McDermott, an engineering, procurement, construction and installation company, tightened its loss for the first quarter 2016 and saw a boost in revenues due to INPEX Ichthys and Saudi Aramco projects.
According to McDermott’s statement on Thursday, the company’s net loss for the first quarter was $2.2 million versus $14.5 million in the corresponding period last year.
Excluding restructuring charges of $6.4 million and impairment loss of $32.3 million, the company generated first quarter 2016 adjusted net income of $36.5 million, compared to an adjusted net loss of $4.1 million, excluding restructuring charges of $10.4 million in the prior-year first quarter.
Revenues during the quarter increased by $178.5 million totalling $729 million compared to the prior-year quarter and revenues of $550.5 million.
The key projects that contributed to McDermott’s revenue during the first quarter of 2016 were INPEX Ichthys and both Saudi Aramco’s 12 Jackets and Marjan GOSP.
David Dickson , President and Chief Executive Officer of McDermott, said: “The macro environment still remains uncertain, and recently one of our customers, Petrobras, decided to terminate the charter of our Agile vessel. As a result, we have recorded an impairment during the quarter reflecting the lack of opportunities for this vessel in our current revenue pipeline.”
As of March 31, 2016, the company’s backlog was $3.8 billion, compared to $4.2 billion at December 31, 2015. The company noted that of the March 31, 2016 backlog, approximately 71% is related to offshore operations and approximately 29% is related to subsea operations.
McDermott stated it expects in-year cash savings of $45 million due to completion of the Additional Overhead Reduction program.
The company also said on Thursday it was awarded three separate projects by a ‘major national oil company’ for the integrated engineering, procurement, construction, and installation (EPCI) services in multiple fields in the Arabian Gulf.
Offshore Energy Today Staff