McDermott Overview
McDermott designs and develops integrated solutions and products for the energy sector. The company primarily operates through offshore and subsea, downstream, liquefied natural gas (LNG), and power. In the offshore and subsea segment, it offers technology and EPCI services for the upstream oil & gas sector. It also offers topsides and floating production and storage and offloading (FPSO) vessels and pipelines.
The company has a wide presence with more than 70 offices in nearly 54 countries, across the world. The client portfolio includes companies across oil and gas, petrochemical, and electric power sector. It primarily competes with offshore companies including China Offshore Oil Engineering Co. Ltd, Fluor Corporation, Hyundai Heavy Industrial Co. Ltd, Petrofac International Ltd, Saipem S.P.A., Samsung Heavy Industries Co. Ltd, TechnipFMC plc, Subsea 7 S.A., Techidas Reunidas, S.A, and Wood plc.
Strategy
McDermott focuses on research and development to strengthen the product portfolio and aims to expand in the global market through collaboration and partnerships in terms of long-term contract. Moreover, the company’s research and development expenditure in 2018 was USD 20 million, which was only USD 5 million in 2017. It invests in the integrated technology, engineering expertise, and manufacturing capabilities to increase the production of pipelines, globally, to meet the demand across energy infrastructure. The company primarily focuses on the offshore/subsea and downstream markets to enhance its products and create revenue opportunities for the pipeline business.
