McDermott International, Inc. (NASDAQ: MDR)
McDermott International, Inc. (MDR), an engineering, procurement, construction, and installation company announced on Monday positive third quarter 2015 financial and operational results. MDR reported revenues of $805.9 million compared to $414.6 million of third quarter 2014. Operating Income was $52.5 million compared to a loss of $6 million in third quarter 2014.
McDermott International, Inc. CEO Comments
“This was a very strong quarter of new awards for the Company, predominantly in our core Middle East markets. The award of the first lump sum contract under the new Saudi Aramco Long Term Agreement in the quarter represents the single largest award in the history of our Middle East business and demonstrates that our ongoing emphasis on client engagement is generating tangible results. Additionally, we were successful in winning two new contracts in Qatar, bringing our awards in that country to four this year,” said David Dickson, President and Chief Executive Officer of McDermott. “Our continued focus on project execution is also generating positive results. During the quarter, we saw the successful sail-away of the PB Litoral structure from our Altamira yard and our marine campaign at Ichthys remains on schedule. While the macro commodity price environment remains challenging and our customers are assessing a lower for longer commodity price scenario, we continue to see project opportunities moving forward in the offshore brownfield markets and with our key Middle East customers.” Globe Newswire
MDR Technical Analysis
MDR gapped up in price yesterday to $5.80, up from the prior day’s close of $5.25, which is a 10% increase on the favorable news. Taking a look at the daily chart, we can see the last time MDR traded above this price level was on June 18th, when it closed at $5.80. More recently, MDR has been rallying off the lows of $3.02 reached on August 24th. MDR has put in many peaks and valleys on this recent uptrend but has consistently put in higher highs. MDR has a high float of 236.9 million shares and traded 1.5 times the normal daily trading volume. MDR did reach pre market highs of $5.97, but gave back $0.17 at the open , or equivalent to 3%. For trading purposes, my entry point would have been $5.85 looking for a run through $6. My stop loss would have been $5.75, fearing anything below that and the stock would start to fill in the gap up.
McDermott International, Inc. operates as an engineering, procurement, construction, and installation company worldwide. The company operates through three segments: Asia Pacific, Americas, and the Middle East. It focuses on designing and executing offshore oil and gas projects. The company delivers fixed and floating production facilities, pipeline installations, and subsea systems from concept to commissioning. Its operations include fabrication and installation of fixed and floating structures; and the installation of pipelines and subsea systems, as well as provision of shallow water and deepwater construction services. The companys customers include national, integrated, and other oil and gas companies. McDermott International, Inc. was founded in 1923 and is based in Houston, Texas. Yahoo Finance