McDermott shares decline despite rise in Q4 income

McDermott International reported higher fourth-quarter net income as offshore oil and gas work offset weakness in power generation, but revenue declined and was short of analysts' estimates.

The company's shares fell 3.4 per cent.

The engineering company said fourth-quarter net income rose to $98.7 million (Dh362.5m), or 42 cents per share, from $43m, or 19 cents per share, in the same quarter a year before. Revenue fell to $1.46bn from $1.66bn.

Analysts had expected a profit of 39 cents per share on revenue of $1.53bn, according to the averages on Thomson Reuters IBES.

Shares of McDermott fell to $23.01 in after-hours trading, after closing at $23.82, up 4.25 per cent.

The Houston-based company's backlog fell to $8.1bn at the end of 2009 from $8.5bn three months before. In December, McDermott announced plans to split off nuclear power division Babcock & Wilcox as another public company at some point this year.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.