McDermott comments on impact of adverse change in Cameron LNG project estimate
McDermott commented on its assessment of the financial position of the Cameron LNG project as of the end of Q4. McDermott's comment follows the release of quarterly financial results by Chiyoda Corp., a member of the joint venture, along with McDermott, working on the project. For Q4, McDermott expects to report an adverse change in estimate of approximately $168M, due to unfavorable labor productivity, and increases in subcontract, commissioning and construction management costs. The change in estimate is expected to impact McDermott's statements of operations for the three months and year ended December 31. McDermott and Chiyoda are executing the project under a 50-50 joint venture arrangement and are fully aligned at the joint-venture level regarding the change in estimate. The Cameron LNG project, currently under construction, is designed to produce nearly 14 million tons per year of liquefied natural gas. Operationally, the project is on track to reach a major milestone with feed gas into the facility later this quarter.