McDermott posts $1.9 billion loss amid stock price plunge, project cost overruns

Houston oilfield services company McDermott International suffered another steep loss for three quarters, with shares and cost overruns on several projects, including two liquefied natural gas plants near Bayou City.

McDermott, who filed with the US Securities and Exchange Commission on Monday afternoon, reported a loss of approximately $ 1.9 billion in revenues of $ 2.1 billion in the third quarter. This figure is down from $ 2 million with revenues of $ 23 billion during the third quarter of 2018.

The third quarter figure was converted to a loss of $ 10.37 per share, down from a penny of earnings per share in the same period last year.

McDermott missed Wall Street's estimated revenue of $ 24.6 billion and a loss of 72 cents per share.

Service sector: Market rumors slump McDermott stock

In Samsung's SEC filing, the company blamed losses on $ 1.5 billion in damages, most of which were related to recent stock price plunges and cost overruns for at least six projects in the company's North, Central and South American divisions.

Rumors that the company retained its Chapter 11 advisory firm reported that the company's shares fell from $ 5.88 per share to $ 1.58 per share over two days in mid-September. The company's shares closed at $ 1.73 a share on Monday.

McDermott reported "irregular cost estimate changes" for engineering, procurement and construction work for Louisiana's Cameron LNG Export Terminal, Freeport LNG in Texas, power plant projects, various petrochemical projects, and offshore oil projects in Mexico. . Petroleos Mexicanos or Pemex.

McDermott did not publish the date and time of the third quarter earnings announcement, nor did he schedule an investor's call to discuss the results widely adopted by public trading companies.

The company claims there is a project balance worth $ 20 billion in the future.

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Founded in 1923, McDermott provides design, engineering and construction services to petrochemical plants, liquefied natural gas plants, and offshore petroleum and natural gas facilities.

The company has more than 32,000 employees in 54 countries. The Houston company lost $ 2.7 billion in 2018 with $ 6.7 billion in sales.

McDermott's third quarter performance was a fourth consecutive quarter of losses for the troubled Houston Oilfield Services Company.

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