McDermott reports $2.7bn net loss in 2018

The company noted in a press release that this was primarily due to factors impacting it in Q4 2018

David Dickson, president and CEO of McDermott, which merged with CB&I in 2018
David Dickson, president and CEO of McDermott, which merged with CB&I in 2018

McDermott released its financial results for 2018, reporting a $2.7bn net loss for the full year.

Q4 2018 had the strongest impact on the company's bottom line, as it noted several non-recurring charges, the largest of which include a $2.2bn goodwill impairment charge and a $190mn reduction in the carrying value of the company's deferred tax assets, among other multimillion dollar charges.

"Although the headline numbers distract from the Company's underlying fundamental strength, McDermott is continuing to progress toward the realization of its full potential as a premier, fully integrated provider of technology, engineering and construction solutions," said President and CEO David Dickson.

It noted 2018 revenue of $417mn from the Middle East and North Africa, "primarily driven by procurement, fabrication and hook-up activity on several offshore projects, and engineering and procurement activities on various onshore projects."

Looking ahead to 2019, McDermott cited a "robust order intake of approximately $5.5bn early in the first quarter of 2019," which includes two EPCI contracts worth up to $1bn for Saudi Aramco's $15bn offshore Marjan development project.

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