McDermott International, Inc. (MDR - Free Report) recently announced that it has clinched a transportation and installation work in Vietnam. The subcontract was offered by PetroVietnam Technical Services Corporation for the Sao Vang and Dai Nguyet gas and condensate fields, where Idemitsu Kosan Co., Ltd. is the operator. The fields are located in the Nam Con Son Basin’s 05-1b and 05-1c blocks, offshore Vietnam.
The services to be provided by McDermott include transportation and installation work for the central processing platform jacket in the field. The company will provide installation services at 110-130 meters of water depth for the wellhead platform, flexible pipelines, subsea power cables and others. The offshore service provider stated the subcontract as “sizeable,” which is valued at the $1-$50 million range, per the company’s definition.
McDermott’s resources in Kuala Lumpur, Dubai and Houston will be used for the Vietnam project. The project is expected to last from 2019 to 2021. The company will include the contract in its second-quarter 2018 backlog.
About the Company
Incorporated in 1959, Houston, Texas-based McDermott is a fully-vertically integrated company, providing engineering and construction solutions to the energy firms. McDermott, solely focused on the offshore oil and gas business since its incorporation, completed its merger with Chicago Bridge and Iron Company on May 10. The union of the two entities has led to the creation of a fully-integrated onshore-offshore company offering engineering, procurement, and construction and installation services to the energy sector.
The company has gained 17.4% in the past year compared with 9.3% growth of its industry.
Zacks Rank and Other Stocks to Consider
Currently, McDermott has a Zacks Rank #2 (Buy).
Investors interested in the Energy sector can opt for other top-ranked stocks in the same space like Nine Energy Service, Inc. (NINE - Free Report) , Delek US Holdings, Inc. (DK - Free Report) and BP p.l.c. (BP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based Nine Energy Service is an onshore service provider. For 2018, its bottom line is likely to be up 181.7%. In the last reported quarter, the company delivered a positive earnings surprise of 28.6%.
Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is anticipated to improve 39.2% year over year, while its bottom line is expected to increase 194.4%.
London-based BP is an integrated oil major. For 2018, its bottom line is likely to be up 67.6%. In the last four reported quarters, the company delivered an average positive earnings surprise of 29.6%.
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