Q1 2019 SUPPLEMENTAL INFORMATION

April 29, 2019

2

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 presentation which are forward-looking, and

provide other than historical information, involve risks, contingencies and uncertainties that may impact actual results of operations of McDermott. These forward-looking statements include,

among other things, statements about 2019 focus areas, full year 2019 guidance, project milestones and percentage of completion and expected timetables, increased opportunities in the

market, backlog or remaining performance obligations, bids and change orders outstanding, target projects and revenue opportunity pipeline, to the extent these may be viewed as indicators

of future revenues or profitability, anticipated future intangibles amortization, targeted savings from cost synergies and the other expected impacts of the CPI, including anticipated

implementation costs, the expected timing for completion of the CPI, our expectation to continue to invest in other opportunities to capture efficiencies and cost savings, our expectations

regarding working capital balances, expected covenant compliance, our expectations about the timelines of the sales of the tank storage and pipe fabrication businesses, our anticipated

amounts of project-related and other intangibles amortization, our assessments and beliefs with respect to the legacy Focus Projects of CB&I, our beliefs with respect to the business

combination with CB&I (“the “Combination”), integration progress and long-term prospects, expectations on future contract structure, our planned reduction in total debt and our plans and

expectations with respect to the Ras Al Khair fabrication yard. 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 risks, contingencies

and uncertainties, including, among others: the possibility that the expected CPI savings from the combination will not be realized, or will not be realized within the expected time period;

difficulties related to the integration of the two companies; disruption from the combination making it more difficult to maintain relationships with customers, employees, regulators or

suppliers; the diversion of management time and attention to integration matters; adverse changes in the markets in which McDermott operates or credit markets; the inability of McDermott

to execute on contracts in backlog successfully; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts; contract

cancellations; change orders and other modifications and actions by customers and other business counterparties of McDermott; changes in industry norms; and adverse outcomes in legal

or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. You

should not place undue reliance on forward-looking statements. For a more complete discussion of these and other risk factors, please see McDermott's filings with the U.S. Securities and

Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2018 and subsequent quarterly report on Form 10-Q. This presentation reflects the views

of McDermott's management 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.

NON-GAAP DISCLOSURESThis presentation includes several “non-GAAP” financial measures as defined under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. McDermott reports its financial

results in accordance with U.S. generally accepted accounting principles, but the company believes that certain non-GAAP financial measures provide useful supplemental information to

investors regarding the underlying business trends and performance of its ongoing operations and are useful for period-over-period comparisons of those operations. The non-GAAP

measures in this presentation include Backlog, Adjusted Operating Income and Margin, Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (“EPS”), EBITDA, Adjusted

EBITDA, Free Cash Flow and Adjusted Free Cash Flow. These non-GAAP financial measures should be considered as supplemental to, and not as a substitute for or superior to, the

financial measures prepared in accordance with GAAP.

Reconciliations of these non-GAAP financial measures to the most comparable GAAP measures are provided in the Financial Appendix to this presentation.

3

Prioritize reduction in leverage and

optimization of the balance sheet to support

growth.

Further capitalize on opportunities provided

by technology contracts to gain more pull-

through to EPC/I work.

DELEVER

TECHNOLOGY

PULL-

THROUGH

2019

FOCUS AREAS

Renewed focus on the McDermott

Playbook and the One McDermott Way to

ensure consistency in processes and to

drive strong execution.

Deliver consistent financial performance

across project portfolio.

Sophisticated screening and selective

bidding focused on projects with optimal

risk and profitability profiles for top-tier

clients.

EXECUTION

DISCIPLINE

PORTFOLIO

PREDICTABILITY

STRATEGIC

PIPELINE

CONVERSION

FINANCIAL RESULTS

5

Q1 2019 FINANCIAL HIGHLIGHTS

▪ Strong orders of $6.7 billion resulting in 41% sequential-quarter increase in backlog to $15.4 billion

▪ Revenue of $2.2 billion for Q1 2019 driven by LNG and Downstream projects in NCSA and Offshore and Subsea projects in MENA

▪ Cash used for operating activities in the first quarter of 2019 primarily reflected the company’s net loss and the usage of cash on the Cameron and Freeport LNG projects

1) The reconciliations of EBITDA, each adjusted measure and free cash flow, all of which are non-GAAP measures, to the most comparable GAAP measures are

provided in the pages entitled “Additional Disclosures – Reconciliations” and “Additional Disclosures – EBITDA and Free Cash Flow Reconciliations.”

2) Includes cash, cash equivalents and restricted cash.

3) Working capital = (current assets, less cash and cash equivalents, restricted cash and project-related intangibles) – (current liabilities, less current maturities of long-

term debt and project-related intangible liabilities). Effective January 1, 2019, we recorded operating lease right-of-use assets and operating lease obligations as

required by a new accounting standard. The current portion of long-term operating lease obligations of $89 million is included in our working capital as of March 31,

2019.

Orders

Backlog

Revenues

Financial Metrics (Adjusted as Indicated)1

Gross Profit (Loss) and Margin % $183 8.3% ($124) -6.0% $132 21.7%

Operating Income (Loss) and Margin % $13 0.6% ($2,499) -120.5% $65 10.7%

Net Income (Loss) Attributable to Common Stockholders

Diluted Earnings (Loss) per Share

EBITDA1

Adjusted Operating Income (Loss) and Margin %1 $86 3.9% ($241) -11.6% $79 13.0%

Adjusted Net Income (Loss) Attributable to Common Stockholders1

Adjusted Diluted Earnings (Loss) per Share1

Adjusted EBITDA1

Capex

Cash Flow from Operations

Free Cash Flow 1

Ending Cash Balance2

Working Capital3

Intangible Amortization

$6,670

15,377

2,211

($ in millions, except for per share data) Q1'19 Q4'18 Q1'18

($244)

$35

$0.37

$90

$1,433

10,910

2,073

$321

3,387

608

$3

$0.02

$164

($70)

($0.39)

$91

($15.33)

($2,467)

($2,775)

$0

$49

($1.55) $0.52

($162) $104

$24 $18

($309) $20

($285) $38

$845 $419

$384 ($2,062)

$739

($1,972)

($280)

$67

$18

($262)

$35

6

Q1 2019 SEGMENT REPORTING AND PRODUCT OFFERING

▪ Strong orders driven by the Golden Pass and Cassia-C awards in NCSA, Tortue in EARC and several offshore projects in MENA

▪ Key contributors to the operating results in Q1 2019 were various Downstream projects in NCSA, Offshore and Subsea projects in MENA and TECH

▪ Order intake across all segments in Q1 2019 drove strong backlog across portfolio of product offerings

1) The reconciliations of Adjusted Operating Income and Adjusted Operating Margin, which are non-GAAP measures, to the most

comparable GAAP measures are provided in the page entitled “Additional Disclosures – Segment Reconciliations.”

OPERATING SEGMENTS

PRODUCT OFFERING

$ in millions

Orders

Backlog

Revenues

Operating Income (Loss) and Margin % $73 5.3% $7 4.7% $66 17.4% $13 8.4% $35 23.6% $13 0.6%

Adjusted Operating Income (Loss) and Margin 73 5.3% 7 4.7% 66 17.4% 13 8.4% 35 23.6% 86 3.9%

Restructuring, integration & transaction costs

Intangible Amortization

Capex

(108)

MENAEARC APAC TECH CORP

35

73 73

Total

$6,670

15,377

-

-

NCSA

$4,307

8,581

1,380

$684

1,915

148

- -

11 3

-

($181)

- - -

4 - 17 -

2 - 4 5 -

$1,425

2,879

380

$137

1,401

155

7 $18

2,211

$117

601

148

$ in millions

Orders

Backlog

Revenues $611 $414 $860 $326 $2,211

$4,620 $4,779 $865 $15,377 $5,113

$2,365 $3,851 $428 $26 $6,670

Offshore & Subsea LNG Downstream Power Total

7

Fu

LUMMUS TECHNOLOGY

▪ 120+ Licensed Technologies; 3,000+ Patents, Patent Applications and Trademarks

▪ 40% of the world’s ethylene produced under licenses from Lummus

▪ Refining technologies focused on cleaner fuels (i.e., IMO 2020 bunker fuel standards)

▪ Generates steady and attractive returns selling licenses/catalysts and heat transfer equipment

Leading technology licensor of proprietary gas processing, refining, petrochemical and coal gasification technologies, as

well as a supplier of proprietary catalysts, equipment and related engineering services

TRACK RECORD:

~$8 billion of petrochemical & refining pull-through

success in past five years resulting from licensing

sales, including:

• Shintech – Ethane Cracker Project

• LACC – Ethane Cracker

• LACC – Monoethylene Glycol Facility

• Total Petrochemicals & Refining – Ethane Cracker Project

• Oman Oil Refineries & Petrochemical Institute – Steam

Cracker

• Occidental Chemical – Ethane Cracker Project

FUTURE OPPORTUNITY:

~$39 billion of identified potential pull-through

EPC opportunities related to the complete

Lummus Technology portfolio, including the

segment’s CLG joint venture

Future opportunities include targets in the revenue opportunity pipeline and additional prospects.

8

CATEGORY SOURCE ACTIONED CPI SAVINGS

COSTS OF

OPERATIONS

SUPPLY CHAIN• Consolidate buying power to negotiate improved pricing or rebates with suppliers

• Improve category management and strategic sourcing

• Negotiate improved sub-contract pricing with providers based on volume195

OPERATIONS & PROJECT

• Pool operations support resources in high value centers

• Consolidate offices and facilities based on proximity and reduce office footprint

• Increase asset and tool utilization by transferring or reusing on subsequent projects

• Reduce spend on travel expenses by encouraging video conferencing and adjusting policies

185

SG&A

BACK OFFICE SUPPORT• Move transactional back-office support to high value centers

• Optimize functional staffing levels to industry or internal best practices

• Eliminate duplicate services80

SYSTEMS & APPLICATIONS• Eliminate redundant systems

• Reduce applications and associated support

• Consolidate duplicate technology licenses and reduce number of overall user licenses required15

CPI SAVINGS 475

▪ The $475 million CPI program was fully actioned as of Q1 2019, and the company expects that it will continue to invest in opportunities to capture

additional efficiencies and cost savings over time

▪ CPI resulted in $66 million positive impact to Q1 2019 earnings and $63 million in cash savings achieved in Q1 2019

▪ Full benefit of annualized run-rate synergies expected in 2020, partially offset by inflation, competitive pricing and impact of percentage completion

accounting

$ in millions

CPI FULLY ACTIONED AS OF Q1 2019

9

Q1 2019 SUMMARY CASH FLOW

$845 millioncash, cash equivalents & restricted cash as of Dec 31, 20181

CASH FLOWS USED FOR

OPERATING ACTIVITIES

CASH FLOWS

FOR CAPEX

CASH FLOWS FROM

FINANCING ACTIVITIES, OTHER

INVESTING ACTIVITIES & FX

NET CHANGE

IN CASH

millioncash, cash equivalents & restricted cash as of Mar 31, 20191

▪ Cash flows used for operating activities primarily reflected the company’s net loss and usage of cash on the Cameron and Freeport LNG projects

▪ Capital expenditures were primarily driven by vessel and information technology upgrades

▪ Cash flows from financing activities and other investing activities were due to net $178 million of revolving credit facility borrowings, partially offset by distributions to a former JV member of $5

million, $8 million of debt and finance lease obligation repayments and $4 million for repurchases of common stock in connection with the payment of withholding taxes for long-term incentive

plan awards and $6 million of effects of exchange rate changes on cash

1) Includes restricted cash of $325 million and $326 million as of

December 31, 2018 and March 31, 2019, respectively.

(244) (18) (106)

$ in millions

739$

156

10

▪ Cash paid for interest was primarily interest paid of $42 million on the Term Loan B

▪ Capital expenditures were primarily driven by maintenance and project capex and IT spend

▪ Non-GAAP adjustments include $69 million of restructuring and integration costs, which included change in control, severance and litigation costs, as

well as $4 million of transaction-related costs associated with the ongoing process to sell the company’s non-core storage tank and U.S. pipe fabrication

businesses

Q1 2019 EBITDA TO FREE CASH FLOW$ in millions

1) The reconciliations of EBITDA, Free Cash Flow, and Adjusted Free Cash Flow, all of which are non-GAAP measures, to the most comparable GAAP

measures are provided in the pages entitled “Additional Disclosures – Reconciliations” and “Additional Disclosures – EBITDA and Free Cash Flow

Reconciliations.”

Changes

in current

assets &

liabilities

Q1’19

EBITDA

CapexCash Paid

for Interest

Cash Paid

for Taxes

Change in

non-current

assets &

liabilities

Q1’19 Cash

Flow from

Operations

Q1’19

Free Cash

Flow

Q1’19

Non-GAAP

Adjustments

Q1’19

Adjusted

Free Cash

Flow

$91

$(46)$(19)

$(12)$(258)

$(18) $(262)

$73

$(189)

DecreaseIncreaseFinancial Measure

$(244)

11

NET WORKING CAPITAL TREND COMPARISON

• The modest decrease in negative working capital was driven by a decrease in advanced billings on contracts and an increase in contracts in progress, partially offset by an increase in

accounts payable

• Decrease in negative net working capital was driven by NCSA, primarily related to costs incurred exceeding billings on the Cameron and Freeport Trains 1/2 and 3 projects, coupled

with higher accounts receivable balances for the Borstar Bay 3 and Entergy Montgomery County projects

• Effective January 1, 2019, we recorded operating lease right-of-use assets and operating lease obligations, as required by a new accounting standard. The current portion of long-term

lease obligations of $89 million was included in our working capital as of March 31, 2019, with no obligations recorded as of December 31, 2018. The adoption of the new lease

accounting standard resulted in recording current obligations under operating leases of approximately $100 million as of January 1, 2019

$ in millions

$2,254 $2,271 $2,051

$2,386

($3,698)

($4,186) ($4,113)($4,358)

($1,444)($1,915) ($2,062) ($1,972)

Jun 30, 2018 Sep 30, 2018 Dec 31, 2018 Mar 31, 2019

Working capital assets1

Working capital liabilities2

Net working capital

1) Working capital assets = current assets, less cash and cash equivalents, restricted cash and project-related intangibles

2) Working capital liabilities = current liabilities, less current maturities of long-term debt and project-related intangible liabilities

Trendline

12

LEGACY FOCUS PROJECTS OVERVIEW1

$ in millions

FREEPORT4 CAMERON

Cumulative POC2 93% 90%

Gross Profit Trains 1&2 – Loss / Train 3 - Profitable Loss

Accrued Loss Provision ($19) ($128)

Operational Update

• Construction Completion: Train 1 ~98.8%; Train 2 ~90.9%;

Train 3 ~88%; and Common ~98.4%

• Completed all construction activities for pre-treatment facility

(“PTF”) and introduced fuel gas into the PTF

• Began inventorying amine and heat medium systems

• Train 1 Propane Compressor motor solo-run completed

• Construction Completion: Phase 1 ~99.9%; Train 2 ~73.9%; and

Train 3 ~59.2%

• ~81% of Phase I Start Up Certificates Complete

• Achieved Phase 1 Mechanical Completion

• Introduced Fuel Gas into Train 1

• Submitted Phase 1 Ready for Start Up Certificate to Client

• ~68.3MM man hours without an LTI

• Ready to start up achieved on Cameron Phase 1 in early Apr’19

Other JV Members Chiyoda and Zachry Chiyoda

Revenues in Q1 20193 $172 $139

Backlog Roll-off Q2 2019 Onwards3 $252 $307

Cash Flow Use in Q1 2019 ($119) ($144)

Projected Cash Flow Use in FY 2019 ($33) ($455)

Projected Cash Flow in FY 2020 Immaterial Immaterial

Net Material Change in Estimate at

Completion in Q1 2019$0 $0

Initial Production of LNG

Train 1: Q3 2019

Train 2: Q4 2019

Train 3: Q1 2020

Phase 1: Q2 2019

Train 2: Q1 2020

Train 3: Q2 2020

1) Information on slide as of March 31, 2019. Values on slide only represent McDermott’s share of each project.

2) Represents the cumulative percentage of completion (“POC”), which includes progress achieved prior to the Combination. POC calculated in accordance with GAAP, which requires the project progress to be reset to 0% as of the date of the Combination for accounting purposes, was 75% and 65% for the Freeport and Cameron projects, respectively, as of March 31, 2019.

3) Due to each of these projects being in a loss position, with the exception of the Freeport Train 3 project, the reported gross margin for each project will be $0. As such, revenues recognized are expected to be equal to costs recognized in all future periods.

4) Includes the Freeport Trains 1 & 2 and Freeport Train 3 projects, which are being performed by two separate consortiums. As of March 31, 2019, the Freeport Train 3 project was profitable and was not in a loss position.

13

LNG PROJECT COMPARISON

GOLDEN PASS CAMERON

Other JV Members Chiyoda and Zachry Chiyoda

FEED Status Executed Did not execute

Size, mtpa ~16, three trains ~14, three trains

Previous work on site, previous knowledge of site

Yes, MDR predecessor did original import terminal

project in 2010, gained familiarity with soil conditions

and site characteristics

No

Benchmarking against other Gulf Coast LNG Projects Yes No

Labor Availability

1. Contract realistically addresses the cost of current

Gulf Coast labor market and includes lessons

learned on Cameron

2. Some provision for cost sharing with client if craft

labor escalation rate exceeds expected estimates

1. Contract was bid in 2014 before current labor cost

and availability issues were recognized

2. No relief for labor escalation that exceeds contract

terms

Risk – Construction/ProductivityConstruction risk is borne by the JV Member performing

its particular scope. MDR share is well below 50%.MDR bears 50% of risk on construction

Risk – QuantityQuantity increases covered by a fixed contingency

amount; further amounts covered by ChiyodaMDR bears 50% of risk on quantity

Schedule Approximately 5 years for Train 1 Original bid was approximately 3.5 years;

Current estimate just under 5 years for Train 1

14

Q1 2019 ASSET UTILIZATION SUMMARY

▪ Onshore construction activity driven by high levels of utilization in NCSA

▪ Vessel utilization impacted by lower utilization of certain marine assets in offshore fleet

▪ Corporate unallocated direct operating expense primarily driven by the underutilization of certain marine assets and fabrication yards

ONSHORE CONSTRUCTION

(Wkhr 000s)

UNALLOCATED DIRECT OPERATING

EXPENSES(in millions)

$54

$62

OFFSHORE

FABRICATION(Wkhr 000s)

Actual: 894

Standard: 1,645

54%

Actual: 2,939

Standard: 5,000

59%

Actual: 5,521

Standard: 3,496

158%

Actual: 462

Standard: 750Q4’18

ONSHORE

FABRICATION(Wkhr 000s)

OFFSHORE/SUBSEA VESSELS

(Days)

62%

15

Q1 2019 CAPITAL STRUCTURE, REVOLVER AND LC AVAILABILITY

▪ $178 million of revolving credit facility usage attributable to borrowings and $108 million used for the issuance of letters of credit (“LCs”)

▪ No significant debt maturities in the near term

▪ Increase in gross debt from $3.6 billion at December 31, 2018, due to borrowings under the revolving credit facility

1) Net Debt is defined as Gross Debt net of Cash, Cash Equivalents and Restricted Cash.

$178M

$108M

$714M

Revolver

Availability

LC Usage

Borrowings

$1,576M

$1,095M

$532M$297M

$44M

$572M

$308M

$13M

LC Facilities UncommittedBilaterals

Surety CashSecured

Availability Usage

UNRESTRICTED

CASH

$1B$1.7B$1.6B

LC AND SURETY AVAILABILITY

$0.8B

$0.3B

REVOLVER

AVAILABILITY

$413M

Unrestricted Cash

Availability Usage

Mar 31, 2019

($ in millions)

Cash, Cash Equivalents and Restricted Cash $739

Senior Secured Term Loan $2,237

10.625% Six-Year Senior Unsecured Notes 1,300

North Ocean 105 Loan 16

Revolving Credit Facility 178

Gross Debt $3,731

Debt Issuance Costs (130)

Total Debt $3,601

Net Debt1 $2,992

Redeemable Preferred Stock and Warrants

Proceeds $290

Issuance Costs ($18)

Warrants ($43)

Accretion and paid-in kind dividends 14

Redeemable Preferred Stock $243

Capitalization

16

CREDIT AGREEMENT FINANCIAL COVENANT COMPLIANCECompliance calculations as of March 31, 2019

▪ In compliance with covenants under the Credit Agreement, with ample headroom

▪ Covenant Liquidity includes available cash of $413 million, unused revolving credit availability of $714 million and cash collateral for LCs less LC

obligations of $13 million

LeverageRatio

Covenant FCC Ratio Covenant Liquidity Covenant

2.50x

4.25x

2.47x

1.50x

$1,140M

$200M

MAXIMUM LEVERAGE RATIO MINIMUM COVERAGE RATIO MINIMUM LIQUIDITY

17

▪ Focus remains on technology pull through with differentiated vertical integration capabilities

▪ The sale process for each of the pipe fabrication and tank businesses is going well and as planned

▪ The sale process has generated a high level of interest for both

▪ Provides fabricated piping systems and piping fabrication, with

capabilities in induction bending. Develops and uses proprietary

welding techniques, computer applications for material control,

production scheduling and fabrication management

▪ APP – Maintains and distributes extensive inventory of commodity

fittings and specialty piping components in stainless, alloy and carbon

steel for sale to third parties and for internal fabrication use

▪ Only integrated manufacturer and master distributor in the United

States

▪ Serves as a one-stop-shop for distribution companies

▪ Approved manufacturer for major end users

▪ One of the world’s leading designers and builders of industrial storage

facilities for oil & gas, LNG, downstream, petrochemical and water storage

and treatment end-markets

▪ Solutions include atmospheric storage, low temperature & cryogenic

storage, specialty steel plate structures, high pressure storage and water

storage

▪ Has built over 59,000 storage structures in more than 100 countries

▪ Facilities located in Houston, TX; Clive, IA; Everett, WA; Al Aujam, Saudi

Arabia; Kwinana, Australia; and Chon Buri, Thailand

U.S. PIPE FABRICATION BUSINESS TANK BUSINESS

SALE OF U.S. PIPE FABRICATION AND TANK BUSINESSES

18

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

1.1

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

OGP IMCA Construction Industry Institute McDermott

TAKING THE LEAD WITH SAFETY

QHSES: DRIVING TOWARD INDUSTRY LEADING PERFORMANCE

International Association

of Oil & Gas Producers

International Marine

Contractors Association

McDermott

International, Inc.0.351

0.191

0.231

Total Recordable Incident Rate

0.221 Construction

Industry Institute

1) All figures as of December 31, 2017, with the exception of McDermott’s figure, which is as of December 31, 2018.

ORDER INTAKE, BACKLOG & BID PIPELINE

ORDER INTAKE, BACKLOG & BID PIPELINE

20

Details of $15.4B Backlog as of March 31, 2019

Q1 2019 BACKLOG & EXPECTED ROLL-OFF$ in billions

BACKLOG

By Product OfferingBACKLOG

By SegmentBACKLOG

Roll-Off by Year

▪ Strong orders of $6.7 billion, resulting in 41% sequential-quarter increase in backlog to $15.4 billion

▪ Backlog balanced across U.S. and international markets, with majority of backlog related to onshore projects

▪ Strong visibility with ~80% of expected 2019 revenues in backlog as of the end of Q1 2019 and more than $9 billion for 2020 and

thereafter

LNG$4.6 30%

Power$0.9 6%

Off/Sub$5.0 33%

Downstream$4.8 31%

NCSA$8.6 56%

EARC$2.0 12%

MENA$2.8 19%

APAC$1.4 9%

TECH$0.6 4%

$6.2

$5.1

$2.2 $1.9

Remainder 2020 2021 Thereafterof 2019

21

Q1 2019 BACKLOG BY SEGMENT AND PRODUCT OFFERING$ in billions

NCSA - $8.6B

▪ NCSA diversified across all of our product offerings, with a 50% increase in backlog in Q1 2019

▪ Offshore and Subsea product offering increased across all geographical operating segments

▪ Technology remains focused on the Downstream product offering; identifying pull-through opportunities for EPC projects

EARC - $2.0B MENA - $2.8B APAC - $1.4B TECH - $0.6B

LNG$4.6 54%Power

$0.9 10%

Off/Sub$0.4 5%

Downstream$2.7 31%

Off/Sub$1.2 60%

Downstream$0.8 40%

Off/Sub$2.2 79%

Downstream$0.6 21%

Off/Sub$1.3 93%

Downstream$0.1 7%

Downstream$0.6 100%

22

$3.4$10.2 $11.5 $10.9

$15.4$7.5

$19.0 $20.7 $20.3$17.7

$14.1

$49.3$48.1

$61.9 $58.0

1Q'18 2Q'18 3Q'18 4Q'18 1Q'19

Backlog Bids & COs Targets

$25.0

$78.5 $80.3

$93.1 $91.1

Q1 2019 REVENUE OPPORTUNITY PIPELINE$ in billions, except $/Bbl

1) Includes change orders. There is no assurance that bids outstanding or target projects will be awarded to McDermott, or that

outstanding change orders ultimately will be approved and paid by the applicable customers in the full amounts requested or at all.

Target projects are those that we believe fit McDermott’s capabilities and are anticipated to be awarded in the market in next five

quarters.

$69 $77 $83

$51

$68

Brent Spot Oil Price $/bbl

1 1

▪ Strong orders of $6.7 billion in the quarter resulted in increase in backlog

▪ Decrease in Bids Outstanding primarily due to projects awarded and moved to backlog

▪ Targets decreased slightly in Q1 2019 as a result of disciplined project screening and selection

23

Q4’18

Q1’19

BIDS & CHANGE ORDERS OUTSTANDING AND TARGET PROJECTS1

$75.7 billion as of March 31, 2019 compared to $82.2 billion as of December 31, 2018

1) Includes change orders. There is no assurance that bids outstanding or target projects will be awarded to McDermott, or that

outstanding change orders ultimately will be approved and paid by the applicable customers in the full amounts requested or at

all. Target projects are those that we believe fit McDermott’s capabilities and are anticipated to be awarded in the market in

next five quarters.

2) Other includes hybrid, cost-plus, time and materials and other contract types.

$ in Billions

▪ Bids & Change Orders Outstanding and Target Projects continue to demonstrate strength in Offshore & Subsea, LNG and Downstream markets

▪ Global level of activity with highest level of opportunities in NCSA and MENA

▪ Diverse prospective customer base with anticipated highest level of projects from NOCs

2

$31

$24

$3

$16

$2

$31 $28

$2

$16

$4

Oil Gas Power Petro Other

RESOURCE

$31

$13

$3

$29 $35

$17

$4

$26

OFF/SS LNG POWER DOWN

PRODUCT OFFERING

$42

$34 $40

$43

Greenfield Brownfield

GREENFIELD/BROWNFIELD

$26

$15

$23

$9

$2

$32

$17

$24

$8

$2

NCSA EARC MENA APAC TECH

REPORTING SEGMENT

$28

$11 $12

$6

$18

$32

$11 $15

$8

$17

NOC Super Major ROC IOC Other

CUSTOMER

$64

$1

$11

$75

$1 $7

Fixed Price Reimbursable Other

CONTRACT TYPE

2018 GUIDANCE

FULL YEAR 2019 GUIDANCE

25

FULL YEAR 2019 GUIDANCE$ in millions, except per share amounts, or as indicated

~ = approximately

1) Net Interest Expense is gross interest expense less capitalized interest and interest income.

2) The calculations of EBITDA, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Net Income, Adjusted

Diluted Net Income Per Share (“EPS”), Adjusted EBITDA and Free Cash Flow, which are Non-GAAP measures, are

shown in the appendix entitled “Additional Disclosures – 2019 Guidance Reconciliations.”

3) Corporate and Other Operating Income (Expense) represents the operating income (expense) from corporate and non-

operating activities, including certain centrally managed initiatives, such as restructuring and integration costs and costs

to achieve CPI, impairments, annual mark-to-market pension adjustments, costs not attributable to a particular reporting

segment, and unallocated direct operating expenses associated with the underutilization of vessels, fabrication facilities

and engineering resources.

4) Restructuring and integration costs include costs to achieve CPI. No tax benefit is expected for this charge.

5) Transaction costs associated with the ongoing process to sell the company’s non-core storage tank and U.S. pipe

fabrication businesses. No tax benefit is expected for this charge.

6) Ending Gross Debt excludes debt issuance costs and capital lease obligations.

▪ Full Year 2019 Guidance is based on current portfolio of businesses

▪ Anticipate operating performance in 2H19 to be stronger than 1H19, reflecting the

cumulative benefit of higher revenues, execution of recently booked backlog, higher

utilization and cost synergies under CPI

~$3,700

Earnings Metrics ( in millio ns, except per share amo unts o r as indicated)

Full Year 2019

Guidance

Revenues ~$10.0B

Operating Income ~$660

Operating Margin ~6.6%

Net Interest Expense1 ~$380

Income Tax Expense ~$65

Accretion of Redeemable Preferred Stock ~$15

Dividends on Redeemable Preferred Stock ~$36

Net Income ~$170

Diluted Net Income, Per Share ~$0.90

Diluted Share Count ~188

EBITDA2 ~$945

Corporate and Other Operating Income (Expense)3 ~$(520)

Adjustment

Restructuring and Integration Costs4 ~$120

Transaction Costs5 ~$20

Adjusted Earnings Metrics

Adjusted Operating Income2 ~$800

Adjusted Operating Margin2 ~8%

Adjusted Net Income2 ~$310

Adjusted Diluted EPS2 ~$1.65

Adjusted EBITDA2 ~$1.1B

Cash Flow & Other Metrics

Cash from Operating Activites ~$(310)

Capex ~$(160)

Free Cash Flow2 ~$(470)

Cash Interest / DIC Amortization Interest ~$345 / ~$40

Cash Taxes ~$65

Cash, Restricted Cash and Cash Equivalents ~$545

Gross Debt6 ~$3,700

Net Working Capital ~$(1.3)B

FREQUENTLY ASKED QUESTIONS

27

Question Response

1) What are the long-term prospects

for the McDermott and CB&I

combination?

McDermott is on track to be a market leader in key upstream and downstream markets. We have made enormous

progress in integrating the two organizations, and our focus is now on optimizing our combined strengths to create

long-term value for our investors, customers and employees.

2) Do you expect to remain a largely

fixed-price contractor?

Yes. Most of the customers in the markets we serve have expressed a preference for fixed-price contracts, and we

expect that the majority of our new awards will continue to be fixed-price awards. Such contracts can offer attractive

margins when they are screened for appropriate risk, negotiated carefully and executed efficiently.

3) How do project-related letters of

credit (LCs) work and how much LC

capacity did McDermott have at the

end of the first quarter of 2019?

We are generally required to post a performance letter of credit (or equivalent instrument) when we sign a new

contract. An LC generally equates to 10% or less of the dollar value of the contract and is most often issued by one

of the banks that participate in our Credit Agreement. Once issued, an LC typically remains in place until the project

is completed, at which point it expires. The LCs are not counted as debt and do not consume any of our available

cash. As of the end of the first quarter of 2019, McDermott had $1.7 billion of combined availability under its

principal letter of credit facilities, uncommitted bilateral credit facilities and surety arrangements.

4) How does the company manage

its risk profile in relation to fixed-

price contracts?

We have a well-defined and rigorous process by which we assess the risk profile of potential new contracts. This

process includes initial screening by our Commercial organization, as well as a formal bid review that involves

operating management and senior leadership, including our Chief Executive Officer, Chief Operating Officer and

Chief Financial Officer. This process enables us to analyze risk factors associated with commercial terms and

conditions, price, location, schedule, execution plans, labor, political environment, customer and co-venturer

relationships and foreign currency exposure.

FREQUENTLY ASKED QUESTIONS

28

Question Response

5) Why is the company selling its

pipe fabrication and storage tank

businesses?

As a result of a review of its portfolio, McDermott determined that the storage tank business and the pipe fabrication

business are not core to our long-term objectives as a vertically integrated supplier with strong pull-through from

technology. In particular, we have determined that these operations offer limited pull-through or cross-selling

opportunities. We expect to complete the sale of the pipe business by the end of Q2 2019 and the tank business by

the end of Q3 2019.

6) Why does the company use joint

ventures to execute some

contracts?

Generally, we use joint venture arrangements as part of an effort to share enterprise risk on very large

contracts. The most obvious example in recent experience would be the large LNG projects, where an individual

LNG export terminal can easily have an estimated cost of $8 billion to $10 billion – and sometimes much more.

Joint venture arrangements enable us to share project risk with one or more co-venturers, while at the same time

garnering additional resources to supplement our engineering, procurement and construction capacity.

7) What’s the difference between

“offshore” and “subsea” projects?

McDermott generally defines the “offshore” market to mean work that is done in relatively shallow offshore waters,

where our expertise involves the design, fabrication and installation of large structural components for oil & gas

production platforms. We generally define “subsea” projects as those involving the design and installation of

deepwater equipment related to oil & gas production systems; this equipment is often referred to by the acronym

SURF (subsea umbilicals, risers and flowlines).

8) Do you have plans to reduce

your debt level over time?

Yes. Our objective is to reduce the ratio of total debt to EBITDA to 2.0x or lower over time.

FREQUENTLY ASKED QUESTIONS

29

Question Response

9) What is the status of the MOU

with Saudi Aramco and the new

yard in Saudi Arabia?

In March 2019, the company moved forward with its MOU when it signed an agreement to grant McDermott a lease

to establish the facility. We plan to use the new facility for large scale fabrication of offshore platforms and

onshore/offshore modules. To further enhance project execution capabilities in Saudi Arabia, McDermott plans to

expand its in-country engineering and procurement offices, as well as establish a new marine base in the Eastern

Province to support installation of offshore platforms, subsea pipelines and cables, skids, and associated structures

and assemblies. As originally announced, the new facility is anticipated to be at full capacity by 2022.

10) What is the status of the Net

Power project?

Net Power achieved first fire of its supercritical carbon dioxide (CO₂) demonstration power plant and test facility in

May 2018. This milestone included the firing of the 50MWth Toshiba commercial-scale combustor. The firing of the

combustor involved the integrated operation of the full NET Power process. Following a period of rigorous testing,

the combustor is expected to be integrated with the turbine and power will be generated.

11) Why does the company

consistently show a negative net

working capital position?

A negative net working capital position is a reflection of the company’s business model. Specifically, the company

generally receives advance payments in conjunction with the signing of fixed-price contracts for onshore projects.

Inversely, offshore projects generally do not receive advanced payments and are more weighted toward the back-

end of the project. Onshore projects account for roughly two-thirds of McDermott’s business and as such, you can

expect the advance payments on those projects to keep the company’s net working capital in a substantially

negative position.

FREQUENTLY ASKED QUESTIONS

FINANCIAL APPENDIX

31

ADDITIONAL DISCLOSURES – RECONCILIATIONS

Note: Amounts have been rounded to the nearest million, except per share amounts.

Individual line items may not sum to the total as a result of rounding.

1) Goodwill impairment charge due in part to a change in our cost of capital and risk

premium assumptions included in the discount rates utilized to derive the present

value of our cash flows

2) Marine asset impairment on two vessels related to lower levels of planned future

utilization

3) Transaction costs in Q1 2019 were associated with the ongoing process to sell our

non-core storage tank and U.S. pipe fabrication businesses. Transaction costs in Q4

2018 were associated with the Combination and the private placement of

redeemable preferred stock and warrants. Transaction costs in Q1 2018 were

associated with the Combination.

4) Restructuring and integration costs, including costs to achieve our Combination

Profitability Initiative (CPI)

5) Annual non-cash mark-to-market pension plan adjustments

6) Impact of a full valuation allowance against all net deferred tax assets as a result of

the goodwill impairment, creating a three-year cumulative loss

7) Income tax effect of non-GAAP adjustments based on respective tax jurisdictions

where adjustments were incurred. No income tax effect has been taken on Non-

GAAP charges. These charges were incurred in the United States, where we do not

expect to receive income tax benefits.

8) Includes non-GAAP adjustments described above, except footnotes 5 through 7, as

these items are not included in operating income

Reconciliation of Non-GAAP to GAAP financial measures

($ in millions, except share and per share amounts) Mar 31, 2019 Dec 31, 2018 Mar 31, 2018

Net Income (Loss) Attributable to Common Stockholders $(70) $(2,775) $35

Less: Adjustments

Goodwill impairment1 - 2,168 -

Marine asset impairment2 - 58 -

Transaction costs3 4 3 3

Restructuring and integration costs4 69 29 11

Mark-to-market pension costs5 - 47 -

Tax adjustment for three-year cumulative loss6 - 190 -

Total Non-GAAP Adjustments 73 2,495 14

Tax Effect of Non-GAAP Charges7 - - -

Total Non-GAAP Adjustments (After Tax) 73 2,495 14

Non-GAAP Adjusted Net Income (Loss) $3 ($280) $49

Operating Income $13 $(2,499) $65

Non-GAAP Adjustments8 73 2,258 14

Non-GAAP Adjusted Operating Income (Loss) $86 $ (241) $ 79

Non-GAAP Adjusted Operating Margin 3.9% -11.6% 13.0%

Diluted EPS $(0.39) $(15.33) $0.37

Non-GAAP Adjustments8 0.41 13.78 0.15

Non-GAAP Adjusted Diluted Earnings (Loss) per Share $0.02 ($1.55) $0.52

Shares used in computation of earnings (loss) per share:

Basic 181 181 95

Diluted 181 181 95

Revenues $2,211 $2,073 $608

Three Months Ended

32

ADDITIONAL DISCLOSURES – SEGMENT RECONCILIATIONS

Note: Amounts have been rounded to the nearest million. Individual line items may not sum to the total as a result of rounding.

1) Non-GAAP adjustments are comprised of restructuring and integration costs of $69 million, including costs to achieve CPI, change of control, severance and litigation

costs, and transaction costs of $4 million associated with the ongoing process to sell our non-core storage tank and U.S. pipe fabrication businesses.

Reconciliation of Non-GAAP to GAAP financial measures

-

-

$2,211

13

0.6%

Non-GAAP Operating Income (Loss)

Total Non-GAAP Adjustments

23.6%

73 7

$73

$73

$380 $155

- - - -

Revenues

- 3.9%

5.3% 4.7% 17.4% 8.4%

Non-GAAP Adjusted Operating Margin

NCSA EARC MENA APAC TECH CORP Total

73

$148

73

Three months Ended Mar 31, 2019

66 13 35 (181)

-$1,380

$ in millions

- - - - -

GAAP Operating Income (Loss)

GAAP Operating Margin

Adjustments

Restructuring, integration & transaction costs 1

$148

$73

5.3% 4.7% 17.4% 8.4%

$86 $7 $66 $13 $35 ($108)

23.6%

33

ADDITIONAL DISCLOSURES – EBITDA & FREE CASH FLOW RECONCILIATIONS

1) We define EBITDA as net income plus depreciation and

amortization, interest expense, net, accretion of and dividends on

redeemable preferred stock and provision for income taxes. We

define adjusted EBITDA as EBITDA adjusted to exclude significant,

non-recurring transactions, both gains and charges, to our

operating income. We have included EBITDA and adjusted EBITDA

disclosures in this supplemental deck because EBITDA is widely

used by investors for valuation and comparing our financial

performance with the performance of other companies in our

industry and because adjusted EBITDA provides a consistent

measure of EBITDA relating to our underlying business. Our

management also uses EBITDA and adjusted EBITDA to monitor

and compare the financial performance of our operations.

2) We define free cash flow as cash flows from operations less capital

expenditures. We define adjusted free cash flow as free cash flow

adjusted to exclude significant, non-recurring cash transactions,

both gains and charges, to our cash flows from operations.

Adjusted free cash flow provides a consistent measure of free cash

flow relating to our underlying business. We believe investors

consider free cash flow and adjusted free cash flow as important

measures, because they generally represent funds available to

pursue opportunities that may enhance stockholder value, such as

making acquisitions or other investments. Our management uses

free cash flow and adjusted free cash flow for that reason.

3) EBITDA, adjusted EBITDA, free cash flow and adjusted free cash

flow do not give effect to the cash that we must use to service our

debt or pay our income taxes, and thus do not reflect the funds

actually available for capital expenditures, dividends or various

other purposes. In addition, our presentation of EBITDA, adjusted

EBITDA, free cash flow and adjusted free cash flow may not be

comparable to similarly titled measures in other companies’

reports. You should not consider EBITDA, adjusted EBITDA, free

cash flow and adjusted free cash flow in isolation from, or as a

substitute for, net income or cash flow measures prepared in

accordance with U.S. GAAP.

Reconciliation of Non-GAAP to GAAP financial measures$ in millions Mar 31, 2019 Dec 31, 2018 Mar 31, 2018

Net income (loss) attributable to common

stockholders$(70) $(2,775) $35

Add:

Depreciation & amortization 76 92 23

Interest expense, net 92 89 11

Provision for (benefit from) income taxes (21) 123 21

Accretion and dividends on redeemable preferred stock 14 4 -

EBITDA1, 3 $91 $(2,467) $90

EBITDA $91 $(2,467) $90

Adjustments:

Goodwill impairment - 2,168 -

Marine assets impairment - 58 -

Transaction costs 4 3 3

Restructuring and integration costs 69 29 11

Actuarial Mark-to-market on pension plan - 47 -

Adjusted EBITDA1, 3 $164 $(162) $104

Cash flows from operating activities (244) $(285) 38

Capital expenditures 18 24 18

Free cash flow2, 3 $(262) $(309) $20

Cash restructuring, integration and transaction costs 73 32 14

Adjusted Free cash flow2, 3 $(189) $(277) $34

Three months Ended

34

ADDITIONAL DISCLOSURES – 2019 GUIDANCE RECONCILIATIONS

Reconciliation of Forecast Non-GAAP to US GAAP financial measures (in millions, except per share amounts or as indicated)

Full Year 2019

Guidance

Revenues ~$10.0B

Operating Income ~$660

Operating Margin ~6.6%

Restructuring, integration & transaction costs ~$140

Total Adjustments ~$140

Adjusted Operating Income ~$800

Adjusted Operating Margin2 ~8%

Net Income ~$170

Total Adjustments ~$140

Tax Impact of Adjustments ~$ -

Adjusted Net Income ~$310

Diluted Share Count ~188

Adjusted Diluted EPS ~$1.65

Cash Flows from Operating Activities ~$(310)

Capital Expenditures ~$(160)

Free Cash Flow ~$(470)

Net Income Attributable to Common Stockholders ~$170

Add:

Depreciation and amortization ~$280

Interest expense, net ~$380

Provision for taxes ~$65

Accretion of Redeemable Preferred Stock ~$15

Dividends on Redeemable Preferred Stock ~$36

EBITDA ~$945

Restructuring, integration & transaction costs ~$140

Adjusted EBITDA ~$1.1B