McDermott Sinks on Restructuring Costs

Houston-based McDermott has reported quarterly loss of $70 million, or 39 cents per diluted share, compared to profit of $35 million, or 37 cents per diluted share in the first quarter of 2018.

Excluding $73 million of restructuring, integration and transaction costs, the adjusted profit for the first quarter of 2019 was $3 million, or 2 cents per diluted share.

Sequentially, the net loss narrowed from $2.8 billion, or $15.33 per diluted share, as Mcdermott booked a $2.2 billion goodwill impairment charge, excluding project-related charges, in the Q4 2018.

The company posted Q1 2019 revenues of $2.2 billion, compared to revenues of $608 million for the prior-year Q1. Quarter-over-quarter revenues increased from $2.1 billion.

Mcdermott reported revenue pipeline comprised of backlog of $15.4 billion, bids and change orders outstanding of $17.7 billion and target projects of $58 billion.

For the year 2019, McDermott updated its guidance with revenue expected to be approximately $10 billion and net profit around $170 million.

Subsea World News Staff