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
BP Restructures, Reduces Executive Team to 10
2024-04-18 - BP said the organizational changes will reduce duplication and reporting line complexity.
Matador Resources Announces Quarterly Cash Dividend
2024-04-18 - Matador Resources’ dividend is payable on June 7 to shareholders of record by May 17.
EQT Declares Quarterly Dividend
2024-04-18 - EQT Corp.’s dividend is payable June 1 to shareholders of record by May 8.
Daniel Berenbaum Joins Bloom Energy as CFO
2024-04-17 - Berenbaum succeeds CFO Greg Cameron, who is staying with Bloom until mid-May to facilitate the transition.
Equinor Releases Overview of Share Buyback Program
2024-04-17 - Equinor said the maximum shares to be repurchased is 16.8 million, of which up to 7.4 million shares can be acquired until May 15 and up to 9.4 million shares until Jan. 15, 2025 — the program’s end date.