BWXT Receives Major Government Contract Awards; Negotiates $1.7 Billion Agreement
LYNCHBURG, VA, March 30, 2007 McDermott International, Inc. (NYSE:MDR) (“McDermott”) announced today that its subsidiary, BWX Technologies, Inc. (“BWXT”), has received recent awards of two major U.S. Government contracts. The awards, valued together in excess of $320 million, are for the manufacture of nuclear components in support of U.S. defense programs.
In addition, this series of awards contains options for the anticipated requirements through 2009 totaling $1.7 billion. This multiple-award approach gives the Government cost predictability while providing BWXT with additional financial incentives based on performance.
"The award is a true win-win," said Winfred D. Nash, President of BWXT Nuclear Operations Division. "With additional assurances of project costs, the Government can proceed with platform deployment to continue meeting national security needs at budgeted costs. At the same time, BWXT can improve profitability by achieving certain performance measures. The contract awards reflect both BWXT's ongoing commitment to U.S. Government programs and the Government’s continued confidence in our abilities to meet its needs with products of unquestioned reliability.”
BWXT, headquartered in Lynchburg, Virginia, supplies nuclear operations services and products to the U. S. Government and commercial clients. BWXT also manages complex production facilities and advanced energy products. Among its diverse capabilities are decontamination and decommissioning, waste management, engineering, and project management services.
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 and anticipated timing of the awards. 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 limitations change orders and other modifications to 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 for the year ended December 31, 2006 filed with the Securities and Exchange Commission.