Topsides (dead market - mdr not a big player), offshore pipelines (mdr core - markets dead), LNG (failed miserably) tanks (Lomé bright spot) power plants (failed miserably) refineries (Lummus is gone) gas processing (haven’t been relevant since the 80s). Very little sounds about right
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Today's oil price is lower than it was in 2016. Our biggest customer is trying to finish the job. IRRs like this can't get funded even with free money. Close your eyes and just hope it's quick.
MDR is all oil and gas.
McDermott has very little to do with oil and gas.
Right. Very little. Topsides, offshore pipelines, LNG, tanks, power plants, refineries, gas processing. Very little.
McDermott has very little to do with oil and gas. But good luck looking for a job in this market with McDermott on your resume. There’s about 1MM more sophisticated people about to enter the job search market.
Backlog and book to bill drop. MDR tries to sell more assets into a declining market. Failure. Takeover.
Job cuts..
But two things endure. Executive bonuses and BLUE JEANS FRIDAY!
So why worry?
Expect plenty of cancelled projects.
This is tough. Nobody builds offshore when oil is $30. If it stays like this, it’s 2015 all over again.