EXHIBIT 99.1
McDermott Reports Second Quarter 2004 Results;
Net Income of $11.8 million, $0.17 per diluted share,
includes B&W settlement revaluation expense
of $4.0 million after tax
NEW ORLEANS--(BUSINESS WIRE)--Aug. 9, 2004--McDermott
International Inc. (NYSE:MDR) ("McDermott" or the "Company") today
reported net income of $11.8 million, or $0.17 per diluted share, for
the second quarter of 2004, compared to a loss from continuing
operations of $60.5 million, or $0.95 per diluted share, for the
corresponding period in 2003. Net loss for the second quarter of 2003
was $59.9 million, or $0.94 per diluted share, which included income
from discontinued operations of $0.7 million. Included in the 2004
second quarter financial results was an after-tax expense in the
quarterly adjustment related to the estimated costs of The Babcock &
Wilcox Company ("B&W") Chapter 11 settlement of $4.0 million compared
to a $40.0 million after tax expense in the second quarter of 2003.
Weighted average common shares outstanding on a fully diluted basis
were approximately 67.5 million and 64.0 million for June 30, 2004 and
June 30, 2003, respectively.
Revenues in the second quarter of 2004 were $499.8 million,
compared to $595.5 million in the corresponding period in 2003. The
change in revenues is due to reduced activity at J. Ray McDermott,
S.A. and its subsidiaries ("J. Ray"), partially offset by increased
revenues at BWX Technologies Inc. ("BWXT").
The second quarter 2004 operating income was $35.7 million, which
included $15.8 million of corporate qualified pension expense,
compared to the second quarter 2003 operating loss and corporate
qualified pension expense of $13.9 million and $18.0 million,
respectively.
"Each of McDermott's segments reported significantly better
operating results compared to last year's second quarter," said Bruce
W. Wilkinson, chairman of the board and chief executive officer of
McDermott. "BWXT produced record operating income and J. Ray returned
to profitability. Additionally, unallocated corporate expense also
improved in the quarter compared to a year ago. I am particularly
pleased with J. Ray's positive cash flow performance during the 2004
second quarter, which was a substantial improvement compared to the
prior four quarters and was well above our expectations."
The Company's other expense for the second quarter of 2004 was
$10.8 million, compared to $42.0 million in the second quarter of
2003. The year-over-year improvement is due to a $35.0 million
reduction, pretax, in the quarterly adjustment related to the
estimated costs of the B&W Chapter 11 settlement. This revaluation
will continue to fluctuate on a quarterly basis and is largely
dependent on the quarter end price of McDermott's stock.
RESULTS OF OPERATIONS
2004 Second Quarter Compared to 2003 Second Quarter
Marine Construction Services Segment ("J. Ray")
Revenues in the Marine Construction Services segment were $359.3
million in the 2004 second quarter, a decrease of $108.6 million from
a year ago. The year-over-year reduction resulted from decreased
activity on fabrication and marine installation projects in the Middle
East, southern Argentina and Asia Pacific regions, partially offset by
increased activity in Azerbaijan and Morgan City, La.
Segment income for the 2004 second quarter was $22.1 million
compared to a segment loss in the second quarter 2003 of $13.2
million. Major projects contributing operating income to the 2004
second quarter were the projects in Azerbaijan for AIOC, a pipelay
project for Shell in the Gulf of Mexico, and the fabrication projects
for BP in Morgan City, La. In addition, J. Ray recognized
approximately $23.4 million of operating income in the second quarter
2004 from favorable contract cost adjustments relating to operating
improvements and recoveries on projects which had incurred losses in
previous quarters, partially offset by an aggregate of $10.7 million
in charges related to severance costs, drydock costs, legal
settlements and other items. J. Ray's second quarter 2003 operating
results included a $39.9 million loss related to a marine construction
project in southern Argentina. Selling, general and administrative
expenses were $24.4 million in the 2004 second quarter, compared to
$15.3 million in the 2003 second quarter. This increase was due to
higher marketing, compliance, insurance and information systems
expenses.
At June 30, 2004, J. Ray's backlog was $1.1 billion, which
included an aggregate of $28.4 million related to uncompleted work on
the Front Runner spar, the Belanak project and the Carina Aries
project. J. Ray's backlog was $1.4 billion and $1.8 billion at Dec.
31, 2003 and June 30, 2003, respectively.
Government Operations Segment ("BWXT")
Revenues in the Government Operations segment increased $13.0
million to $140.5 million in the 2004 second quarter, primarily due to
higher volumes from the manufacture of nuclear components for certain
U.S. government programs, and increased volumes from commercial
nuclear environmental services.
Segment income increased $11.4 million to $31.9 million in the
2004 second quarter, primarily due to increased volume and margins
from the manufacture of nuclear components, increased equity income
from investees and approximately $4.4 million of aggregate benefit
from various sales of assets, settlements and other items.
At June 30, 2004, BWXT's backlog was $1.6 billion, compared to
backlog of $1.8 billion and $1.5 billion at Dec. 31, 2003 and June 30,
2003, respectively.
Corporate
Unallocated corporate expenses were $20.0 million in the 2004
second quarter, a decrease of $1.2 million compared to the 2003 second
quarter. Unallocated corporate expense in the second quarter of 2004
and 2003 included $15.8 million and $18.0 million, respectively, of
qualified corporate pension expense.
Other Income and Expense
Net interest expense was $7.3 million in the 2004 second quarter
compared to $3.3 million in the 2003 second quarter, due to the
issuance of J. Ray's 11 percent senior secured notes in December 2003.
During the 2004 second quarter, revaluation of certain components
of the estimated settlement cost related to the Chapter 11 proceedings
involving B&W resulted in an increase in the estimated cost of the
settlement to $129.3 million, resulting in the recognition of other
pretax expense of $4.4 million ($4.0 million after tax). The increase
in the second quarter 2004 estimated settlement cost is due primarily
to an increase in the closing price of McDermott's common stock from
$8.39 per share at March 31, 2004 to $10.16 per share at June 30,
2004. As discussed in the Company's annual report on Form 10-K for the
year ended Dec. 31, 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.
Provision for income taxes during the second quarter of 2004 was
$13.1 million, compared to $4.6 million during the second quarter of
2003. The Company's consolidated net provision for income taxes
reflects the tax obligations in many of the jurisdictions in which it
operates.
DISCONTINUED OPERATIONS
In August 2003, the Company completed the sale of Menck GmbH
("Menck"), formerly a component of the Marine Construction Services
segment. Accordingly, the Company has reported the results of
operations for Menck as discontinued operations. In the second quarter
of 2003, the Company recorded income of $0.7 million, after tax,
associated with the operations of Menck.
THE BABCOCK & WILCOX COMPANY
The Company wrote off its remaining 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 in February 2000. B&W's revenues were $357.3 million in the
second quarter of 2004, an increase of $5.0 million compared to the
second quarter of 2003. B&W's net income for the 2004 second quarter
was $45.2 million, an increase of $97.0 million versus the
corresponding period in 2003. The 2003 second quarter included a $70
million pretax charge for an increase in B&W's asbestos liability.
LIQUIDITY
The Company, on a consolidated basis, and J. Ray, on a stand-alone
basis, both produced positive cash flow in the second quarter of 2004.
As of June 30, 2004, J. Ray's unrestricted cash balance was $93.3
million, a significant improvement compared to the previous
expectations of management for the second quarter 2004.
During the 2004 second quarter, J. Ray and McDermott entered into
a $25 million accounts receivable sales/purchase facility, which could
provide J. Ray additional liquidity, if needed. There have not been
any drawings to date under this facility.
In addition, since June 30, 2004, J. Ray has taken several steps
which it believes will further enhance its liquidity, including:
-- Completing the sale of the DB60 in July, for cash proceeds of
approximately $44 million, which it currently intends to use
to fund J. Ray's capital expenditure program for the coming 12
months,
-- Selling the Oceanic 93 for cash proceeds of approximately
$18.7 million, which J. Ray currently intends to use to either
retire a portion of J. Ray's 11 percent senior secured notes,
purchase another vessel or fund capital expenditures on
existing collateralized vessels, and
-- Obtaining the completion certificate from the customer on the
Front Runner Spar, which enabled the previously restricted $22
million in cash held in a temporary interest reserve account
to become unrestricted cash.
On Aug. 4, 2004, J. Ray's available unrestricted cash had improved
$21 million since the end of the 2004 second quarter, to approximately
$114 million.
As a result of its improved liquidity position and current cash
flow forecast, J. Ray has ceased negotiations on the new letter of
credit facility it was pursuing. J. Ray believes that a $75-$100
million facility is not necessary to its near term liquidity. J. Ray
will continue to cash collateralize letters of credit and will
evaluate pursuing additional credit facilities, as the opportunity or
need arises.
As of June 30, 2004, J. Ray's restricted cash balance was $134
million, which primarily consisted of approximately $77 million of
cash collateral for letters of credit and foreign exchange, $19
million in escrow relating to the sale of the Oceanic 93, $16 million
for captive insurance programs and $22 million of temporary interest
reserve.
As previously disclosed, there continues to be substantial doubt
about J. Ray's ability to continue as a going concern. As discussed in
this section, however, J. Ray's outlook regarding its liquidity
position has significantly improved since Dec. 31, 2003. In the
remaining two quarters of 2004, excluding changes in letters of credit
and further asset sales, J. Ray currently expects to incur a cash
outflow of approximately $15 million, primarily due to the completion
of the spar projects, the Carina Aries project and the Belanak
project, for which substantial income statement expenses have already
been recorded. The spar projects are now physically complete, and both
the Carina Aries and Belanak projects are more than 97 percent
complete, and J. Ray believes the risk of further costs overruns
impacting its liquidity is significantly reduced.
Completion of these projects has and may continue to put a strain
on J. Ray's liquidity. J. Ray intends to fund its negative cash flow
anticipated for the remainder of 2004 with its unrestricted cash on
hand, and if needed, utilization of the $25 million intercompany
accounts receivable sales facility with McDermott. While J. Ray's cash
flow was positive in the second quarter, further declines in backlog
could have a negative impact on cash flows beyond 2004.
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 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. These forward-looking statements include our expectations
regarding completion of the remaining contracts in loss positions,
statements relating to the proposed settlement of the B&W Chapter 11
proceedings, and statements relating to our liquidity and J. Ray's
liquidity. 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 Dec. 31, 2003 and its 2004 quarterly
reports filed with the Securities and Exchange Commission.
Conference Call to Discuss 2004 Second Quarter Earnings Release
- ---------------------------------------------------------------
Date: Tuesday, August 10, 2004, at 10:00 a.m. EDT
(9:00 a.m. CDT)
Live Webcast: Investor Relations section of Web site at
www.mcdermott.com
Replay: Available for two weeks in the investor relations
section of www.mcdermott.com
McDERMOTT INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
------ ------ ------ ------
(Unaudited)
(In thousands, except per share amounts)
Revenues $499,817 $595,475 $999,151 $1,108,212
- ----------------------------------------------------------------------
Costs and Expenses:
Cost of operations 426,804 578,578 892,372 1,044,085
Selling, general and
administrative expenses 45,526 36,052 89,118 77,235
- ----------------------------------------------------------------------
472,330 614,630 981,490 1,121,320
- ----------------------------------------------------------------------
Equity in Income of
Investees 8,197 5,237 15,940 13,125
- ----------------------------------------------------------------------
Operating Income (Loss) 35,684 (13,918) 33,601 17
- ----------------------------------------------------------------------
Other Income (Expense):
Interest income 872 909 1,820 1,889
Interest expense (8,213) (4,171) (16,684) (7,830)
Increase in estimated cost
of The Babcock & Wilcox
Company bankruptcy
settlement (4,383) (39,395) (1,972) (15,324)
Other-net 912 652 2,115 1,987
- ----------------------------------------------------------------------
(10,812) (42,005) (14,721) (19,278)
- ----------------------------------------------------------------------
Income (Loss) from
Continuing Operations
before Provision for
Income Taxes and
Cumulative Effect of
Accounting Change 24,872 (55,923) 18,880 (19,261)
Provision for Income Taxes 13,087 4,624 17,962 11,661
- ----------------------------------------------------------------------
Income (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change 11,785 (60,547) 918 (30,922)
Income from Discontinued
Operations - 695 - 2,906
- ----------------------------------------------------------------------
Income (Loss) before
Cumulative Effect of
Accounting Change 11,785 (59,852) 918 (28,016)
Cumulative Effect of
Accounting Change - - - 3,710
- ----------------------------------------------------------------------
Net Income (Loss) $11,785 $(59,852) $918 $(24,306)
- ----------------------------------------------------------------------
Earnings (Loss) per
Common Share:
Basic
Income (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change $0.18 $(0.95) $0.01 $(0.49)
Income from Discontinued
Operations $- $0.01 $- $0.05
Cumulative Effect of
Accounting Change $- $- $- $0.06
Net Income (Loss) $0.18 $(0.94) $0.01 $(0.38)
Diluted
Income (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change $0.17 $(0.95) $0.01 $(0.49)
Income from Discontinued
Operations $- $0.01 $- $0.05
Cumulative Effect of
Accounting Change $- $- $- $0.06
Net Income (Loss) $0.17 $(0.94) $0.01 $(0.38)
- ----------------------------------------------------------------------
McDERMOTT INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
------ ------ ------ ------
(Unaudited)
Weighted Average Common
Shares
Basic 65,524,948 63,995,146 65,398,526 63,732,409
Diluted 67,480,107 63,995,146 67,525,697 63,732,409
- ----------------------------------------------------------------------
McDERMOTT INTERNATIONAL INC.
SELECTED SEGMENT INFORMATION
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
--------- --------- ---------- ----------
(Unaudited)
(In thousands except Backlog)
REVENUES
Marine Construction
Services $359,334 $467,972 $725,142 $863,012
Government Operations 140,490 127,523 274,019 245,231
Power Generation
Systems - - - -
Adjustments and
Eliminations (7) (20) (10) (31)
--------------------------------------------------------------------
TOTAL $499,817 $595,475 $999,151 $1,108,212
--------------------------------------------------------------------
SEGMENT INCOME (LOSS)
Marine Construction
Services $22,112 $(13,162) $18,511 $3,478
Government Operations 31,908 20,486 51,617 44,111
Power Generation
Systems 1,660 (4) 1,771 30
--------------------------------------------------------------------
55,680 7,320 71,899 47,619
Corporate (19,996) (21,238) (38,298) (47,602)
--------------------------------------------------------------------
TOTAL $35,684 $(13,918) $33,601 $17
--------------------------------------------------------------------
EQUITY IN INCOME FROM
INVESTEES
Marine Construction
Services $746 $(885) $1,909 $(577)
Government Operations 7,180 5,938 13,427 13,294
Power Generation
Systems 271 184 604 408
--------------------------------------------------------------------
TOTAL $8,197 $5,237 $15,940 $13,125
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DEPRECIATION & AMORTIZATION
Marine Construction
Services $6,537 $7,757 $11,747 $13,181
Government Operations 2,945 3,180 6,036 6,332
Power Generation
Systems - 4 - 7
Corporate 1,018 916 1,643 1,657
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TOTAL $10,500 $11,857 $19,426 $21,177
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CAPITAL EXPENDITURES
Marine Construction
Services $2,121 $3,858 $3,870 $11,605
Government Operations 2,333 5,318 4,239 7,460
Power Generation
Systems - - - -
Corporate 2 1,656 2 1,662
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TOTAL $4,456 $10,832 $8,111 $20,727
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BACKLOG (in millions)
Marine Construction
Services $1,082,386 $1,837,606 $1,082,386 $1,837,606
Government Operations 1,592,926 1,493,313 1,592,926 1,493,313
--------------------------------------------------------------------
TOTAL $2,675,312 $3,330,919 $2,675,312 $3,330,919
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McDERMOTT INTERNATIONAL INC.
ITEMS INCLUDED IN CONTINUING OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
------ ------ ------ ------
(Unaudited)
(In millions)
ITEMS INCLUDED IN OPERATING INCOME
(LOSS):
Marine Construction Services
Contract cost adjustments on
loss projects $23.4 $- $28.4 $-
Miscellaneous one-time items,
net (10.7) - (10.7) -
Announced project change order - - - 11.0
Carina Aries Weather Related - (39.9) - (41.9)
-----------------------------------------------------------------
TOTAL $12.7 $(39.9) $17.7 $(30.9)
-------------------------------------------------------------------
Government Operations
Miscellaneous favorable one-
time benefits 4.4 5.4 4.4 8.7
-----------------------------------------------------------------
TOTAL $4.4 $5.4 $4.4 $8.7
-------------------------------------------------------------------
Corporate
Qualified Pension Plan Expense $(15.8) $(18.0) $(31.6) $(36.0)
-----------------------------------------------------------------
TOTAL $(15.8) $(18.0) $(31.6) $(36.0)
- ----------------------------------------------------------------------
OTHER ITEMS:
Estimated Change in B&W
bankruptcy settlement $(4.4) $(39.4) $(2.0) $(15.3)
Tax impact on B&W settlement 0.4 (0.6) 0.7 (1.1)
-------------------------------------------------------------------
Net After Tax Effect $(4.0) $(40.0) $(1.3) $(16.4)
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McDERMOTT INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
June 30, Dec. 31,
2004 2003
--------- ---------
(Unaudited)
(In thousands)
Current Assets:
Cash and cash equivalents $134,694 $174,790
Restricted cash and cash equivalents 168,308 180,480
Accounts receivable - trade, net 214,234 195,073
Accounts receivable from The
Babcock & Wilcox Company 5,017 6,192
Accounts and notes receivable -
unconsolidated affiliates 10,292 14,024
Accounts receivable - other 28,613 38,296
Contracts in progress 78,480 69,485
Deferred income taxes 3,440 4,168
Other current assets 20,506 16,019
- ----------------------------------------------------------------------
Total Current Assets 663,584 698,527
- ----------------------------------------------------------------------
Property, Plant and Equipment 1,202,712 1,244,222
Less accumulated depreciation 854,535 880,460
- ----------------------------------------------------------------------
Net Property, Plant and Equipment 348,177 363,762
- ----------------------------------------------------------------------
Investments 42,820 42,800
- ----------------------------------------------------------------------
Goodwill 12,926 12,926
- ----------------------------------------------------------------------
Prepaid Pension Costs 18,573 18,722
- ----------------------------------------------------------------------
Other Assets 160,156 112,137
- ----------------------------------------------------------------------
TOTAL $1,246,236 $1,248,874
- ----------------------------------------------------------------------
McDERMOTT INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' DEFICIT
June 30, Dec. 31,
2004 2003
-------------- ---------------
(Unaudited)
(In thousands)
Current Liabilities:
Notes payable and current maturities
of long-term debt $11,988 $37,217
Accounts payable 164,430 146,665
Accounts payable to The Babcock &
Wilcox Company 36,507 42,137
Accrued employee benefits 66,812 69,923
Accrued liabilities - other 178,607 166,129
Accrued contract costs 49,418 69,928
Advance billings on contracts 160,966 176,105
U.S. and foreign income taxes payable 28,474 14,727
- ----------------------------------------------------------------------
Total Current Liabilities 697,202 722,831
- ----------------------------------------------------------------------
Long-Term Debt 268,096 279,682
- ----------------------------------------------------------------------
Accumulated Postretirement Benefit
Obligation 26,388 26,861
- ----------------------------------------------------------------------
Self-Insurance 74,197 60,737
- ----------------------------------------------------------------------
Pension Liability 334,938 311,393
- ----------------------------------------------------------------------
Accrued Cost of The Babcock & Wilcox
Company Bankruptcy Settlement 102,888 100,916
- ----------------------------------------------------------------------
Other Liabilities 103,711 109,631
- ----------------------------------------------------------------------
Commitments and Contingencies.
Stockholders' Deficit:
Common stock, par value $1.00 per
share, authorized 150,000,000 shares;
issued 68,993,119 at June 30, 2004
and 68,129,390 at Dec. 31, 2003 68,993 68,129
Capital in excess of par value 1,110,464 1,105,828
Accumulated deficit (1,121,629) (1,122,547)
Treasury stock at cost, 2,354,069
shares at June 30, 2004 and
2,061,407 at Dec. 31, 2003 (65,332) (62,792)
Accumulated other comprehensive loss (353,680) (351,795)
- ----------------------------------------------------------------------
Total Stockholders' Deficit (361,184) (363,177)
- ----------------------------------------------------------------------
TOTAL $1,246,236 $1,248,874
- ----------------------------------------------------------------------
McDERMOTT INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
2004 2003
--------------- --------------
(Unaudited; In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $918 $(24,306)
- ----------------------------------------------------------------------
Adjustments to reconcile net income
(loss) to net cash used in operating
activities:
Depreciation and amortization 19,426 21,177
Income or loss of investees, less
dividends (6,689) (310)
Gain on asset disposals and
impairments - net (2,953) (2,089)
Benefit from deferred taxes (7,996) (2,233)
Increase in estimated cost of The
Babcock & Wilcox Company bankruptcy
settlement 1,972 15,324
Cumulative effect of accounting change - (3,710)
Other 1,200 3,293
Changes in assets and liabilities,
net of effects of acquisitions and
divestitures:
Accounts receivable (4,633) (8,049)
Net contracts in progress and
advance billings (24,102) (31,781)
Accounts payable 12,130 7,401
Accrued and other current
liabilities (7,332) (49,576)
Income taxes 13,748 (11,840)
Other, net (9,326) 33,172
- ----------------------------------------------------------------------
NET CASH USED IN OPERATING ACTIVITIES (13,637) (53,527)
- ----------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
(Increase) decrease in restricted cash
and cash equivalents 12,172 (12,312)
Purchases of property, plant and
equipment (8,111) (20,727)
Purchases of available-for-sale
securities (34,965) (232,364)
Sales of available-for-sale securities 5,140 131,241
Maturities of available-for-sale
securities 30,025 227,493
Proceeds from asset disposals 6,601 2,377
Other (1) (399)
- ----------------------------------------------------------------------
NET CASH PROVIDED BY INVESTING ACTIVITIES 10,861 95,309
- ----------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of long-term debt - (9,500)
Decrease in short-term borrowing (36,750) (39,875)
Issuance of common stock 281 271
Other (857) 2,140
- ----------------------------------------------------------------------
NET CASH USED IN FINANCING ACTIVITIES (37,326) (46,964)
- ----------------------------------------------------------------------
EFFECTS OF EXCHANGE RATE CHANGES ON CASH 6 (6)
- ----------------------------------------------------------------------
NET DECREASE IN CASH AND CASH EQUIVALENTS (40,096) (5,188)
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 174,790 129,517
- ----------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $134,694 $124,329
- ----------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest (net of amount capitalized) $16,939 $7,725
Income taxes - net $24,428 $3,124
- ----------------------------------------------------------------------
CONTACT: McDermott International Inc., Houston
Jay Roueche, 281-870-5462
jroueche@mcdermott.com