The company was awarded a contract for a large engineering, procurement, construction, and installation (EPCI) project by an unspecified operator in the Arabian Gulf. As part of the contract McDermott will engineer, fabricate, transport, and install four new offshore topsides facilities in the area. The company will also modify two existing production facilities.
"The project is part of a plan to boost oil production from existing fields, by the implementation of gas injection technology, and the installation of new production wells," president and CEO David Disckon said in a statement. "Our ability to provide sound technical solutions in both brownfield and greenfield scopes supported by our regional capabilities in providing fabrication, marine and manpower resources has helped us secure this award."
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TheStreet Ratings team rates MCDERMOTT INTL INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate MCDERMOTT INTL INC (MDR) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."