Released August 08, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--McDermott International Incorporated (NYSE:MDR) (Houston, Texas) officially tied the knot with Chicago Bridge & Iron (CB&I) in the second quarter, and the acquisition has been surprisingly smooth, given some of the project-related problems CB&I had been facing in the past few years. Industrial Info is tracking more than $130 billion in active projects involving the newly formed company, more than one-third of which are under construction.
Click on the image at right to see a graph detailing active projects involving McDermott, by industry.
In addition to $10.2 billion worth of backlog, the company has identified nearly $50 billion worth of target projects that it expects to be awarded by customers or prospective customers in the next five quarters.
One of the most closely watched projects involving McDermott was about 89% complete by the end of the second quarter and is targeted for substantial completion by the end of the year: Calpine Corporation's (Houston) $760 million unit addition at the York Energy Center in Delta, Pennsylvania.
Last year, the natural gas-fired, combined-cycle (NGCC) power plant saw its startup date pushed back due to performance issues with CB&I. But under McDermott, commissioning activities commenced during the second quarter and first fire is anticipated later this year. The new unit is expected to generate 760 megawatts (MW) from a pair of combustion turbines, with duct-fired, heat-recovery steam generators, and a steam turbine, all from General Electric (NYSE:GE). For more information, see Industrial Info's project report.
Along the U.S. Gulf Coast, McDermott is performing engineering, procurement and construction services for three other NGCC projects that are under construction from Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana):
"We have a leading position among the world's licensers of petrochemical and refining technology," said David Dickson, the chief executive officer of McDermott, in a recent earnings-related conference call. "In fact, around 40% of the world's ethylene capacity is produced under licenses that were sold by our Technology business. The market for petrochemical and refining licensing continues to be strong."
McDermott also has a role in a few refining-related projects, including Valero Energy Corporation's (NYSE:VLO) (San Antonio, Texas) $400 million alkylation unit addition at the Saint Charles Refinery in Norco, Louisiana, which involves the construction of a new, 25,000-barrel-per-day (BBL/d) sulfuric acid alkylation unit. Valero recently noted the project was progressing and is expected to begin construction in early 2019, with completion expected in mid-2020. For more information, see Industrial Info's project report.
McDermott recently reported revenue of $1.7 billion and net income of $47 million for the second quarter of 2018, compared with revenue of $789 million and net income of $36 million for the second quarter of 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right to see a graph detailing active projects involving McDermott, by industry.In addition to $10.2 billion worth of backlog, the company has identified nearly $50 billion worth of target projects that it expects to be awarded by customers or prospective customers in the next five quarters.
One of the most closely watched projects involving McDermott was about 89% complete by the end of the second quarter and is targeted for substantial completion by the end of the year: Calpine Corporation's (Houston) $760 million unit addition at the York Energy Center in Delta, Pennsylvania.
Last year, the natural gas-fired, combined-cycle (NGCC) power plant saw its startup date pushed back due to performance issues with CB&I. But under McDermott, commissioning activities commenced during the second quarter and first fire is anticipated later this year. The new unit is expected to generate 760 megawatts (MW) from a pair of combustion turbines, with duct-fired, heat-recovery steam generators, and a steam turbine, all from General Electric (NYSE:GE). For more information, see Industrial Info's project report.
Along the U.S. Gulf Coast, McDermott is performing engineering, procurement and construction services for three other NGCC projects that are under construction from Entergy Corporation (NYSE:ETR) (New Orleans, Louisiana):
- a unit addition at the Saint Charles Energy Center in Laplace, Louisiana, estimated at $1 billion, that will generate 980 megawatts (MW) from a pair of Mitsubishi combustion turbines and a Toshiba steam turbine. Completion is expected in early 2019; see project report.
- a facility in Westlake, Louisiana, estimated at $871 million, that will generate 994 MW from a pair of Mitsubishi combustion turbines and a Toshiba steam turbine. Completion is expected in mid-2020; see project report.
- a facility in Willis, Texas, estimated at $825 million, that will generate 993 MW from a pair of Mitsubishi combustion turbines and a steam turbine. Completion is expected in late 2021; see project report.
"We have a leading position among the world's licensers of petrochemical and refining technology," said David Dickson, the chief executive officer of McDermott, in a recent earnings-related conference call. "In fact, around 40% of the world's ethylene capacity is produced under licenses that were sold by our Technology business. The market for petrochemical and refining licensing continues to be strong."
McDermott also has a role in a few refining-related projects, including Valero Energy Corporation's (NYSE:VLO) (San Antonio, Texas) $400 million alkylation unit addition at the Saint Charles Refinery in Norco, Louisiana, which involves the construction of a new, 25,000-barrel-per-day (BBL/d) sulfuric acid alkylation unit. Valero recently noted the project was progressing and is expected to begin construction in early 2019, with completion expected in mid-2020. For more information, see Industrial Info's project report.
McDermott recently reported revenue of $1.7 billion and net income of $47 million for the second quarter of 2018, compared with revenue of $789 million and net income of $36 million for the second quarter of 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
