0% | |
Costs to Achieve CPI | $40 - $50 | |
Total Non-GAAP Adjustments | $40 - $50 | |
Adjusted Operating Income | $765 - $825 | |
Adjusted Operating Margin | 7.5 - 8.5% | |
Net Income | $250 - $275 | |
Total Non-GAAP Adjustments | $40 - $50 | |
Tax Impact of Adjustments | ~$ - | |
Adjusted Net Income | $290 - $325 | |
Diluted Share Count | ~187 | |
Adjusted Diluted EPS | $1.65 - $1.75 | |
Cash Flows from Operating Activities | $(100) - $(50) | |
Capital Expenditures | ~$165 | |
Free Cash Flow | $(265) - $(215) | |
GAAP Net Income (Loss) Attributable to Common Stockholders | $250 - $275 | |
Add: | ||
Depreciation and amortization | $250 - $280 | |
Interest expense, net | ~$380 | |
Provision for taxes | ~$65 | |
Accretion of Redeemable Preferred Stock | ~$15 | |
Dividends on Redeemable Preferred Stock | ~$36 | |
EBITDA | $1.0 - $1.05B | |
Costs to Achieve CPI | $40 - $50 | |
Adjusted EBITDA | $1.04 - $1.1B | |
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-reports-fourth-quarter-and-full-year-2018-financial-and-operational-results-300800929.html
SOURCE McDermott International, Inc.
Article Date
2/25/2019McDermott Awarded EPCI Contract from Saudi Aramco
Source: PR Newswire
HOUSTON, Feb. 25, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a large* contract award from Saudi Aramco for engineering, procurement, construction and installation (EPCI) services in the Marjan field, offshore Saudi Arabia.
The contract includes the full suite of EPCI services for the upgrade of two existing platforms related to the installation of associated equipment for electrical submersible pumps (ESPs) and space for a future high integrity pressure protection system (HIPPS), subsea composite cable lay and topside cable tie-ins.
"This award is testament to Saudi Aramco's confidence in McDermott's ability to execute this complex type of project," said Linh Austin, McDermott's Senior Vice President, Middle East and North Africa. "We have a long track record of executing similar scopes of work and believe that by working closely with our clients we can offer industry leading solutions which are suited to this evolving market segment."
The project is scheduled to be fully executed from McDermott's Al Khobar office and Dammam fabrication facility, in line with its strategic focus to strengthen In-Kingdom content.
Work on the project will begin immediately and the contract award will be reflected in McDermott's first quarter 2019 backlog.
* - McDermott defines a large contract as between USD $50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Head of Communications & Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epci-contract-from-saudi-aramco-300800451.html
SOURCE McDermott International, Inc.
Article Date
2/25/2019McDermott Awarded Substantial Offshore EPCI Contract from Saudi Aramco
Source: PR Newswire
HOUSTON, Feb. 25, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a substantial* contract award from Saudi Aramco for engineering, procurement, construction and installation (EPCI) services in the Marjan field, offshore Saudi Arabia.
The contract includes the design, procurement, fabrication, and installation, testing and pre-commissioning of the TP-10 tie-in platform, six gas lift topside modules and associated pipeline and subsea cables. The total weight of the structures will exceed 29,000 short tons (27,000 metric tons) and pipelines totaling over 40 miles (65 kilometers).
"This award demonstrates the strong market appeal of our value-driven and highly integrated offering of products and services," said Linh Austin, McDermott's Senior Vice President, Middle East and North Africa. "McDermott has extensive practical operational experience in the region which gives assurance to our customers of our ability to deliver projects safely, on time and to budget."
The fabrication work on the project will be executed from McDermott's Jebel Ali yard in Dubai and Dammam yard in Saudi Arabia, while the engineering work will be executed from both Dubai and the Al Khobar office in Saudi Arabia in line with McDermott's strategic focus to strengthen In-Kingdom content. The Derrick Barge 50 and Derrick Barge 27 from McDermott's global vessel fleet are scheduled to be utilized.
Work on the project will begin immediately and the contract award will be reflected in McDermott's first quarter 2019 backlog.
* - McDermott defines a substantial contract as between USD $500 million and USD $750 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 32,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Head of Communications & Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-substantial-offshore-epci-contract-from-saudi-aramco-300800448.html
SOURCE McDermott International, Inc.
Article Date
2/25/2019McDermott Announces Contracts for Pan Malaysia Field Development
Source: PR Newswire
HOUSTON, Feb. 18, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced two sizeable* contracts, one from Sarawak Shell Berhad (SSB) and one from Sapura Exploration and Production (SEP), to provide transportation and installation of offshore structures, pipelines and pre-commissioning work for the Pan Malaysia field development located off the shore of Sarawak, Malaysia.
McDermott's scope of work for SSB includes the transportation and installation of jackets, topsides and pipelines for the Gorek gas field. The company's scope of work for SEP includes the transportation and installation of jackets, topsides and pipelines for the Larak and Bakong gas fields. McDermott will also fabricate risers and spools for SSB and SEP.
"These two contracts give McDermott the opportunity to strengthen our long-standing relationship with Sarawak Shell Berhad and develop a new relationship with Sapura Exploration and Production," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "They also provide an excellent opportunity for McDermott to execute offshore projects in Malaysia using many of the company's assets, from our highly-skilled and talented workforce to our marine assets and our global fabrication expertise."
McDermott is scheduled to use its installation vessel, the Malaysian-registered Derrick Barge 30, for these jobs. The project management team will be based in Kuala Lumpur using the maximum Malaysian workforce to meet the local content requirement. Fabrication of the risers and spools is scheduled to be performed at McDermott's global execution center in Batam, Indonesia. The offshore campaign is expected to begin in Q2 2019.
The awards mark McDermott's first contracts in Malaysia since relocating the regional headquarters to Kuala Lumpur. McDermott has since increased its local workforce from 90 to nearly 700 employees. "We have grown significantly in a relatively short space of time. Our Kuala Lumpur office is one of the company's centers of excellence supporting our global projects. This gives our local employees excellent development and growth opportunities. We are extremely pleased to secure the Pan Malaysia field development work which enables us to support the growth of the Malaysian oil and gas sector and the country," said Prescott.
McDermott is continuing its hiring process in Malaysia to meet the growing business prospects in the region and its recent combination with CB&I that opens up onshore petrochemical business opportunities in addition to its offshore business portfolio.
The Pan Malaysia contracts will be reflected in McDermott's first quarter 2019 backlog.
* McDermott defines a sizable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected scope, execution, value and timing of the projects discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Contact
Philip Ng
Manager, Communications
+60 17 200 4238
fng2@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-contracts-for-pan-malaysia-field-development-300796788.html
SOURCE McDermott International, Inc.
Article Date
2/18/20192/15/2019 - McDermott Joins Entergy Texas in Groundbreaking Ceremony for Montgomery County Power Station
McDermott Joins Entergy Texas in Groundbreaking Ceremony for Montgomery County Power Station
Source: PR Newswire
HOUSTON, Feb. 15, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today participated in a groundbreaking ceremony with its customer, Entergy Texas, Inc., on the previously announced Montgomery County Power Station (MCPS), a 993-megawatt combined-cycle natural gas power plant in Willis, Texas. McDermott's scope of work on the project includes engineering, procurement, construction and commissioning (EPCC) of a 2x1 combined cycle power station.
"Today's groundbreaking ceremony marks an important milestone on this power project for Entergy Texas," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This project demonstrates McDermott's continued commitment to the power industry. We are proud to support our customers, like Entergy, who build power generation stations that provide clean, reliable and affordable power in the communities in which they operate."
When complete, the Montgomery County Power Station will generate nearly one gigawatt of reliable and clean electricity to Entergy Texas customers across southeast Texas.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-joins-entergy-texas-in-groundbreaking-ceremony-for-montgomery-county-power-station-300796709.html
SOURCE McDermott International, Inc.
Article Date
2/15/20192/13/2019 - McDermott Offers Comment on Cameron LNG Project
McDermott Offers Comment on Cameron LNG Project
Source: PR Newswire
HOUSTON, Feb. 13, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today commented on its assessment of the financial position of the Cameron LNG project as of the end of the fourth quarter of 2018.
McDermott's comment follows the release on February 13, 2019, of quarterly financial results by Chiyoda Corporation, a member of the joint venture, along with McDermott, working on the project. For the fourth quarter of 2018, McDermott expects to report an adverse change in estimate of approximately $168 million, due to unfavorable labor productivity, and increases in subcontract, commissioning and construction management costs. The change in estimate is expected to impact McDermott's statements of operations for the three months and year ended December 31, 2018. McDermott and Chiyoda are executing the project under a 50-50 joint venture arrangement and are fully aligned at the joint-venture level regarding the change in estimate.
The Cameron LNG project, currently under construction in Hackberry, Louisiana, is a world-scale facility incorporating proven technology designed to produce nearly 14 million tons per year of liquefied natural gas. Operationally, the project is on track to reach a major milestone with feed gas into the facility later this quarter. Construction continues to progress well. The gas turbine solo run was completed ahead of schedule, cold circulation of hot oil in Train 1 was completed during the quarter and flare ignition testing was successfully completed on all flares. All of these are crucial steps in the commissioning of Train 1.
McDermott expects to report its results for the fourth quarter of 2018 on February 25, 2019.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected adverse changes in estimates to be reported with McDermott's fourth quarter earnings, the expected impact of the changes in estimates on McDermott's statements of operations for the three months and year ended December 31, 2018, the expected scope and timing of the project discussed in this release and the expected timing of McDermott's report of its results for the fourth quarter of 2018. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-offers-comment-on-cameron-lng-project-300794944.html
SOURCE McDermott International, Inc.
Article Date
2/13/20192/5/2019 - McDermott, Chiyoda and Zachry Group Awarded Golden Pass LNG Export Project in Southeast Texas
McDermott, Chiyoda and Zachry Group Awarded Golden Pass LNG Export Project in Southeast Texas
Source: PR Newswire
HOUSTON, Feb. 5, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR), along with its joint venture partners Chiyoda International Corporation and Zachry Group, announced today that they have been awarded a mega* contract by Golden Pass Products LLC, a joint venture between Qatar Petroleum and ExxonMobil affiliates, to build the export project in Sabine Pass, Texas.
"McDermott has extensive experience in executing major projects along the U.S. Gulf Coast," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "We will apply not only our vertically-integrated capabilities but also some of the best practices and lessons learned for major construction projects in the region. We will also leverage the existing relationships we have with our partners and our customers to ensure that the Golden Pass project is a success."
McDermott, Chiyoda and Zachry Group will perform engineering, procurement, construction and commissioning of three approximately 5.2 million ton per annum (MTPA) LNG trains with an expected production capacity of around 16 million tons of LNG per year. Work will commence in the first quarter of 2019 with a projected completion date in 2024.
* McDermott defines a mega contract in excess of USD $1.0 billion. The contract award will be reflected in McDermott's first quarter 2019 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017, and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications and Marketing
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-chiyoda-and-zachry-group-awarded-golden-pass-lng-export-project-in-southeast-texas-300790112.html
SOURCE McDermott International, Inc.
Article Date
2/5/2019McDermott Signs Contract for Floating Production Unit for the Scarborough Field Gas Development in Australia
Source: PR Newswire
HOUSTON, Feb. 5, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced it has signed a contract with Woodside Energy Ltd. to undertake a front-end engineering and design activities for a floating production unit (FPU) for the Scarborough field gas development in Western Australia.
McDermott's center of excellence in The Hague, Netherlands, will lead the study and early engineering. Upon completion, the contract includes the option to progress to an engineering, procurement, construction and installation (EPCI) contract should the project be approved for full development by Woodside and its Scarborough joint venture partners.
"Woodside is a key customer of our Company, and it is therefore outstanding to see such an important project leveraging off McDermott's global capabilities," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "In partnering with Woodside on the front-end engineering and design study, we will use our best-in-class engineering know-how and project execution expertise to ensure successful delivery of the project."
The FPU processes natural gas, which includes gas separation, dehydration and compression as well as Mono Ethylene Glycol (MEG) regeneration and water handling. The topside will be designed for a production capacity of 7-9 metric tons per annum and will be placed on a semi-submersible hull in 2,952 feet (900 meters) water depth. The FPU will be remotely operated and minimally manned.
The Scarborough gas field is located approximately 236 miles (380 kilometers) off the Burrup Peninsula in the Northwestern Shelf of Australia and contains 7.3 trillion cubic feet of natural gas reserves. The development covers 12 daisy-chained subsea wells to be tied back to a semisubmersible FPU located at the Scarborough field, with onshore processing on the Burrup Peninsula.
The award will be reflected in McDermott's first quarter 2019 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected scope, execution, value and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Contact
Philip Ng
Manager, Communications
+60 17 200 4238
fng2@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-signs-contract-for-floating-production-unit-for-the-scarborough-field-gas-development-in-australia-300789324.html
SOURCE McDermott International, Inc.
Article Date
2/5/2019McDermott Awarded EPCI Subsea Tieback Contract from LLOG for the Stonefly Development
Source: PR Newswire
HOUSTON, Jan. 28, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award by LLOG Exploration Company, L.L.C. for deepwater subsea pipeline tiebacks and structures from the Stonefly development to the Ram Powell platform, located approximately 140 miles southeast of New Orleans, Louisiana.
The scope of work includes project management, installation engineering, subsea structure and spoolbase stalk fabrication, and subsea installation of the subsea infrastructure to support a two well subsea tieback from the Stonefly development site to the Ram Powell platform via a 60,000 foot 6-inch pipeline at water depths ranging from 3,300 to 4,100 feet. McDermott will also design, fabricate and install a steel catenary riser, a pipeline end manifold and two in-line sleds.
"This award demonstrates McDermott's commitment to helping LLOG safely and competitively deliver the Stonefly development," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "McDermott's proven track record of project execution in the Gulf of Mexico, combined with our industry-leading subsea capabilities and integrated business model, will help drive efficiency while maintaining our uncompromising commitment to safety and quality."
The Stonefly development includes the Viosca Knoll 999 area where McDermott is scheduled to use its 50-acre spoolbase in Gulfport, Mississippi, for fabrication and reeled solutions. McDermott is scheduled to install the subsea tiebacks and structures using its North Ocean 105 vessel in the third quarter of 2019. Structure design and installation engineering began in January 2019 in McDermott's Houston office.
The lump sum contract award will be reflected in McDermott's first quarter 2019 backlog.
The Ram Powell tension leg platform is located in 3,200 feet of water in Viosca Knoll Area, Block 956, and is capable of processing 60,000 barrels of oil per day and 200 million cubic feet of gas per day.
LLOG is one of the largest privately-owned exploration and production companies in the United States.
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected scope, execution, value and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epci-subsea-tieback-contract-from-llog-for-the-stonefly-development-300784384.html
SOURCE McDermott International, Inc.
Article Date
1/28/20191/28/2019 - McDermott Announces Date for Fourth Quarter and Full Year 2018 Financial Results and Conference Call
McDermott Announces Date for Fourth Quarter and Full Year 2018 Financial Results and Conference Call
Source: PR Newswire
HOUSTON, Jan. 28, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) will report financial results for the fourth quarter and full year of 2018 on Monday, February 25, 2019 before the opening of the New York Stock Exchange.
President and Chief Executive Officer David Dickson and Executive Vice President and Chief Financial Officer Stuart Spence will discuss the company's results during a conference call that same day at 7:30 a.m. Central time.
Shareholders and other interested parties are invited to listen to the call by visiting www.mcdermott-investors.com or by calling 1-706-634-2259 (Conference ID: 5780117). A presentation of supplemental financial information will be available on McDermott's Investor Relations site at that time.
A replay of the webcast will be available on McDermott's website for seven days after the call.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-date-for-fourth-quarter-and-full-year-2018-financial-results-and-conference-call-300784386.html
SOURCE McDermott International, Inc.
Article Date
1/28/2019McDermott Awarded EPC Contract for CB&I® Storage Tanks in Saudi Arabia
Source: PR Newswire
DUBAI, United Arab Emirates, Jan. 16, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced it has been awarded a sizeable* contract from Daelim Saudi Arabia Company Ltd. for engineering, procurement and construction (EPC) of CB&I Storage Tanks for the Ma'aden Ammonia Plant at Ras Al-Khair, Kingdom of Saudi Arabia.
The fixed lump sum contract encompasses the engineering, procurement and fabrication of four Ammonia Tanks and nine CB&I storage tanks. Work on the project will predominantly be executed from Saudi Arabia utilizing McDermott's local capabilities and facilities.
"CB&I Storage Tanks consistently deliver innovative storage solutions for clients such as Daelim," said Linh Austin, Senior Vice President, Middle East and North Africa. "CB&I Storage Tanks' unparalleled technical competency combined with our extensive experience in Saudi Arabia uniquely positions us to deliver this project."
Work on the contract is expected to begin immediately and will be reflected in McDermott's fourth quarter 2018 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Head of Communications & Marketing Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-cbi-storage-tanks-in-saudi-arabia-300778764.html
SOURCE McDermott International, Inc.
Article Date
1/16/2019McDermott Awarded EPC Contract for Fuel Tanks in Australia from Puma Energy
Source: PR Newswire
HOUSTON, Jan. 9, 2019 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced the award of a sizable* tank contract by Puma Energy (Australia) Fuels Pty Ltd for the engineering, procurement and construction of 11 fuel tanks for an import terminal in Kwinana, Western Australia.
"McDermott has more than 75 years of experience in delivering world-class storage solutions in Australia," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "The storage business in the region is strong and will continue to grow as we win new awards like this and help our customers develop the region's energy infrastructure."
Onsite work is scheduled to commence in the first quarter of 2019 with completion scheduled for the third quarter of 2020.
The contract will be reflected in McDermott's fourth quarter 2018 backlog.
* - McDermott defines a sizable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value, scope and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
Asia Pacific Media Contact
Philip Ng
Manager, Communications
+60 17 200 4238
fng2@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-fuel-tanks-in-australia-from-puma-energy-300774995.html
SOURCE McDermott International, Inc.
Article Date
1/9/201912/21/2018 - McDermott Announces First Fire at Calpine's York 2 Energy Center Combined-Cycle Power Station
McDermott Announces First Fire at Calpine's York 2 Energy Center Combined-Cycle Power Station
Source: PR Newswire
HOUSTON, Dec. 21, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today that it successfully achieved first fire of units 5 and 6 and steam blows at Calpine's York 2 Energy Center, a combined-cycle gas power station in Peach Bottom Township, Pennsylvania.
First fire and steam blows are critical milestones for the power plant as it validates the operability of the new facility. As a result of this milestone, units 5 and 6 are generating power for one of America's largest generators of electricity from natural gas and geothermal resources.
"As we mark this project milestone, we are one step closer to delivering a world-class power project for Calpine," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This combined-cycle project is an excellent example of McDermott's experience and comprehensive capabilities in providing vertically-integrated solutions for leading power companies in the U.S."
The York 2 Energy Center project is an 828-megawatt, dual-fueled, combined-cycle gas turbine power station owned by Calpine Mid-Merit, LLC, an affiliate of Calpine Corp. McDermott was awarded the engineering, procurement and construction contract in 2014.
The start-up team will continue with commissioning activities and expects to achieve substantial completion in Q1 2019, as previously announced.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-first-fire-at-calpines-york-2-energy-center-combined-cycle-power-station-300770186.html
SOURCE McDermott International, Inc.
Article Date
12/21/2018McDermott Announces Date for 2019 Annual Meeting of Stockholders
Source: PR Newswire
HOUSTON, Dec. 21, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today that the Company's 2019 Annual Meeting of Stockholders will be held on Thursday, May 2, 2019, in London, England. Additional information regarding the Company's 2019 Annual Meeting of Stockholders, including the record date, will be disclosed in the Company's Proxy Statement which the Company plans to file with the Securities and Exchange Commission in March 2019.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-date-for-2019-annual-meeting-of-stockholders-300769696.html
SOURCE McDermott International, Inc.
Article Date
12/21/2018McDermott Awarded Polypropylene Technology Contract in India
Source: PR Newswire
HOUSTON, Dec. 20, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by HPCL Rajasthan Refinery Ltd. (HRRL) for the license and basic engineering design of two 490 KTA polypropylene plants in Pachpadra Tehsil, Barmer District, Rajasthan, India. The plants will use Lummus' proprietary NOVOLEN® process reactors and proprietary NHP® catalyst to produce a full range of leading polypropylene products for the Indian and regional markets.
"This is the largest Novolen licensed polypropylene award to date, and the largest polypropylene plant in India," said Daniel M. McCarthy, Executive Vice President of McDermott's Lummus Technology business. "Our process includes a high degree of flexibility to adjust to market demand, and HRRL will enjoy the full benefits of economies of scale and technology capability for this world-scale plant."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award was reflected in McDermott's third quarter 2018 backlog.
* McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-polypropylene-technology-contract-in-india-300769187.html
SOURCE McDermott International, Inc.
Article Date
12/20/2018McDermott Selects New Building for Corporate Headquarters
Source: PR Newswire
HOUSTON, Dec. 18, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) has signed a lease for the new office building to serve as its corporate headquarters and will consolidate approximately 1,700 employees across five locations in the Houston area into one location.
McDermott signed a 16-year lease for Energy Center Five, an 18-story, 524,000-square-foot office tower located at 915 North Eldridge Parkway. McDermott will be the sole tenant in the building and will lease the building from the property landlord, TCH Energy Venture Corridor LLC. CBRE Group, Inc. represented McDermott as the broker for the lease.
"The new, state-of-the-art building will enhance collaboration and productivity among our employees and drive efficiency and cost savings for the company," said David Dickson, McDermott's President and Chief Executive Officer. "We are also staying in Houston's Energy Corridor, which is strategic for McDermott given the close proximity to many of our customers and partners."
The facility has amenities such as an active greenspace, a fitness center, cafeteria, multi-purpose rooms for large meetings, on-site parking garage and a water feature to provide outdoor areas for employee enjoyment. The building is certified as a Gold LEED building. The building is located in the energy corridor in Houston, with close access to Beltway 8, Interstate 10 and key decision makers.
McDermott plans to begin operations in the new building beginning in the third quarter of 2019 and will gradually transition its workforce into the new building by the end of 2019.
The company presently leases buildings at 10 locations in the Houston area and will consolidate five of those locations to fill the new building. After moving into the new building, the company is expected to have five site locations and more than 2,000 employees in the overall Houston metropolitan area.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-selects-new-building-for-corporate-headquarters-300768477.html
SOURCE McDermott International, Inc.
Article Date
12/18/2018McDermott Awarded Two Polypropylene Technology Contracts in India
Source: PR Newswire
HOUSTON, Dec. 18, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded two sizeable* technology contracts by Indian Oil Corporation Ltd. (IOCL) for the license and basic engineering design of a 200 KTA polypropylene plant in Barauni, India, as well as a 420 KTA polypropylene plant in Gujarat, India. Indian Oil Corporation is the leading refiner and a major petrochemical player in India. Both plants will use Lummus' proprietary NOVOLEN® process reactors and proprietary NHP® catalyst to produce a wide range of leading polypropylene products for the Indian and regional markets.
"Lummus' Novolen Technology offers the most competitive technology for the manufacturing of polypropylene, and continues to provide innovations in process and products," said Daniel M. McCarthy, Executive Vice President of McDermott's Lummus Technology business. "By licensing this technology to enhance the profitability of both the Barauni Refinery and the Gujarat Refinery, IOCL will be able to produce a variety of polypropylene products to meet India's increasing demand for plastics."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
These awards were reflected in McDermott's third quarter 2018 backlog.
* McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected scope and value of the technology contract discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-two-polypropylene-technology-contracts-in-india-300767809.html
SOURCE McDermott International, Inc.
Article Date
12/18/2018McDermott Awarded EPC Contract for CB&I Storage Tanks by Nan Ya Plastics Corporation
Source: PR Newswire
HOUSTON, Dec. 11, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a contract award for CB&I storage tanks from Nan Ya Plastics Corporation. McDermott's scope of work includes the engineering, procurement, fabrication and construction of four internally framed stainless-steel umbrella roof tanks in Point Comfort, Texas.
"We have the industry's leading storage business as well as the most extensive global experience of any tank construction company," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "We have achieved this by delivering innovative and complex storage solutions, and maintaining strong and long-term relationships with our customers such as Nan Ya Plastics."
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-cbi-storage-tanks-by-nan-ya-plastics-corporation-300748677.html
SOURCE McDermott International, Inc.
Article Date
12/11/201812/6/2018 - McDermott Awarded FEED Contract by Meridian Energy Group for North Dakota Grassroots Refinery
McDermott Awarded FEED Contract by Meridian Energy Group for North Dakota Grassroots Refinery
Source: PR Newswire
HOUSTON, Dec. 6, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award for front-end engineering design (FEED) services of the Davis Refinery Project in Billings County, North Dakota, a grassroots refinery that is being developed by Meridian Energy Group Inc.
The new Davis Refinery will leverage the prolific crude oil feedstocks generated from the recent Bakken shale revolution – specifically from the Williston Basin in North Dakota. Touted as one of the most environmentally-friendly refineries in the U.S., the new refinery will utilize modern technology and improve operational efficiency while maintaining strict environmental stewardship.
"This partnership with Meridian is a key and strategic opportunity to design one of the most advanced and environmentally-compliant refineries in the world," said Richard Heo, Senior Vice President for North, Central and South America. "Early engagement during the FEED phase is a strategy that is proving beneficial to McDermott customers. McDermott intends to develop the FEED within the context of an expected modular execution and construction approach for this project. We are excited to be part of this ground-floor opportunity on the Davis Refinery Project and look forward to the opportunity to partner with Meridian from FEED to EPC."
Capacity of the new refinery is expected to be 49,500 barrels per day and will include the production of ultra-low sulfur diesel and premium gasoline. After conclusion of the FEED study, both parties will endeavor to enter into an EPC agreement to build the refinery.
The contract award will be reflected in McDermott's fourth quarter 2018 backlog.
*McDermott defines a sizeable contract between USD $1 million and $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected value and scope of the FEED contract and expectations for the follow-on EPC contract discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-feed-contract-by-meridian-energy-group-for-north-dakota-grassroots-refinery-300761427.html
SOURCE McDermott International, Inc.
Article Date
12/6/2018McDermott Closes Previously Announced Private Placement of $300 Million of Redeemable Preferred Stock and Warrants and $230 Million Increase in Letter-of-Credit Capacity
Source: PR Newswire
HOUSTON, Nov. 29, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) ("McDermott" or the "Company") announced today the closing of the previously announced private placement of $300 million of redeemable preferred stock and warrants to purchase 6,773,094 shares of the Company's common stock with investment funds managed by the Merchant Banking Division of The Goldman Sachs Group, Inc. ("Goldman Sachs MBD") and the availability of the previously announced $230 million letter-of-credit facility. The net proceeds from the private placement are expected to be used for general corporate purposes, including working capital requirements, and the increase in letter-of-credit capacity is expected to enhance the Company's readiness to book anticipated strong order intake.
Barclays acted as lead placement agent and Credit Agricole Securities (USA) Inc., ABN AMRO Securities (USA) LLC, RBC Capital Markets, LLC, and BMO Capital Markets Corp acted as placement agents. The Goldman Sachs Investment Banking Division acted as advisor to Goldman Sachs MBD in connection with the private placement.
Barclays and Credit Agricole Corporate Investment Bank acted as joint lead arrangers for the letter of credit facility with Moelis & Company LLC acting as financial advisor to McDermott.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of McDermott. These forward-looking statements include, among other things, statements about the expected use of proceeds from the private placement and the Company's readiness to book anticipated strong order intake. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: the possibility that the expected synergy savings from the recently completed combination with CB&I will not be realized, or will not be realized within the expected time period; difficulties related to the integration of McDermott and CB&I; disruption from the combination making it more difficult to maintain relationships with customers, employees, regulators or suppliers; the diversion of management time and attention to integration matters; adverse changes in the markets in which McDermott operates or credit markets; the inability of McDermott to execute on contracts in backlog successfully; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by customers and other business counterparties of McDermott; changes in industry norms; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission (the "SEC"), including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-closes-previously-announced-private-placement-of-300-million-of-redeemable-preferred-stock-and-warrants-and-230-million-increase-in-letter-of-credit-capacity-300757618.html
SOURCE McDermott International, Inc.
Article Date
11/29/201811/27/2018 - McDermott Awarded Subsea Umbilical and Flowline Installation Contract by Shell for Great White Frio Development
McDermott Awarded Subsea Umbilical and Flowline Installation Contract by Shell for Great White Frio Development
Source: PR Newswire
HOUSTON, Nov. 27, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract from Shell Exploration and Production Company, a subsidiary of Royal Dutch Shell plc, for new subsea umbilical and flowline installation at the Great White Frio development in Alaminos Canyon Block 857 in the U.S. Gulf of Mexico.
McDermott's scope of work includes project management and engineering; installation of a flexible flowline from the well to a pipeline end termination; installation of one 2,000-foot-long steel flying lead; and installation of two electrical flying leads (EFLs) in a water depth of 8,000 feet. Project management and engineering are scheduled to be performed in Houston, Texas, with offshore installation by McDermott targeted for completion in mid-2019.
"This award demonstrates McDermott's commitment to helping Shell safely and competitively deliver Great White – their next-generation deep-water energy project," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "McDermott's proven track record of project execution in the Gulf of Mexico with Shell, combined with our industry-leading subsea capabilities and integrated business model, will help drive efficiency while maintaining our uncompromising commitment to safety and quality."
The Great White development, which is operated by Shell Offshore Inc. (Shell), is a pioneer deep-water oil and gas project that has unlocked a new frontier of energy development in the Gulf of Mexico's Lower Tertiary Paleogene. The Shell-operated Perdido Regional Host production hub, which saw first commercial production in 2011, processes oil and gas from the Silvertip, Great White and Tobago fields. The Perdido Host is one of the most prolific oil and gas producing projects in the Gulf of Mexico and has the capacity to handle 100,000 barrels of oil and 200 million cubic feet of gas daily. Shell is focused on safely and competitively growing production from the Perdido Area by optimizing the performance of existing wells and through targeted additional in-field and near-field development opportunities.
The contract award will be reflected in McDermott's fourth quarter 2018 backlog.
* McDermott defines a sizeable contract between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-subsea-umbilical-and-flowline-installation-contract-by-shell-for-great-white-frio-development-300755288.html
SOURCE McDermott International, Inc.
Article Date
11/27/201811/15/2018 - McDermott Hosts Celebratory Event for Abkatun-A2 Sail Away -- Largest Oil Platform Constructed in Mexico in 10 Years
McDermott Hosts Celebratory Event for Abkatun-A2 Sail Away -- Largest Oil Platform Constructed in Mexico in 10 Years
Source: PR Newswire
HOUSTON, Nov. 15, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today an event that was hosted at their world-class fabrication yard in Altamira, Tamaulipas, Mexico celebrating the sail away and another project milestone of the PEMEX Exploración y Producción PB-Abkatun-A2 oil and gas production platform. Representatives from PEMEX, government officials, including Governor of Tamulipas, Francisco Garcia Cabeza de Vaca, McDermott and regional news outlets participated in the event.
The PB-Abkatun-A2 platform is McDermott's largest project in size and total value to date for PEMEX. The USD $454 million engineering, procurement, construction and installation and commissioning (EPCIC) project was awarded to the Company in June 2016. McDermott's scope of the work spanned from the basic engineering design to tie-in and commissioning of the jacket, deck, four tripod jackets, and four bridges about 100 meters each. Two tripods were designed to be used as part of the flare system while the other two tripods support the two bridges to interconnect PB-Abkatun-A2 with the existing PEMEX production complex. The giant three-level topside is the largest ever fabricated at McDermott's world-class fabrication yard in Altamira.
"Abkatun is an impressive and substantial project for PEMEX and Mexico, and it has been an honor for McDermott to be the exclusive contractor for this project," said Richard Heo, Senior Vice President for North, Central and South America. "Since the beginning, Abkatun has been on an aggressive project schedule. But our One McDermott Way operating model, leveraging the vertical integration of our in-house engineering resources and our world-class fabrication facility in Altamira, enabled us to bring efficiency and transparency to the project. The result is we are safely delivering Abkatun – our largest project to date, in size and total value, for PEMEX."
Governor Garcia Cabeza De Vaca spoke at the event and said, "Congratulations to McDermott for this important achievement. You are making history. And we want you to keep building, but mainly writing a new history in the area of hydrocarbons in Tamaulipas and in our country. This is the first one of many more platforms to be built in Altamira. And this has not been possible without the ability, dedication and mainly the talent of each and every one of you."
Installation of Abkatun is scheduled for November 2018 in Mexico's Bay of Campeche utilizing McDermott's Amazon, DB50 and Intermac 650 vessels. Commissioning will follow the installation of the 16,534 U.S. ton (15,000 metric ton) platform in 124 feet (38 meters) of water which will provide replacement and expansion capabilities to the existing Abkatun Pol Chuc facilities. Following commissioning, this high-capacity production platform is rated to produce 220,000 barrels of oil per day and 150 million of standard cubic feet of gas per day for PEMEX.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-hosts-celebratory-event-for-abkatun-a2-sail-away--largest-oil-platform-constructed-in-mexico-in-10-years-300750764.html
SOURCE McDermott International, Inc.
Article Date
11/15/2018McDermott Awarded Conceptual and Engineering Services Contract by Talos Energy for Zama Field Development Project in Mexico
Source: PR Newswire
HOUSTON, Nov. 15, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a contract award for concept and engineering services for Talos Energy Inc. for the Zama field development project – the first offshore Mexico block awarded to a private operator. The contract award is for engineering services, including concept selection and follow-on pre-FEED.
McDermott will execute this contract award with io oil & gas consulting, a joint venture between McDermott and Baker Hughes, a GE company (BHGE). McDermott will manage all phases of the engineering services process and will workshare engineers and designers in Mexico City and will receive continuous support from io and input from the customer. Based on the final concept solution identified by io, McDermott will provide the follow-on pre-FEED services for the Zama development. Work on the concept selection has begun with expected completion in the third quarter 2019.
"The Zama discovery is a significant and historic project for Mexico, and our customer, Talos Energy," said Richard Heo, Senior Vice President for North, Central and South America. "Early engagement during the conceptual and pre-FEED phases is a strategy that is proving beneficial to our customers. With high estimated oil production, designing an efficient concept solution, in combination with the integrated pre-FEED studies, allows us to help Talos maximize the value of this important greenfield project."
The Zama field is located in Block 7 of the Sureste Basin offshore Mexico in the Gulf of Mexico and has a water depth of approximately 540 feet (165 meters). The field was discovered in July 2017, and Zama-1 was the first exploration well drilled offshore Mexico by a private sector operator. Talos estimates the field has 400-800 million recoverable barrels of oil equivalent (MBOE), with an estimated peak production of approximately 150 MBOE/day. Appraisal activities are planned for late 2018 with two additional wells and first oil is expected by 2022.
The Zama field development project has shared participating interest among Talos Energy (35%), Sierra Oil and Gas (40%) and Premier Oil (25%).
The contract award will be reflected in McDermott's fourth quarter 2018 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About io oil & gas consulting
io oil & gas consulting is a strategic consultancy created to provide greater certainty and higher decision quality to operators and help bring more projects to sanction by disrupting traditional approaches. io is unique with its integrated strategic-techno-commercial capabilities ensuring a balanced approach between commercial, technical and strategic priorities capitalizing on multi-discipline capabilities in subsurface, drilling, subsea, marine, facilities, decommissioning/life extension and environmental alongside economic modelling. We are a joint venture between Baker Hughes, a GE company, and McDermott and are unique in having their know-how, expertise and data 'hard coded' into our DNA. For powerful thinking, visit www.iooilandgas.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent this may be viewed as an indicator of future revenues or profitability, and the expected scope, execution, value and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-conceptual-and-engineering-services-contract-by-talos-energy-for-zama-field-development-project-in-mexico-300750765.html
SOURCE McDermott International, Inc.
Article Date
11/15/201811/14/2018 - NET Power Demonstration Plant Wins 2018 ADIPEC Breakthrough Technological Project of the Year
NET Power Demonstration Plant Wins 2018 ADIPEC Breakthrough Technological Project of the Year
Source: PR Newswire
ABU DHABI, United Arab Emirates, Nov. 14, 2018 /PRNewswire/ -- In recognition of its demonstration plant in La Porte, Texas, NET Power, LLC, was awarded the 2018 Breakthrough Technological Project of the Year at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC). ADIPEC is one of the world's largest and most influential oil and gas events. NET Power's 50MWth plant demonstrates the company's low-cost, emissions-free, natural gas electric power system. It is the world's first and only industrial-scale supercritical CO2-based power plant.
By generating non-intermittent, competitively-priced power with full carbon capture, NET Power will help the world to reach deep decarbonization targets at the lowest cost. Using its novel power system, the company strives to push the cost of CO2 capture so low that it will be more economic to re-use and sequester carbon than to emit it into the atmosphere. NET Power's CO2 can be used for enhanced oil recovery or oil field pressure maintenance, with the goal of cutting the carbon footprint of fossil fuels to zero. In addition, NET Power's CO2 can be directly and safely sequestered in saline aquifers, sedimentary deposits, and depleted oil fields. Ultimately, NET Power's goal is to make CO2 so affordable that it will catalyze the establishment of a new carbon economy built around novel CO2 utilization technologies, such as sour gas cleanup and the production of carbon nanofiber, methanol and concrete.
In May of this year, NET Power achieved first-fire at its 50MWth demonstration power plant. The last phase of testing is underway and is expected to be completed in early 2019.
Since commencing development in 2014, NET Power identified important market needs by working with major power, oil, gas, chemical and industrial companies worldwide. In early 2019, NET Power expects to commence detailed engineering of 300MWe commercial-scale plants with customers.
NET Power is owned by Exelon Generation (NYSE: EXC), McDermott (NYSE: MDR), 8 Rivers Capital, and, subject to regulatory approval, Oxy Low Carbon Ventures, LLC, a subsidiary of Occidental Petroleum Corporation (NYSE: OXY).
NET Power, LLC, is a Durham, NC-based company developing the natural gas-fueled Allam Cycle power system. For more information, please visit www.NETPower.com.
View original content to download multimedia:http://www.prnewswire.com/news-releases/net-power-demonstration-plant-wins-2018-adipec-breakthrough-technological-project-of-the-year-300750163.html
SOURCE NET Power, LLC
Article Date
11/14/201811/6/2018 - Chairman, CEO, CFO Purchase Shares in McDermott
Chairman, CEO, CFO Purchase Shares in McDermott
Source: PR Newswire
HOUSTON, Nov. 6, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today purchases by its Chairman and executive management of the company's common stock.
"As non-executive Chairman of the Board, I have great belief in McDermott's management team and operational capabilities and believe the company is poised for significant profitable growth opportunities," said Mr. Luquette.
"This purchase reflects my confidence in McDermott's future and my belief in the strategic rationale of our combination with CB&I," said Mr. Dickson. "As we continue to put the three legacy projects behind us, our focus is on continuing our solid execution and on the growing market opportunities ahead of us. I am also assured by the successful integration of our two companies and our highly motivated and talented employees."
"Our overall operating results and execution were solid in the third quarter and our new award bookings were strong," said Mr. Spence. "We have taken recent steps to further strengthen our balance sheet, positioning the company for growth. This underscores my fundamental belief in our long-term strategy and the sound financial structure of the company."
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about McDermott's significant profitable growth opportunities, growing market opportunities, future growth, long-term strategies of McDermott and bookings, to the extent they may be viewed as indicators of future revenues or profitability. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/chairman-ceo-cfo-purchase-shares-in-mcdermott-300745215.html
SOURCE McDermott International, Inc.
Article Date
11/6/2018McDermott Awarded EPCI Contract by Petrobras for Rigid Pipeline Project Associated with Rota 3 Gas Export System
Source: PR Newswire
HOUSTON, Nov. 1, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a large* contract award by Petrobras for a natural gas pipeline project in support of the client's Santos basin pre-salt field program.
The contract covers the implementation of the ultra-shallow segment of the new Rota 3 gas export pipeline. The scope of work includes design and detailed engineering, procurement, construction and installation of six miles (10 kilometers) of a 24-inch rigid concrete coated pipeline from the already installed shallow water segment of this new pipeline system to the shore, including a horizontal directional drill, tie-in spools and pre-commissioning of the six mile (10 kilometers) pipeline. Overall project management and engineering will be performed by McDermott's team in Rio de Janeiro, with support from the Houston team.
"Rota 3 is a major pre-salt development area that is important to the future of oil and gas production for Brazil," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "McDermott has the local and global expertise, capabilities and assets to support operations in pre-salt environments – particularly with the delivery of our previously announced J-Lay configuration modification to our Amazon vessel. Our office in Rio will execute this near-term project utilizing expertise they have previously demonstrated in a series of recent EPCI projects successfully completed in-country for Petrobras and other operators."
Rota 3 is a 220 mile (355-kilometer) rigid pipeline project by Petrobras that is part of the company's Santos Basin pre-salt gas offloading and transportation system. The project is split into three subsea segments and one onshore segment. McDermott has been awarded the third subsea segment: an ultra-shallow pipelay connecting the shallow segment to the onshore segment at Maricá City, 62 miles (100 kilometers) north of Rio de Janeiro.
The lump sum contract award will be reflected in McDermott's fourth quarter 2018 backlog.
*McDermott defines a large contract as between USD $50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and value of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epci-contract-by-petrobras-for-rigid-pipeline-project-associated-with-rota-3-gas-export-system-300741524.html
SOURCE McDermott International, Inc.
Article Date
11/1/201810/31/2018 - McDermott to Host Investor Meeting
McDermott to Host Investor Meeting
Source: PR Newswire
HOUSTON, Oct. 31, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today that it will host a meeting with analysts and investors in New York City on Monday, November 5, 2018, at 11:00 a.m. Eastern time.
The event will be hosted by President and Chief Executive Officer David Dickson and Executive Vice President and Chief Financial Officer Stuart Spence to provide a forum for additional questions and answers following the Company's release of third quarter financial results on October 30, 2018.
A webcast of the meeting will be available at www.mcdermott-investors.com.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-to-host-investor-meeting-300741624.html
SOURCE McDermott International, Inc.
Article Date
10/31/201810/29/2018 - McDermott, Saipem To Partner In Bid For NextDecade
McDermott, Saipem To Partner In Bid For NextDecade
Source: PR Newswire
HOUSTON, Oct. 29, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it plans to partner with the Italian oil and gas industry contractor Saipem S.p.A. to bid for NextDecade's planned Rio Grande LNG project in Brownsville, Texas.
"Our joint bid with Saipem will feature optimized execution strategies that result in increased certainty on schedule and cost as compared to other LNG projects on the U.S. Gulf Coast," said David Dickson, President and Chief Executive Officer of McDermott. "Pursuant to NextDecade's competitive process, we plan to submit our joint EPC proposal in the second quarter of 2019."
NextDecade has previously disclosed it expects to achieve a final investment decision on the project in the third quarter of 2019.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about McDermott's plans for partnering on the bid discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-saipem-to-partner-in-bid-for-nextdecade-300739279.html
SOURCE McDermott International, Inc.
Article Date
10/29/2018McDermott Announces Date for Third Quarter 2018 Financial Results and Conference Call
Source: PR Newswire
HOUSTON, Oct. 24, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) will report financial results for the third quarter 2018 on October 30, 2018, after the close of the U.S. markets.
President and Chief Executive Officer David Dickson and Executive Vice President and Chief Financial Officer Stuart Spence will discuss the third quarter 2018 results during a conference call that same day at 4:00 p.m. Central time.
Shareholders and other interested parties are invited to listen to the call by visiting www.mcdermott-investors.com or by calling 1-706-634-2259 (Conference ID: 9073394). A presentation of supplemental financial information will be available on McDermott's Investor Relations site at that time.
A replay of the webcast will be available on McDermott's website for seven days after the call.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-date-for-third-quarter-2018-financial-results-and-conference-call-300736701.html
SOURCE McDermott International, Inc.
Article Date
10/24/2018David Dickson Elected to National Safety Council Board of Directors
Source: PR Newswire
HOUSTON, Oct. 22, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that the National Safety Council (NSC) has elected David Dickson, McDermott's President and Chief Executive Officer, to its Board of Directors.
"Safety is at the heart of everything we do at McDermott, making this an honor to represent McDermott on the National Safety Council's Board of Directors," said Mr. Dickson. "Both organizations share an unwavering commitment to constantly maintain and enhance the environments where we work and live. We also fully support the Council's investments in leadership, research, education and advocacy that improve safety and enrich the well-being of so many lives."
"The National Safety Council is excited to welcome David to the NSC Board," said Deborah A.P. Hersman, president and CEO of the National Safety Council. "His leadership will create a safer world for McDermott employees, contractors and the communities they live in."
The NSC is a nonprofit organization whose mission is to eliminate preventable deaths at work, in homes and communities, and on the road through leadership, research, education and advocacy. Founded in 1913 and chartered by Congress, NSC advances this mission by partnering with businesses, government agencies, elected officials and the public in areas where it can make the most impact.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/david-dickson-elected-to-national-safety-council-board-of-directors-300734627.html
SOURCE McDermott International, Inc.
Article Date
10/22/2018McDermott Begins Fabrication for Tyra Redevelopment Project
Source: PR Newswire
HOUSTON, Oct. 16, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) held a first steel-cutting ceremony at its fabrication yard in Batam, Indonesia, to mark the commencement of fabrication for the Tyra Redevelopment project.
"As the project continues to progress with the completion of engineering, we are moving ahead with fabrication in full compliance with the stringent technical requirements for the North Sea in Denmark," said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. "We expect to meet the final timeline for the two work packages scheduled for delivery in early 2020 and 2021."
McDermott will fabricate and assemble two separate work packages for Total, comprising of seven topside structures, six connecting bridges and six jacket extensions weighing a total of 36,300 tons (33,000 metric tons). This is one of the largest combined projects for McDermott in the North Sea.
"Like all of our projects throughout the world, we are applying the One McDermott Way to the Tyra project," said David Dickson, McDermott's President and Chief Executive Officer. "This proven model helps us reduce costs, ensure certainty and drive execution excellence while maintaining our industry leading safety record. In turn, this delivers quality and value for our customers."
McDermott was awarded the engineering, procurement, construction and onshore commissioning contract in December 2017 by Maersk Oil before that company's acquisition by Total in March 2018. Engineering was performed by McDermott's engineering hubs in Kuala Lumpur, Malaysia, and Chennai, India. Project and supply chain management services are performed in Kuala Lumpur.
The new facilities will be located approximately 139 miles (225 kilometers) west of Esbjerg, Denmark in the North Sea. The Tyra gas field is the center of Denmark's national energy infrastructure, processing 90 percent of the nation's gas production. The Tyra Redevelopment project is critical in ensuring the country's energy supply.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Asia Contact
Philip Ng
Communications Manager, Asia
+6017 200 4238 (mobile, Kuala Lumpur, Malaysia)
Fng2@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-begins-fabrication-for-tyra-redevelopment-project-300731447.html
SOURCE McDermott International, Inc.
Article Date
10/16/2018McDermott Awarded EPC Contract for Delayed Coker Unit for LUKOIL Refinery
Source: PR Newswire
HOUSTON, Oct. 16, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced it has been awarded a significant* contract by LUKOIL NizhegorodNefteorgSyntez, a subsidiary of JSC LUKOIL, for the engineering, procurement and construction (EPC) of the Delayed Coker Unit for the Deep Conversion Complex planned to be built in Kstovo, Russia.
This award follows a 2016 award to Chevron Lummus Global (CLG), McDermott's joint venture with Chevron, for its delayed coking technology, and highlights the significance of pull through opportunities that McDermott's Lummus Technology business offers other parts of the organization. In October 2017, McDermott was awarded a detailed engineering, procurement and long lead supply award contract for the project.
"Our ability to provide integrated, end-to-end solutions, from our industry-leading refining technology to a highly efficient project delivery model, has been a deciding factor in securing this win," said Tareq Kawash, McDermott's Senior Vice President for Europe, Africa, Russia and Caspian. "This is also significant for McDermott because it is the company's first downstream EPC project in the Russian Federation."
The contract will be reflected in McDermott's third quarter 2018 backlog.
Project Details
The delayed coking complex will be built at the 17 million-ton/year Kstovo refinery in central Russia's Nizhny Novgorod region. In addition to the delayed coker, the complex will include a diesel hydrotreater, gas fractionation unit, sulfur and hydrogen production units, and associated systems.
Alongside other planned optimization projects, the 2.1 million-tons/year delayed coking complex will improve the refinery's light product yield by more than 10 percent while reducing the fuel oil production by 2.7 million tons per year. The complex is scheduled for startup in 2021.
LUKOIL is one of the largest publicly traded, vertically integrated oil and gas companies in the world accounting for more than two percent of the world's oil production and around one percent of the proven hydrocarbon reserves.
*McDermott defines a significant contract as between USD $250 million and USD $500 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-delayed-coker-unit-for-lukoil-refinery-300731453.html
SOURCE McDermott International, Inc.
Article Date
10/16/2018McDermott Awarded EPC Contract for CB&I Storage Tanks in South Texas
Source: PR Newswire
HOUSTON, Oct. 15, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award for CB&I Storage Tanks for the engineering, procurement, fabrication and construction of three external floating-roof tanks in Taft, Texas.
"McDermott is the industry leader for superior storage tank solutions in the energy industry," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This is our fourth largest storage tank project we have completed for this particular customer in recent years. The safe delivery of our CB&I Storage Tank solutions will provide support for their terminal project in South Texas which is connected to their existing Permian pipeline."
The contract award will be reflected in McDermott's third quarter 2018 backlog.
* McDermott defines a sizeable contract between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope and value of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-cbi-storage-tanks-in-south-texas-300730360.html
SOURCE McDermott International, Inc.
Article Date
10/15/2018McDermott Awarded PDH (propane dehydrogenation) Technology Contract in Europe by INEOS
Source: PR Newswire
HOUSTON, Oct. 10, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract by INEOS for the license and engineering of a planned propane dehydrogenation (PDH) unit in Europe.
The unit will utilize McDermott's Lummus Technology CATOFIN dehydrogenation process to produce 750,000 metric tons of propylene per year. It will also utilize CATOFIN catalyst and heat generating material from Clariant. This process provides high conversion of propane to propylene which results in lower investment and operating costs for owners.
"INEOS has selected McDermott for its first major grassroots investment," said Daniel M. McCarthy, Executive Vice President of McDermott's Lummus Technology business. "This award is a strong testament to the reliability and performance of our CATOFIN technology and catalyst."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
This award will be reflected in McDermott's third quarter 2018 backlog.
* McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected scope, value and execution of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-pdh-propane-dehydrogenation-technology-contract-in-europe-by-ineos-300728257.html
SOURCE McDermott International, Inc.
Article Date
10/10/2018McDermott Awarded Olefins Technology Contract in Thailand
Source: PR Newswire
HOUSTON, Oct. 1, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced that it has been awarded a sizeable* technology contract for Map Ta Phut Olefins Co., Ltd.'s (MOC) petrochemical plant in Rayong Province, Thailand. MOC is a joint venture company of SCG Chemicals Company Limited, which is a wholly owned subsidiary of SCG, and the Dow Chemical Company.
McDermott will provide the basic engineering and license of Lummus' olefins technology and will design and supply the proprietary SRT® III heater for the MOC Debottleneck Project, a parallel gas cracker added to increase plant capacity which will utilize Lummus' side cracker technology, including a low pressure chilling train and enhanced binary refrigeration.
"We have worked with Map Ta Phut Olefins since their first project in 2005," said Daniel M. McCarthy, Executive Vice President of McDermott's Lummus Technology business. "This additional capacity will be realized by using our unique side cracker technology, which permits the cost effective expansion of a liquid feed plant that has already reached its maximum capacity using conventional technology."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage spanning more than 100 years, encompassing approximately 3,100 patents and patent applications, Lummus Technology provides one of the industry's most diversified technology portfolios to the hydrocarbon processing sector.
Portions of this award were booked in prior quarters. The heater supply will be reflected in McDermott's third quarter 2018 backlog.
* McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues or profitability, and the expected scope, value and execution of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-olefins-technology-contract-in-thailand-300721229.html
SOURCE McDermott International, Inc.
Article Date
10/1/2018McDermott Announces Results of Annual Stockholders' Meeting
Source: PR Newswire
HOUSTON, Sept. 26, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today the results of its Annual Meeting of Stockholders held Wednesday, September 26, 2018 in London, England.
Based on the voting results from the meeting, stockholders elected Forbes I.J. Alexander, Philippe Barril, John F. Bookout, III, David Dickson, L. Richard Flury, W. Craig Kissel, Gary P. Luquette, James H. Miller, William H. Schumann, III, Mary L. Shafer-Malicki and Marsha C. Williams to McDermott's Board of Directors, each for terms extending until McDermott's 2019 Annual Meeting of Stockholders, with the average percentage of votes cast "for" each director being approximately 96 percent of the votes cast by stockholders.
In addition, stockholders approved, on an advisory basis, McDermott's named executive officer compensation with an affirmative vote of over 96 percent of the votes cast by stockholders and ratified the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the year ending December 31, 2018.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-results-of-annual-stockholders-meeting-300719592.html
SOURCE McDermott International, Inc.
Article Date
9/26/20189/26/2018 - McDermott Receives Full Notice to Proceed on Entergy's Montgomery County Power Station Project
McDermott Receives Full Notice to Proceed on Entergy's Montgomery County Power Station Project
Source: PR Newswire
HOUSTON, Sept. 26, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it received full notice to proceed (FNTP) from Entergy Texas, Inc. on the Montgomery County Power Station (MCPS), a 993-megawatt combined-cycle natural gas power plant in Willis, Texas.
The substantial* contract was originally awarded in Q1 2017 for McDermott to perform the engineering, procurement, construction and commissioning (EPCC) of a 2x1 Combined Cycle Power Station totaling 993-megawatts. The combined-cycle gas turbine (CCGT) plant will help serve Entergy's more than 455,000 customers in the 27 counties located across Southeast Texas. Full notice to proceed fully authorizes McDermott to begin EPC services for the plant.
"McDermott congratulates Entergy Texas on receiving full notice to proceed and we commend their vision of delivering clean energy solutions to southeast Texas," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This combined-cycle project, along with two other power projects we are executing for Entergy in Louisiana, underscores our strong track record and comprehensive capabilities in providing integrated solutions for leading power companies in the U.S."
"We are excited to partner with McDermott as we move forward on MCPS," said Sallie Rainer, president and CEO of Entergy Texas. "The construction of MCPS will provide customers a new source of reliable power that reduces costs and lowers emissions, while also benefitting the southeast Texas economy."
The contract award will be reflected in McDermott's third quarter 2018 backlog.
* - McDermott defines a substantial contract as between USD $500 million and USD $750 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope and value of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-receives-full-notice-to-proceed-on-entergys-montgomery-county-power-station-project-300717939.html
SOURCE McDermott International, Inc.
Article Date
9/26/20189/25/2018 - McDermott Awarded Contract by Bayport Polymers for New Polyethylene Petrochemical Plant in South Texas
McDermott Awarded Contract by Bayport Polymers for New Polyethylene Petrochemical Plant in South Texas
Source: PR Newswire
HOUSTON, Sept. 25, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a contract award from Bayport Polymers LLC, a joint venture of Total Petrochemicals & Refining USA, Inc., and Novealis Holdings LLC (a joint venture of Borealis AG and NOVA Chemicals Inc.), for its new High-Density Polyethylene (HDPE) plant, the Borstar Bay3 Project, in Bayport, Texas.
McDermott's scope of work on the Borstar Bay3 Project includes the engineering, procurement, fabrication, and construction (EPFC) of a 625,000 tons/year HDPE plant. Project execution will be led out of McDermott's Houston offices. The Project will be based on a modular approach that will utilize the Company's world-class facility in Altamira, Mexico, to efficiently fabricate and assemble process and pipe rack modules. The construction phase will leverage the strength of McDermott's Gulf Coast direct hire construction capabilities and will include the use of specialty sub-contracts.
"This award continues our strong and sustainable relationship with the Total, Borealis, NOVA Chemicals JV team following the award in March of 2017 for their ethane cracker in Port Arthur," said Richard Heo, Senior Vice President for North, Central and South America. "The Borstar Bay3 Project is an example of how our vertically integrated, 'One McDermott Way' operating model delivers value to our customers while reducing cost and risk on projects of this scale."
Mechanical completion and construction of the facility are expected to be complete in 2021. The new plant will also be ready for hydrocarbon introduction in 2021.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent this may be viewed as an indicator of future revenues or profitability, and the expected scope, execution, value and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content to download multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-contract-by-bayport-polymers-for-new-polyethylene-petrochemical-plant-in-south-texas-300718618.html
SOURCE McDermott International, Inc.
Article Date
9/25/2018McDermott to Present at Pareto Securities' 25th Annual Oil & Offshore Conference
Source: PR Newswire
HOUSTON, Sept. 6, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) President and Chief Executive Officer David Dickson is scheduled to speak at the Pareto Securities' 25th Annual Oil & Offshore Conference in Oslo, Norway, on September 12, 2018 at 11:15 a.m. Central European time (4:15 a.m. U.S. Central time).
McDermott will post the slides to be used prior to the presentation in the Investor Relations area at www.mcdermott-investors.com
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-to-present-at-pareto-securities-25th-annual-oil--offshore-conference-300706516.html
SOURCE McDermott International, Inc.
Article Date
9/6/20189/4/2018 - McDermott Completes Pipeline Installation for Greater Western Flank Phase 2 Project in Australia
McDermott Completes Pipeline Installation for Greater Western Flank Phase 2 Project in Australia
Source: PR Newswire
PERTH, Australia, Sept. 4, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it has successfully completed the contract for phase two of the Greater Western Flank project. The contract was awarded by Woodside Energy Ltd in January 2016.
McDermott was responsible for the procurement, fabrication, installation and testing of a series of pipeline buckle initiators, pipeline end terminations and foundation mudmats, in-line tee structures and approximately 21 miles (35 kilometers) of a 16-inch (40 centimeters) corrosion resistant alloy (CRA) pipeline extending from the existing Goodwyn A Platform to the Lady Nora and Pemberton field manifold locations.
"McDermott's strong execution capability is one of the reasons why clients continue to entrust their most important projects to us," said Ian Prescott, McDermott's Senior Vice President for Asia Pacific. "Greater Western Flank 2 is a testament to our execution, preparation and vertical integration capabilities. It shows McDermott can deliver challenging projects in challenging environments."
"One of the key challenges of the project was to perform installation work inside the 546 yards (500 meters) safety zone of Woodside's Goodwyn A Platform," said Vince Vieraitis, McDermott's GWF-2 Project Director. "Through close collaboration with the client, the project was delivered in full compliance to project specifications with zero lost time incidents."
McDermott deployed two of its specialty vessels to complete the installation phase, namely DLV 2000 for the pipelay campaign and the Lay Vessel 108 for the pre-lay and post-lay campaign. McDermott also set up an onshore portable and temporary double jointing facility at its Batam fabrication yard in Indonesia to simulate the offshore installation campaign.
Project Details
The Greater Western Flank Phase 2 fields lie in water depths varying between 262 feet (80 meters) and 426 feet (130 meters) at approximately 29 to 37 miles (40 to 60 kilometers) southwest of the Goodwyn A Platform, located off the northwest coast of western Australia. It includes the development of eight wells from the Keast, Dockrell, Lady Nora, Pemberton, Sculptor and Rankin fields. Gas production is tied-back via the pipeline end termination, in-line tees and subsea pipeline to the platform. The project is expected to achieve first gas by the end of this year.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Asia Contact
Philip Ng
Communications Manager, Asia
+6017 200 4238 (mobile, Kuala Lumpur, Malaysia)
Fng2@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-completes-pipeline-installation-for-greater-western-flank-phase-2-project-in-australia-300705475.html
SOURCE McDermott International, Inc.
Article Date
9/4/2018McDermott to Present at Barclays CEO Energy-Power Conference
Source: PR Newswire
HOUSTON, Aug. 30, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE:MDR) President and Chief Executive Officer David Dickson is scheduled to speak at the Barclays CEO Energy-Power Conference in New York City on September 6, 2018 at 9:05 a.m. Eastern time (8:05 a.m. Central time).
A webcast of the presentation will be available on the McDermott website, and the company will post the slides to be used prior to the presentation in the Investor Relations area at www.mcdermott-investors.com.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit www.mcdermott.com.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-to-present-at-barclays-ceo-energy-power-conference-300703688.html
SOURCE McDermott International, Inc.
Article Date
8/30/2018McDermott Awarded Subsea Umbilical and Flowline Installation Contract by Shell for the Silvertip Field
Source: PR Newswire
HOUSTON, Aug. 7, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a contract from Shell Exploration and Production Company Inc., a subsidiary of Royal Dutch Shell (Shell) plc, for subsea umbilical and flowline installation at the Perdido development, located 230 miles south of Galveston, Texas, in the Gulf of Mexico.
"This award strengthens McDermott's relationship with Shell as we work together to safely and competitively deliver this next-generation deepwater energy project," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "Our proven track record of project execution in the Gulf of Mexico, industry-leading subsea capabilities and integrated business model will help drive efficiency while maintaining our uncompromising commitment to safety and quality."
The scope of work includes project management of engineering and installation of a flexible flowline from the well to a pipeline end termination; installation of an umbilical; installation of four electrical flying leads (EFLs) and pre-commissioning. Project management and engineering will be performed in Houston, Texas, with offshore installation by McDermott's North Ocean 102 targeted for completion in 2019.
The Perdido development is Shell's pioneering deep water oil and gas project that unlocked a new frontier of energy development in the Gulf of Mexico's Lower Tertiary Paleogene. The Perdido production hub produces oil and gas from the Silvertip, Great White and Tobago fields. Perdido is one of the most prolific oil and gas producing projects in the Gulf of Mexico. Shell is focused on safely and competitively growing production from Perdido by optimizing the performance of existing wells and through targeted of additional in-field and near-field development opportunities.
The contract award is reflected in McDermott's second quarter 2018 backlog.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-subsea-umbilical-and-flowline-installation-contract-by-shell-for-the-silvertip-field-300689218.html
SOURCE McDermott International, Inc.
Article Date
8/7/2018McDermott Awarded EPCI Subsea Tieback Contract from PEMEX for Ayatsil Pipelines
Source: PR Newswire
HOUSTON, July 31, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today a sizeable* contract award by PEMEX Exploración y Producción for subsea pipeline flowline installation in support of its Ayatsil field, located 50 miles northwest of Ciudad del Carmen in the Bay of Campeche offshore Mexico.
The scope of work includes design and detailed engineering, procurement, construction and installation of two subsea pipelines. The first line (L1) is a 24 inch diameter, approximately 1.9 miles (3.2 kilometers) length natural gas pipeline that will connect the PP-Ayatsil-C and PP-Ayatsil-A platforms. The second line (L10) is an 8 inch, approximately .9 of a mile (1.5 kilometers) in length oil pipeline that connects to the PP-Ayatsil-C platform.
"This award follows on the proven track record we have had in Mexico with PEMEX – including the fabrication and installation of the Ayatsil-C platform and the fabrication and future installation of Abkatun," said Richard Heo, McDermott's Senior Vice President for North, Central and South America. "This opportunity enables us to demonstrate our subsea capabilities in offshore Mexico. We look forward to working closely with PEMEX to successfully delivering this project with safety and quality at the forefront throughout the execution."
McDermott's operating center in Mexico City will perform project management and engineering. Offshore installation is scheduled to be completed in early 2019.
The lump sum contract award is reflected in McDermott's second quarter 2018 backlog.
Located in the Bay of Campeche, the Ayatsil field is a heavy crude oil field and is PEMEX's largest discovery to date. Water depths in the area are approximately 375-400 feet (114-121 meters).
*McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epci-subsea-tieback-contract-from-pemex-for-ayatsil-pipelines-300689223.html
SOURCE McDermott International, Inc.
Article Date
7/31/2018McDermott Reports Second Quarter 2018 Financial and Operational Results
Source: PR Newswire
HOUSTON, July 31, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) ("McDermott" or the "Company") today reported revenue of $1.7 billion and net income of $47 million, or $0.33 per diluted share, for the second quarter of 2018. Results reflect solid execution and a tax benefit of $117 million related to an internal transfer of certain intellectual property rights, offset by $138 million of transaction costs, costs to achieve our Combination Profitability Initiative (CPI), debt extinguishment costs, and intangibles amortization.
Excluding the tax benefit and charges identified above, McDermott's adjusted net income for the second quarter was $59 million, as detailed in an accompanying table. Adjusted diluted earnings per share were $0.29, which includes the amortization related to acquired intangible assets.
|
Financial Highlights Table |
Three Months Ended |
Six Months Ended |
|||||||||||||
|
Jun 30, 2018 |
Jun 30, 2017 |
Jun 30, 2018 |
Jun 30, 2017 |
||||||||||||
|
(In millions, except per share amounts) |
|||||||||||||||
|
Revenues |
$ |
1,735 |
$ |
789 |
$ |
2,343 |
$ |
1,308 |
|||||||
|
Operating Income |
49 |
85 |
113 |
137 |
|||||||||||
|
Operating Margin |
2.8 |
% |
10.8 |
% |
4.8 |
% |
10.5 |
% | |||||||
|
Net Income |
47 |
36 |
82 |
58 |
|||||||||||
|
Diluted EPS1 |
0.33 |
0.38 |
0.68 |
0.62 |
|||||||||||
|
Total Intangibles Amortization2 |
22 |
- |
22 |
- |
|||||||||||
|
Adjusted Operating Income3 |
172 |
85 |
250 |
137 |
|||||||||||
|
Adjusted Operating Margin3 |
9.9 |
% |
10.8 |
% |
10.7 |
% |
10.5 |
% | |||||||
|
Adjusted Net Income3,4 |
59 |
36 |
108 |
58 |
|||||||||||
|
Adjusted Diluted EPS1,3,4 |
0.29 |
0.38 |
0.76 |
0.62 |
|||||||||||
|
Adjusted EBITDA3 |
208 |
109 |
311 |
181 |
|||||||||||
|
Cash Provided by Operating Activities |
398 |
42 |
435 |
91 |
|||||||||||
|
Capital Expenditures |
24 |
18 |
43 |
81 |
|||||||||||
|
Free Cash Flow3 |
374 |
24 |
392 |
10 |
|||||||||||
|
Working Capital5 |
(1,444) |
160 |
(1,444) |
160 |
|||||||||||
|
Note: Results for the second quarter include McDermott for the full period and CB&I for the period of May 11 to June 30, 2018. 2017 figures are as originally reported by McDermott and do not reflect a historical presentation of combined results. |
|
1 Diluted EPS and Adjusted Diluted EPS were calculated using weighted average diluted shares of 94 million and 144 million for the three months ended June 30, 2017 and 2018, respectively, and weighted average diluted shares of 94 million and 120 million for the six months ended June 30, 2017 and 2018, respectively. |
|
2 Total Intangibles Amortization includes the sum of project-related intangibles amortization and other intangibles amortization, both of which are associated with the intangible assets and liabilities acquired in our combination with CB&I. |
|
3 Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income, Adjusted Diluted Net Income Per Share ("Adjusted EPS") and Adjusted EBITDA reflect adjustments to Operating Income computed in accordance with U.S. generally accepted accounting principles ("GAAP") to add back approximately $37 million of transaction costs, $63 million of costs to achieve CPI, and $22 million of intangible amortization. Additionally, adjustments to Net Income computed in accordance with U.S. GAAP include $14 million of debt extinguishment costs and a $117 million tax benefit from the internal transfer of certain intellectual property rights. Free Cash Flow is equal to Cash Provided by Operating Activities less Capital Expenditures |
|
The reconciliations of Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income, Adjusted EPS, Adjusted EBITDA and Free Cash Flow to the respective most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures." |
|
4 The calculations of Adjusted Net Income and Adjusted EPS reflect the tax effects of Non-GAAP adjustments during the period. In jurisdictions in which we currently do not pay taxes, no tax impact is applied to Non-GAAP adjusting items. |
|
5 Working capital is defined as current assets, less cash and cash equivalents, restricted cash, and project-related intangibles, minus current liabilities, less current maturities of long-term debt and project related intangible liabilities. |
"McDermott's operating performance in the second quarter of 2018 is the first step in our progress toward meeting the Company's extraordinary potential," said David Dickson, President and Chief Executive Officer of McDermott. "We believe McDermott is on track to be a market leader in key upstream and downstream markets. We have made enormous progress in integrating the two organizations and our focus is now on positioning and capitalizing on our combined strengths to create long-term value for our investors, customers and employees.
"I am pleased to report there were many highlights in the second quarter including solid execution across our portfolio, healthy cash flow from operations of $398 million, a strong available cash position of $814 million, as well as a robust revenue opportunity pipeline of $78.5 billion supported by continued recovery in the markets that we serve. Additionally, our integration is progressing well. Our efforts in this regard are being actively supported by employees, partners and customers, and as of the end of the second quarter of 2018, we have actioned approximately $163 million of our stated $350 million annual run rate synergy target, which we are now referring to as the Combination Profitability Initiative, or CPI."
Update on Estimated Costs on Selected Projects
In accounting for the acquisition of CB&I on May 10, 2018, McDermott recorded the fair value of the CB&I balance sheet, including identified intangible assets and updated cost estimates on the acquired backlog. The vast majority of the acquired portfolio did not require material changes to cost estimates. However, McDermott did record changes in estimated costs on three projects, including $165 million on the Cameron LNG project, $23 million on the Calpine project and $33 million on the now-completed IPL gas power project. These changes in cost estimates did not have a direct impact on the Company's net income for the second quarter.
"We are clearly disappointed with the increased cost estimates for three of the legacy CB&I projects," said Dickson. "The increases are within the bounds of the scenarios we contemplated during our due diligence, and we believe that by applying our disciplined One McDermott Way to these projects, we can bring them to successful completion. We have already made significant changes to personnel, reporting structures, stakeholder relationships and execution plans on Cameron, for example, since the combination closed, and there are encouraging signs that these changes have made a difference. More importantly, we have moved forward to further strengthen our relationships with stakeholders. Going forward, we plan to continue to aggressively apply our McDermott approach to ensure appropriate risk evaluation and mitigation across the combined Company's portfolio – from bidding to execution."
Solid Outlook
"Our healthy revenue opportunity pipeline reflects our competitive differentiation and the breadth of our offering. It is supported by improving outlooks in the offshore, LNG and petrochemical markets where we continue to position ourselves for long-term growth as evidenced by today's announcement of the planned upgrade to the Amazon vessel, enabling us to execute ultra-deepwater projects. We remain confident in the fundamental soundness of the acquired backlog. Our project portfolio as a whole is being executed efficiently and progressing well, specifically through implementation of the One McDermott Way, which has been a proven contributor to our success in recent years. Today we also announced our initial guidance as a combined Company for the second half of 2018, which we believe demonstrates the strategic rationale of the combination," said Dickson.
Second Quarter 2018 Operating Results
McDermott reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). This press release also includes several Non-GAAP financial measures as defined under the SEC's Regulation G. The following tables reconcile Non-GAAP financial measures to comparable GAAP financial measures:
|
Three Months Ended |
Six Months Ended |
||||||||||||||
|
Jun 30, 2018 |
Jun 30, 2017 |
Jun 30, 2018 |
Jun 30, 2017 |
||||||||||||
|
(In millions, except share and per share amounts) |
|||||||||||||||
|
GAAP Net Income Attributable to MDR |
$ |
47 |
$ |
36 |
$ |
82 |
$ |
58 |
|||||||
|
Less: Adjustments |
|||||||||||||||
|
Transaction costs1 |
37 |
- |
40 |
- |
|||||||||||
|
Costs to achieve CPI2 |
63 |
- |
75 |
- |
|||||||||||
|
Intangible amortization3 |
22 |
- |
22 |
- |
|||||||||||
|
Debt extinguishment costs4 |
14 |
- |
14 |
- |
|||||||||||
|
Tax benefit on intercompany transfer of IP5 |
(117) |
- |
(117) |
- |
|||||||||||
|
Total Non-GAAP Adjustments |
21 |
- |
34 |
- |
|||||||||||
|
Tax Effect of Non-GAAP Changes6 |
(8) |
- |
(8) |
- |
|||||||||||
|
Total Non-GAAP Adjustments (After Tax) |
12 |
- |
26 |
- |
|||||||||||
|
Non-GAAP Adjusted Net Income Attributable to McDermott |
$ |
59 |
$ |
36 |
$ |
108 |
$ |
58 |
|||||||
|
GAAP Operating Income |
$ |
49 |
$ |
85 |
$ |
113 |
$ |
137 |
|||||||
|
Non-GAAP Adjustments7 |
123 |
- |
137 |
- |
|||||||||||
|
Non-GAAP Adjusted Operating Income |
$ |
172 |
$ |
85 |
$ |
250 |
$ |
137 |
|||||||
|
Non-GAAP Adjusted Operating Margin |
9.9 |
% |
10.8 |
% |
10.7 |
% |
10.5 |
% | |||||||
|
GAAP Diluted EPS |
$ |
0.33 |
$ |
0.38 |
$ |
0.68 |
$ |
0.62 |
|||||||
|
Non-GAAP Adjustments8 |
(0.04) |
- |
0.08 |
- |
|||||||||||
|
Non-GAAP Diluted EPS |
$ |
0.29 |
$ |
0.38 |
$ |
0.76 |
$ |
0.62 |
|||||||
|
Shares used in computation of income per share: |
|||||||||||||||
|
Basic |
144 |
94 |
120 |
87 |
|||||||||||
|
Diluted |
144 |
94 |
120 |
94 |
|||||||||||
|
Net Income Attributable to MDR |
$ |
47 |
$ |
36 |
$ |
82 |
$ |
58 |
|||||||
|
Depreciation & Amortization |
57 |
28 |
80 |
50 |
|||||||||||
|
Interest Expense, Net |
72 |
22 |
83 |
39 |
|||||||||||
|
Provision for Income Taxes |
(84) |
23 |
(63) |
34 |
|||||||||||
|
EBITDA9 |
92 |
109 |
182 |
181 |
|||||||||||
|
Non-GAAP Adjustments |
115 |
- |
129 |
- |
|||||||||||
|
Adjusted EBITDA9 |
$ |
208 |
$ |
109 |
$ |
311 |
$ |
181 |
|||||||
|
Cash flows from operating activities |
$ |
398 |
$ |
42 |
$ |
435 |
$ |
91 |
|||||||
|
Capital expenditures |
24 |
18 |
43 |
81 |
|||||||||||
|
Free cash flow |
$ |
374 |
$ |
24 |
$ |
392 |
$ |
10 |
|||||||
|
GAAP Revenue |
$ |
1,735 |
$ |
789 |
$ |
2,343 |
$ |
1,308 |
|||||||
|
Note: All amounts have been rounded to the nearest million, except per share amounts. Totals may not foot as a result of rounding. |
|
1 We recognized $37 million and $3 million of transaction costs associated with our combination with CB&I during the second and first quarters of 2018, respectively. |
|
2 Costs to achieve our Combination Profitability Initiatives (CPI) include integration and restructuring costs. We incurred $63 million and $11 million of costs from CPI in the second and first quarters of 2018, respectively. |
|
3 Intangible amortization includes the amortization of all acquired intangibles from the combination with CB&I, including project-related intangibles and other intangible assets (including process technologies, trade names, trade markets, and customer relationships). |
|
4 As part of the financing of the combination with CB&I and establishment of our new capital structure during Q2 2018, we recognized expense associated with the prepayment of our prior credit facility and senior notes of $14 million, which included a make-whole premium and the accelerated write-off of debt issuance costs. |
|
5 During Q2 2018, we benefited from the tax benefit of $117 million resulting from the internal transfer of certain intellectual property (IP) rights. |
|
6 The adjustments to GAAP Net Income have been income tax effected when included in net income based upon the respective tax jurisdiction the adjustments were incurred in. |
|
7 Includes the Non-GAAP adjustments described in footnotes 1, 2 and 3 above. Adjustments to operating income exclude the debt extinguishment costs and tax benefit on the intercompany transfer of IP, as these items are not included in the computation of operating income. |
|
8 Adjusted diluted EPS includes the intangible amortization, net of tax, described in footnote 3 above. |
|
9 We define EBITDA as net income plus depreciation and amortization, interest expense, net, and provision for income taxes. We define Adjusted EBITDA as EBITDA less the transaction costs, costs to achieve CPI, and debt extinguishment costs detailed in the immediately preceding pages. We have included EBITDA and Adjusted EBITDA disclosures in this supplemental deck because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry and because Adjusted EBITDA provides a consistent measure of EBITDA relating to our underlying business. Our management also uses EBITDA and Adjusted EBITDA to monitor and compare the financial performance of our operations. EBITDA and Adjusted EBITDA do not give effect to the cash that we must use to service our debt or pay our income taxes, and thus do not reflect the funds actually available for capital expenditures, dividends or various other purposes. In addition, our presentation of EBITDA and Adjusted EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider EBITDA or Adjusted EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP. |
McDermott's net income of $47 million for the second quarter of 2018 was attributable to solid execution across the portfolio and a tax benefit of $117 million related to an internal transfer of certain intellectual property rights, partially offset by transaction-related expenses, costs to achieve CPI, intangibles amortization and debt extinguishment costs, as outlined in an accompanying table.
McDermott's revenues of $1.7 billion were driven by the Cameron and Freeport LNG projects, LACC — an ethylene production facility owned by a joint venture of Axiall Corporation and Lotte Chemical Corporation — and the offshore projects Saudi Aramco Safaniya 5 and Woodside Greater Western Flank II.
McDermott's operating income and operating income margin for the second quarter of 2018 were $49 million and 2.8%, reflecting the net impact of transaction-related items. Adjusted operating income for the second quarter of 2018 was $172 million, primarily driven by offshore and downstream projects. The adjusted operating income margin was 9.9%, aided by strong margin performance in the APAC, MENA and Technology segments.
Cash and Liquidity
McDermott generated $398 million in cash from operating activities during the second quarter, compared to $42 million in the second quarter of 2017, with the increase primarily attributable to the combination with CB&I. Total cash availability was $1.7 billion at the end of the period, composed of $814 million of unrestricted cash and $879 million available under the revolver. Additionally, McDermott had $676 million of availability under its letter of credit facility and bilateral lines. The Company is not subject to a financial covenant compliance test until the third quarter of 2018.
Integration and Combination Profitability Initiative
Integration is progressing well and is focused on four elements: culture, work process, IT systems and CPI. A Cultural Integration Team (CIT) composed of employees representing all parts of the organization was formed and is leading the effort toward a common and collaborative culture. In relation to work processes, standards are being defined throughout the organization to follow the One McDermott Way principle, and the organization is rapidly executing a global analysis to provide a blueprint for IT systems alignment.
The Combination Profitability Initiative, previously referred to as synergies, is progressing well. McDermott previously announced identified CPI savings of $350 million. McDermott's operating results for the period ended June 30, 2018, include $16 million of such savings. As of period end, McDermott had actioned $163 million of annualized run rate savings. Of the $210 million of estimated costs to achieve CPI savings, $63 million was recognized in the quarter.
Update on Selected Projects
The status of selected projects is summarized below in accordance with U.S. GAAP. For reference, the percentage of completion figures below are cumulative and include progress achieved prior to the combination. Project status as of the end of the second quarter of 2018 is summarized below.
Revenue Pipeline
McDermott's revenue opportunity pipeline consists of Backlog, Bids & Change Orders Outstanding and Target Projects, which are those projects McDermott expects to be awarded in the market in the next five quarters. McDermott defines Backlog as Remaining Performance Obligations (RPOs) as defined by GAAP.
|
Revenue Pipeline 5 Quarter Look-Back |
As of |
||||||||||||||||||||||
|
Jun 30, 2018 |
Mar 31, |
Dec 31, 2017 |
Sep 30, 2017 |
Jun 30, 2017 |
|||||||||||||||||||
|
(In billions) |
|||||||||||||||||||||||
|
Backlog |
$ |
10.2 |
$ |
3.4 |
$ |
3.9 |
$ |
2.4 |
$ |
3.3 |
|||||||||||||
|
Bids & Change Orders Outstanding1 |
19.0 |
7.5 |
4.4 |
5.4 |
1.4 |
||||||||||||||||||
|
Targets2 |
49.3 |
14.1 |
16.2 |
12.6 |
15.4 |
||||||||||||||||||
|
Total |
78.5 |
25.0 |
24.5 |
20.4 |
20.1 |
||||||||||||||||||
|
Revenue Pipeline by Segment |
As of Jun 30, 2018 |
||||||||||||||||||||||
|
NCSA |
EARC |
MENA |
APAC |
TECH |
Total |
||||||||||||||||||
|
(In billions) |
|||||||||||||||||||||||
|
Backlog |
$ |
5.2 |
$ |
1.3 |
$ |
2.6 |
$ |
0.6 |
$ |
0.5 |
$ |
10.2 |
|||||||||||
|
Bids & Change Orders Outstanding1 |
9.2 |
4.8 |
1.6 |
3.0 |
0.5 |
19.0 |
|||||||||||||||||
|
Targets2 |
26.5 |
3.1 |
14.8 |
3.5 |
1.3 |
49.3 |
|||||||||||||||||
|
Total |
40.9 |
9.1 |
19.0 |
7.2 |
2.3 |
78.5 |
|||||||||||||||||
|
Note: All amounts have been rounded to the nearest tenth of a billion. Totals may not foot as a result of rounding. |
|
1 There is no assurance that bids outstanding will be awarded to McDermott or that outstanding change orders ultimately will be approved and paid by the applicable customers in the full amounts requested or at all. |
|
2 Target projects are those that McDermott has identified as anticipated to be awarded by customers or prospective customers in the next five quarters through competitive bidding processes and capable of being performed by McDermott. There is no assurance that target projects will be awarded to McDermott. |
At the end of the second quarter of 2018, McDermott's revenue opportunity pipeline was $78.5 billion, primarily driven by NCSA and MENA. The revenue pipeline is comprised of backlog of $10.2 billion, bids and change orders outstanding of $19.0 billion and target projects of $49.3 billion.
Reporting Segment Update
Effective with the period ending June 30, 2018, McDermott's segment reporting is presented as North, Central and South America (NCSA); Europe, Africa, Russia and Caspian (EARC); Middle East and North Africa (MENA); Asia Pacific (APAC); and Technology (TECH). The Company also reports results for Corporate. Segment and Corporate results are shown below.
|
Segment Financial Highlights |
Three Months Ended Jun 30, 2018 |
||||||||||||||||||||||||||||
|
Segment Operating Results |
|||||||||||||||||||||||||||||
|
NCSA |
EARC |
MENA |
APAC |
TECH |
Corporate |
Total |
|||||||||||||||||||||||
|
New Orders |
$ |
462 |
$ |
(4) |
$ |
69 |
$ |
245 |
$ |
71 |
$ |
- |
$ |
842 |
|||||||||||||||
|
Backlog1 |
5,182 |
1,250 |
2,630 |
637 |
487 |
- |
10,186 |
||||||||||||||||||||||
|
Revenue |
995 |
58 |
469 |
108 |
105 |
- |
1,735 |
||||||||||||||||||||||
|
Operating Income |
49 |
(8) |
97 |
43 |
25 |
(157) |
49 |
||||||||||||||||||||||
|
Operating Margin |
4.9 |
% |
-13.8 |
% |
20.7 |
% |
39.8 |
% |
23.8 |
% |
- |
2.8 |
% | ||||||||||||||||
|
Intangibles Amortization |
7 |
2 |
- |
- |
13 |
- |
22 |
||||||||||||||||||||||
|
Adjusted Operating Income2 |
56 |
(6) |
97 |
43 |
38 |
(56) |
172 |
||||||||||||||||||||||
|
Adjusted Operating Margin2 |
5.6 |
% |
-9.8 |
% |
20.7 |
% |
39.8 |
% |
36.4 |
% |
- |
9.9 |
% | ||||||||||||||||
|
Capex |
- |
- |
4 |
2 |
- |
18 |
24 |
||||||||||||||||||||||
|
Product Offering Financial Highlights |
Three Months Ended Jun 30, 2018 |
||||||||||||||||||||||||||||
|
Offshore & Subsea |
LNG |
Downstream |
Power |
Total |
|||||||||||||||||||||||||
|
(In millions) |
|||||||||||||||||||||||||||||
|
New Orders |
$ |
356 |
$ |
18 |
$ |
458 |
$ |
10 |
$ |
842 |
|||||||||||||||||||
|
Backlog |
3,086 |
1,513 |
4,191 |
1,396 |
10,186 |
||||||||||||||||||||||||
|
Revenue |
653 |
382 |
496 |
204 |
1,735 |
||||||||||||||||||||||||
|
Note: All amounts have been rounded to the nearest million. Totals may not foot as a result of rounding. |
|
1 Our backlog is equal to our remaining performance obligations (RPOs) as defined by U.S. GAAP. |
|
2 Adjusted Operating Income and Margin, by segment, are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the appendix entitled "Reconciliation of Segment Non-GAAP Financial Measures to GAAP Financial Measures." |
North, Central and South America (NCSA)
Revenues of $995 million in NCSA were primarily driven by LNG projects including our share of the Cameron LNG and Freeport LNG projects. Additional contributors were downstream projects Total Ethane Cracker, LACC and Shintech, an integrated ethylene/polyvinyl chloride (PVC) manufacturing facility in Louisiana, as well as the offshore project Abkatun A-2 and the Entergy power projects. Operating income was $49 million, with a margin of 4.9% during the quarter.
Key operational achievements in the quarter included successful completion of the first offshore campaign on Abkatun A-2, mechanical completion and onshore commissioning on Angelin, completion of key intermediate mechanical milestones on LACC (and the related monoethylene glycol facility), all process and utility powerhouses energized and substantial completion of pipe testing on Cameron LNG and energization of all critical process and utility powerhouses and pipe testing on Train 1 of Freeport LNG.
Europe, Africa, Russia and Caspian (EARC)
Revenues of $58 million in EARC were primarily driven by the offshore Maersk Tyra project and two downstream projects in Russia. Operating loss of $8 million and margin of (13.8%) were due in part to the impact of fixed costs in the segment and partially offset by the Maersk Tyra project.
The Maersk Tyra project continues to progress on schedule with preparations underway for the commencement of fabrication. The Amazon vessel was utilized to perform a safe and successful saturation dive campaign on the Sapref project off the coast of Durban, South Africa. FEED work for the Total Tilenga project in Uganda was successfully completed on schedule and the value engineering work continued following the FEED for an Anadarko LNG project in Mozambique.
Middle East and North Africa (MENA)
Revenues of $469 million in MENA were primarily driven by the Saudi Aramco offshore projects Safaniya Phase 5, Header 9, 13 Jackets and the Total pipeline replacement project. Operating income was $97 million and margin of 20.7%.
During the second quarter, work on Saudi Aramco Safaniya Phase 5 progressed with six of the ten platforms now installed and pipeline installation and hook-up complete on two of the ten. Fabrication on Saudi Aramco Safaniya Phase 6 progressed on schedule, with preparations underway for the offshore dredging scope. Mechanical completion was achieved on all Saudi Aramco LTA II Lump Sum offshore facilities and engineering and procurement on Bul Hanine is progressing as planned. A FEED for the Qatar Gas NFPS project was also successfully completed during the quarter.
Asia Pacific (APAC)
Revenues of $108 million in APAC were driven by the offshore project Woodside Greater Western Flank II. Operating income of $43 million and margin of 39.8% were primarily attributable to project closeouts on Inpex Ichthys and Woodside Greater Western Flank II.
Pipelay and Subsea installation work was completed on the Woodside Greater Western Flank II project during the quarter utilizing the DLV 2000 and the LV 108. The DLV 2000 successfully installed corrosion resistant alloy (CRA) pipeline using double joints fabricated at McDermott's Batam facility; optimizing lay speed and minimizing critical path repair rates. Closeout activities on Inpex Ichthys were performed utilizing the LV 108 and the remaining work is expected to be complete in early 2019. The Reliance KG-D6 project remains on track with the first offshore campaign scheduled to commence in late 2018. Also during the quarter, APAC secured an award for phase two of POSCO DAEWOO Corporation's Myanmar Shwe gas field development in collaboration with Baker Hughes, a GE company.
Technology (TECH)
Revenue of $105 million and operating income and margin of $25 million and 23.8%, respectively, in the Technology segment for the second quarter of 2018 were driven by balanced activity across the portfolio of refining and petrochemical licensing and heat transfer equipment, aided by several large catalyst shipments.
Corporate
Corporate includes certain corporate and other non-operating activities, including the expense of certain unallocated operating costs. Corporate expense in the second quarter of 2018 was mainly attributable to selling, general and administrative expenses of $34 million, unallocated direct operating expenses of $20 million, transaction-related costs of $37 million and costs to achieve CPI of $63 million. Unallocated direct operating expenses were primarily driven by lower than standard utilization of certain marine assets.
Second Half 2018 Guidance
McDermott is introducing guidance for the combined Company for the second half of 2018, which we believe reaffirms the strategic rationale of the combination.
|
Second Half 2018 Guidance |
Second Half 2018 Guidance |
|
(In millions, except per share amounts or as indicated) | |
|
Revenues |
$4.8B - 5.1B |
|
Operating Income |
$235 - 265 |
|
Operating Margin |
4.9% - 5.2% |
|
Net Interest Expense1 |
~$170 |
|
Income Tax Expense |
~$20 |
|
Net Income |
$60 - 70 |
|
Diluted Net Income, Per Share |
$0.33 - 0.39 |
|
Diluted Share Count |
~180 |
|
EBITDA2 |
$350 - 390 |
|
Adjustments |
|
|
Costs to Achieve CPI3 |
~$85 |
|
Intangibles Amortization4 |
~$85 |
|
Adjusted Earnings Metrics |
|
|
Adjusted Operating Income2 |
$405 - 435 |
|
Adjusted Operating Margin2 |
8.0% - 8.5% |
|
Adjusted Net Income2 |
$200 - 210 |
|
Adjusted Diluted Net Income, Per Share2 |
$0.74 - 0.80 |
|
Adjusted EBITDA2 |
$435 - 475 |
|
Cash Flow & Other Metrics |
|
|
Cash from Operating Activities |
$(350) - (370) |
|
Capex |
~$80 |
|
Free Cash Flow2 |
$(430) - (450) |
|
Cash Interest / DIC Amortization Interest |
~$150 / ~$20 |
|
Cash Taxes |
~$85 |
|
Corporate and Other Operating Income5 |
$(200) - (225) |
|
Cash, Restricted Cash and Cash Equivalents |
$550 - 600 |
|
Gross Debt6 |
~$3.6B |
|
Net Working Capital |
~$(900) |
|
1 Net Interest Expense is gross interest expense less capitalized interest and interest income. |
|
2 The calculations of EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income, Adjusted Diluted Net Income Per Share, Adjusted EBITDA and Free Cash Flow, which are Non-GAAP measures, are shown in the appendix entitled "Reconciliation of Forecast Non-GAAP Financial Measures to Forecast GAAP Financial Measures." |
|
3 Costs to achieve CPI include restructuring and integration costs. The forecasted tax impact of these costs is approximately $12 million. |
|
4 Intangibles amortization represents the amortization of project-related and other intangibles. The forecasted tax impact of the amortization is approximately $18 million. |
|
5 Corporate and Other represents the operating income (loss) from corporate and non-operating activities, including corporate expenses, certain centrally managed initiatives, impairments, year-end mark-to-market ("MTM") pension actuarial gains and losses, costs not attributable to a particular reporting segment, and unallocated direct operating expenses associated with the underutilization of vessels, fabrication facilities and engineering resources. |
|
6 Ending Gross Debt excludes debt issuance costs and capital lease obligations. |
Conference Call
McDermott has scheduled a conference call and webcast related to its second quarter 2018 results at 4:00 p.m., U.S. Central Time, today. Interested parties may listen over the Internet through a link posted in the Investor Relations section of McDermott's website www.mcdermott.com. A replay of the webcast will be available on the Company's website for seven days after the call. In addition, a presentation will be available on the Investor Relations section of McDermott's website that contains supplemental information on McDermott's financial results, operations and Second Half 2018 Guidance.
About the Company
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Non-GAAP Measures
This communication includes several "non-GAAP" financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with GAAP, but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of those operations.
Non-GAAP measures include adjusted diluted net income per share, adjusted net income, adjusted operating income, adjusted operating income margin and adjusted EBITDA, in each case excluding the impacts of certain identified items. The excluded items represent items that our management does not consider to be representative of our normal operations. We believe that adjusted diluted net income per share, adjusted net income, adjusted operating income, adjusted operating income margin and adjusted EBITDA are useful measures for investors to review, because they provide a consistent measure of the underlying financial results of our ongoing business and, in our management's view, allow for a supplemental comparison against historical results and expectations for future performance. Furthermore, our management uses each of these measures as measures of the performance of our operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for operating income, net income or other data prepared and reported in accordance with GAAP and should be viewed in addition to our reported results prepared in accordance with GAAP.
The forecast non-GAAP measures we have presented in this communication include forecast free cash flow and EBITDA. We believe these forward-looking financial measures are within reasonable measure. We define "free cash flow" as cash flows from operations less capital expenditures. We believe investors consider free cash flow as an important measure, because it generally represents funds available to pursue opportunities that may enhance stockholder value, such as making acquisitions or other investments. Our management uses free cash flow for that reason. We define EBITDA as net income plus depreciation and amortization, interest expense, net, and provision for income taxes. We have included EBITDA disclosures in this communication because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry. Our management also uses EBITDA to monitor and compare the financial performance of our operations. EBITDA does not give effect to the cash that we must use to service our debt or pay our income taxes, and thus does reflect the funds actually available for capital expenditures, dividends or various other purposes. Our presentations of free cash flow and EBITDA may not be comparable to similarly titled measures in other companies' reports. You should not consider free cash flow and EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP.
Reconciliations of these non-GAAP financial measures and forecast non-GAAP financial measures to the most comparable GAAP measures are provided in the tables set forth at the end of this communication.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of McDermott. These forward-looking statements include, among other things, statements about second half 2018 guidance, project milestones and percentage of completion and expected timetables, cost recoveries on projects, expected results from the application of the One McDermott Way to legacy CB&I projects, increased opportunities in the market, backlog, bids and change orders outstanding, target projects and revenue opportunity pipeline, to the extent these may be viewed as indicators of future revenues or profitability, the expected impacts of CPI and progress toward achieving anticipated CPI targets, the Company's potential and our beliefs with respect to the combination with CB&I. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: the possibility that the expected CPI savings from the recently completed combination will not be realized, or will not be realized within the expected time period; difficulties related to the integration of the two companies; disruption from the combination making it more difficult to maintain relationships with customers, employees, regulators or suppliers; the diversion of management time and attention to integration matters; adverse changes in the markets in which McDermott operates or credit markets; the inability of McDermott to execute on contracts in backlog successfully; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract cancellations; change orders and other modifications and actions by customers and other business counterparties of McDermott; changes in industry norms; and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see each of McDermott's annual and quarterly filings with the U.S. Securities and Exchange Commission (the "SEC"), including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This communication reflects the views of McDermott's management as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contact:
Investors & Financial Media
Scott Lamb
Vice President, Investor Relations
832.513.1068
scott.lamb@mcdermott.com
|
McDERMOTT INTERNATIONAL, INC. |
||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
|||||||||||||
|
(In millions, except per share amounts) |
||||||||||||||||
|
Revenues |
$ |
1,735 |
$ |
789 |
$ |
2,343 |
$ |
1,308 |
||||||||
|
Costs and Expenses: |
||||||||||||||||
|
Cost of operations |
1,486 |
650 |
1,962 |
1,079 |
||||||||||||
|
Project related intangibles amortization |
12 |
- |
12 |
- |
||||||||||||
|
Total cost of operations |
1,498 |
650 |
1,974 |
1,079 |
||||||||||||
|
Research and development expenses |
5 |
1 |
5 |
1 |
||||||||||||
|
Selling, general and administrative expenses |
75 |
50 |
124 |
87 |
||||||||||||
|
Other intangibles amortization |
10 |
- |
10 |
- |
||||||||||||
|
Transaction costs |
37 |
- |
40 |
- |
||||||||||||
|
Restructuring and integration costs |
63 |
- |
75 |
- |
||||||||||||
|
Other operating expenses (income), net |
1 |
- |
1 |
(2) |
||||||||||||
|
Total expenses |
1,689 |
701 |
2,229 |
1,165 |
||||||||||||
|
Income (loss) from investments in unconsolidated affiliates |
3 |
(3) |
(1) |
(6) |
||||||||||||
|
Operating income |
49 |
85 |
113 |
137 |
||||||||||||
|
Other expense: |
||||||||||||||||
|
Interest expense, net |
(72) |
(22) |
(83) |
(39) |
||||||||||||
|
Other non-operating expense, net |
(16) |
(3) |
(14) |
(2) |
||||||||||||
|
Total other expense, net |
(88) |
(25) |
(97) |
(41) |
||||||||||||
|
- |
||||||||||||||||
|
(Loss) income before provision for income taxes |
(39) |
60 |
16 |
96 |
||||||||||||
|
- |
||||||||||||||||
|
Income tax (benefit) expense |
(84) |
23 |
(63) |
34 |
||||||||||||
|
Non-operating loss from investments in unconsolidated affiliates |
- |
(1) |
- |
(2) |
||||||||||||
|
Net income |
45 |
36 |
79 |
60 |
||||||||||||
|
Less: Net (loss) income attributable to noncontrolling interests |
(2) |
- |
(3) |
2 |
||||||||||||
|
Net income attributable to McDermott |
$ |
47 |
$ |
36 |
$ |
82 |
$ |
58 |
||||||||
|
Net income per share attributable to McDermott |
||||||||||||||||
|
Basic |
$ |
0.33 |
$ |
0.38 |
$ |
0.68 |
$ |
0.67 |
||||||||
|
Diluted |
$ |
0.33 |
$ |
0.38 |
$ |
0.68 |
$ |
0.62 |
||||||||
|
Shares used in the computation of net income per share: |
||||||||||||||||
|
Basic |
144 |
94 |
120 |
87 |
||||||||||||
|
Diluted |
144 |
94 |
120 |
94 |
||||||||||||
|
McDERMOTT INTERNATIONAL, INC. |
|||||||||||||||
|
EARNINGS PER SHARE COMPUTATION |
|||||||||||||||
|
Three Months Ended Jun 30, |
Six Months Ended Jun 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
(In thousands, except share and per share amounts) |
|||||||||||||||
|
Net income attributable to McDermott International, Inc. |
$ |
47 |
$ |
36 |
$ |
82 |
$ |
58 |
|||||||
|
Weighted average common shares (basic) |
144 |
94 |
120 |
87 |
|||||||||||
|
Effect of dilutive securities: |
|||||||||||||||
|
Tangible equity units |
- |
- |
- |
6 |
|||||||||||
|
Stock options, restricted stock and restricted stock units |
- |
- |
- |
1 |
|||||||||||
|
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards (diluted) |
144 |
94 |
120 |
94 |
|||||||||||
|
Net income attributable to McDermott International, Inc. |
|||||||||||||||
|
Basic: |
$ |
0.33 |
$ |
0.38 |
$ |
0.68 |
$ |
0.67 |
|||||||
|
Diluted: |
$ |
0.33 |
$ |
0.38 |
$ |
0.68 |
$ |
0.62 |
|||||||
|
SUPPLEMENTARY DATA |
|||||||||||||||
|
Three Months Ended Jun 30, |
Six Months Ended Jun 30, |
||||||||||||||
|
2018 |
2017 |
2018 |
2017 |
||||||||||||
|
(In millions) |
|||||||||||||||
|
Depreciation & amortization |
$ |
57 |
$ |
28 |
$ |
80 |
$ |
50 |
|||||||
|
Capital expenditures |
24 |
18 |
43 |
81 |
|||||||||||
|
Backlog |
10,186 |
3,298 |
10,186 |
3,298 |
|||||||||||
|
McDERMOTT INTERNATIONAL, INC. |
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
June 30, 2018 |
December 31, 2017 |
|||||||
|
(In millions, except per share amounts) |
||||||||
|
Assets |
(Unaudited) |
|||||||
|
Current assets: |
||||||||
|
Cash and cash equivalents ($140 and $0 related to variable interest entities ("VIEs")) |
$ |
814 |
$ |
390 |
||||
|
Restricted cash and cash equivalents |
324 |
18 |
||||||
|
Accounts receivable—trade, net ($29 and $0 related to VIEs) |
968 |
328 |
||||||
|
Accounts receivable—other ($52 and $0 related to VIEs) |
130 |
42 |
||||||
|
Contracts in progress ($213 and $0 related to VIEs) |
918 |
621 |
||||||
|
Project related intangible assets, net |
129 |
- |
||||||
|
Inventory |
48 |
- |
||||||
|
Other current assets ($22 and $0 related to VIEs) |
190 |
36 |
||||||
|
Total current assets |
3,521 |
1,435 |
||||||
|
Property, plant and equipment, net |
2,090 |
1,666 |
||||||
|
Accounts receivable—long-term retainages |
61 |
39 |
||||||
|
Investments in unconsolidated affiliates |
423 |
8 |
||||||
|
Goodwill |
3,926 |
- |
||||||
|
Other intangibles, net |
1,039 |
- |
||||||
|
Deferred income taxes |
178 |
18 |
||||||
|
Other non-current assets |
190 |
57 |
||||||
|
Total assets |
$ |
11,428 |
$ |
3,223 |
||||
|
Liabilities and Equity |
||||||||
|
Current liabilities: |
||||||||
|
Current maturities of long-term debt |
$ |
42 |
$ |
24 |
||||
|
Accounts payable ($354 and $0 related to VIEs) |
906 |
279 |
||||||
|
Advance billings on contracts ($66 and $0 related to VIEs) |
1,227 |
32 |
||||||
|
Project related intangible liabilities, net |
29 |
- |
||||||
|
Accrued liabilities ($94 and $0 related to VIEs) |
1,442 |
337 |
||||||
|
Income taxes payable |
123 |
35 |
||||||
|
Total current liabilities |
3,769 |
707 |
||||||
|
Long-term debt |
3,418 |
513 |
||||||
|
Non-current other taxes |
96 |
63 |
||||||
|
Other non-current liabilities |
579 |
151 |
||||||
|
Total liabilities |
7,862 |
1,434 |
||||||
|
Commitments and contingencies |
||||||||
|
Stockholders' equity: |
||||||||
|
Common stock, par value $1.00 per share, authorized 255 shares; issued 183 and 98 shares, respectively |
183 |
98 |
||||||
|
Capital in excess of par value |
3,480 |
1,858 |
||||||
|
Retained earnings/ (accumulated deficit) |
54 |
(48) |
||||||
|
Accumulated other comprehensive loss |
(75) |
(51) |
||||||
|
Treasury stock, at cost: 3 and 3 shares, respectively |
(96) |
(96) |
||||||
|
Total McDermott Stockholders' Equity |
3,546 |
1,761 |
||||||
|
Noncontrolling interest |
20 |
28 |
||||||
|
Total stockholders' equity |
3,566 |
1,789 |
||||||
|
Total liabilities and stockholders' equity |
$ |
11,428 |
$ |
3,223 |
||||
|
McDERMOTT INTERNATIONAL, INC. |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Unaudited) |
||||||||
|
Six Months Ended June 30, |
||||||||
|
2018 |
2017 |
|||||||
|
(In millions) |
||||||||
|
Cash flows from operating activities: |
||||||||
|
Net income |
$ |
79 |
$ |
60 |
||||
|
Non-cash items included in net income: |
||||||||
|
Depreciation and intangible amortization |
80 |
50 |
||||||
|
Debt issuance cost amortization |
17 |
10 |
||||||
|
Stock-based compensation charges |
28 |
12 |
||||||
|
Deferred taxes |
(100) |
4 |
||||||
|
Other non-cash items |
- |
(2) |
||||||
|
Changes in operating assets and liabilities, net of effects of businesses acquired: |
- |
|||||||
|
Accounts receivable |
278 |
37 |
||||||
|
Contracts in progress, net of Advance billings on contracts |
(141) |
(411) |
||||||
|
Inventory |
14 |
- |
||||||
|
Accounts payable |
129 |
260 |
||||||
|
Other current and non-current assets |
(2) |
(13) |
||||||
|
Investments in unconsolidated affiliates |
1 |
8 |
||||||
|
Other current and non-current liabilities |
52 |
76 |
||||||
|
Total cash provided by operating activities |
435 |
91 |
||||||
|
Cash flows from investing activities: |
||||||||
|
CB&I combination consideration, net of cash of $498 acquired |
(2,374) |
- |
||||||
|
Purchases of property, plant and equipment |
(43) |
(81) |
||||||
|
Advances with third party participants of proportionately consolidated consortiums, net |
(45) |
- |
||||||
|
Proceeds from asset dispositions |
2 |
55 |
||||||
|
Investments in unconsolidated affiliates |
(3) |
(1) |
||||||
|
Other |
2 |
- |
||||||
|
Total cash used in investing activities |
(2,461) |
(27) |
||||||
|
Cash flows from financing activities: |
||||||||
|
Proceeds from issuance of long-term debt |
3,560 |
- |
||||||
|
Repayment of debt |
(515) |
(230) |
||||||
|
Advances with joint ventures, proportionately consolidated consortiums and third party participants |
(42) |
- |
||||||
|
Debt and letter of credit issuance costs |
(208) |
(19) |
||||||
|
Debt extinguishment costs |
(10) |
- |
||||||
|
Acquisition of NCI |
- |
(11) |
||||||
|
Repurchase of common stock |
(14) |
(7) |
||||||
|
Total cash provided by (used in) financing activities |
2,771 |
(267) |
||||||
|
Effects of exchange rate changes on cash, cash equivalents and restricted cash |
(15) |
- |
||||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
730 |
(203) |
||||||
|
Cash, cash equivalents and restricted cash at beginning of period |
408 |
612 |
||||||
|
Cash, cash equivalents and restricted cash at end of period |
$ |
1,138 |
$ |
409 |
||||
|
McDERMOTT INTERNATIONAL, INC. |
|||||||||||||||
|
2017 SEGMENT REVENUE AND OPERATING INCOME RECAST |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|||||||||||||||
|
Dec 31, 2017 |
Sep 30, 2017 |
Jun 30, 2017 |
Mar 31, 2017 |
||||||||||||
|
(In thousands) |
|||||||||||||||
|
Revenues |
|||||||||||||||
|
NCSA |
$ |
116 |
$ |
61 |
$ |
42 |
$ |
28 |
|||||||
|
EARC |
1 |
- |
2 |
16 |
|||||||||||
|
MENA |
516 |
736 |
557 |
310 |
|||||||||||
|
APAC |
85 |
161 |
188 |
165 |
|||||||||||
|
Technology |
- |
- |
- |
- |
|||||||||||
|
Total revenues |
718 |
959 |
789 |
519 |
|||||||||||
|
Operating income |
|||||||||||||||
|
NCSA |
$ |
5 |
$ |
(4) |
$ |
(7) |
$ |
2 |
|||||||
|
EARC |
(5) |
(5) |
(5) |
2 |
|||||||||||
|
MENA |
105 |
164 |
118 |
64 |
|||||||||||
|
APAC |
19 |
21 |
30 |
22 |
|||||||||||
|
Technology |
- |
- |
- |
- |
|||||||||||
|
Total segment operating income |
123 |
177 |
136 |
91 |
|||||||||||
|
Corporate |
(77) |
(53) |
(52) |
(38) |
|||||||||||
|
Total operating income |
46 |
124 |
85 |
53 |
|||||||||||
|
McDERMOTT INTERNATIONAL, INC. | |||||||||||||||||||||||||||
|
RECONCILIATION OF SEGMENT NON-GAAP TO GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||
|
Three Months Ended Jun 30, 2018 |
|||||||||||||||||||||||||||
|
Segment Operating Results |
|||||||||||||||||||||||||||
|
NCSA |
EARC |
MENA |
APAC |
TECH |
Corporate |
Total |
|||||||||||||||||||||
|
Revenues |
$ |
995 |
$ |
58 |
$ |
469 |
$ |
108 |
$ |
105 |
$ |
- |
$ |
1,735 |
|||||||||||||
|
GAAP Operating Income (Loss) |
49 |
(8) |
97 |
43 |
25 |
(157) |
49 |
||||||||||||||||||||
|
GAAP Operating Margin |
4.9 |
% |
-13.8 |
% |
20.7 |
% |
39.8 |
% |
23.8 |
% |
- |
2.8 |
% | ||||||||||||||
|
Adjustments |
|||||||||||||||||||||||||||
|
Transaction Costs1 |
- |
- |
- |
- |
- |
37 |
37 |
||||||||||||||||||||
|
Costs to Achieve CPI2 |
- |
- |
- |
- |
- |
63 |
63 |
||||||||||||||||||||
|
Intangibles Amortization3 |
7 |
2 |
(0) |
0 |
13 |
- |
22 |
||||||||||||||||||||
|
Total Non-GAAP Adjustments |
7 |
2 |
(0) |
0 |
13 |
101 |
123 |
||||||||||||||||||||
|
Non-GAAP Operating Income (Loss) |
$ |
56 |
$ |
(6) |
$ |
97 |
$ |
43 |
$ |
38 |
$ |
(56) |
$ |
172 |
|||||||||||||
|
Non-GAAP Adjusted Operating Margin |
5.6 |
% |
-9.8 |
% |
20.7 |
% |
39.8 |
% |
36.4 |
% |
- |
9.9 |
% | ||||||||||||||
|
1 We recognized $37 million of transaction costs associated with our combination with CB&I during the second quarter of 2018. |
|
2 Costs to achieve our Combination Profitability Initiatives (CPI) include integration and restructuring costs. We incurred $63 million of costs from CPI in the second quarter of 2018. |
|
3 Intangibles amortization includes the amortization of all acquired intangibles from the combination with CB&I, including project-related intangibles and other intangible assets (process technologies, trade names, trade markets, and customer relationships). |
|
McDERMOTT INTERNATIONAL, INC. | |
|
RECONCILIATION OF FORECAST NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES | |
|
Full Year 2018 Guidance | |
|
(In millions) | |
|
Revenues |
$4.8B - 5.1B |
|
Operating Income |
$235 - 265 |
|
Operating Margin |
4.9% - 5.2% |
|
Costs to Achieve CPI |
~85 |
|
Intangibles Amortization |
~85 |
|
Total Adjustments |
~170 |
|
Adjusted Operating Income |
$405 - 435 |
|
Adjusted Operating Margin |
8.0% - 8.5% |
|
Net Income |
$60 - 70 |
|
Total Adjustments |
~170 |
|
Tax Impact of Adjustments |
~(30) |
|
Adjusted Net Income |
$200 - 210 |
|
Less: Intangibles Amortization |
~(85) |
|
Plus: Tax Impact |
~18 |
|
Subtotal |
$133 - 143 |
|
Diluted Share Count |
~180 |
|
Adjusted EPS |
$0.74 - 0.80 |
|
Cash Flows from Operating Activities |
$(350) - (370) |
|
Capital Expenditures |
~80 |
|
Free Cash Flow |
$(430) - (450) |
|
GAAP Net Income (Loss) Attributable to McDermott |
$60 - 70 |
|
Add: |
|
|
Depreciation and amortization |
100 - 130 |
|
Interest expense, net |
~170 |
|
Provision for taxes |
~20 |
|
EBITDA |
$350 - 390 |
|
Costs to Achieve CPI |
~85 |
|
Adjusted EBITDA |
$435 - 475 |
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-reports-second-quarter-2018-financial-and-operational-results-300689581.html
SOURCE McDermott International, Inc.
Article Date
7/31/20187/31/2018 - McDermott Announces Planned J-Lay Modifications for Pipelay and Construction Vessel Amazon
McDermott Announces Planned J-Lay Modifications for Pipelay and Construction Vessel Amazon
Source: PR Newswire
HOUSTON, July 31, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today its modification plans to convert the Amazon to an ultra-deepwater J-Lay vessel.
The Amazon will be capable of installing hex-joints up to 24 inches (60 centimeters) in diameter on a worldwide basis. The Amazon is operated by McDermott under a long-term bareboat charter that started in 2017. The vessel is equipped with twin 400 metric ton (440 ton) cranes and accommodations for 200 personnel.
The modifications will consist of removing the existing tower and replacing it with a J-Lay system with 1,500 metric tons (1,653 tons) of dynamic top tension on the tower, which will enable large subsea structures and hex sections of pipelines from 4.5 to 24 inches (11 to 60 centimeters) to be installed. The Amazon modifications will include an integrated multi-joint facility, where single joints will be welded to form hex joints. The 10,000 metric tons (11,023 tons) of existing cargo space onboard will remove the requirement for onshore facilities to produce the multi-joints, enhancing mobility of the vessel and reducing reliance on shore bases for support.
"Today's announcement represents our strategic vision for the Amazon to competitively position it as one of the world's best ultra-deepwater vessels," said David Dickson, President and Chief Executive Officer of McDermott. "Expected to have one of the most efficient J-Lay systems in the world, the Amazon will enable McDermott to pursue major field development projects with rigid pipelay requirements at depths of nearly 3,500 meters (11,500 feet). This is an exceptional opportunity for the Company to expand the technical capabilities of our global fleet and address the anticipated growth in deepwater and ultra-deepwater spending."
Royal IHC from the Netherlands (IHC) has been selected to design and build the J-Lay system, based on IHC's innovative and proprietary design, and will perform overall management of the modification project. The original equipment manufacturers will be used for all modifications to the ship's systems, including an additional five megawatts of power and pipe handling cranes, under the management of IHC.
"The extensive use of existing proven technology and process automation, combined with early collaboration with the system designers, means we expect to have a very efficient and cost effective asset," said Alan Marriott, Global Vice President, Marine Assets & Operations. "The Amazon will provide a key enabling asset within the McDermott fleet. The vessel is designed to be self-sufficient, allowing easy transition from project to project. The vessel is expected to provide pull through opportunities for the rest of the McDermott subsea fleet."
Initial engineering began on the project in October 2017 and transitioned into full engineering design in January 2018. McDermott will pay for the modification project primarily through an increased bareboat charter rate over an extended 12 year term once the modifications are complete. The Amazon owners have secured an export credit-backed senior loan facility from a group of lenders.
The Amazon will be delivered to IHC in the Netherlands in August 2019 for a conversion period that is expected to last 10 months. Redelivery to McDermott is expected in the summer of 2020.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release that are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about: the Amazon's future capabilities, the benefits to us from the vessel modifications; and the timing for delivery of the vessel to the shipyard and completion of the modifications. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others, changes in the modification project design or schedule. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-planned-j-lay-modifications-for-pipelay-and-construction-vessel-amazon-300689286.html
SOURCE McDermott International, Inc.
Article Date
7/31/2018McDermott Awarded EPC Contract for CB&I® Storage Tanks in Saudi Arabia
Source: PR Newswire
DUBAI, United Arab Emirates, July 23, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it has been awarded a sizeable* contract from Samsung Engineering Saudi Arabia Company Ltd. for engineering, procurement and construction (EPC) of CB&I® Storage Tanks for the Jubail United Petrochemical Company (JUPC) Ethylene Oxide (EO)/Ethylene Glycol (EG) Plant No. 3 at Jubail, Kingdom of Saudi Arabia.
The fixed lump sum contract encompasses the engineering, procurement and fabrication of 23 CB&I storage tanks and modification of two existing tanks. Work on the project will predominantly be executed from Saudi Arabia utilizing McDermott's local capabilities and facilities.
"McDermott and Samsung have a long track record of successful collaboration and safe execution in the Middle East," said Linh Austin, Senior Vice President, Middle East and North Africa. "Our extensive experience in Saudi Arabia combined with our unparalleled technical competency in the storage sector uniquely position us to deliver this project."
McDermott significantly expanded its service offering after combining with CB&I earlier this year. The combination brought together more than 200 years of experience in the energy sector and positioned McDermott as one of the few companies in the world to offer fully integrated, end-to-end offshore, upstream and downstream solutions across the entire energy value chain.
Work on the contract is expected to begin immediately and will be reflected in McDermott's second quarter 2018 backlog.
* - McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected value, scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Vice President, Communications & Marketing
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Area Media Relations
Barbara Knight
Head of Communications & Marketing
Middle East and North Africa (MENA)
+971 (0)4 804 3990
bbknight@mcdermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-epc-contract-for-cbi-storage-tanks-in-saudi-arabia-300684335.html
SOURCE McDermott International, Inc.
Article Date
7/23/2018McDermott Appoints Samik Mukherjee as Chief Operating Officer
Source: PR Newswire
HOUSTON, July 3, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today that Samik Mukherjee has been appointed to serve as the company's new Executive Vice President and Chief Operating Officer (COO), effective July 3, 2018.
"Samik possesses tremendous experience and knowledge of our industry and has a strong track record of driving operational excellence on a global scale," said David Dickson, President and Chief Executive Officer of McDermott. "I am confident that he will effectively leverage our integrated, end-to-end solutions to help McDermott grow and win new business, execute our projects on time and on budget, and develop strategic, long-term relationships with our customers."
As the COO, Samik will be responsible for globally leading McDermott's operations covering the four geographic areas. He will also oversee McDermott's key product lines and services to ensure internal strategy and decisions are based on a strong understanding of customer needs. Samik has more than 25 years of experience in operations as well as commercial and strategy roles, having served in leadership roles for the upstream and downstream oil and gas industry around the world. He also has extensive experience in process technologies.
Prior to his appointment as McDermott's COO, Samik was the Executive Vice President of Corporate Development, Strategy, Mergers and Acquisitions, Digital and IT for TechnipFMC. He joined Technip in 1998 in The Netherlands, and during his career with the company, he led the business unit for Africa, served as managing director in India before moving to France to serve as the global head for subsea business and strategy, and later as the Senior Vice President of the Europe, Middle East, India and Africa region for onshore-offshore.
Samik holds a master's degree in business administration from the Rotterdam School of Management at Erasmus University in The Netherlands, a bachelor's degree in chemical engineering from the Indian Institute of Technology Kanpur and has completed the Harvard Business School Executive Program on Aligning and Executing Strategy.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about Mr. Mukherjee's qualifications to effectively leverage McDermott's integrated, end-to-end solutions to help grow and win new business, execute projects on time and on budget, and develop strategic, long-term relationships with customers. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-appoints-samik-mukherjee-as-chief-operating-officer-300675642.html
SOURCE McDermott International, Inc.
Article Date
7/3/2018McDermott Announces Technology Awards in Indonesia
Source: PR Newswire
HOUSTON, July 2, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) today announced it has been awarded two sizeable* technology contracts by a subsidiary of PT Chandra Asri Petrochemical Tbk, PT Chandra Asri Perkasa, for the company's planned new petrochemical complex in Indonesia. McDermott's scope of work includes licensing and basic engineering packages for Lummus Technology's olefins technology, including Short Residence Time (SRT®) ethylene heater design and critical supply, and for butadiene extraction technology.
The steam cracker is expected to produce 1,100 kta of ethylene and 600 kta of propylene using Lummus Technology's proprietary, highly selective SRT VII cracking heaters. Additionally, the complex is expected to produce approximately 175 kta of butadiene using the market-leading BASF/Lummus Technology butadiene extraction technology.
"Lummus Technology has a strong relationship with Chandra Asri that goes back more than 25 years," said Daniel M. McCarthy, Executive Vice President of McDermott's Lummus Technology business. "We licensed several technologies for their first complex and look forward to working with them on the second complex, which will boost petrochemical production to help meet domestic demand in Indonesia."
McDermott's Lummus Technology is a leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering. With a heritage of technology development spanning more than 100 years, encompassing approximately 3,500 patents and patent applications, Lummus Technology provides one of the industry's most robust technology portfolios to the hydrocarbon processing sector.
* McDermott defines a sizeable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope and execution of the contracts discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-technology-awards-in-indonesia-300674873.html
SOURCE McDermott International, Inc.
Article Date
7/2/20186/27/2018 - POSCO DAEWOO Corp. Selects McDermott and BHGE for SURF and Subsea Contract for Myanmar Gas Field Development
POSCO DAEWOO Corp. Selects McDermott and BHGE for SURF and Subsea Contract for Myanmar Gas Field Development
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, June 27, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) and Baker Hughes, a GE company (NYSE: BHGE), today announced the award of a contract by POSCO DAEWOO Corp. for phase two of the Shwe gas field development offshore Western Myanmar.
The McDermott-led consortium took part in a FEED competition in 2017. The successful execution of the FEED followed by the EPCIC tender led to the award of this project.
The EPCIC scope covers SURF and SPS for an eight-subsea-well development at a water depth of between 279 feet (85 meters) and 466 feet (142 meters). It also covers brownfield modifications to tie-back the new subsea facilities to the existing Shwe platform.
"McDermott's strategic alliance with BHGE is a combination of two leaders in subsea development," said Ian Prescott, McDermott Senior Vice President for Asia Pacific. "Together, we offer comprehensive, cost-efficient and advanced technical solutions for our customers. McDermott's expertise in executing large and complex EPCIC projects in Asia will help us deliver certainty during the next phase of this important gas field development."
Graham Gillies, Vice President-Subsea Production Systems & Services at BHGE, said, "Cost efficiency and productivity are top priorities for our customers and are fundamentally changing the way we work and partner across the industry to deliver the solutions they need. Through early engagement and close collaboration with POSCO DAEWOO, the consortium was able to offer the optimum solution. This win demonstrates the value the consortium can create through early engagement with customers, adoption of standardized technology solutions and efficiency of project execution."
McDermott will undertake the EPCIC of SURF and brownfield modification scopes, using its regional center of excellence for project management and engineering in Kuala Lumpur, Malaysia. The SURF structures and production manifolds will be fabricated in the Asia Pacific region. McDermott also will execute the installation and commissioning phase, with Field Service Engineering expertise and tooling support from BHGE's base in Singapore. Installation of SURF and SPS components will be carried out using McDermott's state of the art pipelay assets, including the Derrick Lay Vessel 2000.
BHGE will supply the SPS scope, including eight Medium-water Horizontal Xmas Trees (MHXT), eight subsea production control systems and distribution equipment, and topside controls.
McDermott's portion of this award is classified as a large *contract, which will be reflected in its second quarter 2018 backlog. The contract's final delivery is scheduled for 2022.
The Shwe field development consists of the Shwe, Shwe Phyu and Mya offshore gas fields, located in blocks A-1 and A-3 of the Bay of Bengal, Myanmar. The project is operated by POSCO DAEWOO Corp. and is being developed by a consortium of five companies, including POSCO DAEWOO Corp., Myanma Oil and Gas Enterprise, Oil and Natural Gas Corp. Videsh Limited, Gas Authority of India and Korea Gas Corporation.
* - McDermott defines a large contract as between USD $50 million and USD $250 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
About BHGE
Baker Hughes, a GE company (NYSE:BHGE) is the world's first and only fullstream provider of integrated oilfield products, services and digital solutions. We deploy minds and machines to enhance customer productivity, safety and environmental stewardship, while minimizing costs and risks at every step of the energy value chain. With operations in over 120 countries, we infuse over a century of experience with the spirit of a startup – inventing smarter ways to bring energy to the world. Visit us at BHGE.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281-870-5269
Gentry.Brann@McDermott.com
Local Asia Contact
Philip Ng
Communications Manager, Asia
+6017 200 4238 (mobile, Kuala Lumpur, Malaysia)
Fng2@McDermott.com
Baker Hughes, a GE company (BHGE)
Media Relations
Investor Relations:
Philipp Mueller, +1 281 809 9088, investor.relations@bhge.com
View original content with multimedia:http://www.prnewswire.com/news-releases/posco-daewoo-corp-selects-mcdermott-and-bhge-for-surf-and-subsea-contract-for-myanmar-gas-field-development-300672801.html
SOURCE McDermott International, Inc.
Article Date
6/27/2018McDermott Awarded Transportation and Installation Subcontract in Vietnam
Source: PR Newswire
KUALA LUMPUR, Malaysia, May 29, 2018 /PRNewswire/ -- McDermott International, Inc. (NYSE: MDR) announced today it has been awarded a sizeable* transportation and installation subcontract by PetroVietnam Technical Services Corporation (PTSC) Offshore Service Joint Stock Company for the Idemitsu Kosan Co., Ltd. (IKC) Sao Vang and Dai Nguyet gas and condensate field developments in the Nam Con Son Basin, located offshore Vietnam.
The scope-of-work is expected to cover transportation and installation services for the central processing platform jacket, topside float-over, wellhead platform, flexible pipelines, subsea power cables and auxiliary services. Installation will be carried out at water depths of between 110 meters (360 feet) and 130 meters (430 feet).
McDermott plans to use resources from Kuala Lumpur, Dubai and Houston for project management and engineering. The work will be performed from 2019 to 2021.
"McDermott has a strong track record in executing offshore projects in Vietnam and in delivering solutions for PTSC," said McDermott Senior Vice President for Asia Pacific, Ian Prescott. "In the last two decades, we have provided engineering, procurement, construction and installation work for large, central processing platforms to pipeline installations in the region. This award enhances our position as a leading integrated oil and gas service provider in the region and reinforces that our experience and local knowledge will ensure project certainty with quality results."
The contract award will be reflected in McDermott's second quarter 2018 backlog.
* - McDermott defines a sizable contract as between USD $1 million and USD $50 million.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832-513-1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870 5269
Gentry.Brann@McDermott.com
Local Asia Contact
Philip Ng
Communications Manager, Asia
+6017 200 4238 (mobile, Kuala Lumpur, Malaysia)
fng2@mcdermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-awarded-transportation-and-installation-subcontract-in-vietnam-300655242.html
SOURCE McDermott International, Inc.
Article Date
5/29/2018McDermott Announces Final Distribution Details for Non-Tendering CB&I Shareholders
Source: PR Newswire
Orignial Article: https://www.prnewswire.co...
HOUSTON, May 18, 2018 /PRNewswire/ -- McDermott International, Inc. ("McDermott" or the "Company") (NYSE:MDR) today announced that, in connection with its combination with Chicago Bridge & Iron Company N.V. ("CB&I"), the Dutch dividend withholding tax obligation incurred in connection with the liquidation of Comet I B.V., a company organized under the laws of the Netherlands as a direct wholly owned subsidiary of CB&I, has been satisfied by a payment finalized on May 17, 2018.
As previously announced, the consideration provided to former shareholders of CB&I who did not validly tender in McDermott's exchange offer is subject to a Dutch dividend withholding tax. As part of the overall business combination transaction, those shareholders became shareholders of CB&I Newco and became entitled to receive, in connection with the liquidation of CB&I Newco, the same consideration offered in the exchange offer (i.e. 0.82407 shares of McDermott common stock for each share of CB&I common stock, together with cash in lieu of fractional shares), subject to reduction by the Dutch dividend withholding tax.
Based on final computations made as of May 10, 2018, taking into account the number of shares of CB&I common stock not tendered in the exchange offer, the average paid-up capital of CB&I recognized for Dutch dividend withholding tax purposes with respect to such shares (approximately $319 million), the Euros/Dollars exchange rate in effect at the time of the tax payment and other applicable amounts, the aggregate amount of applicable Dutch dividend withholding tax was approximately $40.8 million. The liquidator of Comet I B.V. caused payment obligations with respect to such tax to be satisfied by directing the exchange agent to (1) sell shares of McDermott common stock that were previously deposited with the exchange agent in an amount necessary to fund the payment of the aggregate Dutch dividend withholding tax and (2) remit the proceeds of such sale to the Dutch tax authorities, all as contemplated by McDermott's previously filed Registration Statement on Form S-4, the related exchange offer prospectus and various other related documents that were circulated to CB&I stockholders in connection with the exchange offer. Accordingly, the exchange agent sold approximately 1.9 million shares of McDermott common stock at an average price of $21.44 per share and remitted the proceeds to the relevant Dutch tax authority. As a result, approximately 27.7 million shares of McDermott common stock remained to be distributed to the former shareholders of CB&I who did not validly tender in McDermott's exchange offer, and, after giving effect to the payment of the Dutch dividend withholding tax, those holders are entitled to receive 0.771059 shares of McDermott common stock, and cash in lieu of fractional shares, in respect of each former share of CB&I common stock. The final distribution of those shares is being effected today.
About McDermott
McDermott is a premier, fully integrated provider of technology, engineering and construction solutions to the energy industry. For more than a century, customers have trusted McDermott to design and build end-to-end infrastructure and technology solutions—from the wellhead to the storage tank—to transport and transform oil and gas into the products the world needs today. Our proprietary technologies, integrated expertise and comprehensive solutions deliver certainty, innovation and added value to energy projects around the world. Customers rely on McDermott to deliver certainty to the most complex projects, from concept to commissioning. It is called the "One McDermott Way." Operating in over 54 countries, McDermott's locally focused and globally-integrated resources include approximately 40,000 employees and engineers, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing of the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2017 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Investors: Scott Lamb, +1 832 513 1068, Scott.Lamb@McDermott.com
Media: Gentry Brann, +1 832 513 1031 or +1 281 870 5269, Gentry.Brann@McDermott.com
View original content with multimedia:http://www.prnewswire.com/news-releases/mcdermott-announces-final-distribution-details-for-non-tendering-cbi-shareholders-300650835.html
SOURCE McDermott International, Inc.
Article Date
5/18/2018Projects & Assets
Related Projects
Net Power Net Zero Gas Generation Facility (subscriber access)
Parent Entities:
NET Power
Serial Number 1 Natural Gas Power Plant (subscriber access)
Status: (subscriber access)
Parent Entities:
NET Power
FERC Highlights
FERC Filings
Production & Forecasts
Subscribe now for access to Criterion Research's historical production and forecast production by company.
Production Hedges
Subscribe now for access to Criterion Research's hedge and analysis.