McDermott International (MDR), a leading American construction and engineering firm, has seen its stock price plummet further by 26.21 per cent, closing at a new yearly low of $0.63.
The company reported disappointing third quarter earnings on November 4, and since then its stock has fallen by 44 per cent. Missing both earnings and revenues estimates, McDermott International reported Q3 revenues of $2.1bn (£1.6bn, €1.9) a net loss of $1.9bn (£1.5bn, €1.7) and an operating loss of $1.7bn (£1.3, €1.5).
The significant net loss has primarily been attributed to non-cash accounting charges of $1.5bn (£1.16bn, €1.36bn) relating to impairments of goodwill and intangible assets and $256m (£199m, €232) of changes in project gross profit on certain projects.
In a further worrying sign, construction on the company’s new Houston headquarters building has been halted after it fell behind on payments to its general contractor.
The faltering firm recently secured funding worth up to $1.7bn from lenders to keep it afloat. These investors were not informed until after they had inked the deal that McDermott International is currently under investigation by the Securities and Exchange Commission.
While the industry has fallen 31 per cent this past year, McDermott International has fallen even further, shedding 88.2 per cent of its value. It recently fired its chief financial officer Stuart Spence, who walked away with an $866,666 severance bonus.