Houston-based McDermott posted quarterly profit of $21.9 million, or $0.08 per fully diluted share, compared to net loss of $2.2 million, or $0.01 per fully diluted share same time last year.
The company had no adjustments, compared to an adjusted net income of $36.3 million, or $0.13 per adjusted fully diluted share, excluding restructuring charges of $6.4 million and impairment charges of $32.3 million, in the prior-year first quarter.
“McDermott saw a profitable and strategic start to 2017 and I am extremely pleased with our first quarter performance. Excellent project execution and customer alignment led to cost savings, better than anticipated closeouts and customer driven change orders, driving McDermott’s profitability. Over the past few years, we have worked to stabilize and optimize the business and are now taking long-term strategic steps to transform McDermott for sustainability and growth,” said David Dickson, president and CEO of McDermott.
In the first quarter of 2017, McDermott generated revenues of $519.4 million, down from $729 million in the corresponding period in 2016.
According to the company, revenue drop were mainly associated with reduced activity on Ichthys as the project progresses through the installation phase.
Order intake in the first quarter totaled $96 million. As of March 31, 2017, McDermott’s backlog was $3.9 billion, of which approximately 85 percent is related to offshore operations and approximately 15 percent is related to subsea operations.
McDermott said it expects 2017 revenues at some $3.2 billion and earnings per share of approximately 42 cents. Initial 2017 EPS was at some 29 cents.
Subsea World News Staff