HOUSTON, Feb. 13, 2019 /PRNewswire/
-- McDermott International, Inc. (NYSE: MDR) today
commented on its assessment of the financial position of the
Cameron LNG project as of the end of the fourth quarter of
2018.
McDermott's comment follows the release on February 13, 2019, of quarterly financial results
by Chiyoda Corporation, a member of the joint venture, along with
McDermott, working on the project. For the fourth quarter of 2018,
McDermott expects to report an adverse change in estimate of
approximately $168 million, due to
unfavorable labor productivity, and increases in subcontract,
commissioning and construction management costs. The change in
estimate is expected to impact McDermott's statements of operations
for the three months and year ended December
31, 2018. McDermott and Chiyoda are executing the project
under a 50-50 joint venture arrangement and are fully aligned at
the joint-venture level regarding the change in estimate.
The Cameron LNG project, currently under construction in
Hackberry, Louisiana, is a
world-scale facility incorporating proven technology designed to
produce nearly 14 million tons per year of liquefied natural gas.
Operationally, the project is on track to reach a major milestone
with feed gas into the facility later this quarter. Construction
continues to progress well. The gas turbine solo run was completed
ahead of schedule, cold circulation of hot oil in Train 1 was
completed during the quarter and flare ignition testing was
successfully completed on all flares. All of these are crucial
steps in the commissioning of Train 1.
McDermott expects to report its results for the fourth quarter
of 2018 on February 25, 2019.
About McDermott
McDermott is a premier, fully integrated provider of technology,
engineering and construction solutions to the energy industry. For
more than a century, customers have trusted McDermott to design and
build end-to-end infrastructure and technology solutions to
transport and transform oil and gas into the products the world
needs today. Our proprietary technologies, integrated expertise and
comprehensive solutions deliver certainty, innovation and added
value to energy projects around the world. Customers rely on
McDermott to deliver certainty to the most complex projects, from
concept to commissioning. It is called the "One McDermott Way."
Operating in over 54 countries, McDermott's locally focused and
globally-integrated resources include approximately 40,000
employees, a diversified fleet of specialty marine construction
vessels and fabrication facilities around the world. As used in
this press release, McDermott includes McDermott International,
Inc. and its subsidiaries and affiliates. To learn more, visit
www.mcdermott.com.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott cautions that
statements in this press release which are forward-looking, and
provide other than historical information, involve risks,
contingencies and uncertainties that may impact McDermott's actual
results of operations. These forward-looking statements include,
among other things, statements about the expected adverse changes
in estimates to be reported with McDermott's fourth quarter
earnings, the expected impact of the changes in estimates on
McDermott's statements of operations for the three months and year
ended December 31, 2018, the expected
scope and timing of the project discussed in this release and the
expected timing of McDermott's report of its results for the fourth
quarter of 2018. Although we believe that the expectations
reflected in those forward-looking statements are reasonable, we
can give no assurance that those expectations will prove to have
been correct. Those statements are made by using various underlying
assumptions and are subject to numerous risks, contingencies and
uncertainties, including, among others: adverse changes in the
markets in which we operate or credit markets, our inability to
successfully execute on contracts in backlog, changes in project
design or schedules, the availability of qualified personnel,
changes in the terms, scope or timing of contracts, contract
cancellations, change orders and other modifications and actions by
our customers and other business counterparties, changes in
industry norms and adverse outcomes in legal or other dispute
resolution proceedings. If one or more of these risks materialize,
or if underlying assumptions prove incorrect, actual results may
vary materially from those expected. For a more complete discussion
of these and other risk factors, please see McDermott's annual and
quarterly filings with the Securities and Exchange Commission,
including its annual report on Form 10-K for the year ended
December 31, 2017 and subsequent
quarterly reports on Form 10-Q. This press release reflects
management's views as of the date hereof. Except to the extent
required by applicable law, McDermott undertakes no obligation to
update or revise any forward-looking statement.
Contacts:
Investor Relations
Scott Lamb
Vice President, Investor Relations
+1 832 513 1068
Scott.Lamb@McDermott.com
Global Media Relations
Gentry Brann
Global Vice President, Communications
+1 281 870
5269
Gentry.Brann@McDermott.com
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SOURCE McDermott International, Inc.