McDermott International, Inc. (NYSE: MDR) (“McDermott”) announced today that one of its subsidiaries has sold the site of the former Harbor Island fabrication yard near Corpus Christi, Texas, which closed in 2003, for proceeds of $31.7 million. A gain of $25 million from the sale is expected to be recognized in the second quarter of 2014.
“The sale represents progress made towards our goal of divesting underutilized non-core assets,” said David Dickson, President and Chief Executive Officer at McDermott. “The concentration of capital on assets that provide McDermott with a competitive advantage is an important part of our plan to deliver sustainable long-term returns.”
McDermott is a leading provider of integrated engineering, procurement, construction and installation (EPCI) services for upstream field developments worldwide. McDermott 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. Operating in more than 20 countries across the world, McDermott’s locally focused and globally integrated resources include approximately 14,000 employees, a diversified fleet of specialty marine construction vessels, fabrication facilities and engineering offices.
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FORWARD LOOKING STATEMENTS
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include the expected timing for the gain resulting from the sale to be recognized. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous risks, contingencies and uncertainties, including without limitation, adverse changes in the markets in which we operate or credit markets. 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 this and other risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2013. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.