McDermott International, Inc. announced unaudited consolidated earnings results for the first quarter ended March 31, 2017. For the quarter, the company reported revenues of $519.431 million against $729.032 million a year ago. The key projects driving revenue for the first quarter of 2017 were the ONGC Vashishta, Saudi Aramco Long Term Agreement II (LTA II), KJO Hout and INPEX Ichthys projects. The decrease from the prior-year first quarter is primarily due to reduced activity on Ichthys as the project progresses through the installation phase. Operating income was $55.985 million against $35.993 million a year ago. Operating income for the first quarter of 2017 was primarily driven by fabrication and marine activity under the Saudi Aramco LTA II, marine activity on Karan-45 and progress on the Marjan power system replacement, fabrication activity on Yamal and fabrication on Abkatun-A2. These activities were partially offset by a decrease in activity on Ichthys and a decrease in active projects in AEA compared to the same quarter last year. Income before provision for income taxes was $38.893 million against $21.364 million a year ago. Income before loss from investments in unconsolidated affiliates was $28.122 million against $2.034 million a year ago. Net income attributable to the company was $21.916 million or $0.08 per diluted share against net loss of $2.172 million or $0.01 per diluted share a year ago. Total cash provided by operating activities was $48.452 million against $59.280 million a year ago. The decrease was primarily driven by higher receivable collections from Pemex in the first quarter of 2016 compared to the first quarter of 2017. Purchases of property, plant and equipment was $62.849 million against $31.900 million a year ago. Non-GAAP adjusted net income attributable to the company was $21.916 million against $36.336 million a year ago. Non-GAAP adjusted operating income was $55.985 million against $74.671 million a year ago. Non-GAAP diluted earnings per share were $0.08 against $0.13 a year ago.

For the fiscal year 2017, the company now expects to report revenues approximately $3.2 billion, operating income approximately $265 million, operating margin approximately $8.0%, net income approximately $120 million, diluted income per share approximately $0.42, net interest expense approximately $70 million, income tax expense approximately $70 million, EBITDA approximately $365 million, cash from operating activities approximately $85 million, capex approximately $120 million, negative free cash flow approximately $35 million, adjusted free cash flow approximately $17 million, and depreciation and amortization approximately $105 million, compared with previous guidance of revenues approximately $3.2 billion, operating income approximately $225 million, operating margin approximately $7.0%, net income approximately $80 million, diluted income per share approximately $0.29, net interest expense approximately $70 million, income tax expense approximately $70 million, EBITDA approximately $325 million, cash used in operating activities approximately $15 million, capex approximately $120 million, negative free cash flow approximately $135 million, adjusted negative free cash flow approximately $83 million and depreciation and amortization approximately $105 million. The increase in 2017 guidance is mainly attributable to increased profitability and cash flow due to closeouts from excellent project execution in the first quarter of 2017, as well as customer driven change orders awarded this quarter. While the company expects change orders, close-outs and settlements to continue as part of the company's normal business activities, the period in which they are recognized is largely driven by the finalization of agreements with customers and suppliers and, as a result, is difficult to predict.