On Jul 3, offshore oil and gas-focused engineering and
McDermott International Inc.
) announced that it has completed construction of the Ayatsil-B
Drilling Platform, which it was building for the Mexican
state-controlled oil giant PEMEX.
McDermott was given this contract in 2012. The company provided
engineering, procurement, fabrication, pre-commissioning, load-out
and sea fastening services. The fabrication of this 11,535 ton,
eight-leg jacket and deck took place in McDermott's yard in
Additionally, McDermott stated that its contract includes the
training of PEMEX's workers for operating and maintaining the
Ayatsil-B facility. The Ayatsil-B, in addition to three other
drilling platforms and a floating production storage and offloading
(FPSO) vessel, would be used to develop heavy oil from the Ayatsil
field, located in the Bay of Campeche.
Houston, TX-based McDermott is an engineering and construction
company, solely focused on the offshore oil and gas business. The
company has a diversified product portfolio, specialty
manufacturing and service capabilities as well as proprietary
However, several factors remain drags on the company's results.
These include steep operating expenses, a disappointing earnings
trend over the last few quarters and uncertainty regarding the
timing of lucrative contracts. Notably, McDermott has failed to
meet earnings estimates for four consecutive quarters.
Due to the above-mentioned factors, McDermott currently has a Zacks
Rank #4 (Sell), implying that it is expected to underperform the
broader U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked players from the oilfield
machinery and equipment industry such as
Matrix Service Company
Cameron International Corporation
Superior Energy Services, Inc.
). While Matrix Service sports a Zacks Rank #1 (Strong Buy),
Cameron and Superior Energy hold a Zacks Rank #2 (Buy).
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MATRIX SERVICE (MTRX): Free Stock Analysis
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