McDermott International Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported revenues of $558.543 million against $805.857 million a year ago. Operating income was $43.055 million against $33.986 million a year ago. Income before provision for income taxes was $30.861 million against $21.154 million for the same period a year ago. Net income attributable to company was $16.108 million or $0.06 per share diluted against $3.666 million or $0.01 per share diluted a year ago. Non-GAAP adjusted net income attributable to the company was $25.793 million or $0.09 per diluted share against $26.660 million or $0.09 per diluted share a year ago. Non-GAAP adjusted operating income was $56.649 million against $57.014 million for the same period a year ago. Cash provided by operating activities was $49.8 million against $20.7 million a year ago. The key projects driving revenue for the third quarter of 2016 were the INPEX Ichthys, Saudi Aramco Long Term Agreement II (LTA II) and RasGas Flow Assurance and Looping projects. The decrease from the prior-year third quarter is primarily due to the completion of marine activity by subcontractor Heerema on the INPEX Ichthys project. Capital expenditures were $27 million, including $1 million of capitalized interest. The most significant portions of CapEx this quarter were related to maintenance and project CapEx as well as some remaining vendor payments for the DLV 2000, with final payments of $15 million expected during the fourth quarter.

For the nine months, the company reported revenues of $1,994.202 million against $2,402.857 million a year ago. Operating income was $136.036 million against $96.405 million a year ago. Income before provision for income taxes was $93.707 million against $58.428 million for the same period a year ago. Net income attributable to company was $34.593 million or $0.012 per share diluted against $0.685 million or $0.00 per share diluted a year ago. Total cash provided by operating activities was $125.599 million against total cash used in operating activities of $5.346 million a year ago. Purchases of property, plant and equipment were $197.393 million against $66.118 million a year ago. Non-GAAP adjusted net income attributable to the company was $84.940 million or $0.30 per diluted share against $55.913 million or $0.20 per diluted share a year ago. Non-GAAP adjusted operating income was $190.792 million against $152.021 million for the same period a year ago. Revenue for the first nine months of 2016 was primarily driven by the INPEX Ichthys, Saudi Aramco's LTA II, Marjan power system replacement and 12 Jackets and RasGas Flow Assurance and Looping projects. Operating income for the first nine months of 2016 was primarily driven by marine activity on the INPEX Ichthys, Saudi Aramco's LTA II, Marjan power system replacement and 12 Jackets and RasGas Flow Assurance and Looping projects. 

For the quarter, the company reported impairment loss of $11.758 million.

For the year 2016, the company now expects revenues of $2.6 billion against previous guidance of $2.7 billion. Operating income now expected to be $159 million against previous guidance of $126 million. Operating margin now expected to be 6% against previous guidance of 5%. Net income now expected to be $28 million or $0.10 per diluted share against previous guidance net loss of $8 million or $0.03 per diluted share. Net interest expense now expected to be $60 million against previous guidance of $60 million. Income tax expense now expected to be $62 million against previous guidance of $60 million.  Adjusted operating income now expected to be $215 million against previous guidance of $170 million. Adjusted net income now expected to be $78 million or $0.28 per diluted share against previous guidance of $35 million or $0.12 per diluted share. Adjusted EBITDA now expected to be $300 million against previous guidance of $256 million.  Adjusted EBITDA margin now expected to be 12% against previous guidance of 9%. Capex now expected to be $246 million against previous guidance of $250 million. Cash from operating activities now expected to be $135 million against previous guidance of $105 million. Negative free cash flow now expected to be $111 million against previous guidance of $145 million.   Depreciation and amortization now expected to be $100 million against previous guidance of $100 million. Interest expense, net now expected to be $60 million against previous guidance of $60 million.

For the year 2017, the company expects revenues of $2.7 billion to $3.0 billion, operating income of $170 million to $190 million, EPS of $0.16 to $0.19 per share, Capex of $50 million to $70 million and EBITDA of $260 million to $290 million.