Engineering and construction firm McDermott International Inc. (MDR) said Monday after the markets closed that its third quarter profit rose 38% from last year, as strong growth in its offshore oil & gas construction and government operations segments offset weakness in its power generation systems segment.
The Houston, Texas-based company reported net income for the third quarter of $118.1 million or $0.50 per share, compared to $85.6 million or $0.37 per share for the year-ago quarter.
Operating income for the quarter rose 57% to $144.8 million from $92.0 million in the prior year quarter.
Revenue for the third quarter increased to $1.68 billion from $1.66 billion in the same quarter last year. Twelve analysts had a consensus revenue estimate of $1.53 billion for the third quarter.
Third quarter revenues in the company's offshore oil & gas construction segment rose 26% to $1.03 billion from $814.7 million for the same period a year ago, as higher revenues in the Middle East and Caspian regions more than offset reduced levels in other regions.
Revenues in the government operations segment increased 17% to $259.8 million in the third quarter from $222.4 million a year ago.
Third quarter revenues in the power generation systems segment fell 38% to $389.6 million from $631.0 million last year, mainly due to reduced activity on customers' major capital projects, including new power plant construction and retrofits of existing power plants.
McDermott ended the quarter with a consolidated backlog of $8.5 billion, compared to $9.4 billion at the end of the prior year quarter and $9.5 billion at the end of the prior quarter.
John Fees, Chief Executive Officer of McDermott, said, "As we expected, bookings were light, however the bidding activity remained at a high level while the Company's liquidity and balance sheet continued to improve."
For the first nine months, the company reported net income of $288.4 million or $1.24 per share, compared to $386.3 million or $1.68 per share for the same period last year.
Revenue for the nine-month period fell to $4.73 billion from $4.91 billion in the prior year period.
Among others in the industry, Fluor Corp. (FLR) today reported an 11% drop in third quarter profit, hurt by weak performance at its oil & gas sand the global services segments. The company also lowered its earnings outlook for fiscal year 2009.
McDermott shares, which have traded in a range of $5.98 to $27.89 over the past year, closed Monday's regular trading session at $24.16, up 27 cents or 1.13% and gained an additional 4 cents in after hours trading.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.