McDermott International ( MDR ), the offshore oil and gas-focused engineering and construction firm, announced that it has completed the Jack and St. Malo project for the U.S. energy firm, Chevron Corp. ( CVX ).
As part of the project, McDermott was required to install jumpers, flying leads, subsea pump stations, umbilicals and subsea landing of umbilical end terminations for a host floating production platform, located off the coast of Louisiana at a water depth of 7,200 feet.
The company added that it has implemented in-house fabrication of 21 high specification rigid flowline, manifold and pump jumpers and installed structures using its dynamically positioned (DP2), heavy-lift vessel, Derrick Barge 50 (DB50). Additionally, over 80 flying leads, five rigid production well jumpers and other subsea control and production boost components were set up using this vessel.
McDermott also transported and installed three control and two power umbilicals using the North Ocean 102, a fast-transit, dynamically positioned subsea construction vessel.
Houston, TX-based McDermott is a leading global engineering and construction firm that has a diversified product portfolio, specialty manufacturing and service capabilities, and proprietary technological expertise.
McDermott is well entrenched in major offshore energy projects and is one of the few global contractors that can provide a complete array of services, from design to construction. McDermott has historically used bolt-on acquisitions to plug holes in its product/service portfolio. However, the company may find it difficult to complete accretive transactions in the future, which could thwart its growth.
Currently, McDermott carries a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked players from the broader energy sector like Cameron International Corporation ( CAM ) and Sunoco Logistics Partners L.P. ( SXL ). Both these stocks sport a Zacks Rank #1 (Strong Buy).
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