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McDermott Profit Falls 22%
Wednesday, May 14, 2008
Engineering and construction services provider McDermott International Inc. said first-quarter profit fell 22 percent due to weather-related downtime in its offshore oil and gas construction segment and fewer project close-outs, change orders and settlements. Net income slipped to $123.2m, or 54 cents per share, from $158.1m, or 69 cents per share, a year ago.
Revenue increased 6 percent to $1.45b from $1.36b a year earlier, as higher offshore oil and gas construction and government revenue offset lower power generation systems revenue.
The company said it posted a $68.3m drop in income in its offshore oil and gas construction segment, mainly due to a high-level of unproductive offshore working days for major construction vessels during the 2008 first quarter, because of poor weather conditions and reduced activities in the Caspian region.
McDermott said offshore oil and gas revenue rose to $645.9 from $550.3m as fewer activities in the Caspian region were offset by added work in the Middle East and Asia Pacific regions. Power generation sales slipped to $616.3m from $655.4m due to less work on new fossil utility steam systems and retrofits of existing facilities.
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