Jack Ma: Story of Alibaba E-Commerce and Online Retail by GineersNow GineersNow Engineering Magazine Issue No. 013, Jac | Page 47

2016 was $203.1 million, or an adjusted operating
margin of 7.7%, excluding the restructuring
charges, impairment charges and pension MTM
gain mentioned above, compared to $203.0 million,
or an adjusted operating margin of 6.6%, for the
full-year 2015, excluding the restructuring charges,
impairment loss, legal settlement and pension MTM
loss mentioned above. Operating income for the
full-year of 2016 was primarily driven by marine
activity on the INPEX Ichthys, Saudi Aramco’s LTA II,
Marjan power system replacement, and 12 Jackets
projects, as well as a pipeline repair project in the
Middle East region.
Our operating margin for the full-year of 2016
was higher due to project execution driven
improvements, final closeouts, change orders driven
by alignment with customer needs and the full
impact of our cost restructuring programs. Cash
provided by operating activities in the full-year of
2016 was $178.2 million, an increase compared
to the $55.3 million of cash provided in 2015.
Overdue payments received from Pemex during
the first quarter, as well as steady collections in the
Middle East, positively impacted cash provided by
operating activities for 2016.
MEA region
In the Middle East (“MEA”) Area, fabrication
activity in the fourth quarter was driven by Saudi
Aramco projects and the KJO Hout jacket and deck
structures. Marine operations continued in both
Saudi Arabia and Qatar. Execution of the Saudi
Aramco Lump Sum LTA II project, awarded in 2015,
is progressing according to schedule, and is in the
fabrication phase, with work being shared between
the Jebel Ali and Dammam fabrication facilities.
Cooperation and consistency between all facilities is
driven by our One McDermott Way and as a result,
a Middle East customer approved work share on
a specific project for the fabrication of jackets in
our Batam yard. The KJO Hout Jacket and topside
will be installed and pre-commissioned in the first
quarter of 2017; the project is more tha n 55%
complete and is expected to be fully complete in
the second quarter of 2017.The Marjan power
systems project continued to meet key milestones
in line with client requirements, as did the three
Saudi Aramco jobs awarded in the second quarter
of 2016. The three jobs awarded in the second
quarter are in the preliminary stages of fabrication,
with activity expected during 2017. Fabrication and
installation of the Bul Hanine jackets is complete,
with minor closeout work remaining. In Qatar, we
focused on offshore work for the RasGas Flow
Assurance and Looping project, which remains
on schedule. The MEA area also continued to
demonstrate McDermott’s Taking the Lead initiative,
reaching an impressive 48-million man-hours lost
time incident (“LTI”) free.
Further information can be accessed at: http://
www.mcdermott-investors.com/phoenix.
zhtml?c=96360&p=irol-newsArticle&ID=2247616
E-Commerce, Online Distribution and Management • March 2017
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