Mcdermott International Ltd · OTC:MCDIF

Mcdermott International — Debt Investor Presentation (June 2026)

65 slides from Mcdermott International's debt investor presentation, June 2026

  1. Slide 1: Lender Presentation

    Lender Presentation June 2026

  2. Slide 2: Legal Disclaimer

    Legal Disclaimer Forward-Looking Statements McDermott cautions that statements in this presentation which are forward-looking, and provide other than historical information, involve risks, contingencies and uncertainties. Although we believe that the expectations reflected in those forward-looking s

  3. Slide 3: Table of Contents

    Table of Contents 1 Transaction Overview 2 Company Introduction 3 Key Credit Highlights Supporting Materials 4 Company 5 Financials 6 Market 7 Appendix

  4. Slide 4: Transaction Overview

    1 Transaction Overview Transaction Overview Description of the Transaction Pro Forma Capitalization Table  McDermott International, Ltd. (“McDermott”, the “Issuer” or the “Company”, together with its subsidiaries and affiliates $MM Q1 2026 Adj. Q1 2026 PF the “Group”), is pursuing a comprehensive r

  5. Slide 5: Table of Contents

    Table of Contents 1 Transaction Overview 2 Company Introduction 3 Key Credit Highlights Supporting Materials 4 Company 5 Financials 6 Market 7 Appendix

  6. Slide 6: McDermott at a Glance

    2 Company Introduction McDermott at a Glance Shaping the Future of Energy McDermott McDermottServices Serves the theMost MostCritical CriticalEnergy EnergyEnd EndMarkets Markets  McDermott is a leading provider of engineering and construction solutions for the global energy sector Description Key C

  7. Slide 7: Integral Role in the Future of Global Energy Security and Transition

    2 Company Introduction Integral Role in the Future of Global Energy Security and Transition Delivering Fully Integrated Energy Infrastructure Projects from Concept to Commissioning Supported Across the EPCI Value Chain Onshore Fabrication LNG Storage Facilities Carbon Capture  Develops project conc

  8. Slide 8: New Leadership Driving McDermott's Strategic Path to 2030

    2 Company Introduction New Leadership Driving McDermott’s Strategic Path to 2030 Past Issues Have Been Resolved and McDermott Set Up for Profitable Growth Key Actions and Achievements of «New McDermott»  Strong expected cash balance of ~$1bn built through sustained positive cash flow Strong Financi

  9. Slide 9: Leadership-Driven Turnaround with Clear Strategy and Strong Execution

    2 Company Introduction Leadership-Driven Turnaround with Clear Strategy and Strong Execution Strong Support From Key Shareholders Tenured and Diversified Board of Directors Michael McKelvy Ahmed Attiga Neil Bruce Craig Broderick Barbara Duganier Chairman & CEO Director Director Director Director App

  10. Slide 10: Operational and Middle East Update

    2 Company Introduction Operational and Middle East Update Current Project Portfolio Update Middle East Development Since Recent Tensions Project Name Recent Deliveries  Geopolitical tensions created some near-term operational uncertainty; however, operations Golden Pass LNG continue with no materia

  11. Slide 11: McDermott is Well Positioned for the Next Phase of the Turnaround Story

    2 Company Introduction McDermott is Well Positioned for the Next Phase of the Turnaround Story De-risked Margin Expansion from Improved Bidding Strategy Management has Delivered Ahead of the Business Plan for Four Consecutive Years Shift to hybrid contracts outside of Middle Revenue Distribution by

  12. Slide 12: Table of Contents

    Table of Contents 1 Transaction Overview 2 Company Introduction 3 Key Credit Highlights Supporting Materials 4 Company 5 Financials 6 Market 7 Appendix

  13. Slide 13: Key Credit Highlights

    3 Key Credit Highlights Key Credit Highlights 1 Leading and Fully  100+ years’ experience and one of few global contractors offering fully integrated engineering, procurement, construction and installation (EPCI) capabilities Integrated EPCI Platform  Global footprint across 50+ countries with str

  14. Slide 14: Leading and Fully Integrated EPCI Platform with Global Reach and Local Execution

    3 Key Credit Highlights – Leading EPCI Player 1 Leading and Fully Integrated EPCI Platform with Global Reach and Local Execution 2025 Revenue Split by Region Americas Asia Pacific Europe McDermott is one Middle East Africa Other of the largest, most 6 Global Fabrication Yards 4 Pure-Play Marine Cons

  15. Slide 15: Strategically Located Assets to Best Support Clients and Project Execution

    3 Key Credit Highlights – Leading EPCI Player 1 Strategically Located Assets to Best Support Clients and Project Execution Preeminent Fabrication Facilities State-of-the-Art Marine Capabilities BATAM QINGDAO WUCHUAN ALTAMIRA JEBEL ALI RAS LAFFAN SAFIRA Marine Construction Vessels Subsea & Floating F

  16. Slide 16: Preferred Partner in the Most Critical Energy Markets

    3 Key Credit Highlights – Leading EPCI Player 1 Preferred Partner in the Most Critical Energy Markets Competitive Advantages Drive Downside Protection and Structural Barriers to Entry Attractive Positioning Within Core Capabilities Fabrication Company FEED Strategy Marine Fleet Modularization  End-

  17. Slide 17: Specific Legacy Projects from Old McDermott Are Phasing Out

    3 Key Credit Highlights – De-risked Business Model 2 Specific Legacy Projects from Old McDermott Are Phasing Out Improved Profitability As “Specific Legacy Projects” Roll Off Lessons Learned Have Been Applied to Current Bid Strategy Revenue by Project Type1 ($MM) “Specific Legacy All other McDermott

  18. Slide 18: Diligent Internal Review Supports Responsible, Competitive and Profitable Bidding

    3 Key Credit Highlights – De-risked Business Model 2 Diligent Internal Review Supports Responsible, Competitive and Profitable Bidding Five-step Bidding Process Ensures Diligent Review of Each Opportunity Invitation to Start of Bid Submission Award Handover Tender Receipt Estimate / Pre- Complete Ap

  19. Slide 19: Backlog Revitalized to Push the Business to Sustainable Profitability and Growth

    3 Key Credit Highlights – De-risked Business Model 2 Backlog Revitalized to Push the Business to Sustainable Profitability and Growth Selected Key Contract Wins Underpin Selection of More Stable and Profitable Projects on De-Risked Basis Hybrid Contracts 44% Offshore Middle East 38% Traditional Lump

  20. Slide 20: Large and Well Diversified Backlog with Blue-Chip Customers Provide Visibility

    3 Key Credit Highlights – De-risked Business Model 2 Large and Well Diversified Backlog with Blue-Chip Customers Provide Visibility Growing Significance of Hybrid Contracts In Backlog Top 10 Backlog By Project Anchored By Blue-Chip Customers3 Total Backlog by Contract Type1 ($BN) Backlog as of Award

  21. Slide 21: Drivers of the Turnaround to Margin Recovery and Renewed Profitability

    3 Key Credit Highlights – Restored Profitability 3 Drivers of the Turnaround to Margin Recovery and Renewed Profitability Transition from Old to “New McDermott” Implemented by Making Four Overarching Strategic Changes Category “Old McDermott” “New McDermott” Actions Taken Proof Points  Refocused bu

  22. Slide 22: Stable Revenue Base with Improving Profitability as New Contracting Strategy Matures

    3 Key Credit Highlights – Restored Profitability 3 Stable Revenue Base with Improving Profitability as New Contracting Strategy Matures Following Exceptional Growth, Revenue Stabilizes Around a De-risked Portfolio Shift Toward More Profitable and Lower Risk Projects Revenue split by segment1 ($MM) T

  23. Slide 23: Profitability Restored Through Strategic Shift to Higher-Margin, Lower-Risk Projects

    3 Key Credit Highlights – Restored Profitability 3 Profitability Restored Through Strategic Shift to Higher-Margin, Lower-Risk Projects Higher-Margin Projects Driving Strong EBITDA and Margin Expansion New Backlog Secured at Improved Margin Levels Adjusted EBITDA1,2 ($MM) Total Contract Value on New

  24. Slide 24: Strong Cash Flow for Debt Service Post Refinancing

    3 Key Credit Highlights – Restored Profitability 3 Strong Cash Flow for Debt Service Post Refinancing Ample Debt Service Headroom with ~$189MM of FCF Available for Debt Service and Mandatory Amortization for 2026E Simplified Business Plan P&L and Cash Flow Bridge ($MM) Illustrative Pro Forma Cash Fl

  25. Slide 25: Attractive Energy Market Fundamentals Across All McDermott Segments

    3 Key Credit Highlights – Supportive Market Outlook 4 Attractive Energy Market Fundamentals Across All McDermott Segments EPCI Spend Exceeds $265BN Annually Through 2030 Regulatory Tailwinds Underpin Low Carbon Demand Surging Subsea Spending Projected Global EPCI Spend Per Year ($BN) Cumulative LNG

  26. Slide 26: Middle East Rebuild to Drive Sustained EPCI Demand

    3 Key Credit Highlights – Supportive Market Outlook 4 Middle East Rebuild to Drive Sustained EPCI Demand The War Has Caused Critical Damage to Energy Infrastructure in the Middle East Repair Demand is Now Competing Directly With An Already Stretched EPC Market Expected War-Related Repair Cost ($BN)

  27. Slide 27: Positive Market Outlook Evident by Robust 2026–2027 Project Pipeline

    3 Key Credit Highlights – Supportive Market Outlook 4 Positive Market Outlook Evident by Robust 2026–2027 Project Pipeline Disciplined Bidding Strategy Yields $64BN High-Quality Targeted Pipeline Spread Across McDermott’s Core Markets Total Addressable Market by Segment Targeted Opportunities by Seg

  28. Slide 28: Streamlined and Predictable Pro Forma Financing Structure

    3 Key Credit Highlights – Robust Balance Sheet 5 Streamlined and Predictable Pro Forma Financing Structure Refinancing Outstanding Funded Debt With a $550MM Secured Bond… … for a Clean Pro Forma Structure With No Material Maturities for the Next 5 Years Q1 2026 Funded Debt vs. Pro Forma Funded Debt

  29. Slide 29: Strong Asset Backing from High-Specification Vessels and a Clear Path to Deleveraging

    3 Key Credit Highlights – Robust Balance Sheet 5 Strong Asset Backing from High-Specification Vessels and a Clear Path to Deleveraging Clear Path to Deleveraging Closer to Long-Term Gross Leverage Target Below 1.0x Asset Collateral Value Supports Downside Protection Funded Debt1 ($MM) Collateral Val

  30. Slide 30: Proven Over McDermott's 100+ Year History, LC Draws Are Very Rare

    3 Key Credit Highlights – Robust Balance Sheet 5 Proven Over McDermott’s 100+ Year History, LC Draws Are Very Rare Overview of Secured LCs as of Q1 2026 Letters of Credit Are a Core Part of the EPCI Business Model and Support McDermott’s Contractual Requirements  Risk of guarantee drawdowns is miti

  31. Slide 31: Disciplined Capital Structure Supporting Deleveraging

    3 Key Credit Highlights – Robust Balance Sheet 5 Disciplined Capital Structure Supporting Deleveraging McDermott’s Capital Strategy & Financial Policy Fundamentals Driving Deleveraging Gross Leverage Q1 20261 PF Gross Leverage Q1 20261 Target Long-Term Gross Leverage1 ~1.8x ~1.5x <1.0x  McDermott h

  32. Slide 32: Key Credit Highlights

    3 Key Credit Highlights Key Credit Highlights 1 2 3 4 5 Leading and Fully De-Risked Business Restored Profitability & Supportive Energy Balance Sheet Reset Integrated EPCI Platform Model with Strong Strong Cash Flow for Market Fundamentals with Supportive with Global Reach and Backlog Visibility Deb

  33. Slide 33: Table of Contents

    Table of Contents 1 Transaction Overview 2 Company Introduction 3 Key Credit Highlights Supporting Materials 4 Company 5 Financials 6 Market 7 Appendix

  34. Slide 34: Low Carbon Solutions | Leveraging 100+ Years of Offshore Fabrication Expertise

    4 Company Low Carbon Solutions | Leveraging 100+ Years of Offshore Fabrication Expertise Segment Overview | Low Carbon Solutions Financial Development Revenue Adj. EBITDA Adj. EBITDA Margin  Delivering Energy Transition Infrastructure: – LNG FEED and EPC (U.S., East Africa, South America) (3.7%) (2

  35. Slide 35: Offshore Middle East | 60+ Year Track-Record of Delivering Energy Solutions

    4 Company Offshore Middle East | 60+ Year Track-Record of Delivering Energy Solutions Segment Overview | Offshore Middle East Financial Development Revenue Adj. EBITDA Adj. EBITDA Margin  Delivering shallow water EPCI in the Middle East – Offshore fixed facilities, wellheads, tie-in platforms, jack

  36. Slide 36: Subsea & Floating Facilities | One-Stop Shop for Subsea, Offshore, FPU and FPSO Solutions

    4 Company Subsea & Floating Facilities | One-Stop Shop for Subsea, Offshore, FPU and FPSO Solutions Segment Overview | Subsea & Floating Facilities Financial Development Revenue Adj. EBITDA Adj. EBITDA Margin  One-stop shop for subsea, offshore, FPU and FPSO solutions: – Mid-water subsea and large

  37. Slide 37: New Management Team with Strong Sector Expertise Driving the Successful Turnaround

    4 Company New Management Team with Strong Sector Expertise Driving the Successful Turnaround Highly Experienced Management Team 40+ 19+ 30+ 25+ Michael McKelvy Travis Brantley Maurizio Coratella Rachel Clingman Chairman & CEO Executive VP & Chief Financial Executive VP & Chief Operating Executive VP

  38. Slide 38: Board of Directors with Strong Industry and Leadership Experience

    4 Company Board of Directors with Strong Industry and Leadership Experience Experienced Board Drawn from Comparable EPCI Companies Holds Management Accountable 40+ 30+ 40+ 40+ Michael McKelvy Ahmed Attiga Neil Bruce Craig Broderick Chairman & CEO Director Director Director More than half of Appointe

  39. Slide 39: Strategic Shift to De-Risked Contracts Provides Better Earnings Visibility

    4 Company Strategic Shift to De-Risked Contracts Provides Better Earnings Visibility Contract Structure Hybrid Contracts 44% Derisked Lumpsum / Middle-East 38% Traditional Lumpsum2 18%  Blended structure combining fixed-price lumpsum and reimbursable cost-plus elements within a single contract  Fu

  40. Slide 40: Best-in-Class Safety Performance Through Disciplined, Reliable Operations

    4 Company Best-in-Class Safety Performance Through Disciplined, Reliable Operations A Trusted Partner with Industry-Leading Safety Performance Safety as a Core Operating Principle 10-year Total Recordable Incident Rate  Clear, standardized Life-Saving Rules implemented across operations to prevent

  41. Slide 41: Best-in-Class Safety Performance Through Disciplined, Reliable Operations (continued)

    4 Company Best-in-Class Safety Performance Through Disciplined, Reliable Operations (continued) Q1 2026 Results Show Continued HSES Excellence1 Strong Track Record of Great Safety Performance6 Fatality and Permanent Impairment Incident Rate (FPIR) Trend Month Trend Rolling Trend 0.06 27.5MM 194 Work

  42. Slide 42: Table of Contents

    Table of Contents 1 Transaction Overview 2 Company Introduction 3 Key Credit Highlights Supporting Materials 4 Company 5 Financials 6 Market 7 Appendix

  43. Slide 43: Summary of Key Financials

    5 Financials Summary of Key Financials Revenue Historical and Forecasted1,2 ($MM) Adj. EBITDA Historical and Forecasted1,3 ($MM) 9,955 Adj. EBITDA Margin 8,412 (11.7%) (1.2%) 1.4% 2.9% 4.3% 6.5% 8.1% 8.3% 8,212 7,951 8,009 7,057 648 701 520 5,451 428 240 4,248 96 (66) (495) 2021 2022 2023 2024 2025

  44. Slide 44: Steady Backlog Development at Increasing EBITDA Margins

    5 Financials Steady Backlog Development at Increasing EBITDA Margins Backlog by Quarter ($MM) 18,601 18,479 18,937 18,702 17,747 17,509 18,150 17,562 17,219 17,376 17,448 16,448 16,262 15,397 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2

  45. Slide 45: Strong Underlying Operational Metrics

    5 Financials Strong Underlying Operational Metrics Fabrication Workhours (000s) Construction Workhours (000s) Utilization % of Standard Utilization % of Standard 94% 82% 108% 164% 109% 98% 73% 114% 105% 169% 238% 262% 33,705 15,708 14,261 22,762 18,727 19,684 18,503 17,321 6,762 4,721 4,541 4,211 20

  46. Slide 46: Working Capital Efficiency and Payment Terms

    5 Financials Working Capital Efficiency and Payment Terms Cash Conversion Cycle1 (Days) Net Working Capital1 ($MM) Billing cycle days, net of advance billing Payable days CCC Net billing position Others AP & Accrued Liabilities2 NWC % NWC of revenue (25%) (22%) (19%) (24%) (22%) (29%) (26%) (23%) 80

  47. Slide 47: Well-Invested Asset and Project Base with Limited Capex Requirements

    5 Financials Well-Invested Asset and Project Base with Limited Capex Requirements Limited Capex Requirements Commentary Capital Expenditures ($MM) Growth Capex Maintenance Capex Total Capex in % of revenue  Maintenance capex requirements 4.8% 3.9% 0.9% 1.0% 0.8% 1.6% 1.1% 1.0% have declined signifi

  48. Slide 48: LCs are an Industry-Standard Requirement Underpinning McDermott's Operations

    5 Financials LCs are an Industry-Standard Requirement Underpinning McDermott’s Operations Letters of Credit Geographic Distribution of Utilized Secured LCs and Beneficiaries as of Q1 2026  LCs are bank-issued guarantees backing McDermott’s contractual performance, including bid, advance-payment, pe

  49. Slide 49: Overview of LC Facilities

    5 Financials Overview of LC Facilities Sources & Uses for Secured LC Facilities Commentary Sources $MM Uses $MM  The refinancing will provide additional LC capacity to support the Company in executing its project pipeline Syndicated LC Facility 1,300 Super Senior LC Facility 418  The Group’s $1,73

  50. Slide 50: Table of Contents

    Table of Contents 1 Transaction Overview 2 Company Introduction 3 Key Credit Highlights Supporting Materials 4 Company 5 Financials 6 Market 7 Appendix

  51. Slide 51: Supportive Energy EPCI Market Fundamentals, Especially Within the Middle East

    6 Market Supportive Energy EPCI Market Fundamentals, Especially Within the Middle East Resilient and Structural O&G Production Growth, Especially in McDermott’s Core Regions Global EPCI Spend Expected to Follow Increase in Supply Historical and Forecasted Offshore O&G Production By Region (MMBBL1) G

  52. Slide 52: Low Carbon Solutions Market Growth Supported by Regulatory Tailwinds

    6 Market Low Carbon Solutions Market Growth Supported by Regulatory Tailwinds Structural Demand Growth for LNG beyond 2030 Regulatory Tailwinds for Offshore Wind HVDC Positioned to Capitalize On Market Growth Cumulative LNG Liquefaction Capacity Additions from Post- Annual Offshore Wind Plant Capaci

  53. Slide 53: Record Subsea Demand Reflects Structural Shift in Offshore Investment Cycle

    6 Market Record Subsea Demand Reflects Structural Shift in Offshore Investment Cycle Surging Subsea Spending Driven by Deepwater Expansion and Tieback Activity Record Backlogs Keep High-End Subsea Assets Booked Beyond 2030 Subsea Spending by Service Segment ($BN) Subsea Segment Revenue Backlog ($BN)

  54. Slide 54: Table of Contents

    Table of Contents 1 Transaction Overview 2 Company Introduction 3 Key Credit Highlights Supporting Materials 4 Company 5 Financials 6 Market 7 Appendix

  55. Slide 55: $17.6BN Backlog with Blue-Chip Counterparties at ~10% Gross Margin

    7 Appendix $17.6BN Backlog with Blue-Chip Counterparties at ~10% Gross Margin Backlog Revenue Q1 2026 Gross Margin Share of Total # Project Customer Geography Segment Contract type Award Year ($MM) (%) Backlog Revenue (%) 1 TenneT 2GW HVDCs (BalWin4 & LanWin1) Netherlands and Germany Low Carbon Solu

  56. Slide 56: Best-in-Class Fabrication Facilities Alongside Leading Marine Capabilities

    7 Appendix Best-in-Class Fabrication Facilities Alongside Leading Marine Capabilities Batam (Indonesia) Qingdao McDermott Wuchuan (China) PICTURE PICTURE Total area: 297 acres Total area: 148 acres PLACEHOLDER PLACEHOLDER Annual capacity: 80,000 MT Annual capacity: 90,000 MT  First year of operatio

  57. Slide 57: Best-in-Class Fabrication Facilities Alongside Leading Marine Capabilities (continued)

    7 Appendix Best-in-Class Fabrication Facilities Alongside Leading Marine Capabilities (continued) Altamira (Mexico) Jebel Ali (UAE) PICTURE PICTURE Total area: 178 acres Total area: 131 acres PLACEHOLDER PLACEHOLDER Annual capacity: 30,000 MT Annual capacity: 50,000 MT  First year of operations in

  58. Slide 58: Best-in-Class Fabrication Facilities Alongside Leading Marine Capabilities (continued)

    7 Appendix Best-in-Class Fabrication Facilities Alongside Leading Marine Capabilities (continued) Ras Laffan (Qatar) Safira (Saudi Arabia) PICTURE Total area: 41 acres Total area: ~300 acres PLACEHOLDER Annual capacity: 20,000 MT Annual capacity: 50,000 MT1  First year of operations in 2019  Under

  59. Slide 59: Overview of McDermott's Marine Vessels

    7 Appendix Overview of McDermott’s Marine Vessels State-of-the-Art Marine Capabilities Amazon North Ocean 102 Lay Vessel 108 Derrick Lay Vessel 2000 Derrick Barge 30 Derrick Barge 32 Derrick Barge 50 Intermac 650 Facility Construction Support, J-Lay, Flex Lay, Construction Flex Lay, Heavy Lift, Rigi

  60. Slide 60: Financial Statements: Income Statement

    7 Appendix Financial Statements, McDermott International, Ltd: Income Statement1 $MM 2021 2022 2023 2024 2025 Revenue 4,887 6,246 7,747 8,212 9,955 Cost of revenue 5,191 6,212 7,780 8,060 9,516 Gross profit (304) 34 (33) 152 439 Selling, general and administrative expenses 212 154 177 195 180 Intang

  61. Slide 61: Financial Statements: Balance sheet

    7 Appendix Financial Statements, McDermott International, Ltd: Balance sheet1 $MM 2021 2022 2023 2024 2025 $MM 2021 2022 2023 2024 2025 ASSETS LIABILITIES Property, plant and equipment 1,100 1,051 965 982 1,023 Operating lease obligations 60 66 59 91 152 Operating right-of-use lease assets 204 197 1

  62. Slide 62: Financial Statements: Cash flow statement

    7 Appendix Financial Statements, McDermott International, Ltd: Cash flow statement1 $MM 2021 2022 2023 20242 2025 OPERATING ACTIVITIES Net loss (667) (236) (683) (126) (171) Non-cash items 128 19 474 46 162 Total changes in operating assets and liabilities 63 46 115 312 349 Net cash generated/(used)

  63. Slide 63: Non-GAAP Reconciliation from EBITDA to Adj. EBITDA

    7 Appendix Non-GAAP Reconciliation from EBITDA to Adj. EBITDA $MM 2021 2022 2023 2024 2025 Q1 2026 Net (loss) income after preferred stock dividends and accretion (706) (282) (747) (302) (168) (11) (+) Depreciation and amortization 153 144 147 149 134 38 (+) Interest expense, net 132 154 185 348 158

  64. Slide 64: Non-GAAP Reconciliation of Interest-Bearing Debt

    7 Appendix Non-GAAP Reconciliation of Interest-Bearing Debt $MM Q1 2026 Q1 2026 Pro Forma of Transaction1 Current portion of long-term debt 20 20 Long-term debt 843 640 Total carrying value 863 660 (+) Debt issuance costs and discounts 24 55 (+) PIK / accreted principal adjustment 10 Gross Interest

  65. Slide 65: McDermott

    MCDERMOTT,

McDermott International — Debt Investor Presentation (June 2026) on 6ix