Shares of McDermott International Inc. (MDR) declined more than 6 percent in extended trades Wednesday after the engineering and construction company's first-quarter profit fell from last year and missed analysts' expectations. However, revenues grew 11 percent and beat analysts' estimates.
Stephen Johnson, Chairman of the Board, President and CEO of McDermott said, "Although the final phases of an otherwise well-executed project in the Middle East challenged us this quarter, I am pleased with our successful completion of a key project in the Asia Pacific segment. With the sale of the DB 26 and our expansion of our subsea engineering talent through the acquisition of DeepSea group, McDermott is making steady progress on its strategic transformation."
The Houston, Texas-based company's first-quarter net income was $20.55 million or $0.09 per share, down from $62.76 million or $0.26 per share in the year-ago quarter. The year-ago quarter results included income from discontinued operations of $3.50 million or $0.01 per share.
Income from continuing operations before non-controlling interests declined to $24.32 million or $0.09 per share from $61.93 million or $0.25 per share in the previous-year quarter. On average, eighteen analysts polled by Thomson Reuters expected the company to earn $0.15 per share.
Revenues for the quarter rose 11 percent to $807.49 million from $727.68 million in the prior-year period. Analysts had a consensus revenue estimate for the quarter of $748.58 million.
Revenues for the quarter reflect an about $48.6 million increase in revenues in the Atlantic segment as a result of increased fabrication activity, coupled with increased revenues in the Asia Pacific as well as Middle East segments.
Total costs and expenses for the quarter rose 17 percent to $750.32 million from $643.82 million in the same period last year.
During the quarter, McDermott booked about $1 billion in new orders including two projects in the Arabian Gulf. In addition, at quarter-end, the company had about $5.6 billion in bids and change orders outstanding. The company has also identified $10.1 billion in target project opportunities that it expects to bid in the next five quarters.
At March 31, 2013, the company's backlog was $5.30 billion, compared to $5.81 billion a year ago.
MDR closed Wednesday's regular trading session at $11.03, up $0.10 or 0.91 percent on a volume of 3.29 million shares. However, in after-hours, the stock declined $0.73 or 6.62 percent to $10.30.
For comments and feedback contact: editorial@rttnews.com
Business News
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.