Houston-based McDermott International plans to sell its storage tank and U.S. pipe fabrication businesses for more than $1 billion next year.
The decisions come from a strategic review conducted after the energy engineering and construction firm acquired The Woodlands-based CB&I earlier this year. The two business units account for more than 5,300 workers out of McDermott’s global workforce of about 40,000 people.
McDermott plans to put the proceeds toward debt reduction.
“The (CB&I) tank business in particular is known as a world leader in its served markets,” said McDermott chief executive David Dickson.
“Our intent would be to seek the kinds of owners who would value the significant long-term growth potential of each business and who would thus provide attractive prospects for employees and customers.”
McDermott posted a small $2 million net profit for the third quarter.
In its earnings, McDermott also gave updates on two of the largest liquefied natural gas export projects it is building along the Gulf Coast, both of which have faced several delays.
The Sempra Energy-owned Cameron LNG project in Louisiana near the Texas state line is expected to see its first phase completed in the second quarter of 2019 and be fully up and running in 2020.
Likewise, the Freeport LNG project south of Houston at Quintana would start coming online in the fall of 2019 and be completed in mid-2020.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.