Shares of offshore oil and gas-focused engineering and construction firm McDermott International Inc.MDR gained over 13% on the NYSE following the announcement that it has received a large brownfield contract from Saudi Aramco.
McDermott announced that it has been awarded an engineering, procurement, construction and installation ("EPCI") contract for twelve jackets in offshore Saudi Arabia. However, no financial details have been provided by the firm. The fabrication of the jackets would take place in McDermott's U.A.E.-based fabrication facility. The company's global fleet will perform the installation work.
The company added that the contract would be added to its second quarter 2015 backlog. The project is anticipated to complete during the first quarter of 2016.
McDermott also stated that this is the second contract from Saudi Aramco this year. The company had previously received a power supply system replacement contract from Saudi Aramco in March.
McDermott primarily serves the worldwide offshore oil and gas field developments, including front-end design and detailed engineering, fabrication and installation of offshore drilling and production facilities, as well as installation of marine pipelines and subsea production systems.
Additionally, the company provides project management and procurement services. It operates in most major offshore oil and gas producing regions, including the U.S., Mexico, Canada, the Middle East, India, the Caspian Sea and the Asia Pacific.
McDermott currently carries a Zacks Rank #3 (Hold).
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