McDermott has reported fourth quarter 2014 net income of $8.2 million, or $0.03 per fully diluted share, compared to a net loss of $326.2 million, or $1.38 per diluted share, in the prior-year quarter.
For the year ended December 31, 2014, the Company reported a net loss of $76.0 million, or $0.32 per fully diluted share, compared to a net loss of $508.9 million, or $2.15 per diluted share, in the prior year.
The Company reported fourth quarter 2014 revenues of $806.4 million, an increase of $289.1 million compared to revenues of $517.3 million for the prior-year quarter.
For the year ended December 31, 2014, the Company reported revenues of $2.3 billion, compared to $2.7 billion for the year ended December 31, 2013.
McDermott also announced the results of a major review of the Company’s cost structure, which is expected to drive an improvement in profitability and flexibility through reducing fixed and variable costs.
The three key components of the plan include:
– Increased organizational efficiency, commencing in the first quarter of this year, with expected savings starting in the second quarter of 2015;
– Centralization of various front- and back-office functions;
– Operational cost initiatives leveraging McDermott’s global scale and the outsourcing of some non-core business activities.
The Company expects revenues to be in the range of $3.3 billion to $3.6 billion and operating income to be in the range of $25 million to $50 million, including expected restructuring charges in the range of $25 million to $35 million.
The Company expects capital expenditures to be in the range of $275 million to $295 million, excluding capitalized interest of approximately $25 million. At year-end 2015, cash and restricted cash is expected to be in the range of $600 million to $650 million and debt to be $865 million, provided contracting terms and industry norms on working capital remain stable.
“McDermott is in a much stronger position today, compared to a year ago, as a result of our turnaround efforts. With the recapitalization of the Company in early 2014, we raised the liquidity needed to work through our legacy contracts, capital expenditure commitments and initiatives for 2014 and for the foreseeable future,” said David Dickson , President and Chief Executive Officer of McDermott.