McDermott Reports 4Q Net Income of $98.7MM
McDermott reported net income of $98.7 million, or $0.42 per diluted share, for the 2009 fourth quarter, compared to $43.0 million, or $0.19 per diluted share, in the corresponding period of 2008. Weighted average common shares outstanding on a fully diluted basis were approximately 234.5 million and 230.6 million in the quarters ended December 31, 2009 and December 31, 2008, respectively.
McDermott's revenues in the fourth quarter of 2009 were $1,459.1 million, compared to $1,664.5 million in the corresponding period in 2008. The year-over-year decrease was due to a 28 percent decline, or $170.3 million, in the Power Generation Systems segment and a 9 percent decline, or $77.8 million, in the Offshore Oil & Gas Construction segment. Partially offsetting these declines, revenues increased approximately 20 percent, or $41.5 million, in the Government Operations segment.
The Company's operating income was $122.8 million in the 2009 fourth quarter, compared to $89.7 million in the 2008 fourth quarter. Segment income increased $82.7 million in the Offshore Oil & Gas Construction segment compared to the 2008 fourth quarter, which more than offset the year-over-year decline in the Power Generation Systems' segment income and the $25.0 million increase in pension expense, which was predominantly non-cash.
"We are pleased with our results for the final quarter of 2009. These results highlight the resiliency of our businesses in what still remains a challenging economic environment. Despite about $150 million of our Offshore Oil & Gas Construction segment's revenues coming from zero margin projects, this segment delivered strong segment income, exceeding our expectations," said John A. Fees, Chief Executive Officer of McDermott. "While we incurred about $7 million of expenses unique to the transaction during the 2009 fourth quarter, we are making substantial progress on the previously announced spin-off of The Babcock & Wilcox Company and we anticipate filing a first draft of the Form 10 registration statement later this month."
At December 31, 2009, the Company's consolidated backlog was $8.1 billion, compared to $9.8 billion and $8.5 billion at December 31, 2008 and September 30, 2009, respectively.
For the year-ended December 31, 2009, McDermott reported consolidated revenues of $6.2 billion, generating operating income of $546.5 million and net income of $387.1 million, or $1.66 per diluted share.
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