Exhibit 99.1

McDermott Reports Fourth Quarter 2012 Financial Results

EPS of $0.17; Strong Performance in Asia Pacific

Fourth quarter 2012 bookings and recent awards provide improved revenue visibility for 2013

HOUSTON--(BUSINESS WIRE)--February 28, 2013--McDermott International, Inc. (NYSE: MDR) (“McDermott” or the “Company”) today reported net income of $40.5 million, or $0.17 per diluted share, for the 2012 fourth quarter. The results of the 2012 fourth quarter compare to income from continuing operations of $9.3 million, or $0.04 per diluted share, in the corresponding period of 2011. Weighted average common shares outstanding on a fully diluted basis were approximately 237.8 million and 236.9 million in the quarters ended December 31, 2012 and 2011, respectively.

McDermott’s revenues were $996.0 million for the 2012 fourth quarter, an increase of 22 percent compared to $816.2 million in the corresponding period of 2011. The year-over-year increase was primarily due to a 36 percent increase in revenues in the Asia Pacific segment as a result of increased marine activity on a subsea project, coupled with increased revenues in the Middle East and Atlantic segments.

The Company’s operating income in the 2012 fourth quarter was $77.3 million, an increase of 146 percent compared to $31.4 million in the 2011 fourth quarter. Results in the fourth quarter 2011 included approximately $66 million in pretax and after-tax charges primarily related to loss projects in Mexico and Brazil. The fourth quarter 2012 results were negatively affected by an aggregate of approximately $32 million of project losses and increased costs on certain projects, including approximately $23 million in the Asia Pacific segment as a result of incremental costs associated with anticipated productivity and project delays on one subsea project, which is expected to complete in late 2013. The Atlantic segment also was impacted by increased cost estimates relating to two fabrication projects totaling approximately $9 million, due to lower than expected productivity, which are expected to complete in mid-2013.

The Company’s other income for the fourth quarter of 2012 was $8.7 million, an improvement of $4.8 million compared to other income of $3.9 million in the fourth quarter of 2011, primarily due to higher foreign currency gains.

At December 31, 2012, the Company’s backlog was $5.1 billion, compared to $3.9 billion and $5.3 billion at December 31, 2011 and September 30, 2012, respectively. Of the December 31, 2012 backlog, approximately $545 million is from six projects currently in a loss position, primarily relating to the recently commenced project in the Asia Pacific segment and a five-year charter in Brazil, where future revenues are expected to equal costs when recognized. In addition, the backlog includes approximately $162 million for one project under deferred profit recognition.

“There were a number of positives during the quarter as fourth quarter bookings, combined with awards received in the first quarter 2013, maintained a strong backlog and improved revenue visibility for the coming year,” said Stephen M. Johnson, Chairman of the Board, President and Chief Executive Officer of McDermott. “We expect to recognize $2.6 billion in revenue in 2013 from our existing backlog and recent awards. With this revenue, combined with additional short-term work that we typically accrue throughout the year, we expect to see total revenues in the range of $3 billion in 2013. With increased bidding activity and the company’s continued balance sheet strength, we believe McDermott is well positioned to meet the growing customer demand in each of our market segments.”

Balance Sheet Summary

As of December 31, 2012, McDermott reported total assets of approximately $3.3 billion. Included in this amount was $704.3 million of cash and cash equivalents, restricted cash and investments. Net working capital, calculated as current assets less current liabilities, was $676.8 million. Additionally, total equity was $2.0 billion, or approximately 61% of total assets, with total debt of $102.7 million.

Full-year 2012 Overview

For the year ended December 31, 2012, McDermott reported revenues of $3.6 billion, with operating income of $319.3 million and net income of $206.7 million, or $0.87 per fully diluted share. Operating income for 2012 in the Asia Pacific segment benefited significantly from lower expected costs to complete the marine campaign on an engineering, procurement, construction and installation project, which is expected to complete in early 2013. These gains were partially offset by project losses across each segment totaling approximately $52.0 million.

OTHER INFORMATION

Conference Call

McDermott has scheduled a conference call and webcast related to its fourth quarter and full year 2012 results on Friday, March 1, 2013, at 9:00 a.m. U.S. Central Standard Time. Interested parties may listen over the Internet through a link posted in the Investor Relations section of the Company's website. The replay will also be available on the Company's website following the end of the live call.

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, major integrated and other 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, McDermott’s improved revenue visibility for 2013, including our expectation for total revenue in the range of $3 billion in 2013, our expectation that McDermott will recognize $2.6 billion in revenue in 2013 from existing backlog and recent awards, the expected timing for completion of certain projects, McDermott’s increased bidding activity and continued balance sheet strength, and our belief that McDermott is well positioned to meet growing customer demand in each of our market segments. 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, changes in project design or schedules, changes in the scope or timing of contracts, and contract cancellations, 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, 2012. 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. CONSOLIDATED STATEMENTS OF INCOME
	Three Months Ended December 31,						Year Ended December 31,
	2012			2011			2012			2011
	(In thousands)
Revenues	$	995,953		$	816,175		$	3,641,624		$	3,445,110
Costs and Expenses:
Cost of operations		853,048			726,409			3,100,009			2,980,390
Selling, general and administrative expenses		60,047			48,175			205,974			212,002
Loss on asset impairments		-			5,488			-			5,488
(Gain) loss on asset disposals		(123	)		(371	)		(405	)		(8,478	)
Total Costs and Expenses		912,972			779,701			3,305,578			3,189,402
Equity in Loss of Unconsolidated Affiliates		(5,693	)		(5,044	)		(16,719	)		(4,985	)
Operating Income		77,288			31,430			319,327			250,723
Other Income (Expense):
Interest income		441			788			4,656			1,848
Interest expense		-			(114	)		-			(529	)
Gain (loss) on foreign currency–net		8,957			3,591			20,142			1,234
Other expense–net		(707	)		(400	)		(995	)		(1,985	)
Total other income (expense)		8,691			3,865			23,803			568
Income from continuing operations before provision for income taxes, discontinued operations and noncontrolling interest		85,979			35,295			343,130			251,291
Provision for Income Taxes		42,200			26,773			129,204			87,124
Income from continuing operations before discontinued operations and noncontrolling interest		43,779			8,522			213,926			164,167
Total income (loss) from discontinued operations, net of tax		-			(19,271	)		3,497			(12,812	)
Net Income		43,779			(10,749	)		217,423			151,355
Less: net income attributable to noncontrolling interests		3,235			780			10,770			12,625
Net Income Attributable to McDermott International, Inc.	$	40,544		$	(9,969	)	$	206,653		$	138,730

McDERMOTT INTERNATIONAL, INC. EARNINGS PER SHARE COMPUTATION
	Three Months Ended December 31,					Year Ended December 31,
	2012		2011			2012		2011
	(In thousands, except share and per share amounts)
Income from continuing operations less noncontrolling interests	$	40,544	$	9,302		$	203,156	$	151,542
Income (loss) from discontinued operations, net of tax		-		(19,271	)		3,497		(12,812	)
Net income (loss) attributable to McDermott International, Inc.	$	40,544	$	(9,969	)	$	206,653	$	138,730
Weighted average common shares		235,847,019		235,041,313			235,638,422		234,598,901
Effect of dilutive securities:
Stock options, restricted stock and restricted stock units		1,971,339		1,882,795			1,981,266		2,441,606
Adjusted weighted average common shares and assumed exercises of stock options and vesting of stock awards		237,818,358		236,924,108			237,619,688		237,040,507
Basic earnings per share:
Income from continuing operations less noncontrolling interests		0.17		0.04			0.86		0.65
Income (loss) from discontinued operations, net of tax		-		(0.08	)		0.01		(0.05	)
Net income (loss) attributable to McDermott International, Inc.		0.17		(0.04	)		0.88		0.59
Diluted earnings per share:
Income from continuing operations less noncontrolling interests		0.17		0.04			0.86		0.64
Income (loss) from discontinued operations, net of tax		-		(0.08	)		0.01		(0.05	)
Net income (loss) attributable to McDermott International, Inc.		0.17		(0.04	)		0.87		0.59

SUPPLEMENTARY DATA
	Three Months Ended December 31,				Year Ended December 31,
	2012		2011		2012		2011
	(In thousands)
Pension expense	$	378	$	4,125	$	1,530	$	19,492
Depreciation & amortization expense	$	20,484	$	22,491	$	86,440	$	82,391
Drydock amortization expense	$	3,939	$	6,231	$	25,545	$	24,567
Capital expenditures	$	107,026	$	50,749	$	286,310	$	282,621
Backlog	$	5,067,164	$	3,881,063	$	5,067,164	$	3,881,063

McDERMOTT INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS
	December 31,
	2012			2011
	(In thousands, except share and per share amounts)
Assets
Current Assets:
Cash and cash equivalents	$	640,147		$	570,854
Restricted cash and cash equivalents		18,116			21,962
Investments		19,242			109,522
Accounts receivable--trade, net		428,800			445,808
Accounts receivable--other		75,461			53,386
Contracts in progress		560,154			287,390
Deferred income taxes		9,765			11,931
Assets held for sale		2,679			3,197
Other current assets		35,425			33,135
Total Current Assets		1,789,789			1,537,185
Property, Plant and Equipment		2,115,176			1,958,877
Less accumulated depreciation		(833,385	)		(857,012	)
Net Property, Plant and Equipment		1,281,791			1,101,865
Assets Held for Sale		26,758			55,571
Investments		26,750			29,484
Goodwill		41,202			41,202
Investments in Unconsolidated Affiliates		37,435			42,659
Other Assets		129,902			184,848
Total Assets	$	3,333,627		$	2,992,814
Liabilities and Equity
Current Liabilities:
Notes payable and current maturities of long-term debt	$	14,146		$	8,941
Accounts payable		400,007			315,514
Accrued liabilities		108,963			116,051
Accrued employee-related benefits		57,391			29,072
Accrued contract costs		203,064			164,392
Advance billings on contracts		241,696			320,438
Deferred income taxes		10,758			13,187
Income taxes payable		76,986			54,181
Total Current Liabilities		1,113,011			1,021,776
Long-Term Debt		88,562			84,794
Self-Insurance		22,641			23,585
Pension Liability		25,069			21,295
Other Liabilities		132,239			107,652
Commitments and Contingencies
Stockholders’ Equity:
Common stock, par value $1.00 per share, authorized 400,000,000 shares; issued and outstanding 243,442,156 and 242,416,424 shares at December 31, 2012 and December 31, 2011, respectively		243,442			242,416
Capital in excess of par value		1,391,271			1,375,976
Retained earnings		445,756			239,103
Treasury stock, at cost, 7,574,903 and 7,359,983 shares at December 31, 2012 and December 31, 2011, respectively		(98,725	)		(95,827	)
Accumulated other comprehensive loss		(94,413	)		(102,030	)
Stockholders’ Equity--McDermott International, Inc.		1,887,331			1,659,638
Noncontrolling Interests		64,774			74,074
Total Equity		1,952,105			1,733,712
Total Liabilities and Equity	$	3,333,627		$	2,992,814

McDERMOTT INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
	Year Ended December 31,
	2012			2011			2010
	(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	217,423		$	151,355		$	227,712
(Income) loss from discontinued operations, net of tax		(3,497	)		12,812			34,900
Income from continuing operations		213,926			164,167			262,612
Non-cash items included in net income:
Depreciation and amortization		86,440			82,391			76,452
Drydock amortization		25,545			24,567			26,205
Equity in loss of unconsolidated affiliates		16,719			4,985			7,594
Gains on asset disposals		(405	)		(8,478	)		(2,440	)
Loss on asset impairments		-			5,488			24,660
Provision for deferred taxes		3,847			1,650			1,830
Stock-based compensation charges		15,369			17,825			16,458
Other non-cash items		8,367			18,096			13,307
Changes in assets and liabilities, net of effects from acquisitions:
Accounts receivable		(5,920	)		(152,840	)		(6,457	)
Net contracts in progress and advance billings on contracts		(351,604	)		(151,157	)		182,472
Accounts payable		84,430			71,291			(38,536	)
Accrued and other current liabilities		36,922			56,049			40,110
Income taxes		22,832			17,138			84,269
Pension liability and accrued postretirement and employee benefits		36,897			(83,263	)		(106,338	)
Other		16,419			29,537			(197,871	)
NET CASH PROVIDED BY OPERATING ACTIVITIES--CONTINUING OPERATIONS		209,784			97,446			384,327
NET CASH USED IN OPERATING ACTIVITIES--DISCONTINUED OPERATIONS		-			(1,426	)		(44,153	)
TOTAL CASH PROVIDED BY OPERATING ACTIVITIES		209,784			96,020			340,174
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(286,310	)		(282,621	)		(186,862	)
(Increase) decrease in restricted cash and cash equivalents		3,846			175,899			(142,853	)
Purchases of available-for-sale securities		(95,964	)		(546,822	)		(1,491,329	)
Sales and maturities of available-for-sale securities		191,298			693,424			1,363,803
Investments in unconsolidated affiliates		(5,084	)		(1,058	)		(32,550	)
Proceeds from asset dispositions and other investing activities		3,291			9,943			2,870
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES--CONTINUING OPERATIONS		(188,923	)		48,765			(486,921	)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES--DISCONTINUED OPERATIONS		60,671			-			(65,084	)
TOTAL CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES		(128,252	)		48,765			(552,005	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from debt		19,034			46,987			3,423
Payment of debt		(10,061	)		(8,606	)		(8,540	)
Purchase of treasury shares		(2,898	)		(10,092	)		(15,715	)
Cash contribution from The Babcock & Wilcox Company		-			-			100,000
Distributions to NCI		(20,135	)		(2,524	)		-
Debt issuance costs and other financing activities		267			(4,476	)		(3,076	)
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES--CONTINUING OPERATIONS		(13,793	)		21,289			76,092
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES--DISCONTINUED OPERATIONS		-			1,426			(109,600	)
TOTAL CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES		(13,793	)		22,715			(33,508	)
EFFECTS OF EXCHANGE RATE CHANGES ON CASH		1,554			(109	)		(80	)
TRANSFER OF CASH TO THE BABCOCK & WILCOX COMPANY		-			-			(250,388	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		69,293			167,391			(495,807	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		570,854			403,463			899,270
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	640,147		$	570,854		$	403,463

CONTACT:
McDermott International, Inc.
Investors, Analysts and Financial Media:
Steven D. Oldham, 281-870-5147
Vice President, Treasury and Investor Relations
soldham@mcdermott.com
or
Trade and General Media:
Louise Denly, 281-870-5025
Director, Corporate Communications
ldenly@mcdermott.com