McDermott International Inc. announced unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported revenues of $706.6 million against $1,046.5 million a year ago. Operating income was $57.0 million against $49.1 million a year ago. Net income was $20.7 million or $0.07 per share diluted against $11.5 million or $0.04 per share diluted a year ago. Adjusted operating income was $59.5 million against $64.5 million a year ago. Adjusted net income was $22.8 million or $0.08 per share diluted against $26.8 million or $0.09 per share diluted a year ago. Cash provided by operating activities was $16.5 million against cash used in operating activities of $7.5 million a year ago. The key projects driving revenue for the second quarter of 2016 were INPEX Ichthys and Saudi Aramco's Marjan GOSP and LTA II Lump Sum projects. The decrease from the prior-year second quarter is primarily due to marine activity by its subcontractor Heerema on the INPEX Ichthys project in the second quarter of 2015 that was more substantial than activity in the second quarter of 2016. Income before provision for income taxes was $41,482,000 against $37,712,000 a year ago. Net income attributable to the company was $20,657,000 against $11,526,000 a year ago. Capital expenditures for the second quarter were $139 million, including $6 million of capitalized interest. The more significant portion of the CapEx this quarter was related to the DLV 2000.

For the six months, the company reported revenues of $1,435.7 million against $1,597.0 million a year ago. Operating income was $93.0 million against $62.4 million a year ago. Net income was $18.5 million or $0.07 per share diluted against net loss of $3.0 million or $0.01 per share diluted a year ago. Adjusted operating income was $134.1 million against $88.2 million a year ago. Adjusted net income was $59.1 million or $0.21 per share diluted against $22.4 million or $0.08 per share diluted a year ago. Cash provided by operating activities was $75.8 million against cash used in operating activities of $26.1 million a year ago. Income before provision for income taxes was $62,846,000 against $37,274,000 a year ago. Net income attributable to the company was $18,485,000 against net loss attributable to the company of $2,981,000 a year ago. Purchases of property, plant and equipment was $170,674,000 against $47,985,000 a year ago.

The company revised earnings guidance for the fiscal year 2016. For the year, the company expects revenue of $2.7 billion. The company expects operating income of $126 million against as previously expected to be $108 million. The company expects net loss of $8 million against as previously expected to be $29 million. Diluted loss per share is expected to be $0.03 against as previously expected to be $0.12. The company expects net interest expense of $60 million and income tax expense of $60 million. The company expects adjusted operating income of $170 million against as previously expected to be $155 million. The company expects adjusted net income of $35 million and adjusted diluted EPS of $0.12 against as previously expected to be $18 million and adjusted diluted EPS of $0.12. The company expects adjusted EBITDA of $256 million against as previously expected to be $245 million. The company expects capex of $250 million against as previously expected to be $265 million. Cash from operating activities is expected to be $105 million against as previously expected to be $115 million. The company expects free cash flow of $145 million against as previously expected to be $150 million. Non-GAAP adjusted net income attributable to the company is expected to be $35,000,000 against as previously expected to be $18,000,000. Non-GAAP adjusted operating income is expected to be $170,000,000 against as previously expected to be $155,000,000. Non-GAAP diluted EPS is expected to be $0.12 against as previously expected to be $0.06. The company expects EBITDA of $212,000,000 against as previously expected to be $198,000,000. The company now expects CapEx to be $250 million, including the DLV 2000 INPEX as mentioned before. The company expects to spend approximately $21 million completing CS 108, vertically in real deployment system in 2016. The company is increasing its estimate of maintenance, and project related expenditures to approximately $52 million, an increase of $10 million from the last quarter, primarily due to the investment the company is making in its Altamira of facility to support the Abkatun-A2 project.