Pipe, valves and fittings distributor MRC Global reported a double-digit drop in sales in its latest fiscal quarter amid slowing oilfield activity and project delays.
The Houston-based company — no. 10 on ID’s 2024 Big 50 — outlined its projections for several Q3 results last month in an announcement of a since-completed stock repurchase, including quarterly sales of $797 million. On Tuesday, the company confirmed that total — down just more than 10% from the $888 million reported in the third quarter of 2023.
New results disclosed Tuesday included $160 million in gross profit, $37 million in operating income and $29 million in net income — all down year-over-year.
Despite the “headwinds” of declining activity in the U.S. oilfield and delayed projects in the company’s downstream, industrial and energy transition segment, MRC President and CEO Rob Saltiel highlighted the company’s cash flow generation, as well as the benefits of the stock purchase.
“We expect that these transactions will be accretive to earnings and cash flow in 2025 and beyond, and they simplify our capital structure while maintaining a solid balance sheet," Saltiel said.
The company’s DIET segment, along with its production and transmission infrastructure division, each saw sales decline by 19%, while sales in its gas utilities sector were down by 6%. MRC’s third-quarter U.S. sales totaled $644 million, which was down 14% year-over-year.
MRC also announced Tuesday that Bob Wood, the chairman of the company’s board, had retired “effective immediately” for “personal reasons.” Debbie Adams, a former Phillips 66 and ConocoPhillips official who has served on MRC’s board since 2017, was elected its new chair.
