McDemott 3Q earnings soar

THE ASSOCIATED PRESS

Energy services company McDermott International Inc. said its third-quarter earnings jumped 74 percent because of continued strength in a wide range of energy markets.

For the three months ending Sept. 30, McDermott posted a profit of $101.7 million, or 89 cents per share, on revenue of $1.12 billion. In the year-ago third quarter, McDermott earned $58.5 million, or 53 cents per share, on revenue of $498.2 million.

The results topped Wall Street expectations. Analysts surveyed by Thomson Financial had forecast per-share earnings of 59 cents on revenue of $1.05 billion.

McDermott said its offshore petroleum construction segment had a contract backlog of $4 billion on Sept. 30, compared with $1.7 billion a year ago.

Also aiding revenue and profit was the reconsolidation of results from McDermott’s Babcock & Wilcox Co. unit, beginning in March. Between 2000 and February, McDermott deconsolidated Babcock & Wilcox from its statements as a result of its asbestos-related reorganization, which was completed this year.

McDermott also said consolidation of its nuclear equipment and nuclear products divisions had boosted results.

The results, announced Thursday after financial markets closed, drove up McDermott stock on Friday. In morning trading on the New York Stock Exchange, the company’s shares were up $3.59, or 8.3 percent, at $46.65. McDermott shares have traded in a 52-week range of $23.60 to $51.35