Engineering and construction company McDermott increased its profit during the third quarter of 2016 despite lower revenues.
McDermott on Tuesday posted a net income of $16.1 million for 3Q 2016, an increase of $12.4 million when compared to the prior-year third quarter and profit of $3.7 million.
Further, the company’s revenues for the quarter amounted to $558.5 million, a decrease of $274.4 million when compared to the same period last year and revenues of $805.9 million.
The key projects driving revenue for the third quarter of 2016 were the INPEX Ichthys, Saudi Aramco Long Term Agreement II (LTA II) and RasGas Flow Assurance and Looping projects. The decrease from the prior-year third quarter is primarily due to the completion of marine activity by the subcontractor Heerema on the Inpex Ichthys project.
During the quarters ended September 30, 2016 and 2015, McDermott booked $1.8 million and $6.3 million of restructuring charges, respectively. Furthermore, the company also booked $11.8 million of impairment charges during the quarter.
As of September 30, 2016, the company’s backlog was $3.9 billion, compared to $4.4 billion at June 30, 2016. Of the September 30, 2016 backlog, approximately 79% is related to offshore operations and approximately 21% is related to subsea operations.
Offshore Energy Today Staff