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News Release
| B&W Awarded New Boiler and Environmental Equipment Contract |
| HOUSTON, Oct 01, 2007 (BUSINESS WIRE) -- McDermott International, Inc. (NYSE:MDR) announced today that its
subsidiary, The Babcock & Wilcox Company ("B&W"), has received a
contract, valued in excess of $50 million, for the engineering and
material supply of a 220-megawatt coal-fired boiler and selective
catalytic reduction system. The Gerald T. Whelan Energy Center ("WEC")
Unit 2 will be owned by Public Power Generation Agency ("PPGA"), a
partnership of five public power utilities, in Hastings, Nebraska.
The WEC Unit 2 facility will burn Powder River Basin coal. It will be located near, and share certain common facilities with, WEC Unit 1, a 77-megawatt coal-fired unit that has been in commercial operation since 1981. Hastings Utilities, which owns and operates WEC 1, will operate the new plant. "This contract reinforces B&W's continued leadership role in providing steam generating equipment and environmental solutions to meet our customers' needs," said Brandon Bethards, President, B&W Fossil Power Group. Engineering has begun at B&W's Barberton, Ohio, facility, with the majority of boiler components to be procured from Babcock & Wilcox Beijing Company, Ltd., B&W's joint venture fabrication facility in China. Boiler material shipments are scheduled to begin in August 2008, with commercial operation of the power plant scheduled for early 2011. McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott's customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 20,000 employees, and can be found on the internet at www.mcdermott.com. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott International, Inc. cautions that statements in this press release which are forward-looking and provide other than historical information involve risks and uncertainties that may impact McDermott's actual results of operations. The forward-looking statements in this press release include, among other things, the value, work scope and timing associated with the WEC2 project. Although McDermott's management believes that the expectations reflected in those forward-looking statements are reasonable, McDermott can give no assurance that those expectations will prove to have been correct. Those statements are made based on various underlying assumptions and are subject to numerous uncertainties and risks, including without limitation currency exchange rates, potential change orders and other modifications to the contracts. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these risk factors, please see McDermott's annual report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission. SOURCE: McDermott International, Inc. McDermott International, Inc. |