McDermott International Inc. Announces Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2016; Revised Earnings Guidance for the Fiscal Year 2016
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.