MDR stock slumped after McDermott International Inc (NYSE:MDR) reported a worse than expected third-quarter loss and weaker than expected revenues.
The energy sector has had its fair share of bumps this year, and the uncertainty in the sector has had its toll on many companies. However, nothing could have prepared investors and market watchers for the third-quarter financial results of oil field services company McDermott International.
The company suffered a loss of a mammoth $1.9 billion, while it generated revenues of $2.1 billion. In the year-ago period, McDermott had generated profits of $2 million against revenues of $2.3 billion.
The monumental losses suffered by the company are apparently due to the immense cost overruns on some projects and also because the company had to liquefy two natural gas projects located in Bayou City. The losses per share for the quarter rocketed to as much as $10.37, and that is in stark contrast to the one cent of earning that it made in the year-ago period.
In its securities filing, the company blamed the cost overruns as well as the resultant stock price plunge for the losses made in the quarter. There were large cost overruns in as many as six projects.
At the time of writing, MDR stock is down over 9% at $1.60.
The company seems to be in the middle of a bit of an executive-level turmoil as well, and this became evident after the Chief Financial Officer of the company, Stuart Spence, resigned from his post today. Chris Krummel is going to step into the position, and he is going to assume charge as the new CFO immediately. Spence has resigned from his position in order to pursue other opportunities.
That being said, Krummel is an old hand at McDermott International and boasts of a quarter of a century of experience in finance. He has previously served as the Chief Accounting Officer and the Global Vice President of Finance in the company.
MDR stock has slumped over 77% so far this year.
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