McDermott reports Q3 EPS ($10.37) with items, consensus (62c)
Reports Q3 revenue $2.12B, consensus $2.45B. Q3 loss includes a non-cash accounting charges of $1.5B related to impairments of goodwill and intangible assets and $256M of changes in project gross profit on specified projects identified in a covenant of our new Superpriority Credit Agreement. The company said, "We experienced continued strong backlog, with several significant customer project awards, including the Ichthys Phase 2a Gas Field Development Project in Australia, which we developed in conjunction with our integrated subsea-solutions partner, Baker Hughes, as well as a large LNG tank project on the U.S. Gulf Coast. We also achieved solid operating results in our MENA, Asia Pacific, Europe, Africa, Russia and Caspian (EARC) and Technology segments. At the same time, our capital structure continues to be pressured by certain legacy CB&I projects. Our recently announced $1.7B financing agreement with our lenders signals their confidence in our underlying business. We continue working with them to achieve a long-term balance sheet solution as we remain focused on delivering value for our customers, employees, subcontractors, and suppliers."