Howard Weil 41st Annual Energy Conference March 20, 2013

Forward Looking Statements / Safe Harbor

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 and uncertainties that may impact McDermott's actual results of operations and any future performance suggested s ggested in the forward-looking for ard looking statements. statements These forward-looking statements include statements about backlog and target projects, to the extent backlog and target projects may be viewed as an indicator of future revenues, the expected specifications and timing of availability of the DLV2000 and LV108, the expected levels of offshore installations in future years, the expected growth rates, amounts, end markets and regions of offshore capital expenditures, the expected installation timing for the Papa Terra project and the planned upgrades to the DB30 and NO102. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. These statements are made by using various underlying assumptions and are subject s bject to numerous n mero s uncertainties ncertainties and risks, risks including incl ding adverse ad erse changes in the markets in which hich we e 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 presentation reflects management's views as of the date hereof. Except to the extent required i d by b applicable li bl law, l M D McDermott tt undertakes d t k no obligation bli ti to t update d t or revise i any forward-looking f d l ki statement. t t t

McDermott International, Inc.

(NYSE: MDR)

Leading engineering and construction company

Focused on offshore upstream oil & gas projects History dates back to 1947 - an industry pioneer

Engineer, procure, construct and install (EPCI) focus

Fixed and floating production systems Pipelines and subsea systems Onshore modules

Worldwide presence with approximately 14 14,000 000 employees

Only American headquartered company with EPCI services on global scale Over 95% of 2012 revenues derived outside the U.S.

Long-term relationships with leading energy customers

Primarily national and international oil & gas companies

Established commitment to safety safety, quality and ethical behavior

Lay Vessel North Ocean 105

Global EPCI Capabilities for Offshore Oil & Gas Market

EPCI is a Unique Delivery Platform

Engineering

Procurement

Construction

Installation

Project and Risk Management Delivering Certainty

900+ engineers globally

Offices in 9 locations worldwide FloaTEC, LLC 50:50 JV with Keppel FELS

300+ dedicated employees Capabilities / Services:

Negotiating, purchasing, transporting, inspecting, inventory control and quality assurance Global sourcing Deep local knowledge Strong supplier relations

Strategically located facilities

Aggregate area: Over 1 1,000 000 acres Largest deck to date 23,000 tons Largest jacket to date 38,000 tons

Dedicated installation fleet

Global construction fleet fleet, multimulti functional and subsea support vessels

Capabilities / Services:
Studies & conceptual designs Front-End Engineering & Design (FEED) Detailed engineering & design Transportation & installation engineering

Capabilities / Services:
Topsides & onshore modules Jackets, Jackets piles & compliant towers TLPs, SPARs, FPSOs Subsea production systems Standardized fabrication processes & procedures

Capabilities / Services:
Single & dual heavy-lift Floatover install Various diameter pipeline install S-Lay, J-Lay, Flex-Lay and Reel-Lay Dynamic positioning & mooring systems Subsea installation support Repair & salvage

Providing Fully Integrated, Single-Source Solutions For Worldwide Offshore Development 5

Overview of Offshore Infrastructure

FPSO MiniMini -TLP ETLP SemiSemi -Sub SPAR

Fixed Platform SURF/Subsea

Conventional C ti l Fi Field ld D Development l t Fixed Fi d platforms, l tf compliant li t t towers, subsea b and d export t pipelines i li Floating Production Facilities FPSO, TLP, Semi and SPAR topsides SURF (Subsea Umbilical, Risers and Flowlines) Subsea field development and installation

Growing Trend Towards Deepwater Developments

EPCI Capex by Water Depth
($MM) ($MM)

Deepwater EPCI Capex by Region

140 000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

9.0%
CAGR

60 000 60,000
9.0%

50,000 40,000 30,000 20 000 20,000 10,000 0

8.0%
CAGR

CAGR

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Shallow Deep

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Africa Asia Australasia Europe LatinAmerica ME&Casp.Sea NorthAmerica

Shallow water will continue to comprise the majority of offshore spending but deepwater is expected to grow at a higher rate Deepwater expenditure expected to increase 54% over next five years Deepwater activity is anticipated to be driven primarily in the African and Latin American basins, and increasing activity in Australasia

Source: Infield, M&T Analysis January 2013, Internal Analysis.

EPCI Capex Forecasted to Remain Strong

Global EPCI Capex by Region
($MM) ($MM)

Global EPCI Capex by End Market

120,000 100,000 80,000 60,000 40 000 40,000 20,000 0

120,000 100,000 80,000 60,000 40 000 40,000 20,000 0 Africa 2013 2014 2015 2016 2017 2018 Asia Australasia Europe LatinAmerica ME&Casp. NorthAmerica

2013

2014 2015 Conventional SURF

2016 Floating1

2017

2018

Asia is expected to account for the greatest Capex (China, Malaysia, India and Indonesia account for a majority of demand) All of McDermott McDermotts s core markets markets, conventional field development development, floating solutions and SURF are expected to have capital expenditure growth in future years

Floating EPCI capital expenditure forecast does not include hull construction Source: Infield, M&T Analysis January 2013, Internal Analysis.

Robust Level of New Offshore Programs Expected

Expected Offshore Installations 2012-2018
North America Type Units Fixed C Concepts t 17 FPSOs 4 FSOs 0 Spars 8 Semi Subs 6 TLPs 5 Other Floaters 0 Europe Type Units Fixed Concepts 145 FPSOs 17 FSOs 5 S Spars 2 Semi Subs 3 TLPs 0 Other Floaters 7 Asia Type Units Fixed Concepts 596 FPSOs 38 FSOs 20 Spars 0 Semi Subs 2 TLPs 1 Other Floaters 25

Shallow ME & Caspian Type Units Fixed Concepts 300 FPSOs 2 FSOs 1 Spars 0 Semi Subs 0 TLPs 0 Other Floaters 16

Australasia Type Units Fixed Concepts 31 FPSOs 9 FSOs 2 Spars 0 Semi Subs 2 TLPs 2 Other Floaters 1

Deep

Latin America Type Units Fixed Concepts 119 FPSOs 51 FSOs 7 Spars 0 Semi Subs 2 TLPs 3 Other Floaters 15

Africa Type Units Fixed Concepts 242 FPSOs 34 FSOs 6 Spars 0 Semi Subs 2 TLPs 3 Other Floaters 4

Source: Infield, M&T Analysis January 2013, Internal Analysis.

Robust Level of New Offshore Programs Expected

Expected Offshore Installations 2012-2018
North America Type Units Fixed C Concepts t 17 FPSOs 4 FSOs 0 Spars 8 Semi Subs 6 TLPs 5 Other Floaters 0 Europe Type Units Fixed Concepts 145 FPSOs 17 FSOs 5 S Spars 2 Semi Subs 3 TLPs 0 Other Floaters 7 Asia Type Units Fixed Concepts 596 FPSOs 38 FSOs 20 Spars 0 Semi Subs 2 TLPs 1 Other Floaters 25

Total
T Type
Fixed Concepts FPSOs FSOs Spars Semi Subs TLPs Other Floaters

U it Units
1,450 155 41 10 27 14 ME & Caspian Units 68Type
Fixed Concepts FPSOs FSOs Spars Semi Subs TLPs Other Floaters 300 2 1 0 0 0 16 Australasia Type Units Fixed Concepts 31 FPSOs 9 FSOs 2 Spars 0 Semi Subs 2 TLPs 2 Other Floaters 1

Shallow

Deep

Latin America Type Units Fixed Concepts 119 FPSOs 51 FSOs 7 Spars 0 Semi Subs 2 TLPs 3 Other Floaters 15

Africa Type Units Fixed Concepts 242 FPSOs 34 FSOs 6 Spars 0 Semi Subs 2 TLPs 3 Other Floaters 4

Source: Infield, M&T Analysis January 2013, Internal Analysis.

10

Revenue Pipeline by End Market1

Revenue pipeline is at record levels

Existing backlog driven by SURF projects in Asia Pacific region Majority of bids outstanding are for conventional projects Continue to identify a large number of target projects that we expect to reach bidding stage over the next 15 months
$ MM 6,000 5,039 5,000 4,000 3,000 2,000 1,000 0 2010 2011 2012 3,881 Floating Structures SURF & Charter Conventional Structures 5,067

Backlog by End Market

Bids Outstanding by End Market2

$8,000 $7,000 $6,000 $ MM $5,000 $4 000 $4,000 $3,000 $2,000 $1,000 $0 2010 2011 2012 1,710 Conventional Structures 4,934 $ MM Floating Structures SURF & Charter 7,781 $14,000 $12,000

Target g Projects j by y End Market

12,809 10,229 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2010 2011 2012 Conventional Structures SURF & Charter 10,694 Floating Structures

1 2

Figures as of December 31, 2013 and do not include the backlog of unconsolidated joint ventures. Presented on the basis of continuing operations. Bids outstanding includes pending change orders.

11

End Market Overview

Conventional Field Development p

Floating Facilities

SURF (Subsea Umbilical, Risers and Flowlines) )

12

Conventional Field Development

Industry pioneer in offshore conventional

field development
Fixed platforms and topsides Shallow water subsea pipelines

Strong

demand for conventional field development to continue with $285 billion in EPCI capex projected in 2013-2018
Significant growth in Australia, Malaysia and j Mexico p projected Local partnerships required for access to certain markets

Installed Fixed Platform

p p Conventional Field Development EPCI Capex

($MM)

60,000 50,000 40,000 30,000 20,000 10,000 0 2013 Pipeline 2014 2015 Platform 2016 2017 ControlLine 2018

Recent

awards support McDermotts commitments in Mexico and Saudi Arabia

Awarded PEMEX PB-Litoral-A production platform Altamiras largest EPCI project to date Recently received letter notice of award for a large EPCI contract in the Middle East

Source: Infield, March 2013

13

Conventional Field Development

Key assets to support the market

Fabrication facilities in U.S., Mexico, UAE and Indonesia do es a Major work barges to support installation include DB27, DB30, DB50, DB101 and LB 32 Launch barges for float over installation

Strategy in action to support the market

Joint-venture with TH Heavy Engineering for licensed EPCI capabilities in Malaysia New engineering office and fabrication facility in Saudi Arabia Addition of a heavy-lift crane to the LB32 in to add multi-functional capabilities Sale of older, lower-utilized work barges and vessels

Batam Island, Indonesia

LB32

14

Floating Facilities

Floating Facilities
FPSO, SPAR, TLP, and Semi-Sub topsides Integrated solutions through our 50/50 / FloaTEC C joint venture with Keppel FELS

Papa Terra is the first use of dry-tree floating technology offshore Brazil and the first Tension Leg Platform installation offshore South America.

$72

billion floating topsides EPCI capex projected in 2013 -2018 2018

Large FPSO construction programs in Brazil by Petrobras and other markets with limited infrastructure g g Significant semisubmersible and SPAR p programs in well-developed deepwater areas such as US GOM
($MM)

Floating Topsides EPCI Capex1

15,000

Papa Terra Project

EPCI of Tension Leg g Wellhead Platform ( (TLWP) ) hull, , topsides, tendons and risers through FloaTEC Major component fabrication completed in Morgan City and Qingdao yards Installation I t ll ti expected t d in i fourth f th quarter t 2013 using i DB50

10,000

5,000

0 2013 TLP
1Floating

2014 Spar

2015 SemiSub

2016 FPSO

2017 FPS

2018

EPCI capital expenditure forecast does not include hull construction

Source: Infield, March 2013

15

Floating Facilities

Key assets to support the market

Fabrication facilities in Batam Island, Indonesia, Altamira, Mexico and joint-venture in Qingdao, China Heavy-lift f installation vessels for f topsides include DB50, 0 DB30, 30 and DB27 2

Strategy in action to support the market

Qingdao McDermott Wuchan (QMW) joint-venture built in 2011 to provide FPSO topsides and other fabricated structures Construcao e Montagem Offshore (CMO) joint-venture established in 2011 to target Brazilian FPSO topsides FloaTEC joint-venture with Keppel FELS to provide integrated floating solutions

Qingdao, China Fabrication Yard

16

SURF (Subsea Umbilical, Risers and Flowlines)

SURF
Front-end and detailed engineering and design, fabrication ab cat o of o SURF SU hardware a d a e and a d installation sta at o through t oug fast-transit subsea construction vessels

Robust

growth in the subsea market with over $221 billion EPCI capex projected in 2013-2018
Pipelines and flowlines comprise majority of capital spend
Inpex Ichthys Field Layout

Recent
market

awards support expansion into subsea

($MM)

SURF EPCI Capital Expenditures

50,000

Inpex Ichthys $2+ billion contract includes EPCI and pre-commissioning for production, transfer flowline and control systems, 17,600 tons of subsea equipment, a Riser se Suppo Support t Structure St uctu e and a d installation sta at o a aids ds in up to 900 foot water depths BHP Macedon EPCI of a 48 mile, 20-inch diameter pipeline and installed subsea umbilicals and flexible flowlines in water depths up to 590 feet

40,000 30,000 20 000 20,000 10,000 0 2013 2014 ControlLine

Source: Infield, March 2013

2015 Pipeline p

2016 SPM

2017 2018 Subsea

17

SURF

Key assets to support the market

Subsea Construction Vessels: NO102, LV105, LV108[1] Major Work Vessels: DLV2000 2000[2], DB50, 0 DB30 30 Multipurpose Construction Vessels: Agile, Emerald Sea, Thebaud Sea

Strategy in action to support the market

In March 2013, acquired DeepSea, a subsea engineering firm to increase engineering capabilities and technology Alliance with Ocean Installer formed in December 2012 to provide access to construction support vessels in North Sea market DB50 upgraded to add deepwater lowering system and new power plant and thrusters to increase station-keeping ability in deeper water and harsh environments DB30 scheduled to be upgraded to add dynamic positioning capabilities High-capacity flexlay system upgrade planned for NO102
[1] Vessel currently under construction, expected to be available second half of 2014 [2] Vessel currently under construction, expected to be available mid-2015 DB50 North Ocean 102

18

SURF

Lay Vessel North North Ocean Ocean 105 102

DLV 2000 Rendering

Subsea Construction Vessels

Dynamically positioned and fast-transit North Ocean 102 Equipped with horizontal lay system for installing subsea hardware and d deepwater t moorings i Lay Vessel North Ocean 105 Equipped with advanced reeled systems for rigid and flexible pipelay in water depths up to 10,000 feet Sister ship to the LV105 Lay Vessel 108 Sister-ship LV105, with expected delivery in second half of 2014

DLV2000
Combination DP3 heavy lift and pipelay vessel with 2,200-ton crane Deepwater S-Lay capability up to 60 inches in di diameter t Ideal for installation, maintenance and decommissioning projects Expected delivery in mid-2015

19

Recent Operating Performance

Revenues
4,000 3,445 3,000 2,404 $ MM $ MM 2,000 200 3,642 400 315 300 251 319

Operating Income

1,000

100

0 2010 2011 2012

2010

2011

2012

Diluted Earnings Per Share

1.20 1.00 0.80 0 60 0.60 0.40 0.20 2010 2011 2012 $M MM 0.64 $ 1.00 0.86 4,000 3 000 3,000 2,000 1,000 6,000 5,000

Year-End Year End Backlog

5,039 3,881 5,067

2010

2011

2012

Note: Figures above do not include the backlog of unconsolidated joint ventures. Presented on the basis of continuing operations. 1 Includes approximately $46 million ($0.20 per share) of non-cash impairment & related expenses 2 Includes approximately $162 million of project charges, $5.5 million of non-cash impairment charges and $35 million of non-operating benefits

20

Backlog Enhances Revenue Visibility1

Backlog by Estimated Recognition Year
$ MM

$2.3 billion in backlog expected to be recognized in 2013 1QE awards expected to add $0.3 billion to current year revenue

1,296

2013 2014

2,341

2015+ 1,430

Majority of backlog represents fixedprice i EPCI projects j t

Backlog by Region
6,000 5,000 3,881 $ MM Middle East Asia Pacific 2,000 1,000 0 2010 2011 2012 Atlantic 2,000 1,000 0 $ MM 4,000 3 000 3,000 4,000 3 000 3,000 5,039 6,000 5,067 5,000

Backlog by Contract Type

5,039 3,881 5,067

Other Fixed Price

2010

2011

2012

Figures as of December 31, 2013 and do not include the backlog of unconsolidated joint ventures. Presented on the basis of continuing operations.

21

Attractive Financial Profile 1

$5.1 billion backlog provides visibility; significant booking opportunities ahead

Bids and change orders outstanding of approximately $7.7 billion Additionally, y, approximately pp y$ $10.7 billion of identified target g p projects j

Solid operating margins driven by full-service, vertically integrated business model Efficient tax structure from Panamanian incorporation McDermotts balance sheet remains a strength
Over $3.3 billion in total assets Substantial cash and investments of approximately $704 million Low debt level (approximately $103 million) and strong book equity (approximately $1.9 billion) Pension plan obligations largely fully-funded

$950 million credit facility for borrowings and letters of credit; matures August 2016
No borrowings outstanding; letters of credit under the credit facility of approximately $267 million

1 Figures as of December 31, 2012

22

Investor Appeal

Full-service offshore oil & gas engineering & construction company Global EPCI business model p provides competitive p advantage g Attractive industry fundamentals; strong secular growth Strategic transformation well underway Substantial backlog with good visibility; strong balance sheet and capital structure Experienced management team focused on project and risk management

23

Steven D. Oldham 281-870-5147 Vice President, Treasurer and Investor Relations