Mcdermott International (MDR) swung to a net profit for the year ended Dec. 31, 2016. The company has made a net profit of $34.12 million, or $ 0.12 a share in the year, against a net loss of $17.98 million, or $0.08 a share in the last year. On the other hand, adjusted net income for the year stood at $89.41 million, or $0.31 a share compared with $15.28 million or $0.05 a share, a year ago.
Revenue during the year dropped 14.15 percent to $2,635.98 million from $3,070.28 million in the previous year.
Operating income for the year was $142.25 million, compared with $112.68 million in the previous year.
However, the adjusted operating income for the year stood at $203.08 million compared to $50.98 million in the prior year. At the same time, adjusted operating margin improved 604 basis points in the year to 7.70 percent from 1.66 percent in the last year.
"I am extremely pleased to report a profitable full-year 2016, despite the prolonged downturn. Our 2016 operational and financial performance is a direct reflection of the changes made over the past three years. The fourth quarter was an excellent quarter operationally, with strong order intake of $1 billion and ending backlog of $4.3 billion. Unfortunately, net income ended in a slight loss due to an increase in the estimated costs on our INPEX Ichthys project in Australia. This increase represents costs to replace failed subsea-pipe connector components which were a standard design and supplied by a reputable supplier. Despite the increased costs, the project remains in a profitable position. Our top priority is collaborating with the customer and supplier to replace the failed components and maintaining the agreed project schedule," said David Dickson, president and chief executive officer of McDermott.
For fiscal year 2017, Mcdermott International projects revenue to be in the range of $2,700 million to $3,000 million. It forecasts net income to be $80 million. The company projects operating income to be in the range of $170 million to $190 million, the company forecasts diluted earnings per share to be in the range of $0.16 to $0.19.
Operating cash flow improves significantlyMcdermott International has generated cash of $178.18 million from operating activities during the year, up 222.37 percent or $122.91 million, when compared with the last year. The company has spent $230.81 million cash to meet investing activities during the year as against cash outgo of $95.57 million in the last year. It has incurred net capital expenditure of $225.71 million on net basis during the year, up 145 percent or $133.59 million from year ago.
The company has spent $115.77 million cash to carry out financing activities during the year as against cash outgo of $28.17 million in the last year period.
Cash and cash equivalents stood at $595.92 million as on Dec. 31, 2016, down 10.37 percent or $68.92 million from $664.84 million on Dec. 31, 2015.
Working capital declines
Mcdermott International has witnessed a decline in the working capital over the last year. It stood at $623.04 million as at Dec. 31, 2016, down 10.22 percent or $70.89 million from $693.93 million on Dec. 31, 2015. Current ratio was at 1.88 as on Dec. 31, 2016, up from 1.82 on Dec. 31, 2015.
Debt comes downMcdermott International has recorded a decline in total debt over the last one year. It stood at $752.52 million as on Dec. 31, 2016, down 10.83 percent or $91.36 million from $843.88 million on Dec. 31, 2015. Total debt was 23.35 percent of total assets as on Dec. 31, 2016, compared with 24.91 percent on Dec. 31, 2015. Debt to equity ratio was at 0.47 as on Dec. 31, 2016, down from 0.55 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
