McDermott Posts Narrower Q1 Loss, But Revenue Drops

reported a narrower loss for the first quarter on Monday. However, the company reported a decline in its quarterly revenue. The Houston, Texas-based company reported a quarterly loss of $14.5 million, or $0.06 per share, versus a year-ago net loss of $46.5 million, or $0.20 per share. Excluding restructuring charged, the company lost $0.02 per share. Its revenue declined to $550.5 million from $603.8 million. However, analysts were expecting a loss of $0.08 per share on revenue of $759.10 million. Its operating income came in at $6.6 million for the first quarter, versus an operating loss of $38.2 million in the year-ago period. As of March 31, 2015, the company had total assets of $3.5 billion. At the end of the quarter, McDermott had $861.3 million in debt outstanding and total equity of $1.5 billion. As of March 31, 2015, McDermott backlog totaled $3.75 billion, versus $3.6 billion at December 31, 2014. "We are very pleased to have been awarded several important new projects during the first quarter of the year. While the macro industry environment continues to be challenging, McDermott has received three new brownfield EPCI projects in the Middle East, the Marjan Power Supply System from Saudi ARAMCO, the Qatar Petroleum award for a wellhead jacket and deck, as well as a new platform and two bridges from Al-Khafji Joint Operations. As one of our core markets, these new awards reinforce the ongoing activity in the region. We have also been awarded new projects in the Americas, including the SURF scope of a greenfield development for a new customer off the coast of Brazil," said David Dickson, President and Chief Executive Officer of McDermott. McDermott shares fell 1.57 percent to $5.00 in the after-hours trading session.