Businessweek

McDermott International Inc. reported consolidated earnings results for the first quarter ended March 31, 2013. For the period, the company has posted revenues of $807,488,000 against $727,678,000 a year ago. The year-over-year increase was primarily due to an approximately $48.6 million increase in revenues in the Atlantic segment as a result of increased fabrication activity, coupled with increased revenues in the Asia Pacific and Middle East segments. Operating income was $53,033,000 against $80,176,000 a year ago. The first quarter 2013 results were affected by operating losses in the Middle East and Atlantic segments, partially offset by stronger operating income in Asia Pacific segment. Net income was $24,318,000 against $65,424,000 a year ago. Net income attributable to company was $20,553,000 or $0.09 diluted per share against $62,758,000 or $0.26 diluted per share a year ago. Capital expenditure was $37,649,000 against $44,751,000 a year ago. Total cash used in operating activities--continuing operations was $187,115,000 against total cash generated from operating activities--continuing operations was $172,861,000 a year ago. Compared to last year's quarter, the increased revenues came from all geographic segments. Company’s debt position declined slightly to $101 million. For the full year of 2013, the company continue to be comfortable that full year revenues at or slightly above the $3 billion range is reasonable. The company expects operating margins to be in the range of the 7% reported first quarter operating margin and expect fourth quarter to make the most significant contribution because it includes the anticipated recognition of profit on Papa Terra project. As a result, it may experience operating income margins below the 7% full year guidance in the second and third quarters, which could be near breakeven or even a loss. The company continues to expect full year maintenance CapEx to be in the range of $75 million to $100 million. For the full year of 2014, the company continues to expect annual total capital expenditures in the range of $400 million to $500 million in both 2013 and 2014.

McDermott International Inc., Q1 2013 Earnings Call, May 09, 2013

McDermott International Inc. announced that they will report Q1, 2013 results at 5:00 PM, Eastern Standard Time on May 08, 2013

McDermott International Inc. announced that one of its subsidiaries has been awarded two projects for a customer in the Arabian Gulf. The value of these contracts is approximately USD 900 million and is included in McDermott's first quarter 2013 backlog. The first project includes engineering, procurement, construction and installation of a new tie-in platform, with a 3,200-tonne topside and six-pile jacket, two auxiliary platforms, jackets and bridges as well as five observation platforms, 72 kilometers of pipelines and 45 kilometers of subsea cables. Water depths range from 10 to 30 meters. Also included in the project scope is significant brownfield work, comprising upgrades to five platforms with new main, mezzanine, cellar and helicopter decks and new boat landings. Project completion is expected in the third quarter 2015. The second contract includes the fabrication, transportation and installation of five drill support structures weighing a total of 7,993 tonnes in water depths ranging from 30 to 65 meters. Project completion, including hookup and commissioning, is expected to be in the first quarter of 2014. Engineering for these projects will be undertaken by McDermott at its Al-Khobar and Dubai engineering offices, with construction scheduled at the company's fabrication facility at Jebel Ali, United Arab Emirates. The offshore scopes will be installed using vessels from the McDermott fleet.

On March 25, 2013, McDermott International Inc. and certain of its wholly owned subsidiaries, as guarantors, entered into a second amendment and consent to the credit agreement dated May 3, 2010, among the borrower, Crédit Agricole Corporate and Investment Bank, as administrative agent and collateral agent, and certain lenders and letter of credit issuers party thereto. Amendment No. 2 amended the credit agreement to, among other things: release the Collateral Agent’s mortgage on the marine vessel McDermott Derrick Barge No. 30; permit the transfer of the DB 30 to a Malaysian joint venture in which the borrower, indirectly through certain of its subsidiaries, has an interest; permit the borrower to, directly or indirectly through subsidiaries, make a loan to the Malaysian JV without otherwise using the credit agreement’s investment baskets; and permit the exchange of a portion of the equity issued by the Malaysian JV held through the borrower’s subsidiaries for a portion of the equity issued by an unaffiliated Malaysian company that owns a fabrication yard. In connection with entering into amendment No. 2, the borrower paid a consent fee to the lenders party thereto.