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And with that disclosure let me now turn the call over to Steve for his opening remarks.Stephen M. Johnson Thank you, Jay, and thanks to everyone for joining us today. McDermott reported solid results for 2012 second quarter. And in my view the quarter was good across the board, albeit fairly uneventful, which is fine. We are pretty much in line, where we expected to be at this mid-point of the year, which keeps us on pace for 2012. To cut to the chase, McDermott reported net income of $52.7 million with earnings per share of $0.22 for the 2012 second quarter, which brings year-to-date net income through June 30 to $112 million or $0.47 per share. Perry will cover our financials in detail in a few minutes, but as I indicated we feel good about where we are currently. During the quarter, McDermott had bookings of about $830 million with the book-to-bill ratio of about 93%, which keeps the Company’s backlog at near record levels with the total $5.75 billion. Most of the projects that entered backlog during the quarter were more modest in size, but in total they added up. We had a number of awards from Saudi Aramco in the Middle East segment, including several under the long-term agreement. We expect to see some more of this type of work as the year progresses. New awards were somewhat light in the Asia Pacific segment, primarily change orders, following last quarter’s substantial bookings. In the Atlantic, we had a good quarter with over $300 million in bookings including the Ayatsil-B project for PEMEX, the William‘s Discovery Junction award the William’s Spar installation and the British Gas living quarters. We also had a few other awards and several change orders and scope growth. In fact, the Atlantic’s June 30 backlog of $850 million is the highest level since 2002 even better we continue to see a number of opportunities ahead in the region. Altogether, this is tangible evidence that the Atlantic segment is on track and as I have mentioned in the past, we expect this segment to return to profitability in next year.
Even with solid quarterly bookings and a backlog at historical highs, our bids outstanding still grew substantially. At quarter end, we had $7 billion of bids and change orders outstanding, which compares to about $4.8 billion in the sequential quarter and more than doubled the $3.3 billion from a year ago.In any given quarter we have typically about 30 to 40 individual bids outstanding and we were slightly over the high end of the range at June 30. To give you a bit more color, of the 2012 second quarter amount we have about three bids around the $1 billion level, a dozen or so in the $100 million plus range and the bulk of the bids would be in the sub $100 million category. The majority of our current bids outstandings are traditional, conventional work and only about half of the total dollar value is fixed price. While predicting the timing of any award is always difficult since it’s in the client’s hands and even in the best of times delays are common, our current forecast is for about half of the dollar amount of our bids to be awarded within the industry by year-end and the rest during the first half of 2013. Although we’d always like for awards to come faster, it’s certainly encouraging to continue to see such a robust market. Even as bids outstanding have grown, our target list of projects has not suffered. We still have about $10 billion of targets identified. And as a reminder, targets are those projects that we intend to bid in the future, are well suited for us and that we expect to reach award stage in the coming 15 months. So if you combined bids outstanding with backlog and target projects, all as of June 30, 2012. You see a revenue pipeline potential that exceeds $22 billion.
And we also maintain a list of backup projects that may be considered. As always, the primary goal, whether it’s with an existing project a bid or a target is the development and execution of quality backlog. The market seems promising, but there will remain quarterly spikes and troughs.Read the rest of this transcript for free on seekingalpha.com