McDermott CFO quits after $1.9B loss

The chief financial officer for Houston oil field service company McDermott International resigned from his post after a nearly $1.9 billion loss during the third quarter.

McDermott reported the resignation of Stuart Spence in a filing Tuesday with the Securities and Exchange Commission. A reason was not given but Spence’s resignation followed McDermott reporting a nearly $1.9 billion loss on $2.1 billion of revenue during the third quarter.

McDermott named the company’s global vice president, finance and chief accounting officer, Christopher Krummel, as Spence’s immediate successor.

Spence started with McDermott in August 2014 following nearly three years of executive experience at Houston oil field service company Halliburton.

Krummel started with McDermott in October 2016 following several years of executive experience at Tennessee oil and natural gas industry equipment maker EnTrans International and Cameron International, a Houston oilfield service company that was later bought by French oil field service giant Schlumberger.

In its SEC filing, the company blamed the company’s loss on $1.5 billion of impairments, most of which were related to its recent stock price plunge and cost overruns on at least six projects from the company’s North, Central and South America division.

Market rumors that the company had retained a Chapter 11 advisory firm sent the company’s stock falling from $5.88 per share to $1.58 per share over two days in mid-September. The company’s stock closed Tuesday at $1.62 a share.