Energy sector takes a hit; McDermott crumbles -
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Published on: 10/4/2002
Last Visited: 10/4/2002
New Orleans-based McDermott has posted a shortfall in earnings for three consecutive quarters because it's underestimated the cost of three fixed-cost projects, Merrill analyst Mike Clark wrote.
"These delays and cost overruns may further diminish MDR's competitive position," Clark said.
In the broader oil service sector, the PSE Oil Service Index (OSX: news, chart, profile) lost 1.7 percent to settle at 76.53.
Stocks closed largely lower with names such as Baker Hughes (BHI: news, chart, profile), Halliburton (HAL: news, chart, profile), and Varco International (VRC: news, chart, profile) finishing in negative territory.
Independent producers also felt the heat as Prudential Securities lowered 2002 earnings estimates for Anadarko Petroleum (APC: news, chart, profile), Devon Energy (DVN: news, chart, profile), Unocal (UCL: news, chart, profile), Kerr-McGee (KMG: news, chart, profile), Apache (APA: news, chart, profile), and Burlington Resources (BR: news, chart, profile).