Companies
McDermott International Names Industry Veteran Michael McKelvy as CEO
Industry veteran Michael McKelvy has joined energy contractor McDermott International Ltd. as president and CEO, the company said on Feb. 1.
He succeeds Lee McIntire, a board member and former CH2M chairman and CEO who had been interim McDermott chief since June 2021 after the resignation of David Dickson.
McKelvy retired last month as president and CEO of Gilbane Building Co., roles he assumed in 2014 and 2015, respectively. McDermott noted that firm’s “record growth, profitable operations and a strong customer commitment.”
McKelvy was the first non-family member—and company outsider—in those leadership roles at Gilbane, founded in 1870. It ranks at No 11 on ENR’s Top 400 Contractors list, reporting $6.4 billion in 2020 revenue.
Succeeding McKelvy as Gilbane CEO is Thomas M. Laird Jr., who had been the contractor's executive vice president and is a 35-year company employee.
Previously Chief Delivery Officer at CH2M, working under McIntire, McKelvy was responsible for project execution across domestic and global regions with oversight of risk, safety, security, procurement and quality. He worked at the firm for 26 years.
McDermott completed a merger with Chicago Bridge & Iron Co. (CB&I) in 2018 to create an integrated provider of technology, engineering and construction services in the energy sector.
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The company filed for bankruptcy protection in January 2020, with debt linked to project charges. The firm's reorganization and financial restructuring eliminated more than $4.6 billion of the debt. It emerged from Chapter 11 status in late June of that year with more than $2.9 billion in new credit and loans, McDermott said..
McKelvy’s appointment comes “at a pivotal time for the company as significant contract wins reflect increasing demand for McDermott's diversified and integrated solutions," said company Chairman Nils Larsen.
"McDermott's business model and commercial strategy carve out a unique position to further capitalize on the changing industry dynamics and facilitate the energy transition," McKelvy said.
The firm signed an engineering, procurement and construction contract last November with Woodfibre LNG Ltd., a Vancouver, B.C., oil and natural gas firm for a single-train LNG export facility to be built on the site of a former pulp mill in the province.
No facility cost was announced but the owner had previously estimated it at $1.26 billion to $1.42 billion. Project pre-installation work is planned for early 2022, with major construction set to start in 2023. McDermott will also lead commissioning and startup services and manage onshore construction.
McDermott also was awarded in January a major offshore LNG expansion EPC and installation contract in Qatar, the firm announced. It did not disclose the value of the initial contract and possible award option, but said the project is ”one of the largest single contracts McDermott has been awarded in company history."
