McDermott International, Inc. (MDR - Free Report) recently announced that the company has received a contract for tanks from Puma Energy (Australia) Fuels Pty Ltd, a vertically integrated midstream and downstream global oil company. Per the contract, McDermott will support engineering, procurement and construction works for 11 fuel tanks that are located at an import terminal in Kwinana, near Perth, Western Australia.
The contract further deepens McDermott’s presence in Australia. The company has an experience of providing storage solutions in the country for more than 75 years. The contract is worth between $1 million and $50 million. While onsite works are expected to start in the first quarter of 2019, the project is expected to be completed in the third quarter of 2020.
McDermott stated that the contract will be incorporated in its fourth-quarter 2018 backlog. As of Sep 30, McDermott had a backlog of $11.5 billion. With contracts like this, the company’s revenue pipeline is expected to grow even bigger.
Houston, Texas-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. Unlike other engineering and construction companies, it 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 lost 64.3% in the past year compared with 40.1% collective fall of the industry it belongs to.
Zacks Rank and Stocks to Consider
McDermott currently carries a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks as given below:
Houston, TX-based Shell Midstream Partners, L.P. (SHLX - Free Report) is a midstream energy company. For 2019, its bottom line, which has witnessed three upside revisions over the past 60 days, is expected to grow 27.7% year over year. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Gran Tierra Energy Inc. (GTE - Free Report) is an international oil and gas exploration and production company. Its bottom line for 2018 is expected to surge more than 300% year over year. The company delivered average positive earnings surprise of 24% in the trailing four quarters. The stock currently has a Zacks Rank #2 (Buy).
NOW Inc. (DNOW - Free Report) is a Houston, TX-based oil and gas equipment service provider. Its bottom line for 2019 is expected to surge more than 86% year over year. The company currently has a Zacks Rank #2.
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