Exhibit 99.1

McDermott Reports Third Quarter 2011 Financial Results

Reported Results In-line with Pre-released Ranges

HOUSTON--(BUSINESS WIRE)--November 8, 2011--McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) today reported income from continuing operations of $9.8 million, or $0.04 per diluted share, for the 2011 third quarter. The results of the 2011 third quarter compare to income from continuing operations of $60.8 million, or $0.26 per diluted share, in the corresponding period of 2010. Classified as discontinued operations, the results of McDermott’s charter fleet business are excluded from both periods and The Babcock & Wilcox Company, which was spun-off to McDermott shareholders last year on July 30, is excluded from the 2010 period. Weighted average common shares outstanding on a fully diluted basis were approximately 236.9 million and 236.3 million in the quarters ended September 30, 2011 and September 30, 2010, respectively.

McDermott’s revenues were $879.9 million for the 2011 third quarter, an increase of over 20 percent, compared to $732.1 million in the corresponding period of 2010. The year-over-year increase was primarily due to a 91 percent increase in revenues in the Asia Pacific segment as a result of expanded scope and marine activity on a large engineering, procurement, construction and installation project, partially offset by a 34 percent decline in Middle East segment revenues.

The Company’s operating income in the 2011 third quarter was $35.2 million, compared to $84.3 million in the 2010 third quarter. Operating income in the 2011 third quarter was negatively affected by previously announced project losses of approximately $50 million, primarily within the Atlantic segment, which more than offset a 95 percent increase in the Asia Pacific segment’s operating income, as compared to the 2010 third quarter. In the 2010 third quarter, McDermott’s operating income was negatively affected by approximately $44 million of non-cash impairment and related charges, which was largely offset by approximately $36 million in project improvements on certain Qatar projects.

The Company’s other income for the third quarter of 2011 was $373 thousand, an improvement of $3.9 million compared to the other expense in the third quarter of 2010, primarily due to higher foreign currency gains.

At September 30, 2011, the Company’s backlog was $4.3 billion, compared to $3.6 billion and $4.7 billion at September 30, 2010 and June 30, 2011, respectively. Of the September 30, 2011 backlog, approximately $335 million is from projects currently in a loss position whereby future revenues are expected to equal costs when recognized.

Balance Sheet Summary

As of September 30, 2011, McDermott reported total assets of approximately $2.8 billion.

Included in this amount was $618.8 million of cash, restricted cash and investments. Net working capital, calculated as current assets less current liabilities, was $493.4 million. Additionally, total equity was $1.7 billion, or approximately 62% of total assets, with total debt of $89.1 million.

Discontinued Operations

For the third quarter of 2011, McDermott recorded net income from discontinued operations of $1.2 million, or $0.01 per diluted share. Including the results of discontinued operations, total net income attributable to McDermott was $11.0 million, or $0.05 per diluted share, for the 2011 third quarter.

OTHER INFORMATION

About the Company

McDermott is a leading engineering, procurement, construction and installation (“EPCI”) company focused on executing complex offshore oil and gas projects worldwide. Providing fully integrated EPCI services for upstream field developments, the Company delivers fixed and floating production facilities, pipelines and subsea systems from concept to commissioning. McDermott’s customers include national and major energy companies. Operating in approximately 20 countries across the Atlantic, Middle East and Asia Pacific, the Company’s integrated resources include approximately 14,000 employees and a diversified fleet of marine vessels, fabrication facilities and engineering offices. McDermott has served the energy industry since 1923. To learn more, please visit McDermott’s website on the Internet at www.mcdermott.com.

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 McDermott’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 without limitation our inability to successfully execute on contracts in backlog, changes in project design or schedules, changes in the scope or timing of contracts, contract cancellations and change orders and other modifications. 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 for the year ended December 31, 2010 and subsequent quarterly reports on Form 10-Q. This news release reflects management’s views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.

McDERMOTT INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(In thousands)
Revenues	$	879,894		$	732,095		$	2,628,935		$	1,864,121
Costs and Expenses:
Cost of operations		802,951			565,996			2,253,981			1,421,041
Selling, general and administrative expenses		48,046			56,099			163,827			159,911
Loss on asset impairments		-			24,444			-			24,444
Gain on asset disposals		(7,811	)		(108	)		(8,107	)		(2,414	)
Total costs and expenses		843,186			646,431			2,409,701			1,602,982
Equity in Income (Loss) of Unconsolidated Affiliates		(1,492	)		(1,361	)		59			(5,507	)
Operating Income		35,216			84,303			219,293			255,632
Other Income (Expense):
Interest income		319			314			1,060			1,139
Interest expense		(152	)		(392	)		(415	)		(2,671	)
Other income (expense) – net		206			(3,460	)		(3,942	)		(4,188	)
Total other income (expense)		373			(3,538	)		(3,297	)		(5,720	)
Income from continuing operations before provision for income taxes and noncontrolling interests		35,589			80,765			215,996			249,912
Provision for Income Taxes		20,535			10,085			60,351			35,229
Income from continuing operations before noncontrolling interests		15,054			70,680			155,645			214,683
Loss on disposal of discontinued operations		-			(32,936	)		-			(123,356	)
Income (loss) from discontinued operations, net of tax		1,187			(7,094	)		6,459			89,048
Total income (loss) from discontinued operations, net of tax		1,187			(40,030	)		6,459			(34,308	)
Net Income		16,241			30,650			162,104			180,375
Less: Net Income Attributable to Noncontrolling
Interests		5,290			9,847			13,405			23,597
Net Income Attributable to McDermott International, Inc.	$	10,951		$	20,803		$	148,699		$	156,778

McDERMOTT INTERNATIONAL, INC. EARNINGS PER SHARE COMPUTATION
	Three Months Ended September 30,					Nine Months Ended September 30,
	2011		2010			2011		2010
	(In thousands, except share and per share amounts)
Basic:
Income from continuing operations less noncontrolling interests	$	9,764	$	60,833		$	142,240	$	191,086
Income (loss) from discontinued operations, net of tax		1,187		(40,030	)		6,459		(34,308	)
Net income attributable to McDermott International, Inc.	$	10,951	$	20,803		$	148,699	$	156,778
Weighted average common shares		234,940,184		232,670,579			234,451,430		231,780,675
Income from continuing operations less noncontrolling interests		0.04		0.26			0.61		0.82
Income (loss) from discontinued operations, net of tax		0.01		(0.17	)		0.03		(0.15	)
Net income attributable to McDermott International, Inc.		0.05		0.09			0.63		0.67
Diluted:
Income from continuing operations less noncontrolling interests	$	9,764	$	60,833		$	142,240	$	191,086
Income (loss) from discontinued operations, net of tax		1,187		(40,030	)		6,459		(34,308	)
Net income attributable to McDermott International, Inc.	$	10,951	$	20,803		$	148,699	$	156,778
Weighted average common shares (basic)		234,940,184		232,670,579			234,451,430		231,780,675
Effect of dilutive securities:
Stock options, restricted stock and restricted stock units		2,007,479		3,600,832			2,627,875		3,368,656
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards		236,947,663		236,271,411			237,079,305		235,149,331
Income from continuing operations less noncontrolling interests		0.04		0.26			0.60		0.81
Income (loss) from discontinued operations, net of tax		0.01		(0.17	)		0.03		(0.14	)
Net income attributable to McDermott International, Inc.		0.05		0.09			0.63		0.67

SUPPLEMENTARY DATA
	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
	(In thousands)
Pension expense	$	3,779	$	2,981	$	15,367	$	16,282
Depreciation & amortization expense	$	19,801	$	19,601	$	59,900	$	57,424
Capital expenditures	$	90,190	$	38,939	$	231,872	$	136,555
Backlog					$	4,255,432	$	3,591,416

McDERMOTT INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
	September 30, 2011			December 31, 2010
	(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	403,589		$	403,463
Restricted cash and cash equivalents		14,297			197,861
Investments		159,086			209,463
Accounts receivable--trade, net		296,303			323,497
Accounts receivable--other		36,354			28,447
Contracts in progress		300,331			65,853
Deferred income taxes		13,102			10,323
Assets held for sale		20,630			10,161
Other current assets		44,071			36,570
Total Current Assets		1,287,763			1,285,638
Property, Plant and Equipment		1,923,733			1,720,040
Less accumulated depreciation		(840,365	)		(804,471	)
Net Property, Plant and Equipment		1,083,368			915,569
Assets Held for Sale		76,315			77,150
Investments		41,860			75,742
Goodwill		41,202			41,202
Investments in Unconsolidated Affiliates		45,505			45,016
Other Assets		183,788			158,371
Total Assets	$	2,759,801		$	2,598,688
Liabilities and Equity
Current Liabilities:
Notes payable and current maturities of long-term debt	$	6,615		$	8,547
Accounts payable		299,535			252,974
Accrued liabilities		311,021			286,831
Advance billings on contracts		103,896			250,053
Deferred income taxes		3,969			12,849
Income taxes payable		46,034			32,851
Liabilities associated with assets held for sale		23,288			20,902
Total Current Liabilities		794,358			865,007
Long-Term Debt		82,478			46,748
Self-Insurance		39,040			35,655
Pension Liability		43,488			52,831
Other Liabilities		99,342			86,180
Commitments and Contingencies
Stockholders’ Equity:
Common stock, par value $1.00 per share, authorized 400,000,000 shares; issued 242,251,921 and
240,791,473 shares at September 30, 2011 and December 31, 2010, respectively		242,252			240,791
Capital in excess of par value		1,372,968			1,357,316
Retained earnings		249,072			100,373
Treasury stock, at cost, 7,308,140 and 6,906,262 shares at September 30, 2011 and December 31,
2010, respectively		(95,261	)		(85,735	)
Accumulated other comprehensive loss		(142,980	)		(163,717	)
Stockholders’ Equity—McDermott International, Inc.		1,626,051			1,449,028
Noncontrolling Interests		75,044			63,239
Total Equity		1,701,095			1,512,267
Total Liabilities and Equity	$	2,759,801		$	2,598,688

McDERMOTT INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	Nine Months Ended September 30,
	2011			2010
	(In thousands)
Cash Flows From Operating Activities:
Net income	$	162,104		$	180,375
Less: Income (loss) from discontinued operations, net of tax		6,459			(34,308	)
Income from continuing operations	$	155,645		$	214,683
Non-cash items included in net income:
Depreciation and amortization		59,900			57,424
Equity in (income) loss of unconsolidated affiliates		(59	)		5,507
Loss on asset impairments		-			24,444
Gain on asset disposals		(8,107	)		(2,414	)
Benefit from deferred taxes		(2,910	)		(4,272	)
Pension costs		15,367			16,282
Other non-cash items		14,249			21,921
Changes in assets and liabilities:
Accounts receivable		26,238			64,415
Net contracts in progress and advance billings on contracts		(380,635	)		29,306
Accounts payable		44,667			(88,778	)
Accrued and other current liabilities		71,148			10,055
Pension liability and accrued postretirement and employee benefits		(51,041	)		(138,783	)
Other		(15,327	)		(71,992	)
Net Cash Provided By (Used In) Operating Activities--Continuing Operations		(70,865	)		137,798
Cash Flows From Investing Activities:
Purchases of property, plant and equipment		(231,872	)		(136,555	)
(Increase) decrease in restricted cash and cash equivalents		183,564			(83,498	)
Purchases of available-for-sale securities		(516,628	)		(844,103	)
Sales and maturities of available-for-sale securities		601,128			706,234
Proceeds from asset disposals		8,483			4,563
Other investing activities, net		(16	)		(15,647	)
Net Cash Provided By (Used In) Investing Activities--Continuing Operations		44,659			(369,006	)
Cash Flows From Financing Activities:
Payment of debt		(6,473	)		(6,398	)
Debt issuance costs		(4,824	)		(13,247	)
Increase in debt		40,212			-
Dividend received from B&W		-			100,000
Other financing activities, net		(2,059	)		2,177
Net Cash Provided By Financing Activities--Continuing Operations		26,856			82,532
Effects of exchange rate changes on cash and cash equivalents		(524	)		(183	)
Net increase (decrease) in cash and cash equivalents		126			(148,859	)
Cash and cash equivalents at beginning of period		403,463			428,298
Cash and cash equivalents at end of period--Continuing Operations	$	403,589		$	279,439

CONTACT:
McDermott International, Inc.
Investors, Analysts and Financial Media:
Jay Roueche, 281-870-5462
Vice President
jroueche@mcdermott.com
or
Robby Bellamy, 281-870-5165
Director
rbellamy@mcdermott.com
or
Trade and General Media:
Louise Denly
Director, 281-870-5025
Corporate Communications
ldenly@mcdermott.com