Upcoming AWS Coverage on NOW Inc. Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 22, 2017 / Active Wall St. blog coverage looks at the headline from Houston, Texas based Mcdermott International Inc. (NYSE: MDR) as the offshore EPCI Company announced the addition of a newly built pipelay and construction vessel "Amazon" to its fleet on February 21, 2017. The new vessel will help McDermott boost its ultra-deepwater and SURF (subsea, umbilical's, risers, and flowlines) fleet portfolio and meet competition from Tier-1 subsea installation Companies head-on. Register with us now for your free membership and blog access at:

http://www.activewallst.com/register/

One of Mcdermott International's competitors within the Oil & Gas Equipment & Services space, NOW Inc. (NYSE: DNOW), reported on February 15, 2017, its Q4 ended December 31, 2016, and full-year 2016 results. AWS will be initiating a research report on NOW Inc. in the coming days.

Today, AWS is promoting its blog coverage on MDR; touching on DNOW. Get all of our free blog coverage and more by clicking on the links below:

http://www.activewallst.com/register/

McDermott is a leading engineering, procurement, construction, and installation (EPCI) Company that offers a range of complex engineering solutions to Oil and Gas Companies. Its operations are spread across 20 countries and the Company has over 12,400 employees worldwide. The Company also has a fleet of specialty marine construction vessels, as well as fabrication facilities and engineering offices at its disposal to support its various business operations.

"Amazon's" capabilities and future plans

Amazon is a multifunctional pipelay and construction vessel built by shipbuilding specialist Lloyd Werft. The vessel is based on a drill ship design and is capable of operating in remote locations and adverse environments.

Amazon is 203.10 meters long and 32.2 meters wide, drawing 8.0 meters with a gross tonnage of 31,240. Amazon has 49,514 square feet (4,600 square meters) of deck space and is equipped with two 440-ton (400-tonne) cranes. It boasts of a service speed of 12 knots and can easily accommodate up to 200 crew and service staff.

McDermott plans to further upgrade and customize Amazon to meet the Company's ultra-deepwater requirements and bring it up to the Company's standards. For this, McDermott plans to outfit Amazon with the latest vessel technology and state-of-the-art J-lay system. Once the upgrades are in place the Company plans to use Amazon for its existing construction and pipelay projects.

McDermott has acquired Amazon on a sale and leaseback arrangement wherein the Company would have control of the vessel against a daily-charter-hire-rate.

Commenting on the new addition, David Dickson, President and CEO of McDermott said:

"This is a great opportunity for the Company to expand the technical capabilities of our global fleet and grow in the deepwater and SURF markets and greatly increase our ultra-deepwater project coverage. Due to current market conditions and the opportunistic nature of the transaction, we were able to acquire what is essentially a new, enabling asset at a fraction of the original build cost."

History of "Amazon"

Construction of Amazon was completed in 2014 and was earlier known as Ceona Amazon. It was previously owned by the SURF and heavy subsea construction contractor Ceona. Ceona went into insolvency in September 2015, following persistent cash flow problems. Ceona's problems were due to falling demand for the group's services due to the severe market conditions as well as from fall in prices for oil and gas in recent times. The Joint Administrators appointed for the liquidation of Ceona had sought the sale of Ceona's assets including Ceona Amazon, to realize value from the assets' sale.

Earnings Highlights

On February 21, 2017, McDermott announced its results for Q4 2016 and FY16 for the quarter and year ending on December 31, 2016. In Q4 2016, the Company reported a loss of $0.5 million which was significantly less than the loss of $18.7 million reported in Q4 2015.

The Company's revenues for Q4 2016 were $641.8 million and revenues for FY16 were $2.636 billion. The operating income for Q4 2016 was $6.3 million compared to operating income of $142.3 million for FY16.

Stock Performance

On Tuesday, February 21, 2017, the stock closed the trading session at $7.91, slipping 1.00% from its previous closing price of $7.99. A total volume of 3.73 million shares have exchanged hands, which was higher than the 3-month average volume of 3.09 million shares. Mcdermott's stock price surged 30.53% in the last three months, 54.19% in the past six months, and 210.20% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 7.04%. The stock is trading at a PE ratio of 188.33. At Tuesday's closing price, the stock's net capitalization stands at $1.92 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street