McDermott reports profitable third quarterCompany News // October 28, 2016
McDermott International has reported a profitable quarter due to strong project execution and cost management. The company said it had as strong foundation for 2017, with US$2.4 billion of expected revenue in its backlog.
“We are pleased to report another profitable quarter during this prolonged industry downturn. McDermott’s excellence in project execution and committed focus on quality, safety and costs resulting from our “One McDermott Way” initiative led to overall profitability and key project milestone completions,” said David Dickson, President and Chief Executive Officer of McDermott.
“As we navigate through the current industry cycle, McDermott continues to put a strong focus on consistency across the globe within engineering, project execution, quality and safety. This has led to increased capabilities and capacity by leveraging our global assets for our local customers.
"All three operating areas achieved on schedule, key milestone deliveries and accomplishments this quarter, highlighting our ability to provide locally-executed and vertically-integrated solutions to meet our customers’ most challenging needs.
"We continue to see active bidding opportunities in the geographies in which we operate. While we have seen reduced order intake in the third quarter, our revenue pipeline remains solid and bidding activity remains high. As this current macro environment remains challenged, we always expect the pattern of awards to be uneven throughout the year, as a result of the timing of customer investment decisions. We therefore focus on the things we can control, such as strong project execution, cost discipline and asset utilization to manage through the cycle.
"We also enter the fourth quarter with a strong foundation for 2017, with US$2.4 billion of expected revenue already recorded in backlog, and we expect to continue to maintain our focus on markets where capital is available to invest and further strengthen our customer relationships.”