Exhibit 99.1

McDermott reports Second Quarter 2009 Results;

Net Income of $92.6 million, $0.40 per fully diluted share

Backlog Remains at Near-Record Levels at $9.5 Billion; Highest Income Level of Last 4 Quarters

HOUSTON--(BUSINESS WIRE)--August 10, 2009--McDermott International, Inc. (NYSE:MDR) (“McDermott” or the “Company”) today reported net income of $92.6 million, or $0.40 per diluted share, for the 2009 second quarter, compared to its record quarter of $177.5 million, or $0.77 per diluted share, in the corresponding period of 2008. Weighted average common shares outstanding on a fully diluted basis were approximately 233.1 million and 230.4 million in the quarters ended June 30, 2009 and June 30, 2008, respectively.

McDermott’s revenues in the second quarter of 2009 were $1,565.0 million, compared to $1,792.6 million in the corresponding period in 2008. The decrease in consolidated revenues was primarily due to a lower level of activity in the Power Generation Systems segment, partially offset by increased revenues in the Government Operations segment.

The Company’s operating income in the 2009 second quarter was $147.7 million, compared to $231.1 million in the 2008 second quarter. Notwithstanding a 35.2 percent year-over-year increase in Government Operations’ segment income, McDermott’s 2009 second quarter operating income declined compared to a year ago due to a predominantly non-cash increase of $21.9 million in consolidated pension plan expense and reduced levels of segment income from both Power Generation Systems and Offshore Oil & Gas Construction.

“McDermott delivered solid results in the 2009 second quarter and produced the highest level of quarterly income since the second quarter of 2008,” said John A. Fees, Chief Executive Officer of McDermott. “While the markets we serve lack conviction due to worldwide economic conditions, the Company’s bidding activity remains good, particularly in oil and gas, our liquidity improved sequentially to over $1 billion, and McDermott’s backlog remains strong.”

At June 30, 2009, McDermott’s consolidated backlog was $9.5 billion, compared to $9.8 billion and $10.0 billion at June 30, 2008 and March 31, 2009, respectively.

RESULTS OF OPERATIONS

2009 Second Quarter Compared to 2008 Second Quarter

Offshore Oil & Gas Construction Segment

Revenues in the Offshore Oil & Gas Construction segment were $832.7 million in the 2009 second quarter, compared to $872.3 million for the same period a year ago. Increased revenues in the Middle East region were more than offset by reduced levels in other regions. Approximately 40 percent of the total 2009 second quarter revenues were derived from the Middle East projects in Qatar.

Segment income for the 2009 second quarter was $67.8 million, compared to $98.0 million in the 2008 second quarter. Major areas contributing to second quarter 2009 segment income include the Middle East, Asia Pacific and Americas regions.

At June 30, 2009, segment backlog was $4.7 billion, compared to backlog of $5.3 billion and $5.0 billion at June 30, 2008 and March 31, 2009, respectively.

Power Generation Systems Segment

Revenues in the Power Generation Systems segment for the second quarter of 2009 were $471.6 million, compared to $698.1 million in the second quarter of 2008. The year-over-year decrease was predominantly due to reduced activity on customers’ major capital projects including new power plant construction and retrofits of existing power plants.

Segment income for the 2009 second quarter was $43.9 million, compared to $106.0 million in the 2008 second quarter. Major activities contributing to second quarter 2009 segment income include the supply and construction of new boilers and environmental equipment, commercial nuclear manufacturing, inspection and maintenance, retrofit projects of existing facilities, and related parts and services.

At June 30, 2009, segment backlog was $2.2 billion, compared to backlog of $3.0 billion and $2.2 billion at June 30, 2008 and March 31, 2009, respectively.

Government Operations Segment

Revenues in the Government Operations segment were $261.4 million in the 2009 second quarter, compared to $225.8 million for the same period a year ago. The increase in revenues, as compared to the same period a year ago, was primarily due to activities in the manufacture of nuclear components and nuclear fuels for certain U.S. Government programs, including the revenues from Nuclear Fuel Services which was acquired in December 2008.

Segment income for the 2009 second quarter was $57.5 million, compared to $42.5 million in the 2008 second quarter. Major items contributing to second quarter 2009 segment income include contracts for the downblending of high-enriched uranium, the manufacture of nuclear components and nuclear fuels for certain U.S. Government programs, the manufacture of nuclear components for a commercial uranium enrichment project, and the management and operations of various U.S. Government sites.

At June 30, 2009, segment backlog was $2.6 billion, compared to backlog of $1.5 billion and $2.7 billion at June 30, 2008 and March 31, 2009, respectively.

Corporate & Other Income and Expense

Unallocated corporate expenses were $21.4 million in the 2009 second quarter, compared to $15.4 million in the 2008 second quarter. The year-over-year increase is predominantly due to increased pension expense.

The Company’s other expense for the second quarter of 2009 was $5.2 million, compared to other income of $10.0 million in the second quarter of 2008. The $15.2 million decline was predominantly due to increased non-cash, foreign currency translation charges, as well as reduced net interest income.

Upcoming Investor Events

Members of the Company’s management will be in Chicago later this week to participate at the Jefferies & Co. Fifth Annual Industrial CEO Summit on Wednesday, August 12, 2009 and the UBS Engineering & Construction One-on-One Conference on Thursday, August 13, 2009. The presentation to be used during these meetings will be available for a limited time over the internet at www.mcdermott.com in the investor relations section on the morning of August 12, 2009.

OTHER INFORMATION

About the Company

McDermott is an engineering and construction company, with specialty manufacturing and service capabilities, focused on energy infrastructure. McDermott’s customers are predominantly utilities and other power generators, major and national oil companies, and the United States Government. With its global operations, McDermott operates in over 20 countries with more than 25,000 employees.

Forward Looking Statements

In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, McDermott cautions that statements in this press release, which are forward-looking and provide other than historical information, involve risks and uncertainties that may impact the Company’s actual results of operations. These forward-looking statements include statements about backlog, to the extent backlog may be viewed as an indicator of future revenues. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous uncertainties and risks, including adverse changes in the markets in which we operate or credit markets, our inability to successfully execute on contracts in backlog and changes in the scope or timing of contracts in backlog. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. For a more complete discussion of these and other risk factors, please see McDermott’s annual and quarterly filings with the Securities and Exchange Commission, including its annual report on Form 10-K.

Conference Call to Discuss Second Quarter 2009 Earnings Release

Date: Tuesday, August 11, 2009, at 10:00 a.m. EDT (9:00 a.m. CDT)

Live Webcast: Investor Relations section of Web site at www.mcdermott.com

Replay: Available for two weeks in the investor relations section of www.mcdermott.com

McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2009			2008			2009			2008
	(Unaudited)
	(In thousands, except share and per share amounts)
Revenues	$	1,564,999		$	1,792,646		$	3,058,262		$	3,243,072
Costs and Expenses:
Cost of operations		1,275,058			1,432,736			2,503,680			2,621,432
Gains on asset disposals – net		(1,897	)		(17	)		(656	)		(11,460	)
Selling, general and administrative expenses		153,195			138,055			294,589			264,786
Total Costs and Expenses		1,426,356			1,570,774			2,797,613			2,874,758
Equity in Income of Investees		9,097			9,252			18,297			19,922
Operating Income		147,740			231,124			278,946			388,236
Other Income (Expense):
Interest income (expense) - net		4,987			8,186			6,844			18,641
Other income (expense) – net		(10,201	)		1,843			(20,971	)		(2,097	)
Total Other Income		(5,214	)		10,029			(14,127	)		16,544
Income before Provision for Income Taxes		142,526			241,153			264,819			404,780
Provision for Income Taxes		44,645			63,602			88,523			103,982
Net Income		97,881			177,551			176,296			300,798
Less: Net Income Attributable to Noncontrolling Interest		(5,326	)		(12	)		(6,049	)		(69	)
Net Income Attributable to McDermott International, Inc.	$	92,555		$	177,539		$	170,247		$	300,729
Earnings per Share:
Basic:
Net Income Attributable to McDermott International, Inc.	$	0.40		$	0.78		$	0.74		$	1.33
Diluted:
Net Income Attributable to McDermott International, Inc.	$	0.40		$	0.77		$	0.73		$	1.31
Shares used in the computation of earnings per share :
Basic		229,273,441			226,862,500			228,794,113			226,247,335
Diluted		233,105,949			230,408,760			232,846,098			230,260,810

McDERMOTT INTERNATIONAL, INC.
SELECTED SEGMENT INFORMATION
	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2009			2008			2009			2008
	(Unaudited); (In thousands)
REVENUES
Offshore Oil and Gas Construction	$	832,700		$	872,268		$	1,541,224		$	1,518,217
Government Operations		261,397			225,764			518,502			416,358
Power Generation Systems		471,591			698,071			1,000,164			1,314,369
Adjustments and Eliminations		(689	)		(3,457	)		(1,628	)		(5,872	)
TOTAL	$	1,564,999		$	1,792,646		$	3,058,262		$	3,243,072
SEGMENT INCOME (LOSS)
Offshore Oil and Gas Construction	$	67,802		$	98,009		$	112,840		$	150,934
Government Operations		57,473			42,503			103,225			80,453
Power Generation Systems		43,865			105,985			102,024			182,243
	$	169,140		$	246,497		$	318,089		$	413,630
Corporate		(21,400	)		(15,373	)		(39,143	)		(25,394	)
OPERATING INCOME (LOSS)	$	147,740		$	231,124		$	278,946		$	388,236
EQUITY IN INCOME (LOSS) OF INVESTEES (1)
Offshore Oil and Gas Construction	$	(1,056	)	$	(996	)	$	(2,201	)	$	(1,750	)
Government Operations		8,652			10,798			17,354			19,547
Power Generation Systems		1,501			(550	)		3,144			2,125
TOTAL	$	9,097		$	9,252		$	18,297		$	19,922
PENSION EXPENSE (1)
Offshore Oil and Gas Construction	$	2,186		$	1,665		$	4,363		$	3,330
Government Operations		12,159			4,061			24,317			8,122
Power Generation Systems		15,409			5,979			30,724			12,005
Corporate		4,572			732			9,170			1,465
TOTAL	$	34,326		$	12,437		$	68,574		$	24,922
DEPRECIATION & AMORTIZATION (1)
Offshore Oil and Gas Construction	$	20,214		$	21,041		$	39,974		$	41,004
Government Operations		10,307			5,660			21,550			11,226
Power Generation Systems		4,619			5,398			8,954			10,895
Corporate		751			307			1,435			592
TOTAL	$	35,891		$	32,406		$	71,913		$	63,717
RESEARCH & DEVELOPMENT, NET (1)	$	10,902		$	9,751		$	21,142		$	18,759
CAPITAL EXPENDITURES
Offshore Oil and Gas Construction	$	47,774		$	47,309		$	89,133		$	94,546
Government Operations		8,751			4,419			13,997			5,930
Power Generation Systems		7,838			5,513			20,171			12,717
Corporate		3,635			3,866			6,085			7,200
TOTAL	$	67,998		$	61,107		$	129,386		$	120,393
BACKLOG
Offshore Oil and Gas Construction	$	4,688,467		$	5,272,195		$	4,688,467		$	5,272,195
Government Operations		2,613,532			1,501,854			2,613,532			1,501,854
Power Generation Systems		2,221,966			2,998,212			2,221,966			2,998,212
TOTAL	$	9,523,965		$	9,772,261		$	9,523,965		$	9,772,261
(1) Included in Segment Income Above

McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
	June 30,		December 31,
		2009		2008
	(Unaudited)
	(In thousands)
ASSETS
Current Assets:
Cash and cash equivalents	$	671,299	$	586,649
Restricted cash and cash equivalents		81,229		50,536
Investments		20,187		131,515
Accounts receivable – trade, net		731,419		712,055
Accounts and notes receivable – unconsolidated affiliates		1,268		1,504
Accounts receivable – other		87,929		139,062
Contracts in progress		381,196		311,713
Inventories		120,130		128,383
Deferred income taxes		103,568		97,069
Other current assets		67,228		58,499
Total Current Assets		2,265,453		2,216,985
Property, Plant and Equipment		2,362,922		2,234,050
Less accumulated depreciation		1,210,203		1,155,191
Net Property, Plant and Equipment		1,152,719		1,078,859
Investments		279,948		319,170
Goodwill		299,168		298,265
Deferred Income Taxes		264,018		335,877
Investments in Unconsolidated Affiliates		78,082		70,304
Other Assets		270,806		282,233
TOTAL	$	4,610,194	$	4,601,693

McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
	June 30,			December 31,
		2009			2008
	(Unaudited)
	(In thousands)
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Notes payable and current maturities of long-term debt	$	3,780		$	9,021
Accounts payable		487,396			551,435
Accrued employee benefits		236,075			205,521
Accrued liabilities – other		207,630			217,486
Accrued contract cost		128,807			97,041
Advance billings on contracts		816,948			951,895
Accrued warranty expense		128,195			120,237
Income taxes payable		50,608			55,709
Total Current Liabilities		2,059,439			2,208,345
Long-Term Debt		5,896			6,109
Accumulated Postretirement Benefit Obligation		105,464			107,567
Self-Insurance		93,988			88,312
Pension Liability		644,746			682,624
Other Liabilities		141,540			192,223
Commitments and Contingencies
Stockholders’ Equity:
Common stock, par value $1.00 per share, authorized 400,000,000 shares; issued 236,239,688 and 234,174,088 shares at June 30, 2009 and December 31, 2008, respectively		236,240			234,174
Capital in excess of par value		1,274,112			1,252,848
Retained earnings		734,838			564,591
Treasury stock at cost, 5,746,871 and 5,840,314 shares at June 30, 2009 and December 31, 2008, respectively		(67,779	)		(63,026	)
Accumulated other comprehensive loss		(624,660	)		(672,415	)
Stockholders’ Equity – McDermott International, Inc.		1,552,751			1,316,172
Noncontrolling interest		6,370			341
Total Stockholders’ Equity		1,559,121			1,316,513
TOTAL	$	4,610,194		$	4,601,693

McDERMOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Six Months Ended
	June 30,
		2009			2008
	(Unaudited)
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	176,296		$	300,798
Non-cash items included in net income:
Depreciation and amortization		71,913			63,717
Income of investees, less dividends		(4,012	)		(8,528	)
Gains on asset disposals – net		(656	)		(11,460	)
Provision for deferred taxes		55,221			63,547
Amortization of pension and postretirement costs		44,094			20,266
Excess tax benefits from FAS 123(R) stock-based compensation		(235	)		(3,388	)
Other, net		26,725			21,193
Changes in assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable		(19,918	)		(35,782	)
Income tax receivable		56,177			(2,661	)
Net contracts in progress and advance billings on contracts		(205,376	)		(360,000	)
Accounts payable		(69,860	)		26,321
Income taxes		(10,093	)		3,002
Accrued and other current liabilities		24,466			22,743
Pension liability, accumulated postretirement benefit obligation and accrued employee benefits		(12,567	)		(129,834	)
Other, net		(29,155	)		(56,374	)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES		103,020			(86,440	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in restricted cash and cash equivalents		(30,693	)		(5,239	)
Purchases of property, plant and equipment		(129,386	)		(120,393	)
Net (increase) decrease in available-for-sale securities		148,725			(124,729	)
Proceeds from asset disposals		2,311			12,013
Other, net		(2,117	)		(2,048	)
NET CASH USED IN INVESTING ACTIVITIES		(11,160	)		(240,396	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of long-term debt		(5,419	)		(4,525	)
Issuance of common stock		342			7,467
Payment of debt issuance costs		(45	)		(1,564	)
Excess tax benefits from FAS 123(R) stock-based compensation		235			3,388
Other, net		(64	)		-
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(4,951	)		4,766
EFFECTS OF EXCHANGE RATE CHANGES ON CASH		(2,259	)		(683	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		84,650			(322,753	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		586,649			1,001,394
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	671,299		$	678,641
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid (received) during the period for:
Interest (net of amount capitalized)	$	2,548		$	4,006
Income taxes (net of refunds)	$	(16,903	)	$	43,981

CONTACT:
McDermott Investor Relations & Corporate Communications
Jay Roueche, 281-870-5462
Vice President
jroueche@mcdermott.com
Robby Bellamy, 281-870-5165
Director
rbellamy@mcdermott.com