QUOTE AND NEWS
DailyFinance  Aug 29  Comment 
McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) announced today that the Company is scheduled to present at two upcoming investor conferences in September. On Wednesday, September 3, the...
OilVoice  Aug 26  Comment 
McDermott International Inc. NYSEMDR announce that Stuart Spence has been appointed Executive Vice President and Chief Financial Officer following the departure of Perry L. Elders Senior Vice Pre
StreetInsider.com  Aug 25  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Management+Changes/McDermott+Int%27l+%28MDR%29+Appoints+New+CFO/9778793.html for the full story.
MedPage Today  Aug 20  Comment 
(MedPage Today) -- A TB drug with a questionable safety profile increased the rate of sputum culture conversion in people with multidrug-resistant (MDR) disease, researchers reported.
SeekingAlpha  Aug 10  Comment 
ByIAEResearch: McDermott International (NYSE:MDR) is an engineering, procurement, construction and installation [EPCI] company engaged in designing and executing complex off-shore oil and gas projects worldwide. The company is one of the largest...
Forbes  Aug 7  Comment 
Investors eyeing a purchase of McDermott International, Inc. (NYSE: MDR) shares, but tentative about paying the going market price of $7.37/share, might benefit from considering selling puts among the alternative strategies at their disposal. One...
OilVoice  Aug 5  Comment 
McDermott International Inc. NYSE MDR announced financial results for the quarter ended June 30 2014. The Company reported a second quarter 2014 net loss of 11 million or 0.05 per fully diluted
SeekingAlpha  Aug 5  Comment 
McDermott International (NYSE:MDR) Q2 2014 Earnings Conference Call August 4, 2014 05:00 PM ET Executives David Dickson - President and CEO Steve Oldham - VP, IR Perry Elders - SVP and CFO Analysts Jamie Cook - Credit...
SeekingAlpha  Aug 4  Comment 
The following audio is from a conference call that will begin on August 04, 2014 at 17:00 PM ET. The audio will stream live while the call is active, and can be replayed upon its completion. Listen now Complete Story »
TheStreet.com  Aug 4  Comment 
NEW YORK (TheStreet) -- Three of the six of companies profiled today report quarterly results after the closing bell Monday and three report before the opening bell on Tuesday. Car rental service company, Avis Budget reports after the closing...




 
TOP CONTRIBUTORS

McDermott International (NYSE: MDR) is a leading engineering and construction company, with specialty manufacturing and service capabilities. McDermott focuses on executing complex offshore oil and gas projects worldwide, such as fixed and floating production facilities, pipelines, and subsea systems. McDermott’s customers include major energy companies. While the side effects of the BP (BP) Deepwater Horizon incident have made McDermott's Atlantic operations unprofitable, it may benefit from favorable offshore drilling legislation being considered by the U.S. Congress.

Business Growth

McDermott's revenues for the 2011 first quarter were $899.2 million, an increase of 78 percent, compared to $504.9 million in the corresponding period of 2010. The year-over-year increase was primarily due to increases in the Asia Pacific and Middle East segments as a result of higher marine activity on large engineering, procurement, construction and installation projects. These gains were partially offset by lower revenues in the Atlantic segment.[1]

Trends and Forces

Side effects of the BP (BP) Deepwater Horizon oil spill have made McDermott's Atlantic operations unprofitable

McDermott's Atlantic segment has reported a net loss, a side effect of the BP (BP) Deepwater Horizon oil spill. An explosion and fire aboard Transocean's Deepwater Horizon drilling rig off the coast of Louisiana ruptured an oil well, causing the worst oil spill in U.S. history. President Barack Obama ordered a six-month moratorium on drilling in waters 500 feet and deeper as the government investigated the disaster.[2] As a result, the Bureau of Ocean Energy Management, Regulation and Enforcement has been slow to issue new drilling permits in the Gulf of Mexico. This has adversely impacted McDermott's business in the Atlantic.

To help return the Atlantic segment to profitability, McDermott has installed new management, begun cutting costs and recently won new project contracts.[3]

New state and federal legislation favors the offshore drilling industry

Senators John Kerry, Lindsey Graham, and Joe Lieberman have drafted legislation that would boost the supply of domestically produced oil and natural gas, both on- and offshore. The legislation is intended to maximize tax revenue for states that opt to drill oil.[4] Although offshore drilling has traditionally been a controversial topic, the government is beginning to move forward legislation that will benefit the offshore drilling industry. Increasing levels of offshore drilling off the coast of the U.S. will benefit McDermott, as there will be more projects available for its Atlantic segment.

Competition

The substantial capital costs involved in becoming an offshore construction contractor create a significant barrier to entry into the market. McDermott, however, faces competition from regional competitors, engineering firms, fabrication facilities, pipelaying companies, and shipbuilding companies.[5]

References

  1. McDermott Investor Relations: "McDermott Reports Net Income from Continuing Operations of $68.8 Million, $0.29 Per Fully Diluted Share for the 2011 First Quarter"
  2. [http://www.forbes.com/2010/06/09/diamond-offshore-oil-markets-equities-bp.html Forbes: "Offshore Oil Companies Under The Microscope" 9 June 2010.]
  3. McDermott 10-K 2010: Letter to Shareholders
  4. Sumfolio: "Offshore Drillers Could See Upside"
  5. McDermott 10-K 2009, Competition, p. 7


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