Mcdermott International Ltd · OTC:MCDIF
Mcdermott International — Q4 2003 Earnings Presentation
32 slides from Mcdermott International's earnings presentation, Mar 19, 2004
Slide 1: Fourth Quarter 2003 Supplemental Presentation
EXHIBIT 99.1 Mc DERMOTT Fourth March 19, Quarter 20042003 INTERNATIONAL, Supplemental Presentation INC.
Slide 2: Cautionary Statements
Cautionary Statements which Exchange McDermott ongoing accepted Reconciliations relations 2 mayoperations section. accounting Commission, in cause Statements/Explanation management this ofactual presentation non-GAAP and principle allows including results believes basis measurements which for to dif
Slide 3: McDermott Consolidated Operating Companies
McDermott Consolidated Marine J. Providing Government BWX Lifecycle Not Babcock Power [1] 3 Ray Major Consolidated Technologies McDermott Generation generation Construction &management subsidiaries solutions Wilcox Operating Operations Operating equipment Chapter (J. (B&W) for (BWXT) Ray) only Compa
Slide 4: Financial Results Fourth Quarter and Full Year 2003
Financial Fourth Quarter Results and Full Year 2003
Slide 5: 4th Quarter Results
4th millions, (in Revenues Operating Net. B&W Other Income Income/(loss) cont. Depreciation 5 Quarter Interest operations ops/share Items, Settlement Taxes 581.8 Inc./(Loss) Margin Income except Expense net &from (4.5) Amort. 442.4 (0.2) Cost -10.5% (81.4) ($1.26) (24.1) per from (6.7) (61.1) (3.7)
Slide 6: 4th Quarter Segment Highlights
4thRay (in Revenues Total Other Segment Unallocated Operating Depreciation J. BWXT 6 millions) Quarter Revenues 0.0 McDermott 153.3 21.2 3.7 Income/(loss) 0.2 by Income/(Loss) 3.3 Segment Corp. 14.5 4Q03 Segment &N/M 164.7 14.6 Amort. 581.8 45.4 Exp. 428.5 (61.3) 7.4 4Q02 (6.9) Highlights 442.4 6.0
Slide 7: Major Items in 4th Quarter
Major (in Belanak Spar Carina J. BWXT B&W – MI Total * 7 pretax taxes Recorded Ray millions) pension projects (91.5) Settlement Items insurance Aries reimbursement project in expense* (168.4) in 4Q03 project (8.1) corporate 4th (29.2) exp. Expense (47.2) 4Q02 Quarter (24.6) (5.4) (18.9) 4.5 ( (0.9)
Slide 8: Full Year Results
Fullmillions, (in Revenues Operating Net. B&W Other Income Inc./(loss) operations Depreciation operations/share 8 Year Interest Items, Settlement Taxes 2003 2,335.4 Inc./( Margin from except Expense net &(21.3) Income Amort. cont. loss) 2.1 Exp. 1,733.8 -2.3% per (4.2) (14.4) (102.2) ($1.59) (52.7)
Slide 9: Full Year Segment Highlights
Full (in Revenues Power Total Other Segment B&W Unallocated Operating Depreciation J. BWXT 9 Ray millions) Year Revenues 0.1 write-off/other McDermott (0.0) 531.5 86.7 13.2 Income/(loss) 2003 (5.1) by Income/(Loss) 46.8 Corp. 59.3 11.4 FY03 Segment &553.8 Segment N/M Amort. 2,335.4 N/M 15.8 46.2 Exp
Slide 10: Major Items in Full Year
Major (in Belanak Spar Carina J. BWXT pretax B&W taxes Pension (Total 10Ray millions) projects (205.6) Settlement investment Items insurance goodwill Aries reimbursement contract )expense project = expenses in FY03 project (809.3) (27.9) 2003 (25.3) impairment resolution (5.4) (75.7) Expense write-o
Slide 11: Summary Balance Sheet
Summary (in Assets Cash Investments Other Property, LT Liabilities Current Long-term Pension B&W Self All Shareholder’s Total 11 millions) Investments Other other Insurance Assets & Current Liabilities current Settlement equivalents, liabilities liability liabilities Plant Assets Balance & debt 0.0
Slide 12: Corporate Structure
Corporate MII MIICO Captive McDermott J. (U.S.) Foreign The Can BWXT Downstream 12 Ray B&W (Panama) only S.A. Holdings (Panama) Insurers Chain Structure Co. (Panama) Inc. Cash(U.S.) (Honore, AffectsCreole, Liquidity Brick)
Slide 13: Liquidity
Liquidity ($ Cash, Less investments Letter Captive Pledged Temporary Foreign FX BWXT Total 13 trading restricted free available equivalents ofcredit insurer accounts securities credit in at cash (5) interest millions) 3/9/04 capacity 0amounts: available liquidity collateral (16) 0(3) & 0(5) reserve
Slide 14: Finance Activities
Finance •– 14In Cancelled Negotiating J. Issuance Signing Expected Borrowing Ray December reviewing Activities BWXT’s of to prior base J. letter-of-credit be 2003, Ray’s securitized omnibus expected sales $135 finance $200 ofmillion credit non-strategic to million by facility activities beaccounts f
Slide 15: Pension Underfunded Status
Pension •– 15Underfunded Balance Improvement Qualified No Actual Change required plan in sheet pension assumptions assets cash status in reflects other contribution expense returned at long-term comprehensive 12/03 increased for $270 was expected 2004 pension $409.7 million obligation is income expe
Slide 16: J. Ray Operational Information
J. Ray Operational Fourth Quarter and Information Full Year 2003
Slide 17: J. Ray Overview
J.Improving •– 17Substantially Incurred Problem End Medusa First-of-a-kind; Rayis2003 in(3/03) $120mm contracts sight; Overview people, completed & contracts fixed Devil’s additional have processes price common 2in Tower troubled & loss charges and EPIC position (1/04) traits procedures spars on con
Slide 18: J. Ray 2003 Revenue by Product/Service Line
J. Ray Revenue Procurement Offshore Engineering Fabrication [1] 18 Percentages 2003 by Operations 15% Product/Service Revenues—$1.8 14% 42%do not 29%reflectLine[1] bln $200 million of intercompany eliminations
Slide 19: Belanak Project Update
Belanak PROJECT 4Q2003 •– 19Awarded Floating Client: First JRM Increased Loss Expected Offset Increased of facility: UPDATE $11.9 Project KBR a$29.2 Production in OVERVIEW kind, completion cost est. contingency 3Q01 mm Batam mm manhours related fixed ininpreviously Storage Island cost, 4Q03 in to fa
Slide 20: Front Runner Project Update
Front PROJECT 4Q2003 –$ •– 20Awarded Client: First Spar Hull Loss Expected Increased Improvements 10.7Runner complete engineering, hull ofmm UPDATE Murphy a$39.7 in OVERVIEW kind, constructed completion reimbursable in1Q02 Spar 4Q03 mm and fixed on Oil Project procurement, other in moored cost, 2003
Slide 21: Carina Project Update
Carina PROJECT 4Q2003 •–$ 21 Awarded Jacket/topsides Client: First Field JRM Experienced Loss Pending Expect 24.6mm 40 of Vessel: Aries located mm UPDATE TotalFinaElf completion a$66.5 insurance in OVERVIEW kind, in Project—Argentina 2Q03 3Q01 difficulties DB60 in 4Q03 mm fixed fabrication, S.relate
Slide 22: J. Ray Year-End Backlog
Year Rate Unit Combination Loss Fixed Cost 2003 Asia Contracts Middle Caspian Americas 22 Pacific Plus End Position Year-End Price East 36% J. 15% 20% in 1% 40% Ray 4% loss 28% 32% 12% Backlog Backlog—$1.4 positionby12% Type Geographic bln of Contract Region
Slide 23: J. Ray Backlog by Estimated Revenue Year
J. Ray64% Backlog Beyond 2005 2006 2004 23 28% 8% Backlog—$1.4 2006 by Estimated <1% Revenue bln Year
Slide 24: Major Projects Program
J. Indicates Program of Location Azerbaijan Pipelines Argentina Morgan Harbor evaluating Vera Jebel Marine Batam incl. Houston and GOM * Fixed 24 Ray Work FEED Belanak Cruz Ali US/MX 2004 Island Island (8) City Contract TX 2004 UAE (# (3) Carina MX Lease/Disposition (1) contracts Fabrication of Majo
Slide 25: JRM Facility Utilization
JRM 2003 of Facility Jebel Batam TNG Morgan Harbor Total Marine Fabrication 25 Standards Actual Fabrication Ali 104.5% 70.4% 171.6% Is. Utilization 117% /City 30.5% Backlog Q403 Percent 109.3% Percent 109.1% 156.5% 118.7% 214.3% 145% Facility/Marine FY03 Work 2004 0.0% of 107.5% 60.0% 45.7% 82.3% 49
Slide 26: J. Ray Bids Outstanding
J. Ray Bids 2006 2005 2004 [1] A 26 substantial Estimated Outstanding 3% 26% 71% Bid Outstanding—$1.9 amount starting by Estimated of year starting doesbln Starting not yearindicate revenues Yearall [1] may or a fall majority in theof following those revenues years. would be recognized in that year.
Slide 27: J. Ray Bids Outstanding by Type and Region
J. RayRate Fixed Cost Combination Unit Bids Americas Asia Middle 27 Pacific Plus Outstanding Price Bid East 7% 23% 4% Outstanding—$1.9 77% 33% 44% 12%by Type Geographic of Contract blnRegion
Slide 28: BWXT Operational Information
BWXTQuarter Fourth Operational and Full Information Year 2003
Slide 29: BWXT Overview
•BWXT 29 Year Record Substantial Continue end 2003 segment backlog toM&O Overview be a income leader of contract $1.8inofbillion the bids $86.7 defense on ismillion the all time industry horizon high
Slide 30: BWXT 2003 Revenue by Product/Service Line
BWXT Revenue 4% 3% 5% 2% 86% 30 Other Environmental Commercial M&O Nuclear 2003 by contracts Product/Service Revenues—$531 components Linemillion
Slide 31: BWXT Backlog by Estimated Revenue Year
BWXT Backlog Beyond 2004 2005 2006 31 28% 19% Backlog—$1.8 2006 by Estimated 25% Revenue billion Year
Slide 32: For additional information, please contact
For additional information, please contact: Jay Roueche Director of Investor Relations 281-870-5462
Mcdermott International — Q4 2003 Earnings Presentation on 6ix