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Researched by Industrial Info Resources (Sugar Land, Texas)--Engineering, procurement and construction (EPC) giant McDermott International Incorporated's (NYSE:MDR) (Houston, Texas) project backlog grew by leaps and bounds in first-quarter 2019. At the end of the quarter, the company tallied more than $15.3 billion in its backlog, compared with $10.9 billion at the end of fourth-quarter 2018. Among the key projects on which the firm is underway and nearing completion are Sempra Energy's (NYSE:SRE) (San Diego, California) Cameron liquefied natural gas (LNG) project in Louisiana and ConocoPhillips' (NYSE:COP) (Houston) Freeport LNG project in Texas. Industrial Info is tracking projects valued at more than $128 billion involving McDermott.
Referring to the completion of last year's merger with Chicago Bridge & Iron (CB&I), McDermott Chief Executive Officer David Dickson spoke of the company's new orders and backlog. "The pace of new orders more than quadrupled as compared to Q4," said Dickson. "Backlog grew 41% sequentially to a level that exceeds the total of the two companies prior to the combination." Dickson said the order intake has allowed the company to be more selective on which projects it chooses to undertake.
Among the projects highlighted by Dickson were the two LNG projects. "At Cameron ... the introduction of feed gas was a major step forward in the commissioning of Train 1 and the common equipment that represents approximately 60% of all commissioning work and is the precursor for the production of liquefied natural gas." Work at the Sempra plant began in 2014, with the commissioning of Train 1 begun this month. The plant contains two other 5 million-ton-per-year trains and is expected to be fully online next year. For more information, see Industrial Info's project report.
McDermott's work on the Freeport LNG facility also is progressing. Dickson said, "At Freeport, we received FERC [Federal Energy Regulatory Commission] approval to bring in feed gas for precommissioning of the pretreatment facility, another significant milestone." Construction on the Freeport plant began in late 2014, and Train 1 is expected to be completed in the third quarter of this year. For more information, see Industrial Info's project reports on Train 1 and the pretreatment facility.
Dickson said, "With the imminent completion of Cameron Train 1 as expected, as well as the initial work to commission Freeport Train 1, we're increasingly confident that the two facilities will come fully online in 2020 as world-class LNG plants."
As a key player in LNG EPC work, McDermott will also this year begin construction of Exxon Mobil Corporation (NYSE:XOM) and Qatar Petroleum's (Doha, Qatar) Golden Pass LNG facility in Texas. For more information, see Industrial Info's project report on Train 1 and April 29, 2019, article - ExxonMobil Pushes Ahead with Project Activity Despite Less-Than-Great Earnings.
McDermott also plays a very active role in the Chemical Processing Industry. Among the company's top projects in this area is Shintech Incorporated's (Houston) ethylene unit addition at its facility in Plaquemine, Louisiana, for which McDermott is the technology provider. Construction on the 500,000-metric-ton-per-year unit began in 2015 and is expected to wrap up soon. For more information, see Industrial Info's project report.
Among McDermott's Power Industry projects is Entergy Corporation's (NYSE:ETR) (New Orleans, Louisiana) construction of a 993-megawatt combined cycle power plant in Montgomery County, Texas. Construction on the $937 million facility began late last year and is expected to take about three years to complete. For more information, see Industrial Info's project report.
Outside of the U.S., McDermott has several projects in the Middle East. Among the largest of these is Oman Oil Company's (Muscat, Oman) construction of a petrochemical complex in Sohar, Oman. The facility will include an ethylene unit and several downstream units, including a high-density polyethylene unit and a linear low-density polyethylene unit. Construction began in 2017 and is expected to be completed in mid-2020. Click here for a list of project reports related to the overall project. The projects have a combined total investment value of $5.5 billion.
McDermott posted a first-quarter 2019 net loss of $70 million, compared with net income of $35 million in the prior-year quarter. Company executives pointed to $69 million in restructuring expenses in the wake of the CB&I merger in the quarter. The company reported revenue of $2.2 billion for the quarter.
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.
Referring to the completion of last year's merger with Chicago Bridge & Iron (CB&I), McDermott Chief Executive Officer David Dickson spoke of the company's new orders and backlog. "The pace of new orders more than quadrupled as compared to Q4," said Dickson. "Backlog grew 41% sequentially to a level that exceeds the total of the two companies prior to the combination." Dickson said the order intake has allowed the company to be more selective on which projects it chooses to undertake.
Among the projects highlighted by Dickson were the two LNG projects. "At Cameron ... the introduction of feed gas was a major step forward in the commissioning of Train 1 and the common equipment that represents approximately 60% of all commissioning work and is the precursor for the production of liquefied natural gas." Work at the Sempra plant began in 2014, with the commissioning of Train 1 begun this month. The plant contains two other 5 million-ton-per-year trains and is expected to be fully online next year. For more information, see Industrial Info's project report.
McDermott's work on the Freeport LNG facility also is progressing. Dickson said, "At Freeport, we received FERC [Federal Energy Regulatory Commission] approval to bring in feed gas for precommissioning of the pretreatment facility, another significant milestone." Construction on the Freeport plant began in late 2014, and Train 1 is expected to be completed in the third quarter of this year. For more information, see Industrial Info's project reports on Train 1 and the pretreatment facility.
Dickson said, "With the imminent completion of Cameron Train 1 as expected, as well as the initial work to commission Freeport Train 1, we're increasingly confident that the two facilities will come fully online in 2020 as world-class LNG plants."
As a key player in LNG EPC work, McDermott will also this year begin construction of Exxon Mobil Corporation (NYSE:XOM) and Qatar Petroleum's (Doha, Qatar) Golden Pass LNG facility in Texas. For more information, see Industrial Info's project report on Train 1 and April 29, 2019, article - ExxonMobil Pushes Ahead with Project Activity Despite Less-Than-Great Earnings.
McDermott also plays a very active role in the Chemical Processing Industry. Among the company's top projects in this area is Shintech Incorporated's (Houston) ethylene unit addition at its facility in Plaquemine, Louisiana, for which McDermott is the technology provider. Construction on the 500,000-metric-ton-per-year unit began in 2015 and is expected to wrap up soon. For more information, see Industrial Info's project report.
Among McDermott's Power Industry projects is Entergy Corporation's (NYSE:ETR) (New Orleans, Louisiana) construction of a 993-megawatt combined cycle power plant in Montgomery County, Texas. Construction on the $937 million facility began late last year and is expected to take about three years to complete. For more information, see Industrial Info's project report.
Outside of the U.S., McDermott has several projects in the Middle East. Among the largest of these is Oman Oil Company's (Muscat, Oman) construction of a petrochemical complex in Sohar, Oman. The facility will include an ethylene unit and several downstream units, including a high-density polyethylene unit and a linear low-density polyethylene unit. Construction began in 2017 and is expected to be completed in mid-2020. Click here for a list of project reports related to the overall project. The projects have a combined total investment value of $5.5 billion.
McDermott posted a first-quarter 2019 net loss of $70 million, compared with net income of $35 million in the prior-year quarter. Company executives pointed to $69 million in restructuring expenses in the wake of the CB&I merger in the quarter. The company reported revenue of $2.2 billion for the quarter.
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.
