McDermott International Inc. said on Sept. 20 it received takeover interests for the acquisition of all or part of its technology business Lummus, that could value the unit at over $2.5 billion.
McDermott’s shares are up about 70% in premarket trading.
The oilfield services company said it is now exploring strategic options for the unit, which provides technology to petrochemicals, refining, and gas processing markets among others.
Oilfield services companies have faced significant pressure and margin compression as North American oilfield activity has slowed, as customers have tightened spending to focus on shareholder return.
McDermott’s shares have plunged about 84% since the company lowered its full year outlook in July, saying it expected full year revenues of about $10 billion.
The Houston, Texas-based company had a long-term debt of $3.39 billion as of June 30.
McDermott, which has retained Evercore as the lead adviser, said proceeds from any deal will be used to strengthen the company's balance sheet.
Separately, the company said its previously announced processes to sell the remaining portion of its pipe fabrication business and its industrial storage tank business is ongoing.
Recommended Reading
SLB, OneSubsea, Subsea 7 Sign Collaboration Deal with Equinor
2024-05-02 - Work is expected to begin immediately on Equinor’s Wisting and Bay Du Nord projects.
SilverBow Makes Horseshoe Lateral in Austin Chalk
2024-05-01 - SilverBow Resources’ 8,900-foot lateral was drilled in Live Oak County at the intersection of South Texas’ oil and condensate phases. It's a first in the Chalk.
Petrobras Sending Nearly Half of Oil Exports to China
2024-04-30 - Conflict in the Middle East has enabled Brazil’s state-owned Petrobras to change the flow of its oil exports, with China being the primary beneficiary, followed by Europe.
Equinor Says EQT Asset Swap Upgrades International Portfolio
2024-04-30 - Equinor CFO Torgrim Reitan says the company’s recent U.S. asset swap with EQT Corp. was an example of the European company “high-grading” its international E&P portfolio.
E&P Highlights: April 29, 2024
2024-04-29 - Here’s a roundup of the latest E&P headlines, including a new contract award and drilling technology.