McDermott Becomes a Stand Alone Engineering and Construction Company Focused on Offshore Oil and Gas
02 August 2010 - 2:30PM
Business Wire
McDermott International, Inc. (NYSE: MDR) (“McDermott”)
announced today that it has completed the spin-off of its power
generation systems and government operations segments through the
distribution of the shares of The Babcock & Wilcox Company
(“B&W”) to holders of McDermott common stock.
As a result, McDermott is now a leading, stand alone
engineering, procurement, construction and installation (“EPCI”)
company focused on the offshore upstream oil and gas market
worldwide. McDermott provides EPCI services related to offshore
fixed and floating production facilities, pipelines and subsea
systems primarily for national and major oil and gas companies.
“Today is a milestone in McDermott’s history, that we believe
brings significant opportunity to accelerate growth based on our
distinct corporate strategy, market prospects, free cash flow and
customer relationships, allowing for enhanced management focus,
more efficient allocation of capital, and greater operational and
strategic flexibility,” said Stephen M. Johnson, who became
President and Chief Executive Officer of McDermott, as well as a
member of McDermott’s Board of Directors, on July 30, 2010.
“Focused on full-service EPCI delivery, our experienced
management team is committed to delivering shareholder value
through project execution excellence in our three interrelated
areas of activity: conventional offshore structures, pipelines and
related facilities; floating production systems; and subsea
infrastructure, umbilicals, risers and flowlines.”
To support development in these areas, McDermott is focused on
expanding into new geographies, growing its engineering and
technology capabilities, enhancing fabrication capacity through new
facilities, renewing its existing fleet through organic growth and
acquisitions, and leveraging EPCI projects.
Under the terms of the spin-off McDermott stockholders received
one share of B&W common stock for every two shares of McDermott
common stock held at the close of business on July 9, 2010 and will
receive a cash payment in lieu of fractional shares of B&W.
B&W is now a separate, publicly traded company and McDermott
does not retain any ownership interest in B&W. The common stock
of B&W will commence regular day trading on the New York Stock
Exchange on August 2, 2010 under the symbol “BWC.” McDermott common
stock will continue to trade on the New York Stock Exchange under
the symbol “MDR.”
ABOUT McDERMOTT
McDermott is a leading engineering, procurement, construction
and installation (“EPCI”) company focused on executing complex
offshore oil and gas projects worldwide. Providing fully integrated
EPCI services for upstream field developments, the Company delivers
fixed and floating production facilities, pipelines and subsea
systems from concept to commissioning. McDermott’s customers
include national and major energy companies. Operating in more than
20 countries across the Atlantic, Middle East and Asia Pacific, the
Company’s integrated resources include more than 16,000 employees
and a diversified fleet of marine vessels, fabrication facilities
and engineering offices. McDermott has served the energy industry
since 1923.
To learn more, please visit McDermott’s website on the internet
at www.mcdermott.com
FORWARD LOOKING
STATEMENTS
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, as amended, McDermott
cautions that statements in this press release, which are
forward-looking and provide other than historical information,
involve risks and uncertainties that may impact McDermott's actual
results of operations or may otherwise be material. These
forward-looking statements include statements about the anticipated
benefits of the spin-off and the anticipated opportunities and
future successes of McDermott. 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
uncertainties and risks, including that McDermott may be unable to
realize the anticipated benefits of the spin-off. If one or more of
these risks materialize, or if underlying assumptions prove
incorrect, actual results may vary materially from those expected,
projected or implied. For a more complete discussion of these and
other risk factors, please see McDermott's annual and quarterly
filings with the SEC, including its annual report on Form 10-K and
quarterly reports on Form 10-Q. This press release reflects
management's views as of August 2, 2010. Except to the extent
required by applicable law, McDermott undertakes no obligation to
update or revise any forward-looking statement.
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