McDermott Int'l (MDR) Tops Q4 EPS by 9c

McDermott Int'l (NYSE: MDR) reported Q4 EPS of $0.03, $0.09 better than the analyst estimate of ($0.06). Revenue for the quarter came in at $806.4 million versus the consensus estimate of $715.83 million.

The Company expects revenues to be in the range of $3.3 billion to $3.6 billion, versus the consensus of $2.79 billion, and operating income to be in the range of $25 million to $50 million, including expected restructuring charges in the range of $25 million to $35 million.

“McDermott is in a much stronger position today, compared to a year ago, as a result of our turnaround efforts. With the recapitalization of the Company in early 2014, we raised the liquidity needed to work through our legacy contracts, capital expenditure commitments and initiatives for 2014 and for the foreseeable future,” said David Dickson, President and Chief Executive Officer of McDermott.

“We delivered better project execution throughout the year and successfully closed out a number of challenging legacy contracts. The installation of the riser support structure in the fourth quarter was a significant milestone for the INPEX-operated Ichthys project, the industry’s largest subsea contract at its time of award. Our recent awards from Brunei Shell Petroleum, Qatar Petroleum, Pemex and Saudi Aramco and the resolution of legacy commercial issues with other clients reflect our improving customer relationships. Even in a lower oil commodity price environment, with McDermott’s differentiated capabilities we continue to see opportunities to bid and win new work. With our liquidity, a team of talented leaders and our relentless drive for greater cost efficiency, we believe the Company has the strength to work through the industry’s current headwinds.”

Mr. Dickson added, “In addition, our new partnerships with two industry leaders represent part of McDermott’s overall growth strategy. In January, we formed io oil & gas™ consulting with GE Oil & Gas. The new venture is focused on conceptual and pre-FEED consulting for offshore and subsea field development. It leverages both companies’ experience to provide the most efficient solutions, resulting in more accurate cost and schedule estimates at the early stages of developments. Additionally, in February, we announced a strategic alliance with Petrofac to combine our complementary capabilities to deliver large integrated EPCI subsea projects with Petrofac’s new high-end SURF, ultra-deepwater pipelay and ultra-heavy lift vessel, the JSD 6000. Together, we plan to provide clients an integrated solution on the largest and most complex deepwater developments.”

For earnings history and earnings-related data on McDermott Int'l (MDR) click here.

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