Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of contractor McDermott International (NYSE: MDR) jumped as much as 10% today after the company won a large contract.
So what: McDermott, along with a consortium partner, won a SURF engineering, product supply, and installation contract for the Atlanta Early Production System of the coast of Brazil. Exploration and production company Queiroz Galvao Exploracao e Producao S.A. awarded the contract and is expecting to produce oil from the field in the first half of 2016.
Now what: The exact amount of the award wasn't announced, but management did say it will include it in backlog for the first quarter of 2015. Just the fact that a contract is moving forward in Brazil is good news, and a sign that oil and gas explorers may be opening the purse strings a bit. With oil price down around 50% over the past year, many companies have cut capital spending, so winning even a single contract can be good news for a company like McDermott International -- and has investors cheering today.
