McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) today announced financial results for the quarter ended March 31, 2014. The Company reported a first quarter net loss of $50 million or $0.21 per fully diluted share, and an operating loss of $42 million. The Company reported first quarter revenues of $604 million, a decrease of 25% percent compared to revenues of $807 million in the corresponding period of 2013. The Company reported first quarter 2013 net income of $21 million, or $0.09 per fully diluted share, and operating income of $53 million.
“While our financial results reflect the impact of our legacy backlog and reorganization expenses, we made significant progress during the quarter on our plan to improve operational performance of the Company,” said David Dickson, President and Chief Executive Officer of McDermott. “With the support and confidence of our lenders and investors, we completed our new financing arrangements in April; we improved focus on business accountability and customer relationships; and we completed our remaining first-of-a-kind projects in Malaysia and Brazil.”
Dickson added, “We are starting to see tangible improvement in the performance and execution of many of our legacy projects. We completed installation of the tension leg platform for the Papa Terra project in Brazil, achieved mechanical completion of Siakap in Malaysia, and installation of the COP project in Azerbaijan is complete. As we complete implementation of our new organization, we look forward to further operational improvements and capitalizing on the robust offshore EPCI market to drive long-term growth, profitability and shareholder value creation.”
Contract Backlog SummaryAs of March 31, 2014, the Company’s backlog was approximately $4.4 billion, compared to $4.8 billion at December 31, 2013. Of the March 31, 2014 backlog, approximately 42% related to offshore operations and approximately 58% related to subsea operations. As expected, bookings during the first quarter totaled $166 million and included a charter of the Lay Vessel North Ocean 105 in Brazil. At the end of the first quarter, the Company had $3.5 billion in bids and change orders outstanding. The Company is targeting to bid approximately $17 billion in projects that are expected to be awarded in the next five quarters. In total, the Company’s revenue pipeline was $25 billion as of March 31, 2014.