You know it takes a lot of gumption to put this statement out…:
We are ahead of our plan to become a premier, fully integrated, global EPCI provider, with product solutions spanning on-shore and off-shore from concept to commissioning
…When you have just written off ~$750m, burned through operating cash of $221m in the quarter, have had to undertake a capital raise (~$300m in private redeemable share placement and increase working capital facilities), and sell businesses with $1.5bn in revenue… McDermott shares at the time of pixel are down around 45% to $7.
Which part of the plan was that?
The MDR and CBI merger was always about stopping someone buying them. Instead, as was obvious at the time, they have ended up with a bunch of on-shore, low- margin, construction contracts, which management didn’t know enough about to due diligence properly. There is no return from here. McDermott will never have enough capital now to compete as a new entrant to transition into deepwater as a tier 1 player, and never have sufficient skill to bid the CBI business properly. You can start to write their obituary now. In time the offshore business could well be sold to Subsea 7 for a fraction what they gave it away to the CB&I shareholders for.