Mcdermott International Ltd · OTC:MCDIF
Mcdermott International — Q4 2023 Earnings Presentation
18 slides from Mcdermott International's earnings presentation, Apr 9, 2024
Slide 1: Q4 2023 Supplemental Information
Q4 2023 Supplemental Information April 9, 2024
Slide 2: Disclosures
Disclosures 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 statem
Slide 3: QHSES Update
QHSES Update 3
Slide 4: Global HSES Performance
Global HSES Performance As of December 31, 2023 Lost Time Incident Rate (LTIR) Trend Month Trend Rolling Trend 0.07 COMBINED FAT = 0 LTI-Free Days 21 0.06 0.05 0.04 LTI = 5 0.03 Recordable-Free 0.02 0.01 Days 13 0.01 RWC = 13 0.00 Jan '23 Feb'23 Mar'23 Apr '23 May '23 Jun '23 Jul '23 Aug '23 Sept '2
Slide 5: Financial Results
Financial Results 5
Slide 6: CY'23 Financial Highlights
CY’23 Financial Highlights $ in millions New Orders Revenue Adj. EBITDA1 $4,967 $3,366 $129 $3,470 $1,822 $2,053 $49 $23 $831 $549 $506 Q1’23 Q2’23 Q3’23 Q4’23 Q1’23 Q2’23 Q3’23 Q4’23 $(38) Q1’23 Q2’23 Q3’23 Q4’23 Non-JV CFOA Net Working Capital1, 3 Unrestricted Cash Balance2 $32 $37 $5 $764 $761 $8
Slide 7: Financial Summary: Q4'23 Vs. Business Plan Refresh
Financial Summary: Q4’23 Vs. Business Plan Refresh $ in millions Q4’23 Highlights Business Q4’23 Plan Actuals Refresh1 Delta • New Orders include NOC Ruya Packages and multiple change orders across the New orders 3,470 961 2,509 portfolio; increase driven by award of NOC Ruya Packages, limited lette
Slide 8: Financial Summary: 2023 Vs. Business Plan Refresh
Financial Summary: 2023 Vs. Business Plan Refresh $ in millions 2023 Business Highlights 2023 Plan Actuals Refresh1 Delta New orders 9,817 7,317 2,500 • New orders include the award of Tennet HVDC, Qatargas COMP1, NOC Ruya packages, and change orders across the portfolio Revenue 7,747 7,000 747 Gros
Slide 9: Financial Summary: Q4'23 Vs. MB'23
Financial Summary: Q4’23 Vs. MB’23 $ in millions Highlights Q4’23 Q4’23 • New Orders include NOC Ruya Packages and multiple change orders across the Actuals MB’23 Delta portfolio; increase driven by award of NOC Ruya Packages, limited letter of award New orders 3,470 1,006 2,464 for Phu Quoc Block B
Slide 10: Financial Summary: 2023 Vs. MB'23
Financial Summary: 2023 Vs. MB’23 $ in millions Highlights 2023 2023 • New orders include the award of Tennet HVDC, Qatargas COMP 1, NOC Ruya Actuals MB’23 Delta packages and change orders across the portfolio New orders 9,817 8,131 1,686 Revenue 7,747 6,200 1,547 • Higher revenue driven by progress
Slide 11: Financial Summary: Q4'23 Vs. Q3'23
Financial Summary: Q4’23 Vs. Q3’23 $ in millions Highlights Q4’23 Q3’23 Actuals Actuals Delta • Higher new orders in Q4’23 mainly driven by NOC Ruya Packages award, New orders 3,470 549 2,921 limited letter of award for Block B Gas Development Project and limited notice Revenue 3,366 2,053 1,313 to
Slide 12: Backlog at $19.9 billion as of December 31, 2023
Backlog at $19.9 billion as of December 31, 2023 Total Backlog 1,2 By Business Line $ in millions $19,930 $1,452 (7%) TY’26 & beyond $8,097 $2,606 (13%) $8,325 (42%) 19.9 Billion TY’25 $5,031 $7,547 (38%) TY’24 $6,802 LCS (formerly Onshore) Total Backlog Offshore ME Subsea CB&I 1) Backlog supported
Slide 13: Net Working Capital Trend
Net Working Capital Trend WIP AR Others AP & Accrued Liabilities $ in millions 54 977 842 777 928 760 126 152 207 187 130 (21) (69) (47) (308) (1,904) (2,373) (2,504) (2,540) (2,674) (1,326) (1,400) (1,486) (1,529) (1,559) Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 YoY NWC1 increased by $203 million (Dec’22 to D
Slide 14: Q4'23 Utilization
Q4’23 Utilization UNALLOCATED FABRICATION CONSTRUCTION VESSELS DIRECT OPERATING (Wkhr 000s) (Wkhr 000s) (Days) EXPENSES (in millions) 124% 111% 103% $(8) Actual: 6,501 Actual: 1,113 Actual: 388 Standard: 5,250 Standard: 1,000 Standard: 375 Q3’23 110% 103% 116% $34 • Batam and Jebel Ali yards perform
Slide 15: Financial Appendix
Financial Appendix 15
Slide 16: Additional Disclosures: Non-GAAP Reconciliations
Additional Disclosures: Non-GAAP Reconciliations $ in millions Adjusted EBITDA Three months Three months Three months Three months ended ended ended ended 1. We define EBITDA as net income plus depreciation and amortization, interest expense, net, accretion of and dividends 31-Dec-23 30-Sep-23 30-Ju
Slide 17: Additional Disclosures: Non-GAAP Reconciliations
Additional Disclosures: Non-GAAP Reconciliations $ in millions Free Cash Flow1,3 1. All amounts have been rounded to the nearest million. Individual line items may not sum to totals as a result of Three months Three months rounding ended ended Dec 31, 2023 Sep 30, 2023 2. We define Net Working Capit
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