Offshore oil-and-gas and nuclear- power construction giant McDermott International Inc. is splitting off two key subsidiaries into new, publicly traded companies to avoid risk to one unit’s future federal contracts because of the parent’s overseas incorporation. JOHNSON McDermott, incorporated in Panama but based in Houston, announced the change earlier this month. With the separation, to be completed in nine to 12 months, Babcock & Wilcox Co. (B&W), the nuclear- and government-business unit incorporated in Delaware, will relocate its base to Charlotte, N.C. The parent firm then will take the name of its offshore energy unit, J. Ray McDermott S.A (J.
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.