McDermott Sees 18% Growth in Revenues
McDermott International (NYSE:MDR - News) reported net income of $140.4 million, or $0.61 per diluted share, for the 2007 third quarter, compared to net income of $102.7 million, or $0.45 per diluted share, for the corresponding period in 2006. Weighted average common shares outstanding on a fully diluted basis were approximately 228.9 million and 228.3 million in the quarters ended September 30, 2007 and September 30, 2006, respectively. For 2006, the Company's common shares outstanding and earnings per share are adjusted to reflect the 2-for-1 stock split effected in September 2007.
McDermott's revenues in the third quarter of 2007 were $1,324.0 million, compared to $1,118.3 million in the corresponding period in 2006. The 18.4% growth in Company revenues, compared to a year ago, was led by the Offshore Oil & Gas Construction segment, which increased $142 million, or 32.3%. The revenues in the Power Generation Systems and Government Operations segments increased 6.2% and 20.3%, respectively.
Operating income was $155.2 million in the 2007 third quarter, a 25.0 % improvement compared to $124.1 million in the 2006 third quarter. The increase in operating income is attributable to continued exceptional performance within the Offshore Oil & Gas Construction segment combined with improved results from the Power Generation Systems segment.
"Our employees' continued commitment to outstanding project execution again produced superior results for our shareholders," said Bruce W. Wilkinson, Chairman of the Board and Chief Executive Officer of McDermott. "With the continued strength of McDermott's Offshore Oil & Gas Construction business, we believe the 2007 fourth quarter will complete a remarkably strong year at McDermott."
At September 30, 2007, McDermott's consolidated backlog was $9.3 billion, compared to $8.6 billion at September 30, 2006 and $8.9 billion at June 30, 2007.
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