MRC Global reports 9.5% revenue decline

MRC Global’s 2013 third-quarter results show the company’s sales of $1.31 billion in that timeframe decreased 9.5% from $1.45 billion in the third quarter of 2012

MRC Global's Andrew lane

MRC Global’s 2013 third-quarter results show the company’s sales of $1.31 billion in that timeframe decreased 9.5% from $1.45 billion in the third quarter of 2012 due, in part, to a planned reduction in the company’s lower margin oil country tubular goods business. OCTG represented 8.0% of sales in the third quarter of 2013 compared to 12.8% of sales in the third quarter of 2012.

Excluding OCTG, sales were lower across all sectors and segments. The decline in sales was partially offset by the acquisitions of Production Specialty Services and Flow Control Products, which together contributed $33 million of revenue in the third quarter of 2013. Net income for the third quarter of 2013 was $38.8 million, or $0.38 per diluted share, compared to the third-quarter 2012 net income of $55.6 million, or $0.54 per diluted share.

“Our third-quarter results were in line with our expectations and reflect improved activity levels and customer spending on a sequential basis, although the year-over-year comparisons were challenged by a robust third quarter of 2012,” MRC Global Chairman, President and CEO Andrew Lane said. “We had strong free cash flow this quarter as reflected in the reduction of our outstanding debt to $1.04 billion.”

In other MRC Global news, the company recently announced certain investment funds affiliated with Goldman Sachs & Co. have completed their sale of 17,489,233 shares of the common stock of MRC Global. Goldman Sachs through the Goldman Sachs Funds was the private equity sponsor of MRC Global beginning with a private investment in 2007. MRC Global became a publically traded company in 2012.

As a result of the recent transaction, the Goldman Sachs Funds no longer have a stake in MRC Global. MRC Global also announced subsidiary McJunkin Red Man Corp. has been awarded a five-year global framework agreement with BP International to supply pipe, fittings and flanges for BP’s Global Projects Organization. The agreement enables BP’s global project teams and their engineering, procurement and construction contractors to access MRC Global’s international resources to supply PFF products.