McDermott sees "record-setting" backlog and new awards in Q2 2019
Major wins from Saudi Aramco and ADNOC padded the company's new awards in the quarter and led it to MENA revenues of $399mn
McDermott has reported $7.3bn of new awards in the second quarter of 2019, with a $21bn backlog. Its total revenue for the period hit $2.1bn, with $399mn of that coming from the MENA region. However, the firm poisted a net loss of $146mn for the quarter.
"Although the company reported mixed results for the second quarter of 2019, we are encouraged by the record-setting level of backlog and new awards," McDermott CEO David Dickson wrote in a press statement. "We are also pleased with the visibility we have into expected 2020 revenues, of which $7.4bn was already in backlog as of the end of the second quarter of 2019. This is well above the $4.2bn of 2019 revenues we had in backlog this time last year."
Two major new awards for the firm were part of Saudi Aramco's Marjan Increment Programme, which has seen it dole out $18bn in contracts this month. McDermott noted in press release that its revenue opportunity pipeline sat at $90.2bn.
Its results were impacted by a $101mn loss through the sale of its alloy piping products business, and $31mn in restructuring, integration and transaction costs. This puts its adjusted net loss for Q2 2019 at $14mn.
Dickson noted that the in the first half of 2019, the company received more than double the amount of front end engineering design (FEED) contracts than it did in all of 2018.
He noted that FEED work puts McDermott in a better position for EPC opportunities. "This year we have booked $1.5bn of EPC work as a result of FEED work that's been done since the combination."