Profile: Mcdermott International Inc (MDR.N)

McDermott International, Inc. (MII), incorporated in 1959, is an engineering, procurement, construction and installation (EPCI) company. The Company is focused on designing and executing offshore oil and gas projects worldwide. MII delivers fixed and floating production facilities, pipeline installations and subsea systems from concept to commissioning. It operates in more than 20 countries across the Atlantic, Middle East and Asia Pacific. The Company supports its activities with project management and procurement services. It has integrated capabilities in both shallow water and deepwater construction. The Company’s business segments consist of Asia Pacific, Atlantic and the Middle East. It also reports certain corporate and other non-operating activities under Corporate and Other. On August 26, 2011, the Company completed the sale of the DB 23 marine vessel.

The Company co-owns Qingdao McDermott Wuchuan Offshore Engineering Company Ltd. with Qingdao Wuchuan Heavy Industry Co. Ltd., a shipbuilder in China. It co-owns FloaTEC LLC with Keppel FELS Ltd. This joint venture designs, markets, procures and contracts floating production systems to the deepwater oil and gas industry. The deepwater solutions provided include tension leg platforms (TLPs), spars and production semi-submersibles. It co-owns Deepwater Marine Technology LLC with Keppel FELS Ltd. MII co-owns Construcao e Montagem Offshore, S.A with Construcap-CCPS Engenharia e Comercio S.A. (40%) and Orteng Equipamentos e Sistemas Ltda. (20%).

Asia Pacific Segment

The Company, through its Asia Pacific segment, serves the needs of national, integrated and other oil and gas companies primarily in Australia, Indonesia, Vietnam, Malaysia and Thailand. Project focus in this segment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of the Company’s projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by its Singapore office and are supported by additional resources located in Chennai, India and Houston, Texas. The primary fabrication facility for this segment is located on Batam Island, Indonesia. Additionally, through its equity ownership interest in a joint venture, the Company has developed a fabrication facility located in China.

The Company competes with Allseas Marine Contractors S.A., Daewoo Engineering & Construction Co., Ltd., EMAS Offshore Pte Ltd., Heerema Group, Hyundai Heavy Industrial Co., Ltd., Nippon Steel Corporation, Saipem S.p.A., Samsung Heavy Industries Co., Ltd., Sapura Kencana Petroleum, Subsea 7 S.A.. Swiber Holdings Ltd. and Technip S.A.

Atlantic Segment

Through its Atlantic segment, the Company serves the needs of national, integrated and other oil and gas companies, primarily in the United States, Brazil, Mexico, Trinidad and West Africa. Project focus in this segment includes the fabrication and installation of fixed and floating structures and the installation of pipelines and subsea systems. Engineering and procurement services are provided by its Houston office, and the Company’s New Orleans office provides specialized marine engineering capabilities to support its global marine activities. The primary fabrication facilities for this segment are located in Morgan City, Louisiana and Altamira, Mexico.

The Company competes with Allseas Marine Contractors S.A., Dragados Offshore Mexico, S.A., Gulf Island Fabrication Inc., Heerema Group, Helix Energy Solutions Group, Inc., KBR, Inc., Kiewit Corporation, Saipem S.p.A., Subsea 7 S.A. and Technip S.A.

Middle East Segment

MII through its Middle East segment, which includes the Caspian region, serves the needs of national, integrated and other oil and gas companies primarily in Saudi Arabia, Qatar, the United Arab Emirates, Kuwait, India, Azerbaijan, Russia and Turkmenistan. Project focus in this segment relates primarily to the fabrication and offshore installation of fixed and floating structures and the installation of pipelines and subsea systems. The majority of its projects in this segment are performed on an EPCI basis. Engineering and procurement services are provided by MII’s Dubai, U.A.E., Chennai, India and Al Khobar, Saudi Arabia offices and are supported by additional resources from its Houston and Baku, Azerbaijan offices. The primary fabrication facility for this segment is located in Dubai, the United Arab Emirates.

The Company competes with Hyundai Heavy Industrial Co. Ltd., Keppel Corporation, Larsen and Toubro Ltd (India), National Petroleum Construction Company (Abu Dhabi), Saipem S.p.A., Technip S.A. and Valentine and Swiber Holdings Ltd.