McDermott Inc.

Houston, TX, United States

McDermott Inc.

Houston, TX, United States

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DUBAI, United Arab Emirates, June 13, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) recently celebrated a major milestone with the load-out and installation of the first jacket fully fabricated by the Company at its recently opened Dammam fabrication yard in Saudi Arabia. The Safaniya 264 Jacket is part of McDermott’s Long Term Agreement II (LTA II) scope of work with Saudi Aramco. The current scope of work being done at the Dammam yard covers four jackets, eight bridges and more than 70 subsea pipeline spools, as well as onshore support work. The Dammam facility was opened in 2016 to support McDermott’s growing Middle East operations and expand the Company’s regional capacity. It reflects McDermott’s commitment to supporting Saudi Arabia and key client Saudi Aramco in their localization efforts. Since inauguration in August 2016, the yard has completed more than 600,000 man-hours without a Lost Time Incident (LTI), further contributing to the 50 million man-hours LTI free McDermott recently achieved across the Middle East region. “The load-out of the first jacket from our Dammam fabrication facility marks another milestone in McDermott’s long term commitment to Saudi Arabia and their Vision 2030,” said Linh Austin, McDermott’s Vice President of Middle East and Caspian. “Not only have we delivered our first jacket from our new facility, we’ve done it to Saudi Aramco’s schedule; all with no lost time incidents.” The jacket has been installed in the Safaniya oil field, located 125 miles (200 km) north of Dhahran in the Arabian Gulf, by McDermott’s Derrick Barge 32 vessel. McDermott has extensive experience offshore Saudi Arabia, having worked in the region for more than 50 years. In 2015, McDermott won a lump sum contract from Saudi Aramco for brownfield work, which was the largest single award for McDermott’s Middle East Area operations in Company history. More recently, McDermott was awarded an EPCI contract for four jackets and three gas observation platforms, the third fast-track project awarded to McDermott by Saudi Aramco in the past 18 months. This milestone follows McDermott’s recent announcement that it had signed a strategic Memorandum of Understanding with Saudi Aramco for a long-term land lease at the new maritime facility at Ras Al Khair in Saudi Arabia, currently being developed by Saudi Aramco. ABOUT McDERMOTT McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com. FORWARD LOOKING STATEMENTS In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about the expected scope, execution and timing associated with the projects discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings.  If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


News Article | June 5, 2017
Site: globenewswire.com

HOUSTON, June 05, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today it has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract from BP Trinidad & Tobago, LLC (bpTT) for the Angelin gas field, located 25 miles (40 kilometers) off the east coast of Trinidad and Tobago. A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0e1b4d68-fdfd-4d90-b917-b8e03424137d This EPCIC contract follows the successful completion of a multi-phase engineering contract, including pre-front end engineering design (pre-FEED), front-end engineering design (FEED), and pre-execution engineering contracts previously awarded by bpTT to McDermott for the initial design and execution planning of Angelin. McDermott’s team in Houston led the engineering and execution planning efforts with support and work share from the Company’s engineering center in Chennai, India. “This is a great opportunity for us to build on the relationship and trust developed through the execution of the FEED for the Angelin project,” said Scott Munro, McDermott Vice President for Americas, Europe and Africa. “Through early engagement and aligning our respective goals, McDermott and bpTT have partnered to optimize the delivery of this very important project.” Building off its pre-FEED and FEED work, McDermott will provide a turnkey EPCIC solution to design, procure, fabricate, transport, install and commission a six-slot wellhead platform and 26-inch (66 centimeter) subsea pipeline using its project management and engineering team in Houston. The 992-ton (900 metric ton) four-legged main pile jacket and 1,323-ton (1,200 metric ton) four-deck topside for the Angelin project will be constructed at the Altamira, Mexico fabrication facility. The platform and pipeline are scheduled to be installed by McDermott’s DLV 2000. The project demonstrates the versatility of the DLV 2000 for installations of both pipelines and platforms in a single mobilization. The Angelin project is a dry gas development within the northern Columbus Basin in 213 feet (65 meters) of water. The gas will be exported to the Beachfield/Atlantic LNG and the liquids to the Galeota terminal via a new 13 mile (21 kilometer), 26 inch (66 centimeter) diameter export pipeline. With a design throughput of 600 million standard cubic feet of gas per day, production will be exported through the pipeline to the Serrette Facility and on to the nearby Cassia platform for processing. The large lump sum contract award will be reflected in McDermott’s second quarter 2017 backlog. McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com. Forward-Looking Statement In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected value, scope, execution and timing associated with the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and business partners, difficulties executing on the project and changes in industry norms. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


News Article | June 5, 2017
Site: globenewswire.com

HOUSTON, June 05, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today it has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract from BP Trinidad & Tobago, LLC (bpTT) for the Angelin gas field, located 25 miles (40 kilometers) off the east coast of Trinidad and Tobago. A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0e1b4d68-fdfd-4d90-b917-b8e03424137d This EPCIC contract follows the successful completion of a multi-phase engineering contract, including pre-front end engineering design (pre-FEED), front-end engineering design (FEED), and pre-execution engineering contracts previously awarded by bpTT to McDermott for the initial design and execution planning of Angelin. McDermott’s team in Houston led the engineering and execution planning efforts with support and work share from the Company’s engineering center in Chennai, India. “This is a great opportunity for us to build on the relationship and trust developed through the execution of the FEED for the Angelin project,” said Scott Munro, McDermott Vice President for Americas, Europe and Africa. “Through early engagement and aligning our respective goals, McDermott and bpTT have partnered to optimize the delivery of this very important project.” Building off its pre-FEED and FEED work, McDermott will provide a turnkey EPCIC solution to design, procure, fabricate, transport, install and commission a six-slot wellhead platform and 26-inch (66 centimeter) subsea pipeline using its project management and engineering team in Houston. The 992-ton (900 metric ton) four-legged main pile jacket and 1,323-ton (1,200 metric ton) four-deck topside for the Angelin project will be constructed at the Altamira, Mexico fabrication facility. The platform and pipeline are scheduled to be installed by McDermott’s DLV 2000. The project demonstrates the versatility of the DLV 2000 for installations of both pipelines and platforms in a single mobilization. The Angelin project is a dry gas development within the northern Columbus Basin in 213 feet (65 meters) of water. The gas will be exported to the Beachfield/Atlantic LNG and the liquids to the Galeota terminal via a new 13 mile (21 kilometer), 26 inch (66 centimeter) diameter export pipeline. With a design throughput of 600 million standard cubic feet of gas per day, production will be exported through the pipeline to the Serrette Facility and on to the nearby Cassia platform for processing. The large lump sum contract award will be reflected in McDermott’s second quarter 2017 backlog. McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com. Forward-Looking Statement In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected value, scope, execution and timing associated with the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and business partners, difficulties executing on the project and changes in industry norms. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


News Article | June 5, 2017
Site: globenewswire.com

HOUSTON, June 05, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today it has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract from BP Trinidad & Tobago, LLC (bpTT) for the Angelin gas field, located 25 miles (40 kilometers) off the east coast of Trinidad and Tobago. A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0e1b4d68-fdfd-4d90-b917-b8e03424137d This EPCIC contract follows the successful completion of a multi-phase engineering contract, including pre-front end engineering design (pre-FEED), front-end engineering design (FEED), and pre-execution engineering contracts previously awarded by bpTT to McDermott for the initial design and execution planning of Angelin. McDermott’s team in Houston led the engineering and execution planning efforts with support and work share from the Company’s engineering center in Chennai, India. “This is a great opportunity for us to build on the relationship and trust developed through the execution of the FEED for the Angelin project,” said Scott Munro, McDermott Vice President for Americas, Europe and Africa. “Through early engagement and aligning our respective goals, McDermott and bpTT have partnered to optimize the delivery of this very important project.” Building off its pre-FEED and FEED work, McDermott will provide a turnkey EPCIC solution to design, procure, fabricate, transport, install and commission a six-slot wellhead platform and 26-inch (66 centimeter) subsea pipeline using its project management and engineering team in Houston. The 992-ton (900 metric ton) four-legged main pile jacket and 1,323-ton (1,200 metric ton) four-deck topside for the Angelin project will be constructed at the Altamira, Mexico fabrication facility. The platform and pipeline are scheduled to be installed by McDermott’s DLV 2000. The project demonstrates the versatility of the DLV 2000 for installations of both pipelines and platforms in a single mobilization. The Angelin project is a dry gas development within the northern Columbus Basin in 213 feet (65 meters) of water. The gas will be exported to the Beachfield/Atlantic LNG and the liquids to the Galeota terminal via a new 13 mile (21 kilometer), 26 inch (66 centimeter) diameter export pipeline. With a design throughput of 600 million standard cubic feet of gas per day, production will be exported through the pipeline to the Serrette Facility and on to the nearby Cassia platform for processing. The large lump sum contract award will be reflected in McDermott’s second quarter 2017 backlog. McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com. Forward-Looking Statement In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected value, scope, execution and timing associated with the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and business partners, difficulties executing on the project and changes in industry norms. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


News Article | June 5, 2017
Site: globenewswire.com

HOUSTON, June 05, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today it has been awarded an engineering, procurement, construction, installation and commissioning (EPCIC) contract from BP Trinidad & Tobago, LLC (bpTT) for the Angelin gas field, located 25 miles (40 kilometers) off the east coast of Trinidad and Tobago. A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/0e1b4d68-fdfd-4d90-b917-b8e03424137d This EPCIC contract follows the successful completion of a multi-phase engineering contract, including pre-front end engineering design (pre-FEED), front-end engineering design (FEED), and pre-execution engineering contracts previously awarded by bpTT to McDermott for the initial design and execution planning of Angelin. McDermott’s team in Houston led the engineering and execution planning efforts with support and work share from the Company’s engineering center in Chennai, India. “This is a great opportunity for us to build on the relationship and trust developed through the execution of the FEED for the Angelin project,” said Scott Munro, McDermott Vice President for Americas, Europe and Africa. “Through early engagement and aligning our respective goals, McDermott and bpTT have partnered to optimize the delivery of this very important project.” Building off its pre-FEED and FEED work, McDermott will provide a turnkey EPCIC solution to design, procure, fabricate, transport, install and commission a six-slot wellhead platform and 26-inch (66 centimeter) subsea pipeline using its project management and engineering team in Houston. The 992-ton (900 metric ton) four-legged main pile jacket and 1,323-ton (1,200 metric ton) four-deck topside for the Angelin project will be constructed at the Altamira, Mexico fabrication facility. The platform and pipeline are scheduled to be installed by McDermott’s DLV 2000. The project demonstrates the versatility of the DLV 2000 for installations of both pipelines and platforms in a single mobilization. The Angelin project is a dry gas development within the northern Columbus Basin in 213 feet (65 meters) of water. The gas will be exported to the Beachfield/Atlantic LNG and the liquids to the Galeota terminal via a new 13 mile (21 kilometer), 26 inch (66 centimeter) diameter export pipeline. With a design throughput of 600 million standard cubic feet of gas per day, production will be exported through the pipeline to the Serrette Facility and on to the nearby Cassia platform for processing. The large lump sum contract award will be reflected in McDermott’s second quarter 2017 backlog. McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 13,500 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com. Forward-Looking Statement In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected value, scope, execution and timing associated with the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and business partners, difficulties executing on the project and changes in industry norms. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


News Article | July 25, 2017
Site: globenewswire.com

Increased Profitability and Cash Flow Generation Driven by Efficient Project Execution and Higher Activity One McDermott Way Continues to Drive Operational Excellence New $810M Credit Agreement with Five-year Term Provides Increased Flexibility and Supports Growth Company to Host Conference Call and Webcast Today at 7:30 a.m., Central Time HOUSTON, July 25, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) (“McDermott,” the “Company,” “we” or “us”) today announced financial and operational results for the second quarter ended June 30, 2017. 1 Adjusted Operating Income, Adjusted Margin and Adjusted Net Income include the following adjustments to Operating Income computed in accordance with U.S. generally accepted accounting principles (“GAAP”): The calculations of total and per share Adjusted Net Income and Adjusted Operating Income and margins are shown in the appendix entitled “Reconciliation of Non-GAAP to GAAP Financial Measures.”  The appendix also includes additional information related to the adjustments mentioned above.  2 The calculations of Adjusted Net Income and Adjusted Diluted EPS reflect the tax effects of Non-GAAP adjustments during the period.  The Non-GAAP adjusting items are primarily attributable to tax jurisdictions in which we currently do not pay taxes and, therefore, no tax impact is applied to those items.  For the Non-GAAP adjusting items in jurisdictions where taxes are paid, the tax impacts on those adjustments are computed, individually, using the statutory tax rate in effect in each applicable taxable jurisdiction. “Strong project execution and higher activity led McDermott to another successful quarter, with increased profitability and free cash flow generation. During the quarter, the One McDermott Way drove a number of significant achievements, including: de-risking execution of the mooring and hook-up of the Ichthys Explorer Central Processing Facility, the world’s largest semi-submersible facility; continued fabrication of jackets for Saudi Aramco in our Batam fabrication facility; relocation of the DLV 2000 and Amazon to the Middle East, where they are demonstrating their versatility by working on shallow-water projects; as well as the successful completion of the topside hook-up on the RasGas Flow Assurance project ahead of schedule. Efficient execution, coupled with constant focus on safety through our Taking the Lead initiative led us to surpass 50-million man-hours Lost Time Incident free as a company,” said David Dickson, President and Chief Executive Officer of McDermott. “Building off successful pre-FEED and FEED work, the BP Angelin award to design, fabricate and install a jacket, platform and pipeline is our first pre-FEED and FEED to EPCIC award and is a direct result of our strategic focus on engineering as a differentiator. Also during the quarter, we closed on an $810 million credit facility, with a five-year term demonstrating the confidence shown by our lenders, and providing us with a more flexible capital structure while allowing for continued growth. As the extended low oil price environment continues to drive uncertainty of award timing, our revenue pipeline of around $20 billion remains robust, and we continue to remain focused on disciplined bidding, efficient project execution and liquidity.” Second quarter 2017 earnings attributable to McDermott stockholders, computed in accordance with U.S. generally accepted accounting principles (“GAAP”), were $36.4 million, or $0.13 per fully diluted share, compared to $20.7 million, or $0.07 per fully diluted share, for the prior-year second quarter.  We generated second quarter 2017 net income of $36.4 million, or $0.13 per fully diluted share, for which there were no adjustments from GAAP, compared to an adjusted net income of $22.8 million, or $0.08 per adjusted fully diluted share, excluding restructuring charges of $2.5 million, in the prior-year second quarter.  During second quarter 2017, we expensed approximately $4.2 million in debt issuance costs associated with the repayment of the outstanding term loan under our previous credit agreement. We reported second quarter 2017 revenues of $788.7 million, an increase of $82.1 million, compared to revenues of $706.6 million for the prior-year second quarter.  The key projects driving revenue for the second quarter of 2017 were the Saudi Aramco LTA II, ONGC Vashishta and Saudi Aramco Marjan power system replacement projects.  The increase from the prior-year second quarter was primarily due to increased fabrication and marine activity across the portfolio of projects. Our operating income for the second quarter of 2017 was $87.2 million, or an operating margin of 11.1%, compared to $57.0 million, or an operating margin of 8.1%, for the second quarter of 2016.  Our operating income for the second quarter of 2017 was $87.2 million, or an operating margin of 11.1%, for which there were no adjustments from GAAP, compared to adjusted operating income of $59.5 million, or an adjusted operating margin of 8.4%, for the second quarter of 2016, excluding the restructuring charges mentioned above.  Operating income for the second quarter of 2017 was primarily driven by engineering, fabrication and marine activity on Saudi Aramco LTA II, fabrication and marine activity on Saudi Aramco Marjan power system replacement and progress on Inpex Ichthys. Cash provided by operating activities in the second quarter of 2017 was $41.7 million, an increase compared to the $16.5 million of cash provided in the second quarter of 2016.  The increase was primarily driven by higher operating results and a lower than anticipated working capital build with national oil companies through our efficient working capital management. First half 2017 earnings attributable to McDermott stockholders, computed in accordance with U.S. generally accepted accounting principles (“GAAP”), were $58.3 million, or $0.21 per fully diluted share, compared to earnings of $18.5 million, or $0.07 per fully diluted share, for the prior-year first half.  We generated first half 2017 net income of $58.3 million, or $0.21 per fully diluted share, for which there were no adjustments from GAAP, compared to an adjusted net income of $59.1 million, or $0.21 per adjusted fully diluted share, excluding restructuring charges of $8.9 million and impairment charges of $32.3 million, in the prior-year first half. We reported first half 2017 revenues of $1,308.1 million, a decrease of $127.6 million, compared to revenues of $1,435.7 million for the prior-year first half.  The key projects driving revenue for the first half of 2017 were the Saudi Aramco LTA II, ONGC Vashishta and Inpex Ichthys projects.  The decrease from the prior-year first half was primarily due to decreased activity on the Ichthys project, as the project progresses through the installation phase. Our operating income for the first half of 2017 was $143.2 million, or an operating margin of 10.9%, compared to $93.0 million, or an operating margin of 6.5%, for the first half of 2016.  Our operating income for the first half of 2017 was $143.2 million, or an operating margin of 10.9%, for which there were no adjustments from GAAP, compared to adjusted operating income of $134.1 million, or an adjusted operating margin of 9.3%, for the first half of 2016, excluding the restructuring charges and impairment mentioned above.  Operating income for the first half of 2017 was primarily driven by engineering, fabrication and marine activity on the Saudi Aramco LTA II project, fabrication activity and marine activity on the Saudi Aramco Marjan power system replacement project, progress on the Inpex Ichthys project and marine activity on ONGC Vashishta project. Cash provided by operating activities in the first half of 2017 was $90.2 million, an increase compared to the $75.8 million of cash provided in the first half of 2016. The increase was primarily driven by higher operating results and a lower than anticipated working capital build with national oil companies through our efficient working capital management. 1 There is no assurance that bids outstanding will be awarded to McDermott or that outstanding change orders ultimately will be approved and paid by the applicable customers in the full amounts requested or at all. 2 Target projects are those that McDermott has identified as anticipated to be awarded by customers in the next five quarters through competitive bidding processes and capable of being performed by McDermott. There is no assurance that target projects will be awarded to McDermott. 3 Corporate and Other includes corporate expenses, certain centrally managed initiatives (such as restructuring charges), impairments, year-end mark-to-market (“MTM”) pension actuarial gains and losses, costs not attributable to a particular reportable segment and unallocated direct operating expenses associated with the underutilization of vessels, fabrication facilities and engineering resources. As of June 30, 2017, the Company’s backlog was $3.3 billion, compared to $3.9 billion at March 31, 2017. Of the June 30, 2017 backlog, approximately 85% was related to offshore operations and approximately 15% was related to subsea operations.  Order intake in the second quarter of 2017 totaled $188 million, resulting in a book-to-bill ratio of 0.2x.  At June 30, 2017, the Company had bids and change orders outstanding and identified target projects of approximately $1.4 billion and $15.4 billion, respectively, in its pipeline that we expect will be awarded in the market through September 30, 2018.  In total, the Company’s potential revenue pipeline, including backlog, was $20.1 billion as of June 30, 2017. In the Americas, Europe and Africa (“AEA”) Area, during the second quarter of 2017, detail design and fabrication of the compression platform for the Pemex Abkatun-A2 project, the largest facility McDermott has constructed for Pemex, continued progressing on schedule.  Procured equipment has begun to arrive, with major lifts of the mezzanine and top deck sections remaining on schedule and jacket fabrication commencing.  During the quarter, we were awarded the BP Angelin project for a drilling platform located in Trinidad and Tobago, after successfully performing the pre-front end engineering design (pre-FEED) and front-end engineering design (FEED).  The jacket and topside fabrication has commenced in our Altamira yard and is progressing on schedule.  This award validates McDermott’s engineering as a differentiator strategy, as the project went from pre-FEED to FEED and then to full EPCIC, while also demonstrating a key relationship as the super majors begin to increase spending.  The Hess Penn State project, a subsea tieback contract in 1,500 feet of water in the Gulf of Mexico, continued to make significant progress.  Fabrication of the rigid pipeline stalks was completed in our Gulfport spoolbase, with installation expected in the third quarter of 2017.  Engineering for the Atlanta Project in Brazil was completed with all flexible lines, umbilicals and structures ready to be installed.  Upgrades to our Altamira fabrication yard are essentially complete.  We believe these upgrades position us well to deliver larger jackets and decks we anticipate customers will require in this growth market as the energy reform continues to achieve demonstrated success. In the Middle East (“MEA”) Area, fabrication activity continued to operate well above our standard levels while area marine assets continued to operate at historic high levels, leading to continued increased profitability, while maintaining high standards of quality performance and safety.  The DLV 2000 and the Amazon joined the area fleet and are now active on existing, shallow-water campaigns. Fabrication on the Saudi Aramco LTA II project is progressing on schedule.  Additionally, the three Saudi Aramco projects awarded in 2016 are progressing on schedule.  Engineering and procurement activities associated with the Safaniya Phase 5 and 4 Jackets and 3 Observation Platforms projects are progressing well and in-line with the planned schedules. Moreover, significant progress has been achieved on the KJO Hout project in relation to both the pipeline related activities and hook up and pre-commissioning work, with the project expected to be substantially complete in the second half of 2017.  The Area’s exceptional QHSES performance was maintained through the second quarter, resulting in excess of 61 million man hours Lost Time Incident (“LTI”) free. In the Asia (“ASA”) Area, during the second quarter of 2017, McDermott successfully completed the mooring and hook-up of the world’s largest semi-submersible facility ever built, the Ichthys Explorer Central Processing Facility (CPF) off the coast of Australia. The LV 108 is now utilizing its vertical lay system to install the flexible risers and umbilicals.  The remediation work for the failure identified in a supplier-provided subsea-pipe connector component was substantially complete with diving intervention by July 7, 2017, and the remaining residual work expected to be completed in the second half of 2017.  The diving intervention on Ichthys was the deepest saturation dive ever performed off the coast of Australia and was performed without incident. Engineering, procurement and fabrication for the Woodside Greater Western Flank Phase 2 pipeline project continues, with the project progressing on schedule. In India, the ONGC Vashishta project continues to achieve significant progress, with completion of the remaining deepwater pipeline sections utilizing the NO 105.  Our consortium partner, Larsen & Toubro, is finalizing the construction of the onshore pipeline sections and installation of the onshore umbilical.  In Batam, we completed the Yamal LNG project on time, with successful load out and sail away of the last three modules in April 2017.  Also in Batam, the fabrication of 14 jackets for Saudi Aramco progressed well with the last 3 jackets completed early in the third quarter and loaded out for delivery to Ras Tanura, Saudi Arabia.  In Brunei, the Brunei Shell Petroleum offshore pipeline installation is nearing a successful completion with both pipelines laid by the DB 30.                                                                           In the second quarter of 2017 for Corporate and Other, costs were mainly attributable to selling, general, and administrative expenses of $23.5 million and unallocated direct operating expenses of $27.5 million. Unallocated direct operating expenses were primarily driven by the ramp-down of activity in the Batam fabrication yard, upgrade time for the Amazon and drydock time for the DB 27. ~ = approximately 1 Our forecasted net income attributable to McDermott does not include any amount representing 2017 year-end pension actuarial gain or loss, because we have no basis to estimate pension actuarial gain or loss amounts for the forecast period and cannot estimate such amount without unreasonable effort.  2 Net Interest Expense is gross interest expense less capitalized interest and interest income. 3 Ending Gross Debt excludes debt issuance costs. 4 The calculations of EBITDA, Free Cash Flow and Adjusted Free Cash Flow, which are Non-GAAP measures, are shown in the appendix entitled “Reconciliation of Forecast Non-GAAP Financial Measures to GAAP Financial Measures.” 5 Corporate and Other includes corporate expenses, certain centrally managed initiatives (such as restructuring charges), impairments, year-end mark-to-market (“MTM”) pension actuarial gains and losses, costs not attributable to a particular reportable segment, and unallocated direct operating expenses associated with the underutilization of vessels, fabrication facilities and engineering resources. We are adjusting our guidance for Cash Interest / DIC Amortization Interest, Ending Cash, Restricted Cash and Cash Equivalents and Ending Gross Debt.  These measures have been updated to reflect the impact of our Amended and Restated Credit Agreement signed in the second quarter, including the repayment of our previously outstanding term loan, which had an outstanding principal amount of approximately $217 million, and the related changes to our interest and debt issuance costs. Anticipated corporate costs forecasted under Corporate and Other includes $115 million of unallocated direct operating expenses resulting from the expected underutilization of some of our marine and fabrication assets during 2017. The actual cost to replace the supplier-provided subsea-pipe connector components on Ichthys was less than our December 31, 2016 estimated costs and the remediation plan is substantially complete, with residual work planned for the second half of 2017. Weighted average common shares outstanding on a fully diluted basis were approximately 285.0 million and 284.9 million for the quarters ended June 30, 2017 and 2016, respectively, and 284.1 million and 283.1 million for the six months ended June 30, 2017 and 2016, respectively.  Additional weighted average shares of 898.8 thousand and 40.9 million related to the Tangible Equity Units (“TEUs”), as well as other potentially dilutive shares, were included in the quarterly dilution calculation for the quarters ended June 30, 2017 and 2016, respectively, and 19.3 million and 40.9 million for the six months ended June 30, 2017 and 2016, respectively. McDermott has scheduled a conference call and webcast related to its second quarter 2017 results at 7:30 a.m., U.S. Central Time, today.  Interested parties may listen over the Internet through a link posted in the Investor Relations section of McDermott’s website. A replay of the webcast will be available for seven days after the call and may be accessed by dialing (855) 859-2056, Passcode 47050158. In addition, a presentation will be available on the Investor Relations section of McDermott’s website that contains supplemental information on McDermott’s financials, operations and 2017 Guidance. McDermott is a leading provider of integrated engineering, procurement, construction and installation (“EPCI”), front-end engineering and design (“FEED”) and module fabrication services for upstream field developments worldwide. McDermott delivers fixed and floating production facilities, pipelines, installations and subsea systems from concept to commissioning for complex Offshore and Subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons.  Our customers include national and major energy companies.  Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver.  McDermott has served the energy industry since 1923, and shares of its common stock are listed on the New York Stock Exchange. To learn more, please visit our website at www.mcdermott.com This press release includes several “non-GAAP” financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with GAAP, but believe that certain non-GAAP financial measures provide useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and are useful for period-over-period comparisons of those operations. Non-GAAP measures are comprised of the total and diluted per share amounts of adjusted net income attributable to McDermott and adjusted operating income and operating income margin for McDermott, in each case excluding the impact of certain identified items.  The excluded items represent items that our management does not consider to be representative of our normal operations.  We believe that total and diluted per share adjusted net income and adjusted operating income and operating margin are useful measures for investors to review because they provide a consistent measure of the underlying financial results of our ongoing business and, in our management’s view, allows for a supplemental comparison against historical results and expectations for future performance. Furthermore, our management uses adjusted net income and adjusted operating income as a measure of the performance of our operations for budgeting and forecasting, as well as employee incentive compensation. However, Non-GAAP measures should not be considered as substitutes for operating income, net income or other data prepared and reported in accordance with GAAP and should be viewed in addition to our reported results prepared in accordance with GAAP. The forecast non-GAAP measures we have presented in this press release include forecast free cash flow, adjusted free cash flow and EBITDA, in each case excluding the impact of certain identified items. We believe these forward-looking financial measures are within reasonable measure.  We define “free cash flow” as cash flows from operations less capital expenditures.  We believe investors consider free cash flow as an important measure, because it generally represents funds available to pursue opportunities that may enhance shareholder value, such as making acquisitions or other investments.  Our management uses free cash flow for that reason.  Additionally, adjusted free cash flow represents free cash flow plus cash received as a result of the sale leaseback arrangement for the acquisition of the Amazon vessel.  We define EBITDA as net income plus depreciation and amortization, interest expense, net, and provision for income taxes.  We have included EBITDA disclosures in this press release because EBITDA is widely used by investors for valuation and comparing our financial performance with the performance of other companies in our industry.  Our management also uses EBITDA to monitor and compare the financial performance of our operations.  EBITDA does not give effect to the cash that we must use to service our debt or pay our income taxes, and thus does reflect the funds actually available for capital expenditures, dividends or various other purposes.  Our presentations of free cash flow and EBITDA may not be comparable to similarly titled measures in other companies’ reports.   You should not consider free cash flow and EBITDA in isolation from, or as a substitute for, net income or cash flow measures prepared in accordance with U.S. GAAP. Reconciliations of these non-GAAP financial measures and forecast non-GAAP financial measures to the most comparable GAAP measures are provided in the tables set forth at the end of this press release. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, bids and change orders outstanding, target projects and revenue pipeline, to the extent these may be viewed as indicators of future revenues or profitability, our beliefs with respect to the expected benefits to be derived from recent strategic activities, the expected scope, execution and timing associated with the projects discussed, the expected timing of and benefits to be provided by upgrades to our Altamira fabrication yard, McDermott’s earnings and other guidance for 2017 and expectations related to the guidance, expectations with respect to change orders, close-outs and settlements, our expectations with respect to the range of additional costs on the Ichthys project related to the subsea-pipe connector component issue identified in January 2017 and the timing of completion of the remaining residual work and the expected underutilization of our marine assets in 2017. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings.  If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected.  You should not place undue reliance on forward looking statements.  For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement. McDERMOTT INTERNATIONAL, INC. RECONCILIATION OF NON-GAAP TO GAAP FINANCIAL MEASURES McDermott reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also includes several Non-GAAP financial measures as defined under the SEC’s Regulation G. The following tables reconcile Non-GAAP financial measures to comparable GAAP financial measures: 1 Restructuring charges were primarily associated with personnel reductions, facility closures, consultant fees, lease terminations and asset impairments. 2 During the first quarter of 2016, we recognized a $32.3 million impairment charge related to our Agile vessel following the customer’s termination of the vessel charter in May 2016 and given the lack of opportunities for the vessel. The Agile was decommissioned and disposed of in the third quarter of 2016. 3 Represents tax effects of Non-GAAP adjustments.  The Non-GAAP adjusting items are primarily attributable to tax jurisdictions in which we currently do not pay taxes and, therefore, no tax impact is applied to those items.  For the Non-GAAP adjusting items in jurisdictions where taxes are paid, the tax impacts on those adjustments are computed, individually, using the statutory tax rate in effect in each applicable taxable jurisdiction. 4 Includes the Non-GAAP adjustments described in footnotes 1 and 2 above for each applicable period.


News Article | March 1, 2017
Site: globenewswire.com

HOUSTON, March 01, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today a contract award from Hess Corporation for subsea tieback work for its deepwater Penn State Deep (PSD) field in the Gulf of Mexico. “This marks our first project with Hess Corporation in recent history and we look forward to providing industry best operational excellence, quality and safety,” said Scott Munro, McDermott’s Vice President for Americas, Europe and Africa. “Once again, we have demonstrated that we can provide the best total solution for our clients.  We look forward to a long and mutually beneficial relationship with Hess.” The PSD field is located in the Garden Banks 216 block in approximately 1,500 feet of water. Discovered in 1996, the PSD field began production in 1999. The lump sum contract will be reflected in McDermott’s first quarter 2017 backlog. About McDermott McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com. Forward-Looking Statement In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, statements about backlog, to the extent backlog may be viewed as an indicator of future revenues, and the expected scope, execution and timing associated with the project discussed in this press release. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings.  If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2015 and subsequent quarterly reports on Form 10-Q. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


DUBAI, Feb. 27, 2017 (GLOBE NEWSWIRE) -- Leading EPCI contractor McDermott International, Inc. (NYSE:MDR), today announced it reached 50 million man-hours without a lost time incident in its Middle East Area. “Everyone at McDermott had a part to play in reaching the 50 million man-hour milestone; it was achieved through mutual regard for each other and dedicated teamwork,” said Linh Austin, McDermott’s Vice President, Middle East and Caspian. “Safety isn’t just a procedure for us, it’s a culture deep-rooted within every function and division of our business. It is our number one priority.” The industry-leading safety milestone, which was reached on January 27th 2017, was achieved in part through the company-wide adoption of McDermott’s Taking the Lead program and implementation of McDermott Operational Values (“MOVs”).  These programs seek to embed excellence in safety performance and a “safety-first” attitude and behaviors into the company culture.  The MOVs were created to identify key procedures and processes needed for safety success. The achievement dates back to October 22, 2013 and since then McDermott has fabricated and installed 38 topsides and 47 jackets with a combined weight of 89,978 tons (81,537 tonnes) – the equivalent in mass to about eight Eiffel Towers or nearly twice the weight of steel rebar used in building the Burj Khalifa. In addition, McDermott installed a total of 135 miles (217 kilometers) of pipelines and 194 miles (313 kilometers) of cables. As a company, McDermott recently reached one year without a lost time incident, which includes the Company’s four global fabrication facilities, two spool bases, 12 McDermott-owned/operated offshore vessels and offices around the world. About McDermott McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com.


News Article | February 21, 2017
Site: globenewswire.com

HOUSTON, Feb. 21, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today it has acquired the newly built pipelay and construction vessel Amazon to better position the Company for ultradeepwater and SURF projects. A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/a4d679f2-029c-4f98-be24-f63e722974c8. “This is a great opportunity for the Company to expand the technical capabilities of our global fleet and grow in the deepwater and SURF markets and greatly increase our ultradeepwater project coverage,” said David Dickson, President and Chief Executive Officer of McDermott. “Due to current market conditions and the opportunistic nature of the transaction, we were able to acquire what is essentially a new, enabling asset at a fraction of the original build cost.” McDermott plans to upgrade the vessel to address the ultradeepwater market with a state-of-the-art J-lay system outfitted with the latest vessel technology. In the near term, the Company plans to make minor capital expenditure investments to bring the vessel up to Company standards. As McDermott finalizes its upgrade plans, the Company plans to use the vessel on existing construction and pipelay projects. Funding for the vessel acquisition has been secured through a sale and leaseback arrangement under which McDermott has control of the vessel in exchange for a daily charter-hire rate. The planned upgrade to the state-of-the-art J-lay system and related financing are expected to be considered in line with market conditions. Completed in 2014, the Amazon is equipped with 49,514 square feet (4,600 square meters) of deck space complete with two 440-ton (400-tonne) cranes, a service speed of 12 knots and accommodation for up to 200 crew and service staff. For more information about the vessel acquisition, visit McDermott’s Investor Relations web page. About McDermott McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com. Forward-Looking Statement In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties that may impact McDermott's actual results of operations. These forward-looking statements include, among other things, our beliefs and expectations with respect to the benefits and opportunities for McDermott resulting from the Amazon, McDermott’s plans with respect to vessel fleet strategy and market position, the expected plans, timing and utilization of the Amazon, as well as the expected scope, timing and sources of funding of potential upgrades to the Amazon. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including, among others: adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog, changes in project design or schedules, the availability of qualified personnel, changes in the terms, scope or timing of contracts, contract cancellations, change orders and other modifications and actions by our customers and other business counterparties, changes in industry norms and adverse outcomes in legal or other dispute resolution proceedings.  If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You should not place undue reliance on forward-looking statements.  For a more complete discussion of these and other risk factors, please see McDermott's annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2016. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.


HOUSTON, Feb. 22, 2017 (GLOBE NEWSWIRE) -- McDermott International, Inc. (NYSE:MDR) announced today that Scott Munro, Vice President, Americas, Europe & Africa, will speak at the DNB Annual Oil, Offshore & Shipping Conference in Oslo, Norway on March 1, 2017 at 3:25 p.m. Central European Time/8:25 a.m. Central Time. McDermott will post the slides to be used prior to the presentation in the Investor Relations area at www.mcdermott.com. About McDermott McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. The Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning for complex offshore and subsea oil and gas projects to help oil companies safely produce and transport hydrocarbons. Our customers include national and major energy companies. Operating in approximately 20 countries across the world, our locally focused and globally integrated resources include approximately 12,400 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices. We are renowned for our extensive knowledge and experience, technological advancements, performance records, superior safety and commitment to deliver. McDermott has served the energy industry since 1923.  As used in this press release, McDermott includes McDermott International, Inc. and its subsidiaries and affiliates. To learn more, visit our website at www.mcdermott.com.

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