McDermott Sees Profits Rise

Houston-based McDermott posted quarterly profit of $25.5 million, or 9 cents per fully diluted share, compared to $500K loss in the fourth quarter 2016.

McDermott’s result for the full-year 2017 was profit of $178.5 million or 63 cents diluted EPS, versus $34 million profit of 12 cents per diluted share in 2016.

The full-year profit beats McDermott’s own predictions at the end of Q3 2017 by 10 cents, while revenues were almost in line with expectations.

I am extremely pleased to announce an exceptional set of financial results to close out 2017, which reflect a strategically and operationally successful year for McDermott and its employees,” said David Dickson, president and CEO of McDermott.

In the fourth quarter of 2017, McDermott generated revenues of $718 million, up from $642 million in the corresponding period in 2016. Full-year 2017 revenues came close to $3 billion, some $349 million more from the 2016.

According to the company, quarterly revenue increase was mainly associated with Saudi Aramco and Inpex projects.

Order intake in the fourth quarter totaled $2.2 billion. As of December 31, 2017, McDermott’s backlog was $3.9 billion, of which approximately 87 percent is related to offshore operations and approximately 13 percent is related to subsea operations.

Dickson added: “Our strong order intake in the fourth quarter gave McDermott a solid backlog heading into a new year, and we have continued the momentum with our recent announcement of the 13 jackets award from Saudi Aramco in the first quarter of 2018.”

Guidance for full-year 2018 has been set where McDermott said it expects revenues between $3.1 billion and $3.3 billion, and predicts earnings per share from 42 cents to 52 cents.

Subsea World News Staff

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