McDermott Tops Profit Ests, Down Y-Y - Analyst Blog
11 Mai 2012 - 12:30PM
Zacks
Energy-focused engineering and
construction firm McDermott International
(MDR) reported better-than-expected first
quarter 2012 earnings on the back of lower costs. Earnings per
share from continuing operations came in at 25 cents, significantly
above the Zacks Consensus Estimate of 16 cents.
However, the Texas-based
engineering-to-project management service provider’s per share
profits came slightly lower than the first quarter 2011 level of 29
cents amid depressed marine activity in the Asia Pacific unit and a
dip in fabrication man-hours. These factors were partially offset
by improvement in the domestic fabrication activity.
McDermott generated revenues of
$727.7 million in the quarter, down 19.1% from the first quarter
2011 and failed to meet our estimate of $842.0 million.
The company’s operating income was
$80.2 million (down 20.1% year over year) in the quarter, while
total costs and expenses fell 19.8% from the corresponding period
last year to $643.8 million.
Backlog
At the end of the first quarter,
McDermott had a backlog of $5,806.6 million, compared with $4,764.0
million a year ago. As of December 31, 2011, backlog was $3,881.1
million.
Balance
Sheet
As of March 31, 2012, McDermott had
cash/cash equivalents of $789.0 million and long-term debt
(including current maturities) of approximately $92.2 million
(representing a debt-to-capitalization ratio of approximately
4.9%).
About the
Company
McDermott, which currently retains
a Zacks #5 Rank (short-term Strong Sell rating), primarily serves
the worldwide offshore oil and gas field developments, including
front-end design and detailed engineering, fabrication and
installation of offshore drilling and production facilities, as
well as installation of marine pipelines and subsea production
systems.
Additionally, the company provides
project management and procurement services. It operates in most
major offshore oil and gas producing regions, including the U.S.,
Mexico, Canada, the Middle East, India, the Caspian Sea and Asia
Pacific.
In August 2010, McDermott completed
the spin-off of its ‘Power Generation Systems’ and ‘Government
Operations’ segments into a separate, independent and publicly
traded company The Babcock & Wilcox Co.
(BWC).
BABCOCK&WILCOX (BWC): Free Stock Analysis Report
MCDERMOTT INTL (MDR): Free Stock Analysis Report
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