UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
________________________
FORM
8-K
________________________
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): August 10, 2015
________________________
McDermott International, Inc.
(Exact
name of registrant as specified in its charter)
________________________
REPUBLIC OF PANAMA
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001-08430
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72-0593134
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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757 N. Eldridge Parkway
Houston, Texas
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77079
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s Telephone Number, including Area Code: (281) 870-5000
(Former
name or former address, if changed since last report)
________________________
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
________________________
Item 2.02 Results of Operations and Financial Condition.
On August 10, 2015, we issued a press release announcing our financial
results for the quarter ended June 30, 2015. A copy of the press
release is furnished as Exhibit 99.1, and the information contained in
Exhibit 99.1 is incorporated by reference.
The information furnished pursuant to this Item 2.02, including Exhibit
99.1, shall not be deemed to be “filed” for the purposes of Section 18
of the Securities Exchange Act of 1934, as amended, (the “Exchange
Act”), or otherwise subject to the liabilities of that section, nor
shall such information be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended, or the Exchange Act,
except as shall be expressly set forth by specific reference in such
filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press Release dated August 10, 2015.
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
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McDERMOTT INTERNATIONAL, INC.
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By:
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/s/ Stuart Spence
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Stuart Spence
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Executive Vice President and Chief Financial Officer
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August 10, 2015
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EXHIBIT INDEX
Exhibit
Number
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Description
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99.1
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Press Release dated August 10, 2015.
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4
Exhibit 99.1
McDermott
Reports Second Quarter 2015 Financial and Operational Results
Positive
Financial Results Reported Across All Business Areas
Strong
Execution on Current Project Portfolio
Revised
Guidance for Full Year 2015
Company
to Host Conference Call and Webcast Today at 4:00 pm CDT
HOUSTON--(BUSINESS WIRE)--August 10, 2015--McDermott International, Inc.
(NYSE: MDR) (“McDermott” or the “Company”) today announced financial and
operational results for the quarter ended June 30, 2015. The Company
reported second quarter 2015 net income of $11.5 million, or $0.04 per
fully diluted share compared to a net loss of $7.4 million, or $0.03 per
diluted share, in the prior-year quarter. Net of restructuring charges
and one-time losses on the impairment and disposal of assets, the second
quarter income would have been increased by $24.1 million or $0.08 per
fully diluted share.
“This was another positive quarter for McDermott as we experienced
excellent execution on our existing portfolio of projects and all of our
areas returned to profitability. While the timing of new order intake
remains volatile as commodity prices remain low, we continue to leverage
McDermott’s vertically integrated model and win contracts in our key
markets, including a new project for Saudi Aramco and two new projects
in the Americas. Additionally, we remain disciplined in bidding new
projects and continue to actively manage our cost structure,” said David
Dickson, President and Chief Executive Officer of McDermott. “The end of
the second quarter also marked a significant achievement for the Company
in health and safety. With a continued focus on HSE and project
execution, we exceeded the key milestone of one year without a loss-time
incident in all of McDermott’s global operations.”
Second Quarter 2015 Operating Results
The Company reported second quarter 2015 revenues of $1.05 billion, an
increase of $570.5 million, compared to revenues of $476.1 million for
the prior-year second quarter. Revenues for the second quarter of 2015
were positively impacted by strong revenue recognition at the INPEX
Ichthys project, Brunei Shell Petroleum project and three Middle East
projects.
McDermott’s operating income was $41.6 million for the second quarter of
2015 and included $15.4 million of restructuring expenses and $8.7
million of one-time losses on the impairment and disposal of assets.
These results compare to the 2014 second quarter operating income of
$31.5 million, which included $1.3 million of restructuring expenses and
$45.7 million of gains from the disposal of assets and impairments. Net
of the asset gains and impairments, the operating income for the second
quarter of 2014 would have been negative. Operating income for the
second quarter 2015 was positively impacted by revenue improvements, a
project close out in Brazil and marine utilization.
Cash used in operating activities in the second quarter 2015 was $7.6
million, compared to a use of cash of $70.6 million for the second
quarter 2014.
Operational Update
In Americas, Europe and Africa (“AEA”), the Company’s PB Litoral project
is nearing completion with preparations well underway for the conclusion
of the construction, offshore installation, hook-up and commissioning.
The project remains on track with sail-away of the 7,200-ton structure,
from the Company’s Altamira yard, expected near the end of the third
quarter. In May, the Altamira fabrication yard reached seven million man
hours without a Lost Time Injury (“LTI”). During the quarter,
McDermott’s Derrick Barge 50 (“DB 50”) installed a mobile drilling
structure on top of the Pemex Ayatsil A platform for Drillmec. In
addition, the Company was awarded its fourth contract from Pemex in the
Ayatsil field, for the construction of a replacement jacket and
associated deck installation. The DB 50 also supported Heerema and
Anadarko with the installation of the Heidelberg Spar hull in the U.S.
Gulf of Mexico (“GOM”). Recently, McDermott was awarded the LLOG OTIS
subsea project, to be executed in the GOM. The pipeline to be installed
as part of the OTIS project is expected to be the first subsea rigid
pipe reeling scope to be executed at the McDermott spoolbase, currently
under development in Gulfport, Mississippi.
In the Middle East (“MEA”), McDermott was awarded a large brownfield
contract by Saudi Aramco for the full engineering, procurement,
construction and installation (“EPCI”) scope of 12 jackets for various
offshore oil and gas fields in Saudi Arabian waters. In addition, Saudi
Aramco selected McDermott as one of the companies for its new Long Term
Agreement (“LTA”) award. The LTA establishes the terms and conditions by
which McDermott can bid on future EPCI opportunities offshore Saudi
Arabia. The award is the second LTA between McDermott and Saudi Aramco.
Currently, McDermott executes work under the prior LTA with Saudi
Aramco, which has been in place since June 2007. At another ongoing
project with Saudi Aramco, McDermott was asked to significantly
accelerate the schedule of the fabrication and marine installation
program to accommodate earlier production from the gas field. McDermott
was able to advance the project forward several months. The project
accomplishment was directly attributable to the Company’s collaboration
with its customer and ability to control the complete vertical EPCI
process. Marine Operations in the area also achieved two years without a
recordable injury and two years LTI free.
In Asia (“ASA”), the INPEX Ichthys project achieved all the agreed-upon
milestones during the quarter, remaining on schedule and profitable.
McDermott’s Construction Support Vessel 108 arrived infield at the end
of the second quarter and commenced its extensive marine campaign. On
the Brunei Shell Petroleum Project, the Derrick Barge 30 and Emerald Sea
completed the installation of approximately 50 miles of replacement
pipelines and also tied-in 11 flexible pipelines. In Batam, Indonesia,
McDermott’s fabrication facility received two significant recognition
awards during the quarter. The first recognition was from Chevron
Australia for outstanding environmental control on the Gorgon Project
for Western Australia. The second was received from Badan Penyelenggara
Jaminan Sosial Ketenagakerjaan (Workers’ Social Security Management
Agency) for McDermott’s commitment to the health and safety of its
employees.
Other Financial Information
As of June 30, 2015, McDermott reported total assets of $3.5 billion.
Included in this amount was $771.0 million in cash and cash equivalents
and restricted cash. At quarter end, the Company had $854.2 million in
debt outstanding, inclusive of $24 million of debt issuance costs, and
total equity of $1.6 billion, or 45% of total assets.
Weighted average common shares outstanding on a fully diluted basis were
approximately 289.7 million and 237.4 million for the quarters ended
June 30, 2015 and June 30, 2014, respectively. Common shares for the
settlement of the common stock purchase contracts related to the
Tangible Equity Units (“TEUs”) representing 40.9 million additional
shares, as well as other potentially dilutive shares, were included in
the calculation of diluted weighted average shares for the quarter ended
June 30, 2015, due to the Company’s positive Net Income position. For
the quarter ended June 30, 2014, the TEUs and other dilutive shares were
not considered in the fully diluted share count, due to their
anti-dilutive effect.
Contract Backlog Summary
As of June 30, 2015, the Company’s backlog was $3.1 billion, compared to
$3.75 billion at March 31, 2015. Of the June 30, 2015 backlog,
approximately 52% related to offshore operations and approximately 48%
related to subsea operations. Order intake in the second quarter 2015
totaled $428.5 million and included new awards for Saudi Aramco in the
MEA area, as well as PEMEX and LLOG in the AEA area.
At June 30, 2015, the Company had $7.5 billion in bids and change orders
outstanding, compared to $8.8 billion at March 31, 2015. At June 30,
2015, the Company was targeting to bid approximately $13.5 billion in
projects that it expects to be awarded to the market through September
30, 2016. In total, the Company’s potential revenue pipeline was $24.1
billion as of June 30, 2015. A key change in the total
quarter-over-quarter revenue pipeline was the shift of Chevron’s Gendalo
Gehem mega project in Indonesia beyond the five quarters represented in
the pipeline.
2015 Full Year Guidance Update
McDermott’s guidance for the full year of 2015 is being updated to
the following:
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March ‘15 Guidance
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Revised Guidance
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Revenues
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$3.3 - $3.6 billion
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$3.0 - $3.3 billion
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Operating Income
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$25 - $50 million
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$50 - $70 million
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Capex
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$275 - $295 million
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$130 - $140 million
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Year-end Cash
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$600 - $650 million
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$700 - $750 million
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Restructuring Costs
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$25 - $35 million
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$40 - $50 million
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Revenues for the year are anticipated to be slightly lower than original
2015 guidance because of the delays at Ichthys during the first quarter
and customer initiated project schedule changes. Full-year operating
income, including restructuring costs and one-time losses on the
impairment and disposal of assets, is expected to be higher as a result
of improved execution and focus on cost management. Capex, excluding $23
million of capitalized interest, decreased substantially for the year,
as the final spend for the delivery of the DLV 2000 has shifted into
first quarter 2016 due to a slight construction delay on the vessel.
Annual maintenance and project capital expenditures will be in the range
of $30 million - $40 million for 2015. As a result of the delay in the
DLV 2000, year-end cash is anticipated to be higher than originally
forecasted. Costs associated with the Company’s restructuring efforts
have increased due to severance costs, external consulting support and
the final decommissioning costs on the DB 101 vessel during the second
quarter. The foregoing guidance does not include amounts for unplanned
and unreserved contingencies.
Additional updates to the Company’s 2015 guidance are available in the
Supplemental Slide Deck which can be found on the Investor Relations
section of McDermott’s website at www.mcdermott.com.
Cost Structure Update
The McDermott Profitability Initiative continues to progress and remains
on target for expected full year 2015 annual cash savings of $50
million. During the first quarter of the year, a majority of the
rightsizing of the organization was completed and centralization of
several of the Company’s support groups has commenced. Within the marine
assets and operations and the supply-chain groups, McDermott has
launched several supplier cost reduction initiatives. The Company plans
to transition to a balanced outsourced model for some of the
non-technical crews on its vessels, allowing the Company to restructure
some of its fixed costs to be more variable with award activity.
Restructuring costs for the quarter were $15.4 million.
Conference Call
McDermott has scheduled a conference call and webcast related to its
second quarter 2015 results today at 4:00 p.m. U.S. Central Daylight
Savings Time. Interested parties may listen over the Internet through a
link posted in the Investor Relations section of the Company’s Web site.
A replay of the webcast will be available for seven days after the call
and may be accessed by dialing (855) 859-2056, Passcode #97080471. In
addition, a presentation will be available on the Investor Relations
section of the Company’s Web site that contains supplemental information
on our operations and our business outlook.
About the Company
McDermott is a leading provider of integrated engineering, procurement,
construction and installation (EPCI) services for upstream field
developments worldwide. The Company delivers fixed and floating
production facilities, pipelines and subsea systems from concept to
commissioning for complex Offshore and Subsea oil and gas projects to
help oil companies safely produce and transport hydrocarbons. Our
clients include national and major energy companies. Operating in
approximately 20 countries across the world, our locally focused and
globally integrated resources include approximately 11,700 employees and
contractors, a diversified fleet of specialty marine construction
vessels, fabrication facilities and engineering offices. We are renowned
for our extensive knowledge and experience, technological advancements,
performance records, superior safety and commitment to deliver.
McDermott has served the energy industry since 1923 and is listed on the
New York Stock Exchange.
To learn more, please visit our website at www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995, McDermott cautions that statements in
this press release which are forward-looking, and provide other than
historical information, involve risks, contingencies and uncertainties
that may impact McDermott's actual results of operations. These
forward-looking statements include, but are not limited to, statements
about: backlog, bids and change orders outstanding, projects McDermott
expects to bid and the expected timing of award of such, and revenue
pipeline, to the extent to which these may be viewed as indicators of
future revenues or profitability; the expected scope, execution and
timing associated with certain projects discussed herein; expected
earnings and other financial guidance provided for the full year of
2015; expectations regarding improvements and savings related to
McDermott’s profitability initiative and the timing of such; and the
Company’s plan with respect to certain marine operations. Although we
believe that the expectations reflected in those forward-looking
statements are reasonable, we can give no assurance that those
expectations will prove to have been correct. Those statements are made
by using various underlying assumptions and are subject to numerous
risks, contingencies and uncertainties, including, among others: adverse
changes in the markets in which we operate or credit markets, our
inability to successfully execute on contracts in backlog, changes in
project design or schedules, the availability of qualified personnel,
changes in the terms, scope or timing of contracts, contract
cancellations, change orders and other modifications and actions by our
customers and business partners; changes in industry norms and adverse
outcomes in legal or other dispute resolution proceedings. If one or
more of these risks materialize, or if underlying assumptions prove
incorrect, actual results may vary materially from those expected. You
should not place undue reliance on forward-looking statements. For a
more complete discussion of these and other risk factors, please see
McDermott's annual and quarterly filings with the Securities and
Exchange Commission, including its annual report on Form 10-K for the
year ended December 31, 2014 and subsequent quarterly reports on Form
10-Q. This news release reflects management's views as of the date
hereof. Except to the extent required by applicable law, McDermott
undertakes no obligation to update or revise any forward-looking
statement.
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McDERMOTT INTERNATIONAL, INC. CONSOLIDATED STATEMENTS
OF OPERATIONS
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Three Months Ended June 30,
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Six Months Ended June 30,
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2015
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2014
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2015
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2014
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(Unaudited)
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(In thousands, except share and per share amounts)
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Revenues
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$
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1,046,537
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$
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476,083
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$
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1,597,000
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$
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1,079,894
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Costs and Expenses:
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Cost of operations
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925,522
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432,298
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1,400,981
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1,023,791
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Selling, general and administrative expenses
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47,793
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53,444
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99,469
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105,408
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(Gain) loss on disposal of assets
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1,910
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(35,105
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)
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1,543
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(41,544
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)
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Impairment loss (gain)
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6,808
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(10,664
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)
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6,808
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(10,664
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)
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Restructuring expenses
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15,391
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1,263
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25,780
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7,388
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Total costs and expenses
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997,424
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441,236
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1,534,581
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1,084,379
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Loss from Investments in Unconsolidated Affiliates
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(7,481
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(3,322
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(14,222
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(2,199
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Operating Income (Loss)
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41,632
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31,525
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48,197
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(6,684
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Other Income (Expense):
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Interest expense, net
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(12,985
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(38,745
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(25,164
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(38,684
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Gain on foreign currency, net
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1,943
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6,622
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475
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2,540
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Other expense, net
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(359
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(312
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(456
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(577
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)
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Total other expense
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(11,401
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(32,435
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(25,145
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(36,721
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Income (loss) before provision for income taxes and noncontrolling
interests
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30,231
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(910
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23,052
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(43,405
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Provision for income taxes
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16,541
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4,788
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21,410
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8,277
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Net income (loss)
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13,690
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(5,698
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)
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1,642
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(51,682
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)
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Less: net income attributable to noncontrolling interest
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2,164
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1,699
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4,623
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2,235
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Net income (loss) attributable to McDermott International, Inc.
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$
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11,526
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$
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(7,397
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)
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$
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(2,981
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)
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$
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(53,917
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)
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Income (loss) per share
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Net income (loss) attributable to McDermott International, Inc.:
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Basic
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$
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0.05
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|
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$
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(0.03
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)
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$
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(0.01
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)
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$
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(0.23
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)
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Diluted
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$
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0.04
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$
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(0.03
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)
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$
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(0.01
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)
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|
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$
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(0.23
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)
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Shares used in the computation of income (loss) per share:
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Basic:
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238,332,012
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237,395,580
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237,918,366
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|
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237,178,369
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Diluted:
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289,689,981
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237,395,580
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|
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237,918,366
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237,178,369
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McDERMOTT INTERNATIONAL, INC.
EARNINGS PER SHARE COMPUTATION
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Three Months Ended June 30,
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Six Months Ended June 30,
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2015
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2014
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2015
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2014
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|
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(In thousands, except share and per share amounts)
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Net income (loss) attributable to McDermott International, Inc.
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|
|
|
|
$
|
11,526
|
|
|
$
|
(7,397
|
)
|
|
$
|
(2,981
|
)
|
|
$
|
(53,917
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares (basic)
|
|
|
|
|
|
238,332,012
|
|
|
|
237,395,580
|
|
|
|
237,918,366
|
|
|
|
237,178,369
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity units
|
|
|
|
|
|
40,896,300
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Stock options, restricted stock and restricted stock units
|
|
|
|
|
|
10,461,669
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Adjusted weighted average common shares and assumed exercises of stock
options and vesting of stock awards (diluted)
|
|
|
|
|
|
289,689,981
|
|
|
|
237,395,580
|
|
|
|
237,918,366
|
|
|
|
237,178,369
|
|
Basic loss per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to McDermott International, Inc.
|
|
|
|
|
$
|
0.05
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.23
|
)
|
Diluted loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to McDermott International, Inc.
|
|
|
|
|
$
|
0.04
|
|
|
$
|
(0.03
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(In thousands)
|
Depreciation & amortization expense
|
|
|
|
|
26,044
|
|
|
|
21,645
|
|
|
|
51,371
|
|
|
|
46,247
|
Drydock amortization
|
|
|
|
|
4,386
|
|
|
|
3,020
|
|
|
|
9,658
|
|
|
|
9,966
|
Capital expenditures
|
|
|
|
|
24,013
|
|
|
|
117,064
|
|
|
|
47,985
|
|
|
|
154,957
|
Backlog
|
|
|
|
|
3,130,340
|
|
|
|
4,063,900
|
|
|
|
3,130,340
|
|
|
|
4,063,900
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McDERMOTT INTERNATIONAL, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2015
|
|
|
December 31, 2014
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
(In thousands, except shares and par value data)
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
576,575
|
|
|
$
|
665,309
|
|
Restricted cash and cash equivalents
|
|
|
|
|
|
194,427
|
|
|
|
187,585
|
|
Accounts receivable – trade, net
|
|
|
|
|
|
287,264
|
|
|
|
143,370
|
|
Accounts receivable – other
|
|
|
|
|
|
67,727
|
|
|
|
79,915
|
|
Contracts in progress
|
|
|
|
|
|
400,720
|
|
|
|
357,617
|
|
Deferred income taxes
|
|
|
|
|
|
10,398
|
|
|
|
7,514
|
|
Other current assets
|
|
|
|
|
|
43,837
|
|
|
|
46,071
|
|
Total Current Assets
|
|
|
|
|
|
1,580,948
|
|
|
|
1,487,381
|
|
Property, Plant and Equipment
|
|
|
|
|
|
2,455,604
|
|
|
|
2,487,815
|
|
Less Accumulated depreciation
|
|
|
|
|
|
(837,739
|
)
|
|
|
(830,467
|
)
|
Net Property, Plant and Equipment
|
|
|
|
|
|
1,617,865
|
|
|
|
1,657,348
|
|
Accounts Receivable – Long-Term Retainages
|
|
|
|
|
|
140,867
|
|
|
|
137,468
|
|
Investments in Unconsolidated Affiliates
|
|
|
|
|
|
28,849
|
|
|
|
38,186
|
|
Deferred Income Taxes
|
|
|
|
|
|
13,713
|
|
|
|
17,313
|
|
Investments
|
|
|
|
|
|
1,056
|
|
|
|
2,216
|
|
Other Assets
|
|
|
|
|
|
101,241
|
|
|
|
76,967
|
|
Total Assets
|
|
|
|
|
$
|
3,484,539
|
|
|
$
|
3,416,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable and current maturities of long-term debt
|
|
|
|
|
$
|
27,690
|
|
|
$
|
27,026
|
|
Accounts payable
|
|
|
|
|
|
326,765
|
|
|
|
219,384
|
|
Accrued liabilities
|
|
|
|
|
|
428,149
|
|
|
|
369,749
|
|
Advance billings on contracts
|
|
|
|
|
|
113,086
|
|
|
|
199,865
|
|
Deferred income taxes
|
|
|
|
|
|
17,822
|
|
|
|
19,753
|
|
Income taxes payable
|
|
|
|
|
|
24,921
|
|
|
|
25,165
|
|
Total Current Liabilities
|
|
|
|
|
|
938,433
|
|
|
|
860,942
|
|
Long-Term Debt
|
|
|
|
|
|
826,472
|
|
|
|
837,443
|
|
Self-Insurance
|
|
|
|
|
|
18,793
|
|
|
|
17,026
|
|
Pension Liability
|
|
|
|
|
|
17,253
|
|
|
|
18,403
|
|
Non-current Income Taxes
|
|
|
|
|
|
48,602
|
|
|
|
49,229
|
|
Other Liabilities
|
|
|
|
|
|
82,180
|
|
|
|
94,722
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $1.00 per share, authorized
|
|
|
|
|
|
|
|
|
|
|
|
400,000,000 shares; issued and outstanding 246,682,747 and
245,209,850 shares, respectively
|
|
|
|
|
|
246,683
|
|
|
|
245,210
|
|
Capital in excess of par value (including prepaid common stock
purchase contracts)
|
|
|
|
|
1,684,395
|
|
|
|
1,676,815
|
|
Accumulated Deficit
|
|
|
|
|
|
(242,553
|
)
|
|
|
(239,572
|
)
|
Treasury stock, at cost: 7,802,013 and 7,400,027 shares, respectively
|
|
|
|
|
|
(97,076
|
)
|
|
|
(96,441
|
)
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(94,024
|
)
|
|
|
(97,808
|
)
|
Stockholders' Equity - McDermott International, Inc.
|
|
|
|
|
|
1,497,425
|
|
|
|
1,488,204
|
|
Noncontrolling interest
|
|
|
|
|
|
55,381
|
|
|
|
50,910
|
|
Total Equity
|
|
|
|
|
|
1,552,806
|
|
|
|
1,539,114
|
|
Total Liabilities and Equity
|
|
|
|
|
$
|
3,484,539
|
|
|
$
|
3,416,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
McDERMOTT INTERNATIONAL, INC.
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Month Ended June 30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
(In thousands)
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
$
|
1,642
|
|
|
$
|
(51,682
|
)
|
Non-cash items included in net income (loss):
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
51,371
|
|
|
|
46,247
|
|
Drydock amortization
|
|
|
|
|
9,658
|
|
|
|
9,966
|
|
Stock-based compensation charges
|
|
|
|
|
9,891
|
|
|
|
10,352
|
|
Loss from investments in unconsolidated affiliates
|
|
|
|
|
14,222
|
|
|
|
2,199
|
|
Loss (gain) on asset disposals
|
|
|
|
|
1,543
|
|
|
|
(41,544
|
)
|
Impairment loss (gain)
|
|
|
|
|
6,808
|
|
|
|
(10,664
|
)
|
Restructuring expense (gain)
|
|
|
|
|
9,153
|
|
|
|
(982
|
)
|
Deferred taxes
|
|
|
|
|
(1,215
|
)
|
|
|
(4,375
|
)
|
Other non-cash items
|
|
|
|
|
(495
|
)
|
|
|
(2,868
|
)
|
Changes in assets and liabilities, net of effects from acquisitions
and dispositions:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(147,293
|
)
|
|
|
86,305
|
|
Net contracts in progress and advance billings on contracts
|
|
|
|
|
(129,932
|
)
|
|
|
(88,771
|
)
|
Accounts payable
|
|
|
|
|
120,586
|
|
|
|
(31,756
|
)
|
Accrued and other current liabilities
|
|
|
|
|
48,380
|
|
|
|
(9,706
|
)
|
Pension liability and accrued postretirement and employee benefits
|
|
|
|
|
(942
|
)
|
|
|
9,563
|
|
Other assets and liabilities
|
|
|
|
|
(19,443
|
)
|
|
|
(15,195
|
)
|
TOTAL CASH USED IN OPERATING ACTIVITIES
|
|
|
|
|
(26,066
|
)
|
|
|
(92,911
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
|
|
(47,985
|
)
|
|
|
(154,957
|
)
|
Increase in restricted cash and cash equivalents
|
|
|
|
|
(6,842
|
)
|
|
|
(166,219
|
)
|
Purchases of available-for-sale securities
|
|
|
|
|
-
|
|
|
|
(1,997
|
)
|
Sales and maturities of available-for-sale securities
|
|
|
|
|
2,875
|
|
|
|
11,303
|
|
Investments in unconsolidated affiliates
|
|
|
|
|
(4,783
|
)
|
|
|
(2,370
|
)
|
Proceeds from asset dispositions
|
|
|
|
|
10,510
|
|
|
|
53,704
|
|
Other
|
|
|
|
|
(232
|
)
|
|
|
(2,706
|
)
|
TOTAL CASH USED IN INVESTING ACTIVITIES
|
|
|
|
|
(46,457
|
)
|
|
|
(263,242
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt
|
|
|
|
|
-
|
|
|
|
1,337,500
|
|
Repayment of debt
|
|
|
|
|
(13,402
|
)
|
|
|
(285,705
|
)
|
Debt issuance cost
|
|
|
|
|
-
|
|
|
|
(45,521
|
)
|
Distribution to noncontrolling interest
|
|
|
|
|
(24
|
)
|
|
|
(3,754
|
)
|
Other
|
|
|
|
|
(1,437
|
)
|
|
|
(1,244
|
)
|
TOTAL CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
|
|
|
|
(14,863
|
)
|
|
|
1,001,276
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE RATE CHANGES ON CASH
|
|
|
|
|
(1,348
|
)
|
|
|
209
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
|
|
(88,734
|
)
|
|
|
645,332
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
|
|
|
|
665,309
|
|
|
|
118,702
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
|
|
|
$
|
576,575
|
|
|
$
|
764,034
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
McDermott International, Inc.
Investors &
Financial Media
Darcey Matthews, 281.870.5147
Vice President,
Investor Relations
dmatthews@mcdermott.com
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