McDermott International reported an increase in profits in 2Q, at US$11.5 million, up from a net loss of $7.4 million in the same period last year on revenues of $1.05 billion (up $570 million).
McDermott says revenues for 2Q were positively impacted by strong revenue recognition at the INPEX Ichthys project, Brunei Shell Petroleum project and three Middle East projects.
“While the timing of new order intake remains volatile as commodity prices remain low, we continue to leverage McDermott’s vertically integrated model and win contracts in our key markets, including a new project for Saudi Aramco and two new projects in the Americas. Additionally, we remain disciplined in bidding new projects and continue to actively manage our cost structure,” said David Dickson, President and Chief Executive Officer of McDermott.
In Americas, Europe and Africa, the company’s PB Litoral project is nearing completion with preparations well underway for the conclusion of the construction, offshore installation, hook-up and commissioning. The project remains on track with sail-away of the 7200-ton structure, from the company’s Altamira yard, expected near the end of 3Q.
During the quarter, McDermott’s Derrick Barge 50 installed a mobile drilling structure on top of the Pemex Ayatsil A platform for Drillmec. In addition, the company was awarded its fourth contract from Pemex in the Ayatsil field, for the construction of a replacement jacket and associated deck installation.
The DB 50 also supported Heerema and Anadarko with the installation of the Heidelberg Spar hull in the US Gulf of Mexico (GOM).
Recently, McDermott was awarded the LLOG OTIS subsea project, to be executed in the GOM. The pipeline to be installed as part of the OTIS project is expected to be the first subsea rigid pipe reeling scope to be executed at the McDermott spoolbase, currently under development in Gulfport, Mississippi.
In the Middle East, McDermott was awarded a large brownfield contract by Saudi Aramco for the full engineering, procurement, construction and installation (EPCI) scope of 12 jackets for various offshore oil and gas fields in Saudi Arabian waters.
In addition, Saudi Aramco selected McDermott as one of the companies for its new Long Term Agreement (LTA) award. The award is the second LTA between McDermott and Saudi Aramco.
In Asia, the INPEX Ichthys project achieved all the agreed-upon milestones during the quarter, remaining on schedule and profitable. McDermott’s construction support vessel 108 arrived infield at the end of the second quarter and commenced its extensive marine campaign.
On the Brunei Shell Petroleum Project, the Derrick Barge 30 and Emerald Sea completed the installation of approximately 50mi of replacement pipelines and also tied-in 11 flexible pipelines.