Earnings rise for MRC Global despite lower OCTG and line pipe sales

Monday, 05 August 2013 00:56:11 (GMT+3)   |   San Diego

Houston, Texas-based MRC Global Inc., the largest global distributor, based on sales, of pipe, valves and fittings (PVF) and related products and services to the energy and industrial sectors, reported Q2 2013 sales of $1.27 billion, down 11 percent from Q2 in 2012 due, in part, to a planned reduction in the company's lower margin oil country tubular goods (OCTG) business. OCTG represented 9 percent of total sales in Q2 2013, compared to 14 percent of total sales in Q2 2012. Continued weakness in the company's line pipe product group within the midstream and upstream sectors also impacted sales.  Line pipe sales were $231.1 million for Q2 2013 as compared to $294.4 million for the same period in 2012.

Net income for Q2 2013 was $43.9 million while net income for Q2 2012 was $31.3 million. US sales in Q2 of 2013 were $975.2 million and reflected an expected decrease in OCTG revenues of $83 million from Q2 2012.  Canadian sales in Q2 2013 were $153.6 million, down 4 percent from the same quarter in 2012 due primarily to a longer spring break-up in 2013. International sales in Q2 were $139 million and decreased 8 percent over the same period in 2012, reflecting weaker demand, particularly in parts of Australia that have experienced reduced customer spending in the mining and oil and gas sectors.


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