US contractor McDermott reported a net loss of $ 70 million in the first quarter, with revenue of $ 2.2 billion. Excluding restructuring, integration and transaction costs, adjusted net income was $ 3 million.
"The net loss was largely the result of $ 73 million of restructuring, integration and transaction costs, which also impacted operating revenue, offsetting solid performance across all our operating segments and a quarterly reduction in selling expenses, general and administrative, "said McDermott. chief executive David Dickson.
McDermott in the first three months of this year increased its order backlog by $ 6.7 billion, recorded a relationship between order volume and three points, and a 41% improvement in sequential order backlogs.
Included in these applications were the Golden Pass LNG project in North America, several offshore projects in the Middle East, the BP Tortue project and the Cassia-C project – both converted from state-of-the-art engineering, procurement, construction and installation. – and Woodside Scarborough's FEED award, which is a revenue synergy and includes a conversion mechanism for an EPCI contract until the operator's final investment decision.
McDermott said the first-quarter award level demonstrates customer confidence in the combined company, which is supported by its pipeline of $ 91 billion revenue opportunities.
"In addition, our backlog at the end of the first quarter gives us visibility for about 80% of our total revenues expected for 2019 – and over $ 9 billion for 2020 and beyond," said Dickson.
He added that McDermott made steady progress on the Cameron and Freeport LNG projects in the three months ended March 31.
"We have taken important steps to demonstrate disciplined execution in these projects," Dickson said.
"The recent introduction of feed gas at Cameron was a major milestone in the commissioning of train 1 and is the precursor to the production of liquefied natural gas. With the imminent completion of train 1 as well as the initial work for commission Freeport Train 1 We are more and more confident that the two facilities will be fully online by 2020 as world-class LNG producers.
In addition, we were pleased to report that we had no significant increase in cost estimates for any of the projects in the first quarter, and we continue to make progress in our Cameron-related business discussions. "
McDermott's operating income for the first quarter of 2019 was $ 13 million and adjusted operating income was $ 86 million, excluding restructuring, integration and transaction costs.
The contractor announced today that he has successfully completed the final offshore campaign of the Ipeenth LNG Project of Inpex, located on the west coast of Australia.
This was the second of two remaining work packages under the McDermott contract, which was the largest underwater contract ever awarded at the time.
The final offshore campaign involved submarine tiebacks for new drilling centers and was carried out by the company's seventh ship.
"The final campaign was run on a live production field and as such we put in place additional risk and control management that ensured our success and met all of our customers' expectations," said Ian Prescott, senior vice president McDermott in the Asia-Pacific region.
"Our outstanding track record confirms our experience and ability to execute one of the world's largest underwater contracts to date."
McDermott still has a small manufacturing scope to be completed in its manufacturing yard in Batam, Indonesia, which will complete its work packages for the Ichthys LNG project in its entirety in 2019.