CB&I have reported net income of US$10 million, or US$0.10 per diluted share, in the third quarter of 2017, compared to net income of US$121.8 million, or US$1.20 per diluted share, in the third quarter of 2016.
Net income for the third quarter of 2017 was impacted by restructuring charges of US$27 million, or US$0.17 per share, related to the company’s cost reduction program, and excess interest expense of US$22 million, or US$0.14 per share, due to accelerated amortisation of debt issuance costs.
Continuing operations consist of CB&I’s Engineering & Construction (E&C) and Fabrication Services businesses. The results of the company’s Technology and former Engineered Products and Capital Services operations have been classified as discontinued operations for all periods presented.
“We have made significant progress on the decisive actions we announced last quarter, including our cost reduction program, the continued improvement of our project execution and risk management processes, and the intended sale of our technology operations,” said Patrick K. Mullen, President and Chief Executive Officer of CB&I. “Our cost reduction program is on track, with a positive impact on our financial performance already apparent. We are also extremely pleased with the sale process for our technology operations and the interest from bidders on developing a long-term strategic alliance with CB&I.”
“Our results this quarter were impacted by unusual items totaling US$49 million, or US$0.31 per share. We experienced continued cost pressure during the quarter, primarily on the IPL and Calpine power projects, with execution on our other projects continuing as planned. New awards were lower than expected, primarily within E&C, due to the delay of certain key projects. However, we have a significant pipeline and anticipate a strong fourth quarter and first half of 2018 for new awards.”
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