McDermott Inks EPCI Deal - Analyst Blog
16 Januar 2013 - 4:40PM
Zacks
A subsidiary of energy-focused
engineering and construction firm McDermott International
Inc. (MDR) has inked a contract for Mexico’s state oil
monopoly Petroleos Mexicanos, or Pemex’s PB-Litoral-A production
platform. This platform will serve the Litoral Tabasco Tsimin-Xux
fields.
Estimated at $230 million, the engineering, procurement,
construction and installation (EPCI) contract will form part of
McDermott's fourth quarter 2012 backlog.
Per the deal, McDermott is entitled to front-end engineering
design, detailed engineering, procurement, fabrication, load-out,
sea fastening, transport, installation and hook-up. The company
will also be responsible for commissioning and start-up of an
eight-legged 1,800-ton jacket, 4,500-ton topsides and 2,000 tons of
tripods, bridges and piles.
After commissioning work, McDermott will train Pemex personnel for
operation and maintenance of the facility. Total weight of the
facility is approximately 8,300 tons. McDermott will also carry out
bridge and piping tie in along with brownfield work on the
CA-Litoral-A HP compression platform.
The engineering work is expected to start in early 2013 and the
project will be completed by second quarter 2015. McDermott’s
Houston and Chennai engineering offices will undertake the
engineering work while fabrication will be carried out at Altamira,
Mexico.
Incorporated in 1959, Houston, Texas-based McDermott International
Inc. is an engineering and construction company, solely focused on
the offshore oil and gas business. McDermott 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 of the major offshore oil
and gas producing regions, including the U.S., Mexico, Canada, the
Middle East, India, the Caspian Sea and Asia Pacific.
However, we believe that the transfer of the Power Generation
Systems and Government Operations segments into a separate,
independent and publicly traded entity – The Babcock &
Wilcox Company (BWC), has left McDermott with a less
diversified business, thereby heightening its risk profile.
McDermott, which currently retains Zacks Rank #3 (Hold), shares
business ties with Williams Partners L.P.
(WPZ).
BABCOCK&WILCOX (BWC): Free Stock Analysis Report
MCDERMOTT INTL (MDR): Free Stock Analysis Report
WILLIAMS PTNRS (WPZ): Free Stock Analysis Report
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