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McDermott (MDR) to Bid $5 Billion for Asia-Pacific Contracts
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McDermott International, Inc. , with a view to take advantage of the improving energy landscape, is set to place a bid for $5 billion worth contracts in the Asia Pacific region over the next six months. The company wants to bank on the improving offshore oil and gas prospects of the region. The value of contracts available for bids have risen from $4 billion recorded six months ago. With crude supply normalizing and commodity trading comfortably above $60 per barrel since a couple of months, oil explorers have started increasing their investments in the sector, paving way for oilfield services companies to secure more contracts.
McDermott intends to place 20 bids for projects in Malaysia, India, Australia, Vietnam, Indonesia and Myanmar. The bids will primarily be for offshore projects in the regions. In particular, the company sees a strong potential of business expansion in Malaysia and wants to tap on the opportunities in the region. As such, a significant component of the tenders is for Malaysian prospects.
The company wants to exploit the position of Malaysia as the key oil/gas hub and materialize and execute the projects to grow its revenues. In fact, McDermott has also increased its workforce in the region from 90 employees a couple of years back to more than 500 employees currently and is expected to further increase to 800 people by the year-end.
Notably, the company’s current backlog for Asia-Pacific stands at $1-$1.5 billion and is expected to last till 2020.
McDermott also intends to close the merger deal with Chicago Bridge and Iron Company (CBI) in May. The increased scale and diversification will thus position the company to capitalize effectively on growth opportunities in the Asia-Pacific region. The merger is expected to create a sustainable and profitable business model, delivering best-in-class customer solutions.
A few better-ranked players in the energy space are Concho Resources Inc. , Pioneer Natural Resources Company (PXD - Free Report) and Continental Resources, Inc. , each sporting a Zacks Rank #1.
Concho Resources topped earnings estimates in each of the last four quarters, with an average of 48.89%.
Pioneer Natural surpassed earnings estimates in each of the trailing four quarters, with an average of 66.92%.
Continental Resources delivered an average positive earnings surprise of 64.93% in the preceding four quarters.
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McDermott (MDR) to Bid $5 Billion for Asia-Pacific Contracts
McDermott International, Inc. , with a view to take advantage of the improving energy landscape, is set to place a bid for $5 billion worth contracts in the Asia Pacific region over the next six months. The company wants to bank on the improving offshore oil and gas prospects of the region. The value of contracts available for bids have risen from $4 billion recorded six months ago. With crude supply normalizing and commodity trading comfortably above $60 per barrel since a couple of months, oil explorers have started increasing their investments in the sector, paving way for oilfield services companies to secure more contracts.
McDermott intends to place 20 bids for projects in Malaysia, India, Australia, Vietnam, Indonesia and Myanmar. The bids will primarily be for offshore projects in the regions. In particular, the company sees a strong potential of business expansion in Malaysia and wants to tap on the opportunities in the region. As such, a significant component of the tenders is for Malaysian prospects.
The company wants to exploit the position of Malaysia as the key oil/gas hub and materialize and execute the projects to grow its revenues. In fact, McDermott has also increased its workforce in the region from 90 employees a couple of years back to more than 500 employees currently and is expected to further increase to 800 people by the year-end.
Notably, the company’s current backlog for Asia-Pacific stands at $1-$1.5 billion and is expected to last till 2020.
McDermott also intends to close the merger deal with Chicago Bridge and Iron Company (CBI) in May. The increased scale and diversification will thus position the company to capitalize effectively on growth opportunities in the Asia-Pacific region. The merger is expected to create a sustainable and profitable business model, delivering best-in-class customer solutions.
Zacks Rank and Key Picks
Incorporated in 1959, Houston, TX-based McDermott is an engineering and construction company, solely focused on offshore oil and gas business. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McDermott International, Inc. Price
McDermott International, Inc. Price | McDermott International, Inc. Quote
A few better-ranked players in the energy space are Concho Resources Inc. , Pioneer Natural Resources Company (PXD - Free Report) and Continental Resources, Inc. , each sporting a Zacks Rank #1.
Concho Resources topped earnings estimates in each of the last four quarters, with an average of 48.89%.
Pioneer Natural surpassed earnings estimates in each of the trailing four quarters, with an average of 66.92%.
Continental Resources delivered an average positive earnings surprise of 64.93% in the preceding four quarters.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>