- On conclusion, the firm will have tested about 3,000 tons of coal or over 30 train cars full.
- While oxy combustion will be over a 90% CO2 solution, scrubbing technology will remove less than 90%.

- Government operations realised an income of $25.2 million, down from $34.6 million in 2006 as a result of cost saving benefits realised a year ago.
- Revenues were up to $177 million, with much of the top line growth coming from the recent acquisition of Marine Mechanical.
- Congress has recently proposed increasing the procurement of nuclear submarines, and should this bill be signed by the President, would result in additional work for the company.
- The firm continues to pursue opportunities within site management and operations offering, as some of the larger opportunities remain in the U.K., where it is still in the running for the two major projects Sellafield and the Atomic Weapons Establishment, which is an acquisition of a British group''s one-third interest of AWE.

Fourth Quarter Outlook

- Offshore Oil and Gas is expected to lead the way as there are a number of projects during the installation phase.
- Power Generation results related to a high level of contract closeouts, hence there is an expectation of a decline in this segment''s results.
- Government Operations will be up as the company firms up on year-end M&O receipts.

Fiscal Year 2008 Outlook

- The company needs to sell a number of projects in the offshore construction segment in order to feel positive about the coming year.
- There are currently $2.9 billion of expected revenues from backlog for this segment, which should benefit next year.
- Power Generation Systems has $1.25 billion of revenues expected from backlog, plus an additional $75 million to $125 million per quarter on the top line, primarily parts and service work that never hits backlog.
- Government Operations has over $500 million of backlog scheduled for 2008 and the firm expects a substantial award during the fourth quarter as a result of the government''s budgeting process, some of which will add to next year''s top line.

Key questions and answers from the third quarter earnings call conducted by McDermott International Inc. on November 8, 2007.

Andy Kaplowitz (Lehman Brothers): Is it just a few projects that tend to get pushed out and we should not read into it for the rest of your business?

Bruce Wilkinson: It is more prevalent on the marine business than the fabrication side. In the latter part of the projects, where they move to the marine side, is where we are balancing before the Secunda acquisition.

Andy Kaplowitz (Lehman Brothers): What is your assessment of the B&W business going forward?

Bruce Wilkinson: Looking back over the last 18 months, we missed that target range twice. We still think it needs improvement and we are working with a business that was operating in a bankruptcy mode for six years, now being integrated into a larger enterprise with the nuclear operations.

We seem to have done better in some quarters than others, and we will improve the bottom line of the business through a combination of good project execution and achieving some G&A efficiencies through the combined business that we have created.

Andy Kaplowitz (Lehman Brothers): On commercial nuclear opportunities, now that we are starting to see some combined operating licenses get submitted, are you seeing more activity in that area?

Bruce Wilkinson: We still have work to do and we are getting ourselves positioned for our entry points. We have not lost any orders yet, because it has not started in full bore.

Jamie Cook (Credit Suisse): Is a margin above the 6 to 8% range on a normalized basis achievable assuming the markets hold together?

Bruce Wilkinson: We are exploring working backwards at different margin levels to see what we have to take out and where we have to get it in order to be successful, but we are not accepting that 6 to 8 is the inevitable high water mark.

Jamie Cook (Credit Suisse): The G&A on the oil and gas side was much higher relative to last year. Besides Secunda, was there anything else that we need to be aware of?

Mike Taff:About $2 million to $3 million of additional depreciation related to the Secunda acquisition and then we also had an abnormality where we had a civic asset that was specifically related to a project that was written off over in the Asia Pacific area, amounting to $7 million.

John Rogers (D.A. Davidson): On the oil and gas side, what are the current utilization rates?

Mike Taff: We were running our fabrication as compared to our standard costing at about 151% of standard. And on the marine side, our vessels were working about 143% of their standard costing.