EXHIBIT 99.1
McDermott Reports Third Quarter 2003 Income from Continuing
Operations of $10.1 Million, $0.15 Per Diluted Share
NEW ORLEANS--(BUSINESS WIRE)--Nov. 4, 2003--
Includes after-tax B&W settlement
revaluation benefit of $8.2 million
McDermott International, Inc. (NYSE: MDR) ("McDermott" or the
"Company") today reported income from continuing operations of $10.1
million, or 15 cents per diluted share, for the third quarter of 2003
compared to a loss from continuing operations of $366.3 million, or
$5.91 per diluted share, for the same period in 2002. Including $1.7
million of income from discontinued operations, net income for the
2003 third quarter was $11.8 million, or 18 cents per diluted share.
Net loss for the third quarter of 2002 was $357.1 million, or $5.76
per diluted share, which included income from discontinued operations
of $9.3 million. Weighted average common shares outstanding on a fully
diluted basis were 66.7 million and 62.0 million for September 30,
2003 and September 30, 2002, respectively.
Revenues in the third quarter of 2003 increased 49.8 percent, to
$645.3 million, compared to the corresponding period in 2002. The
growth in revenues is due to increased activity in the Marine
Construction Services ("J. Ray") segment, partially offset by the loss
of revenues from the Power Generation Systems segment due to the sale
of Babcock & Wilcox Volund ApS in October 2002.
Third quarter 2003 operating income was $8.4 million, which
included a $19.9 million increase in the Company's estimate of the
costs necessary to complete the EPIC Spar projects by J. Ray,
primarily the Front Runner spar, and a $20.7 million non-cash
qualified pension plan expense in the Corporate segment. The 2002
third quarter operating loss of $367.2 million included a $313.0
million impairment of goodwill, a $3.9 million impairment of an
international joint venture and a $65.2 million loss from the EPIC
Spar projects, all at J. Ray and a $4.2 million non-cash qualified
pension plan expense in the Corporate segment.
"We demonstrated solid progress during the quarter," said Bruce W.
Wilkinson, chairman of the board and chief executive officer of
McDermott. "Our operating businesses, J. Ray and BWXT, showed marked
improvement versus a year ago, with both groups contributing to our
earnings this quarter. J. Ray's increased activity during this strong
third quarter contributed to its operating income and although our
expected costs to complete the spars increased, primarily on Front
Runner, I am encouraged by the solid earnings power that J. Ray
demonstrated absent these increased costs. I believe J. Ray's improved
focus on financial discipline will produce results over the long-term.
I am particularly pleased with the consistent, year-over-year
improvements at our BWXT operations. Its improving performance is
commendable."
The Company's other income for the third quarter of 2003 was $6.9
million, compared to other expense of $3.4 million in the third
quarter of 2002. The year-over-year improvement is primarily due to a
$9.7 million pretax ($8.2 million after-tax) reduction in the
estimated costs related to The Babcock & Wilcox Company ("B&W")
Chapter 11 settlement.
RESULTS OF OPERATIONS
2003 Third Quarter Compared to 2002 Third Quarter
Marine Construction Services Segment
Revenues from the Marine Construction Services segment, which
consists of J. Ray McDermott and its subsidiaries, increased 85
percent to $512.3 million in the 2003 third quarter. The revenue
growth resulted from increased activity on fabrication and marine
installation projects in all geographic areas where J. Ray operates,
other than the Gulf of Mexico.
The operating income for the 2003 third quarter was $11.9 million.
Major projects contributing to 2003 third quarter operating income
were the fabrication of topsides and marine installation of topsides
and pipelines for projects in the Azerbaijani sector of the Caspian
Sea, topsides fabrication work in the Morgan City fabrication
facility, and deck fabrication and installation projects for an
offshore operator in Vietnam. Selling, general and administrative
expenses were $1.8 million lower in the 2003 third quarter compared to
the 2002 third quarter. The 2003 third quarter included $19.9 million
of increased costs associated with the Spar projects, primarily the
Front Runner spar, while the 2002 third quarter included $65.2 million
of Spar-related losses and $313 million of goodwill impairment.
At September 30, 2003, J. Ray's backlog of $1.5 billion included
$213 million related to contracts in loss positions. Of this amount,
$137 million related to uncompleted work on the Spar projects and $71
million related to the Carina Aries project in Argentina. J. Ray's
backlog was $1.8 billion and $2.1 billion at June 30, 2003 and at
December 31, 2002, respectively.
Government Operations Segment
The Government Operations segment consists primarily of BWX
Technologies, Inc. ("BWXT"). Revenues in this segment decreased $3.2
million to $133.0 million in the 2003 third quarter primarily due to
lower revenues from a management and operations contract in Ohio,
partially offset by higher volumes from the manufacture of nuclear
components for certain U.S. government programs.
Operating income increased 75 percent to $21.4 million in the 2003
third quarter, primarily due to the following:
-- higher volumes from the manufacture of nuclear components for
certain U.S. government programs
-- improved operating results from joint ventures in Idaho,
Louisiana, and Tennessee
-- better margins from the commercial nuclear environmental
services
-- reduced spending on fuel cell research and development
projects
These items were partially offset by lower volumes at other
government manufacturing operations, and higher general and
administrative expenses due to increased facility management oversight
costs.
At September 30, 2003, BWXT's backlog was $1.4 billion, compared
to backlog of $1.5 billion and $1.7 billion at June 30, 2003 and
December 31, 2002, respectively.
Corporate
Corporate expenses were $25.0 million in the 2003 third quarter,
an increase of $18.7 million, primarily due to higher noncash
qualified pension plan expense as a result of year-end 2002 changes in
the discount rate and plan asset performance. Additionally, the
financial performance of the Company's captive insurance companies was
less favorable during the 2003 third quarter compared to the same
period in 2002.
Other Income and Expense
Net interest expense was $3.1 million in the 2003 third quarter
compared to $1.4 million in the 2002 third quarter, due to higher
interest rates associated with the Company's credit facility, and
lower interest income due to a decrease in the amount of investments
held combined with lower average interest rates earned on the
investments.
During the 2003 third quarter, revaluation of certain components
of the estimated settlement cost related to the Chapter 11 proceedings
involving B&W resulted in a decrease in the estimated cost of the
settlement to $92.0 million resulting in the recognition of other
income of $9.7 million ($8.2 million after tax). The consideration to
be provided in the proposed settlement includes, among other things,
McDermott common stock, a share price guaranty obligation and a
promissory note. The decrease in the estimated settlement cost is due
primarily to a decline in the price of McDermott's common stock from
$6.33 per share at June 30, 2003 to $5.71 per share at September 30,
2003. The Company is required to revalue certain components of the
estimated settlement cost quarterly and at the time the securities are
issued, assuming the settlement is finalized. Assuming issuance of the
debt and equity securities, the Company will record such amounts as
either liabilities or stockholders' equity based on the nature of the
individual securities. Thereafter, only the 3-year share price
guaranty will be required to be revalued on an ongoing quarterly
basis.
The Company reported other income of $0.3 million in the 2003
third quarter compared to other expense of $1.9 million in the 2002
third quarter due to minority interest income associated with a J. Ray
joint venture and an increase in foreign currency transaction gains.
Provision for income taxes during the third quarter of 2003 was
$5.1 million, compared to a benefit from income taxes of $4.3 million
during the same period of 2002. The $9.4 million variance was due to
the increase in pretax income combined with the changing mix of income
earned in various tax jurisdictions.
DISCONTINUED OPERATIONS
In August 2003, the Company completed the sale of Menck GmbH
("Menck"), formerly a component of the Marine Construction Services
segment. Accordingly, for the three and nine months ended September
30, 2003 and September 30, 2002, the Company has reported the results
of operations for Menck as discontinued operations.
Hudson Products Corporation ("HPC") was sold in July 2002.
Accordingly, for the three and nine months ended September 30, 2002,
the Company has reported the results of operations for HPC as
discontinued operations.
THE BABCOCK & WILCOX COMPANY
The Company wrote off its investment in B&W of $224.7 million
during the second quarter of 2002 and has not consolidated B&W with
McDermott's financial results since B&W's Chapter 11 bankruptcy filing
on February 22, 2000. B&W's revenues increased $1.6 million to $318.5
million in the third quarter of 2003. Net income for the 2003 third
quarter was $15.4 million, an increase of $5.4 million versus the
corresponding period in 2002.
LIQUIDITY
On a consolidated basis, the Company incurred negative cash flows
for the first three quarters of 2003 and expects to incur negative
cash flows from operations during the remainder of 2003 and in the
first three quarters of 2004, primarily due to losses on the Spar
projects and the Argentina project at J. Ray.
Completion of the Spar projects and the Carina Aries project in
Argentina has and will continue to put a strain on J. Ray's liquidity.
J. Ray intends to fund its negative cash flow through new financing
arrangements and sales of non-strategic assets. For the 2003 year, the
Company anticipates negative operating cash flows before capital
expenditures of between $100 million to $120 million. At October 28,
2003, the Company had liquidity of $199 million, which included
unrestricted cash of $139 million and borrowing capacity under its
existing credit facilities of $60 million.
The Company is in the process of refinancing BWXT on a stand-alone
basis and has received a commitment letter from a commercial bank to
underwrite a three-year $125 million revolving credit facility, which
may be increased to $150 million. This commitment is subject to the
successful refinancing of J. Ray on a stand-alone basis. The Company
is developing new financing arrangements for J. Ray and expects to
close the BWXT and J. Ray financings simultaneously during the fourth
quarter of 2003.
The Company's ability to obtain new financing for J. Ray will
depend on numerous factors, including J. Ray's operating performance
and overall market conditions. If the Company is unable to obtain new
financing arrangements, J. Ray's ability to pursue additional
projects, which often require letters of credit, and its liquidity
will be adversely impacted. These factors continue to cause
substantial doubt about J. Ray's ability to continue as a going
concern.
OTHER INFORMATION
About the Company
McDermott International, Inc. is a leading worldwide energy
services company. The Company's subsidiaries provide engineering,
fabrication, installation, procurement, research, manufacturing,
environmental systems, project management and facility management
services to a variety of customers in the energy and power industries,
including the U.S. Department of Energy.
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, McDermott International,
Inc. cautions that statements in this press release, which are
forward-looking and provide other than historical information, involve
risks and uncertainties that may impact the Company's actual results
of operations. The forward-looking statements in this press release
include, among other things, statements about the Company's and J.
Ray's liquidity and ability to obtain new financing arrangements, the
estimated cash flows and timing to complete the Spar projects and the
Carina Aries project and the estimated charges for the proposed
settlement of the B&W Chapter 11 proceedings based on current
negotiations. Although we believe that the expectations reflected in
those forward-looking statements are reasonable, we can give no
assurance that those expectations will prove to have been correct.
Those statements are made by using various underlying assumptions and
are subject to numerous uncertainties and risks. If one or more of
these risks materialize, or if underlying assumptions prove incorrect,
actual results may vary materially from those expected. For a more
complete discussion of these risk factors, please see McDermott's
annual report for the year ended December 31, 2002 and its 2003
quarterly reports filed with the Securities and Exchange Commission.
Conference Call to Discuss 2003 Third Quarter Earnings Release
Date: Wednesday, November 5, 2003 at 10:00 a.m. EDT (9:00 a.m. CDT)
Webcast: Investor Relations section of website at www.mcdermott.com
Replay: November 5, 2003 beginning at 1:00 p.m. EDT (12:00 p.m. CDT)
(USA) (888)-286-8010 or (International) (617) 801-6888
Access code 31426403
McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
(Unaudited; in thousands, except per share amounts)
Revenues $645,334 $ 430,937 $1,753,546 $1,291,423
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Costs and Expenses:
Cost of operations 600,353 452,546 1,644,438 1,257,077
Impairment of JRM
goodwill - 313,008 - 313,008
Loss on write-off of
investment in
The Babcock & Wilcox
Company - - - 224,664
Selling, general and
administrative expenses 43,052 37,091 120,287 116,989
- ----------------------------------------------------------------------
643,405 802,645 1,764,725 1,911,738
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Equity in Income of
Investees 6,457 4,469 19,582 14,421
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Operating Income (Loss) 8,386 (367,239) 8,403 (605,894)
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Other Income (Expense):
Interest income 709 1,540 2,598 6,877
Interest expense (3,801) (2,983) (11,631) (12,516)
(Increase) decrease in
estimated cost of The
Babcock & Wilcox Company
bankruptcy settlement 9,682 - (5,642) -
Other-net 299 (1,916) 2,286 (506)
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6,889 (3,359) (12,389) (6,145)
Income (Loss) from
Continuing Operations
before Provision for
(Benefit from) Income Taxes
and Cumulative Effect of
Accounting Change 15,275 (370,598) (3,986) (612,039)
Provision for (Benefit
from) Income Taxes 5,140 (4,284) 16,801 (9,676)
- ----------------------------------------------------------------------
Income (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change 10,135 (366,314) (20,787) (602,363)
Income from Discontinued
Operations 1,649 9,258 4,555 10,498
- ----------------------------------------------------------------------
Income (Loss) before
Cumulative Effect of
Accounting Change 11,784 (357,056) (16,232) (591,865)
Cumulative Effect of
Accounting Change - - 3,710 -
- ----------------------------------------------------------------------
Net Income (Loss) $ 11,784 $(357,056) $ (12,522) $ (591,865)
- ----------------------------------------------------------------------
Earnings (Loss) per Common
Share:
Basic:
Income (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change $ 0.16 $ (5.91) $ (0.33) $ (9.78)
Income from
Discontinued
Operations $ 0.03 $ 0.15 $ 0.07 $ 0.17
Cumulative Effect of
Accounting Change $ - $ - $ 0.06 $ -
Net Income (Loss) $ 0.18 $ (5.76) $ (0.20) $ (9.61)
Diluted:
Income (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change $ 0.15 $ (5.91) $ (0.33) $ (9.78)
Income from
Discontinued
Operations $ 0.02 $ 0.15 $ 0.07 $ 0.17
Cumulative Effect of
Accounting Change $ - $ - $ 0.06 $ -
Net Income (Loss) $ 0.18 $ (5.76) $ (0.20) $ (9.61)
- ----------------------------------------------------------------------
McDERMOTT INTERNATIONAL, INC.
SELECTED SEGMENT INFORMATION
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
(Unaudited)
(In thousands)
REVENUES:
Marine Construction
Services $512,347 $ 276,843 $1,375,359 $ 855,437
Government Operations 133,031 136,255 378,262 389,161
Power Generation
Systems - 17,846 - 46,881
Adjustments and
Eliminations (44) (7) (75) (56)
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$645,334 $ 430,937 $1,753,546 $1,291,423
- ----------------------------------------------------------------------
OPERATING INCOME (LOSS):
Marine Construction
Services $ 11,926 $(370,342) $ 15,404 $ (399,013)
Government Operations 21,398 12,226 65,509 44,786
Power Generation
Systems 87 (1,326) 117 (5,248)
- ----------------------------------------------------------------------
33,411 (359,442) 81,030 (359,475)
Write-off of
investment in B&W - - - (224,664)
Other unallocated - (1,452) - (1,452)
Corporate (25,025) (6,345) (72,627) (20,303)
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TOTAL $ 8,386 $(367,239) $ 8,403 $ (605,894)
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EQUITY IN INCOME (LOSS)
OF INVESTEES:
Marine Construction
Services $ 144 $ (530) $ (433) $ 1,246
Government Operations 6,038 4,837 19,332 15,826
Power Generation
Systems 275 162 683 (2,651)
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TOTAL $ 6,457 $ 4,469 $ 19,582 $ 14,421
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DEPRECIATION &
AMORTIZATION:
Marine Construction
Services $ 7,648 $ 7,018 $ 20,830 $ 18,842
Government Operations 3,120 1,953 9,452 8,139
Power Generation
Systems 3 187 10 543
Corporate 632 1,466 2,289 2,710
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TOTAL $ 11,403 $ 10,624 $ 32,581 $ 30,234
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CAPITAL EXPENDITURES:
Marine Construction
Services $ 2,461 $ 10,040 $ 13,796 $ 26,463
Government Operations 3,828 5,760 11,288 15,449
Power Generation
Systems - 185 - 246
Corporate 1,051 - 2,447 -
- ----------------------------------------------------------------------
TOTAL $ 7,340 $ 15,985 $ 27,531 $ 42,158
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BACKLOG (in millions):
Marine Construction
Services $ 1,483 $ 1,957 $ 1,483 $ 1,957
Government Operations 1,380 949 1,380 949
Power Generation
Systems - - - -
- ----------------------------------------------------------------------
TOTAL $ 2,863 $ 2,906 $ 2,863 $ 2,906
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McDERMOTT INTERNATIONAL, INC.
ITEMS INCLUDED IN LOSS FROM CONTINUING OPERATIONS
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
---- ---- ---- ----
(Unaudited)
(In millions)
ITEMS INCLUDED IN OPERATING INCOME (LOSS) BY SEGMENT:
Marine Construction Services
Losses on Spar projects $(19.9) $ (65.2) $(19.9) $(102.1)
Impairment of JRM goodwill - (313.0) - (313.0)
Losses on Argentina project - (0.8) (41.9) (0.3)
Announced change orders on a
project - - 11.0 -
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TOTAL $(19.9) $(379.0) $(50.8) $(415.4)
- ----------------------------------------------------------------------
Government Operations
Favorable resolution of contract
dispute $ - $ - $ 8.7 $ -
- ----------------------------------------------------------------------
TOTAL $ - $ - $ 8.7 $ -
- ----------------------------------------------------------------------
Corporate
Write-off of investment in B&W $ - $ - $ - $(224.7)
Qualified pension plan expense (20.7) (4.2) (56.8) (8.3)
- ----------------------------------------------------------------------
TOTAL $(20.7) $ (4.2) $(56.8) $(233.0)
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OTHER ITEMS:
Change in estimated cost of B&W
bankruptcy settlement before
tax $ 9.7 $ - $ (5.6) $ -
Tax impact on B&W settlement 1.5 - 2.6 -
- ----------------------------------------------------------------------
Change in estimated cost of B&W
bankruptcy settlement after
tax $ 8.2 $ - $ (8.2) $ -
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McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
Sept. 30, Dec. 31,
2003 2002
---- ----
(Unaudited)
(In thousands)
Current Assets:
Cash and cash equivalents $ 163,525 $ 174,341
Restricted cash 7,899 -
Investments - 108,269
Accounts receivable - trade, net 252,796 191,672
Accounts receivable from The Babcock &
Wilcox Company 7,864 12,273
Accounts receivable - unconsolidated
affiliates 14,140 17,695
Accounts receivable - other 28,978 63,270
Contracts in progress 102,083 147,336
Deferred income taxes 2,123 3,350
Other current assets 33,712 45,403
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Total Current Assets 613,120 763,609
- ----------------------------------------------------------------------
Property, Plant and Equipment 1,262,316 1,238,447
Less accumulated depreciation 910,014 885,051
- ----------------------------------------------------------------------
Net Property, Plant and Equipment 352,302 353,396
- ----------------------------------------------------------------------
Investments in Debt Securities 44,591 64,958
- ----------------------------------------------------------------------
Goodwill 12,926 12,926
- ----------------------------------------------------------------------
Prepaid Pension Costs 18,974 19,311
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Other Assets 82,210 63,971
- ----------------------------------------------------------------------
TOTAL $1,124,123 $1,278,171
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McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' DEFICIT
September 30, December 31,
2003 2002
---- ----
(Unaudited)
(In thousands)
Current Liabilities:
Notes payable and current maturities of
long-term debt $ 505 $ 55,577
Accounts payable 179,564 163,811
Accounts payable to The Babcock & Wilcox
Company 45,751 32,379
Accrued employee benefits 62,421 60,896
Accrued liabilities - other 156,357 190,844
Accrued contract costs 50,414 53,335
Advance billings on contracts 208,810 329,031
U.S. and foreign income taxes payable 9,875 31,176
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Total Current Liabilities 713,697 917,049
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Long-Term Debt 85,729 86,104
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Accumulated Postretirement Benefit
Obligation 26,512 26,898
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Self-Insurance 70,186 71,918
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Pension Liability 441,369 392,072
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Accrued Cost of The Babcock & Wilcox Company
Bankruptcy Settlement 92,019 86,377
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Other Liabilities 114,663 114,510
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Commitments and Contingencies
Stockholders' Deficit:
Common stock, par value $1.00 per share,
authorized 150,000,000 shares; issued
67,983,694 at September 30, 2003 and
66,351,478 at December 31, 2002 67,984 66,351
Capital in excess of par value 1,101,432 1,093,428
Accumulated deficit (1,039,840) (1,027,318)
Treasury stock at cost, 2,061,407 shares
at September 30, 2003
and at December 31, 2002 (62,792) (62,792)
Accumulated other comprehensive loss (486,836) (486,426)
- ----------------------------------------------------------------------
Total Stockholders' Deficit (420,052) (416,757)
- ----------------------------------------------------------------------
TOTAL $ 1,124,123 $ 1,278,171
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McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
2003 2002
---- ----
(Unaudited)
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (12,522) $ (591,865)
- ----------------------------------------------------------------------
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 32,581 30,234
Income or loss of investees, less dividends (2,547) (1,503)
Gain on asset disposals and impairments - net (3,406) (207)
Provision for (benefit from) deferred taxes (4,518) 18,908
Increase in estimated cost of The Babcock &
Wilcox
Company bankruptcy settlement 5,642 -
Loss on write-off of investment in The
Babcock & Wilcox Company - 224,664
Impairment of JRM goodwill 313,008
Cumulative effect of accounting change (3,710) -
Gain on sale of Hudson Products Corporation - (15,044)
Gain on sale of Menck GmbH (2,365) -
Other 3,773 9,520
Changes in assets and liabilities, net of
effects
of acquisitions and divestitures:
Accounts receivable (17,148) (40,485)
Net contracts in progress and advance
billings (74,928) 62,971
Accounts payable 24,180 25,328
Accrued and other current liabilities (29,490) 31,252
Income taxes (25,435) (94,834)
Other, net 37,114 (230)
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NET CASH USED IN OPERATING ACTIVITIES (72,779) (28,283)
- ----------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (27,531) (42,158)
Purchases of available-for-sale securities (260,886) (1,087,131)
Sales of available-for-sale securities 133,679 784,494
Maturities of available-for-sale securities 256,600 458,301
Proceeds from asset disposals 20,946 38,621
Other (403) -
- ----------------------------------------------------------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 122,405 152,127
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McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
2003 2002
---- ----
(Unaudited)
(In thousands)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of long-term debt $ (9,500) $(208,416)
Decrease in short-term borrowing (45,600) (26)
Issuance of common stock 256 1,342
Other 2,317 (400)
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NET CASH USED IN FINANCING ACTIVITIES (52,527) (207,500)
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EFFECTS OF EXCHANGE RATE CHANGES ON CASH (16) 49
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NET DECREASE IN CASH AND CASH EQUIVALENTS (2,917) (83,607)
- ----------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 174,341 196,809
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CASH AND CASH EQUIVALENTS AT END OF PERIOD $171,424 $ 113,202
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest (net of amount capitalized) $ 10,501 $ 16,816
Income taxes - net $ 17,744 $ 90,337
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CONTACT: McDermott International, Inc., Houston
Jay Roueche, 281-870-5462
jroueche@mcdermott.com