|Bid||0.6010 x 3200|
|Ask||0.0000 x 2200|
|Day's Range||0.6021 - 0.7210|
|52 Week Range||0.5700 - 10.9900|
|Beta (3Y Monthly)||3.14|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 4, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||7.85|
HOUSTON, Nov. 18, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) announced today it has been awarded a *sizeable technology contract from Baltic Chemical Company (BCC) and a *sizeable Extended Basic Engineering (EBE) contract from China National Chemical Engineering No. 7 Construction Company Limited (CC7). McDermott's Lummus Technology will provide both the Process Design Package (PDP) Engineering and the license for its olefin production and recovery technology.
McDermott's former CFO left amid liquidity issues that have cast doubt on the company's ability to move forward financially.
McDermott (MDR) boasts a 'Revenue Opportunity Pipeline' of $89.1 billion in Q3, comprising Backlog, Bids & Change Orders Outstanding, and Target Projects.
Work on Houston-based McDermott International Inc.'s headquarters building has halted after the company allegedly fell behind on payments to its general contractor.
(Bloomberg) -- McDermott International Inc.’s $1.7 billion super-senior credit facility could give an indication of terms if the struggling engineering and construction firm were to convert the debt into a bankruptcy loan.The facility consists of a $1.3 billion term loan and $400 million in letters of credit. It contains highly restrictive covenants that could provide a template for the kind of terms they would receive if they were to convert their debt into a debtor-in-possession loan in bankruptcy, Valerie Potenza, a high-yield analyst at Xtract Research, said in an interview.“It looks like a DIP, talks like a DIP, but it’s not a DIP,” she said.A representative for McDermott didn’t immediately respond to a request for comment.McDermott skipped a Nov. 1 interest payment on its bonds, triggering a 30-day grace period to make the payment or file for Chapter 11. It also warned in regulatory documents of the risk of bankruptcy.The company last month managed to negotiate the $1.7 billion rescue financing, but it faces numerous hurdles to access the roughly $1.1 billion available across three tranches after its initial $650 million draw.The super-senior facility contains DIP-like lender protections, such as a limit on its ability to take on new debt, according to Potenza. If the company were to end up filing for bankruptcy, it’s reasonable to assume that the existing group of lenders would negotiate with the company to provide a restructuring loan, she said.Regardless of McDermott’s fate, the lenders are being well-compensated for taking the risk of lending to the company, which provides services to oil and gas companies. If McDermott succeeds in selling its Lummus Technology unit, the super-senior lenders will receive their par value plus a 3% premium, according to Xtract’s analysis of the credit agreement.In the event of a bankruptcy filing in the next 18 months, McDermott must repay the loan before other payments, even if a Chapter 11 is triggered by insolvency. Those lenders would receive a make-whole premium in the first six months and a 3% premium for the 12 months thereafter, according to Xtract.To contact the reporter on this story: Allison McNeely in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Nicole Bullock, Christopher DeRezaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
McDermott International, Inc. (NYSE: MDR) announced it has been awarded a technology contract by Formosa Chemicals Industries Ningbo Limited for the technology license and basic engineering services for a grassroots alpha-methylstyrene recovery unit in Ningbo, China. McDermott defines a sizable contract as between $1 million and $50 million. "This award represents the first license of this AMS technology," said Leon de Bruyn, senior vice president of McDermott's Lummus Technology.
HOUSTON, Nov. 7, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) today announced that it has been awarded a sizeable* technology contract by Formosa Chemicals Industries Ningbo Limited for the technology license and basic engineering services for a grassroots alpha-methylstyrene (AMS) recovery unit in Ningbo, China. This 10,000 MTA unit will utilize AMS technology jointly licensed by Versalis and McDermott's Lummus Technology to recover specialty chemicals for niche market sale.
Houston-based McDermott International Inc. (NYSE: MDR) has a new CFO in place just a day after reporting a major net loss for the third quarter. Stuart Spence resigned from his positions as executive vice president and CFO, effective Nov. 4, to pursue other opportunities, according to a press release and a filing with the U.S. Securities and Exchange Commission. Spence joined McDermott as CFO in August 2014 and had previously worked for Houston-based Halliburton Co. since that company's acquisition of Global Oilfield Services Inc. in November 2011.
McDermott International Inc. said Tuesday Chief Financial Officer Stuart Spence has resigned, to "pursue other opportunities." The provider of engineering and construction services to the energy industry named Chris Krummel, formerly the chief accounting officer, as its CFO effective immediately. The stock, which tumbled 10% in premarket trading after reporting third-quarter results late Monday, has plunged 65.4% over the past three months through Monday, while the S&P 500 has gained 8.2%.
HOUSTON, Nov. 5, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) today announced the appointment of Chris Krummel as Executive Vice President, Chief Financial Officer, effective immediately. Mr. Krummel joined McDermott in 2016 and previously served as the company's Global Vice President, Finance and Chief Accounting Officer. "Chris has worked closely and collaboratively with our leadership team for the past three years and has clearly demonstrated the business and financial acumen that McDermott needs," said David Dickson, McDermott's President and Chief Executive Officer.
McDermott (MDR) delivered earnings and revenue surprises of -757.14% and -10.40%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Backlog remains strong at $20.1 billion , and revenue opportunity pipeline remains robust at $89.1 billion Net loss for Q3 2019 driven by asset impairments and project charges Continuing collaborative ...
HOUSTON, Oct. 30, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) today announced the signing of a Memorandum of Understanding (MOU) with Darwin Clean Fuels Pty Ltd. The MOU is for the feasibility study, technology, front-end engineering design (FEED) and engineering procurement and construction (EPC) for a Clean Fuels Condensate Processing Plant in Darwin, in the Northern Territory, Australia. "The refinery would leverage our proprietary technologies, including alkylation and sulfur recovery, and is evidence of McDermott's technology-led EPC capabilities," said Ian Prescott, Senior Vice President of Asia Pacific.
Moody's Investors Service ("Moody's") downgraded McDermott Technology (Americas), Inc.'s (McDermott) corporate family rating to Caa2 from B3, its probability of default rating to Caa2-PD from B3-PD, its senior secured credit facilities rating to Caa2 from B2, and its senior unsecured notes rating to Ca from Caa2. At the same time, Moody's assigned a B2 rating to the company's $1.3 billion term loan, which is part of the superpriority credit agreement it entered into on October 21, 2019.
- Production platform turned over to customer, PEMEX Exploracion y Produccion - Work included engineering, procurement, construction, transport, installation, hook up, commissioning and start-up - Fabrication ...
We are still in an overall bull market and many stocks that smart money investors were piling into surged through October 17th. Among them, Facebook and Microsoft ranked among the top 3 picks and these stocks gained 45% and 39% respectively. Hedge funds' top 3 stock picks returned 34.4% this year and beat the S&P […]
When Occidental called off its move to the Energy Corridor following its acquisition of Anadarko Petroleum Corp. in August, many in the district couldn’t help but feel disappointed. But brokers maintain that the Energy Corridor is primed for a comeback.
HOUSTON, Oct. 24, 2019 /PRNewswire/ -- McDermott International, Inc. (MDR) announced it has been awarded a sizeable* fabrication subcontract for the Greater Tortue Ahmeyim natural gas project. Fabrication for both the SPS and subsea, umbilicals, risers and flowlines (SURF) scope for the Greater Tortue Ahmeyim project will now be undertaken in McDermott's yard in Batam, which enables a fast-tracked fabrication schedule to be delivered," said Ian Prescott, Senior Vice President for Asia Pacific.
- McDermott's Lummus Technology is the master licensor of multiple licensed units - Scope includes license, basic engineering package, extended basic engineering, training, technical services and supply ...
(Bloomberg) -- McDermott International Inc.’s bondholders could make it difficult for the embattled energy-industry contractor to make further draws on its $1.7 billion rescue loan.The company said Monday it received an initial $550 million term loan and $100 million in letters of credit to help stabilize its business and ward off bankruptcy. But it will need 95% of its unsecured bondholders to agree to swap into new payment-in-kind notes if it wants to be able to access the next $250 million of financing, said Valerie Potenza, head of high-yield research at Xtract Research. PIK notes allow borrowers to defer interest payments.“I don’t think the signing up of this financing facility takes restructuring off the table,” she said in a phone interview.McDermott’s stock slumped about 13% Monday and its bonds fell as investors fretted about uncertainty over its free cash flow and 2019 outlook, the high interest rates on the rescue loan, and the hurdles it faces accessing the remaining balance of the $1.3 billion term loan and $400 million in letters of credit. The company’s announcement had initially boosted the shares as much as 29% and sent its bonds rallying.To obtain the financing, McDermott projected free cash flow of negative $1.2 billion for this year, according to a presentation on the U.S. Securities and Exchange Commission website. That’s almost double the negative $640 million previously seen. It agreed to pay around 10% interest rates on the rescue loan, withdrew its annual guidance and said it was halting efforts to sell its industrial storage tanks business.While the financing is a lifeline that may help McDermott avoid bankruptcy, the outlook withdrawal signals “near-term performance uncertainties or working capital challenges,” Bloomberg Intelligence analyst Scott Levine said. The company’s stock and bonds have cratered after it struggled with debt taken on from its $3.5 billion acquisition of Chicago Bridge & Iron Co. It’s also grappling with reduced spending by the oil and gas industry.The company plans to use the new funds to finance working capital and support the issuance of performance guarantees. It also awarded retention bonuses to some top executives, including $3.4 million for Chief Executive Officer David Dickson. He will receive one-third of the total bonus upon the effective date of the financing agreement, another third on the funding date of the second tranche of debt, and the rest on the funding date of the third tranche.The initial $650 million is part of a rescue financing package totaling $1.7 billion provided by some of its existing secured lenders, according to a filing Monday. Convincing 95% of bondholders to exchange their notes is “the big first big hurdle,” and it’s required for the company to access the $150 million “tranche C” debt and $350 million “tranche D” debt, Potenza said.To be sure, the company could get consent of two-thirds of its secured lenders to waive the bondholder swap requirement, but that would reduce its borrowing capacity to about $1.3 billion and constrain access to letters of credit, which are essential to operate its business, according to Potenza.Rise and FallShares of the company tumbled as much as 14%, and ended down about 13% in New York. While its 10.625% bonds due 2024 posted the biggest gain and volume among high yield debt on Monday, they reversed that advance. They led high-yield market declines, dropping 4 cents on the dollar to about 24.5 cents. The debt now yields nearly 62%.The company said it’s still exploring a sale of its Lummus Technology unit and its pipe-fabrication business. It said last month it had received expressions of interest valuing Lummus at as much as $2.5 billion.The company specializes in building and installing large, expensive items like oil platforms and natural gas plants. It’s currently constructing Sempra Energy’s giant Cameron liquefied natural gas complex in Louisiana. Lummus licenses technologies used in petrochemicals, refining and gas processing, and holds more than 3,100 patents.(Recasts with details of potential hurdles in first three paragraphs.)\--With assistance from Jeremy Hill and Eliza Ronalds-Hannon.To contact the reporters on this story: Kriti Gupta in New York at firstname.lastname@example.org;Allison McNeely in New York at email@example.comTo contact the editors responsible for this story: Simon Casey at firstname.lastname@example.org, Pratish Narayanan, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The company was at risk of defaulting on its existing loans for lack of liquidity in the second half of the year. This deal lets it focus on longer term solutions.
U.S. oilfield services company McDermott International Inc on Monday agreed with some of its lenders for additional funding of up to $1.7 billion, sending its shares up 25% in trading before the bell. Under the terms, the company said it would have immediate access to $650 million in financing, comprising $550 million under a term loan facility and $100 million under a letter of credit facility. "The agreement provides near-term liquidity for the company to manage working capital and provide performance guarantees on expected new awards," Chief Executive Officer David Dickson said.