Back to top

Analyst Blog

An affiliate of engineering and construction firm McDermott International Inc. (MDR - Analyst Report) received contracts for two projects of Saudi Arabian Oil Company – Saudi Aramco. The projects are in the Karan, Safaniya and Zuluf fields in the Arabian Gulf.

Although the value of these contracts will be included in McDermott's second quarter 2012 backlog, the company did not divulge the financial terms of the deal.

For the first project – Karan-45 – McDermott will extend services that include fabrication of a new wellhead platform, auxiliary platform, jacket and link bridge. The Houston, Texas-based company will work on subsea installation of a 20-inch flowline and a 15-kV composite power and fiber optic wire.

Project management, engineering and procurement works – expected to be completed in the first quarter 2014 – will be developed at the facility of McDermott in Al-Khobar, Saudi Arabia.

The second job – slated to be over by the first quarter of 2013 – involves the procurement of flexible flowlines along with the fabrication, transportation and installation of pipelines and subsea tie-ins.

McDermott management believes that know-how and experience gained from the previous contract in the Karan field will help the company in executing the current deal with perfection and on time.

McDermott, which currently retains a Zacks #3 Rank (short-term Hold rating), 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.

Given its geographic footprint in high-growth regions, technology leadership and efficient execution skills, the company is poised to benefit from strong industry fundamentals for offshore construction activities through 2012 and beyond.

The company competes with firms such as FMC Technologies Inc. (FTI - Analyst Report) and Superior Energy Services Inc. (SPN - Snapshot Report).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%