Established 1999
     
8,000 companies from USA and India.  
   
Search over 25,500 news articles and 8,000 companies earnings    
 
Market Update : 
McDermott Q2 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 12:37 AM ET August 20 2008


(Continued)

Email article | Print article

 
Bruce W. Wilkinson

Oh, the pipeline, is the question we have subcontracted that?

Tahira Afzal - KeyBanc Capital Markets

Yes.

Bruce W. Wilkinson

No, I think again, I think our business model...we are a fully integrated engineering procurement, construction, installation contractor that prefers to operate through our asset base, marine and fabrication. And so we have not knowingly in the past, I don''t think we''re contemplating now, bidding pipeline...pipe lay work or other things in the first instance using others'' barges. It''s simply is not what we have done, I talked about going to that as an alternative to get through a bottleneck because of this not in the rope service field.

Tahira Afzal - KeyBanc Capital Markets

Got it.

Michael S. Taff

And I think that was probably the job had we won, the engineering would have occurred primarily in ''08, and the bulk of the pipeline work would occur in ''09. So we had the schedule to make that work.

Tahira Afzal - KeyBanc Capital Markets

Got it. And I mean, does that go for the rest of your Middle East prospects of given you''re working at a high capacity utilization rate, I mean, from what I understand the Barzan project would potentially be like a five-year huge project. Would you have enough capacity or would have to acquire some?

Bruce W. Wilkinson

No, we think we would and we think we do, and that''s additionally why when I talked about the shallow water lay barge, we basically would have a brand new barge dedicated exclusively to the Mid East market or certain...almost totally for Saudi work. And so, the belief is with a seven-year contract and a six-year renewal option on the end of it, the stream of work is such that it will…a huger pipeline of work there that suits us. But we would not...but we would want to execute it in our traditional mode of owned assets would be the approach.

Tahira Afzal - KeyBanc Capital Markets

Okay. And then if you look at your mix right now, as you''ve mentioned, it''s moved, a little migrated little more to the offshore installation versus the onshore fabrication in a sense. As you look forward into 2009, do you see that mix shifting back or would you...do you expect it to be still a little more installation oriented?

Bruce W. Wilkinson

Well the mix should begin to shift somewhat to the extent that we still...that we have moved some work, marine work into ''09 that would still be there. But we''ve been awarded, announcing new awards this year, one that was not too long ago, the job in Australia, the SO job. So we...you would begin to see and we had one announced called [inaudible] which is the integration of the top sides on an FPSO. So you would begin to see the pickup in the fabrication work on some of those, particularly in our Asian operations, where we are right now, the fabrication workload even in our Batam yard is dramatically down from what it was this time a year ago. So, we see that definitely on the rise before year-end and it should affect ''09 as well.

Tahira Afzal - KeyBanc Capital Markets

I guess your risk levels which are associated with doing, what you''re currently doing right now more of would probably subside then you think in 2009?


$13.61
2.79%
click on symbol for profile



  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15

 


 
Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites.
Market data: BATS Exchange. Inc.

350 Fund Managers Interviews - 10-year Annual earnings on 4,600 U.S. companies - 20-quarter Earnings on 3,800 U.S. companies - 3,200 U.S. IPO Prospectuses
- 2,100 Economic data releases from U.S., EU, UK, India, HK and Australia. 10-year Annual reports on 3,500 U.S. companies -
U.S. Earnings Calendar with 4,800 companies - 90,000 10-K reports - 26,000 Global markets news archive - 2,200 Earnings Conference Call Summaries

Other Sites:
© 1999-2012 123jump.com. All rights reserved