MDR
#If you look at our supplemental deck that we posted on our website, we've included a page there that has all of our new credit metrics and how we are performing against them.
For an example, if we were to look at our senior debt to EBITDA, the maximum that we are allowed is 2X.
At the end of Q1 we were just under 1X.
That's a similar trend to all of our metrics.
I think we're performing very well against them, and I think we have substantial our significant headroom within these new covenants.
Sure, <UNK>.
As we've gone through the quarter, we've re-examined and we looked at some of that headcount reductions that we were forced to make in this environment, and we been able to I think save more around those headcount reductions.
Additionally we've also looked at some additional operational type savings around some of our supply chain initiatives.
We are seeing some excess supply in our supply chain and so we're pushing harder to make some more savings there.
I think as we look at the balance of 2016, our supply chain is going to continue to be a significant focus area for us.
We are under significant pressure from our customers to pass-through supply chain deflation and are looking to structure new agreements, new ways of working with our supply chain to access as many savings as we can and pass savings to our customers, but also trend try and generate some savings for the company.
I think firstly to address the operational performance, I think today our operational performance in the region is excellent.
One of the challenges in the Middle East is firstly the volatility around the project awards.
And what we have from <UNK> is obviously sequencing and timing of when we are executing some of these projects, which is a result on some of the sequencing.
Which also has a positive because being there and being local, being close to the customer means that we can provide the customer lots of flexibility and also versatility.
Longer-term, I obviously don't want to give guidance, but certainly we see this part of that world for us being an area where we should see good results as we continue to perform, good results as our reputation gets stronger and obviously in area where we see customers investing in capital.
And also that's predominantly in the brownfield as customers look to replace and replenish existing infrastructure.
We are obviously very excited and obviously very happy in a position that we have ourselves today the Middle East.
<UNK>, this is <UNK>.
As we sit here today, we are looking at a non-cash impairment of $32 million.
Thank you.
<UNK>, that's broadly correct.
There's obviously a different balance per contract.
And as we take on new contracts, we are very careful to try and reduce our exposure to supply chain or commodity price fluctuations.
A lot of orders are placed at the front of the contract.
As we're going through contracts, depending on the mix of third-party services or products that we have to use, we are working with our supply chain to capture as much deflation as we can.
Additionally we are fundamentally transforming the way that we engage with our supply chain.
We're looking at how we work closer with them, how we collaborate with them, how we work on a global basis as opposed to a project basis, and in that way we are trying to find win/wins for our supply chain for McDermott and also for our customer.
That number $4.7 billion does include the two award ---+ the contract awards that we announced with this press release, yes.
Very good.
Thank you.
Thank you again for participating today.
Operator, this concludes our call.
