Profile: McDermott International, Inc. (MDR.N)

McDermott International, Inc. (MII), incorporated in 1959, is an engineering and construction company with specialty manufacturing and service capabilities. MII provides a variety of products and services to customers in the energy and power industries, including utilities and other power generators, and national oil companies, and the United States Government. MII is the parent company of the McDermott group of companies, including J. Ray McDermott, S.A. (JRMSA) and The Babcock & Wilcox Company (B&W). The Company operates in three business segments: Offshore Oil and Gas Construction, Government Operations and Power Generation Systems. On December 31, 2008, the Company’s Government Operations segment completed its acquisition of Nuclear Fuel Services, Inc., a provider of specialty nuclear fuels and related services.

Offshore Oil and Gas Construction

Offshore Oil and Gas Construction segment includes the business and operations of JRMSA, J. Ray McDermott Holdings, LLC and their respective subsidiaries. The Company through this segment supplies services primarily to offshore oil and gas field developments worldwide, including the front-end design and detailed engineering, fabrication and installation of offshore drilling and production facilities and installation of marine pipelines and subsea production systems. It also provides project management and procurement services. This segment operates in offshore oil and gas producing regions, including the United States, Mexico, Canada, the Middle East, India, the Caspian Sea and Asia Pacific.

MII operates a fleet of marine vessels used in offshore construction. The Company's principal fabrication facilities are located near Morgan City, Louisiana, in Indonesia on Batam Island, and in Dubai, United Arab Emirates. The Company also operates a portion of the Baku Deepwater Jacket Factory fabrication facility in Baku, Azerbaijan. MII fabricates a range of offshore structures, from conventional jacket-type fixed platforms to intermediate water and deepwater platform configurations employing Spar, compliant-tower and tension leg technologies, as well as floating, production, storage and off-loading (FPSO) technology. The Company’s Offshore Oil and Gas Construction segment's principal customers are businesses in the offshore oil, natural gas and hydrocarbon processing industries and other offshore construction companies.

MII competes with Allseas Marine Contractors S.A., Daewoo Engineering & Construction Co., Ltd., Global Industries Ltd., NPCC (Abu Dhabi), Heerema Group, Hyundai Heavy Industrial Co., Ltd., Kiewit Offshore Services, Ltd., Nippon Steel Corporation, Saipem S.p.A., Acergy S.A., Technip S.A. and Samsung Heavy Industries Co., Ltd.

Government Operations

Government Operations segment includes the business and operations of BWX Technologies, Inc., Babcock & Wilcox Nuclear Operations Group, Inc., Babcock & Wilcox Technical Services Group, Inc. and their respective subsidiaries. Through this segment, the Company supplies nuclear components, including the manufacture of United States Naval nuclear power systems for submarines and aircraft carriers, and provides various other services to the United States Government, including uranium processing, environmental site restoration services, and management and operating services for various United States Government-owned facilities, primarily within the nuclear weapons complex of the United States Department of Energy (DOE).

The principal areas of operation of this segment include providing precision manufactured nuclear components for the United States Government defense programs; managing and operating nuclear production facilities; managing and operating environmental management sites; managing spent nuclear fuel and transuranic waste for the DOE; providing critical skills and resources for DOE sites, and developing and deploying next-generation technology in support of United States Government programs. The Company's principal manufacturing facilities are located in Barberton, Ohio, Euclid, Ohio, Mount Vernon, Indiana, Lynchburg, Virginia and Erwin, Tennessee. In addition, it manufactures nuclear components, fuels and assemblies for government and commercial uses. It also provides uranium-based products used for medical isotopes and convert or downblend high-enriched uranium into low-enriched fuel for use in commercial reactors to generate electricity. The primary customer of its Government Operations segment is the United States Government, including its contractors.

The Company competes with Bechtel National Inc., URS Corporation, CH2M Hill, Inc., Fluor Corporation, Lockheed Martin Corporation, Jacobs Engineering Group, Inc. and EnergySolutions, Inc.

Power Generation Systems

Power Generation Systems includes the business and operations of Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), Babcock & Wilcox Nuclear Power Generation Group, Inc. (B&W NPG) and their respective subsidiaries. This segment supplies fossil-fired steam generating systems, replacement commercial nuclear steam generators, environmental equipment and components, and related services to customers around the world. It designs, engineers, manufactures and services large utility and industrial power generation systems, including boilers used to generate steam in electric power plants, pulp and paper making, chemical and process applications and other industrial uses. Its manufacturing facilities are located in Barberton, Ohio; Lynchburg, Virginia; West Point, Mississippi; Lancaster, Ohio; Copley, Ohio; Cambridge, Ontario, Canada; Esbjerg, Denmark; Melville, Saskatchewan, Canada, and Jingshan, Hubei, China. The Power Generation Systems segment’s major customers are utilities.

The Company competes with Alstom S.A., Doosan Babcock, Babcock Power, Inc., Foster Wheeler Ltd., Mitsubishi Heavy Industries and Hitachi, Ltd.