McDermott benefits from slow offshore growth – Chron.com

Jordan Blum, Houston Chronicle

McDermott benefits from slow offshore growth

Houston offshore engineering company McDermott International touted slow offshore growth that helped push its revenues up by 12 percent.

McDermott's quarterly revenues jumped from $707 million a year ago to $789 million in the second quarter, while its small net income increased from $20.7 million to $36.4 million.

The offshore sector isn't booming by any means like West Texas shale plays, but it at least seems to have bottomed out. The deepwater Gulf of Mexico isn't growing much, but McDermott touted its shallow water growth in the Middle East, especially with Saudi Arabia, as well as its liquefied natural gas projects offshore of Australia.

"Strong project execution and higher activity led McDermott to another successful quarter, with increased profitability and free cash flow generation," said McDermott President and CEO David Dickson.

It may sound like a street address, but McDermott is increasingly emphasizing its new "One McDermott Way" strategy as it focuses on cutting costs through consistency and completely projects through more standardized processes.

Although activity in the Gulf of Mexico is low, McDermott is working on one new project with New York-based Hess Corp. to expand its existing Penn State project using subsea tiebacks to extend to new wells.

More:

McDermott benefits from slow offshore growth - Chron.com