NEW YORK (TheStreet) -- Shares of McDermott International (MDR) were gaining 3.3% to $5.66 on Tuesday after the oil company announced it was awarded a "sizable" lump sum contract by LLOG Exploration Offshore.
As part of the new contract, McDermott will support LLOG's Otis development in the Gulf of Mexico. The contract includes project management and the engineering, fabrication, and installation of a 75,000-foot insulated rigid flowline and insulated steel catenary riser (SCR) with associated pipeline end termination (PLET) and jumper.
The installation is scheduled to be completed in early 2016. The company said it will include the lump sum contract in its second quarter 2015 backlog.
Rising oil prices could also be a cause for McDermott's gains. WTI crude oil for August delivery was up 1.2% to $61.10 a barrel Tuesday afternoon, and Brent crude oil for August delivery was up 1.6% to $64.37 a barrel.
Insight From TheStreet's Insight Team:
McDermott International is a core holding of David Peltier's Stocks Under $10 Portfolio. During the most recent weekly roundup, this is what Dave had to say about the stock:
McDermott (MDR; 800 shares; 2.42%; Inflection Point; $11.50 price target): This engineering and construction firm focuses on building and designing offshore oil and natural gas facilities. The shares ticked lower this week, along with the underlying price of oil. That said, on Thursday the company announced a new contract win in Russia. We believe that management can continue to turn the business around in the coming quarters.