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Market Update : 
McDermott Q2 Earnings Call Transcript
Author: 123jump.com Staff
123jump.com
Last Update: 12:37 AM ET August 20 2008


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Bruce W. Wilkinson

Yes, we have more of the recent work would be what we call under rates or a regime that is not the full scope EPCI lump sum that you''ve seen in some of the Mid-East work. So that profile is shifting, it''s...and that should be…affect ''09 especially.

Tahira Afzal - KeyBanc Capital Markets

Okay. And just one last question and then I''ll move back to the queue. Going back to the Barzan project, what I understand Technip withdrew from competing on that project. You still have a couple of I think local contractors that are still competing. Are you seeing the local contractors being favored in a sense by some of the nationalized oil companies or do you think it''s a fairly level playing field?

Bruce W. Wilkinson

I don''t guess I want to comment, I don''t really, I mean you''re stating a premise that I''m not aware of and so I would rather not even comment on the competitive profile. I think we have 35 years of working with Aramco, we are a known quantity. We...on from time-to-time there is always somebody cheaper this or that, but I think if they look back and say who has delivered and who can they count on we are right at the top.

Tahira Afzal - KeyBanc Capital Markets

Great. Thank you very much, gentlemen.

Bruce W. Wilkinson

Sure. Thank you.

Operator

And our next question will come from the line of Chase Becker with Credit Suisse. Please proceed.

Chase Becker - Credit Suisse

Hi, good morning. It''s Chase Becker in for Jamie.

Bruce W. Wilkinson

Good morning.

Michael S. Taff

Good morning.

Chase Becker - Credit Suisse

Most of my questions have been answered but I guess just getting back to the Power Generation segment, I mean I can understand there is a lot of different moving parts with respect to the timing and the de-risking of the portfolio but when you think about your margin targets of 7% to 10%, in the last five quarters, you''ve been above that 10% four times, but this time you''re significantly above that. So, I guess is there just a sort of stuff, is there anything one time in nature as you would say or is there any way you can quantify something that was impacting that segment or is that just kind of one of those J. Ray type segment quarters where the stars align and everything is perfect?


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