MRC Global Inc., a global distributor of pipe, valves and fittings and related products and services to the energy industry, today announced fourth quarter 2017 results.
The company's sales were $903 million for the fourth quarter of 2017, which was 26 percent higher than the fourth quarter of 2016 and 6 percent lower than the third quarter of 2017 due to seasonality. As compared to 2016, all sectors increased driven primarily by midstream and upstream.
Net income attributable to common stockholders for the fourth quarter of 2017 was $29 million, compared to a net loss for the fourth quarter of 2016 of $24 million.
US sales in the fourth quarter of 2017 were $715 million, up $165 million, or 30 percent, from the same quarter in 2016. The increase was across all sectors. Increased well completions, midstream transmission and gathering deliveries and downstream project deliveries all drove the increase.
Canadian sales in the fourth quarter of 2017 were $71 million, up $16 million, or 29 percent, from the same quarter in 2016 primarily due to the upstream business as a result of an increase in commodity prices which drove an increase in activity levels. Canadian sales were favorably impacted by $3 million as a result of a stronger Canadian dollar relative to the US dollar.
International sales in the fourth quarter of 2017 were $117 million, up $3 million, or 3 percent, from the same period in 2016. The increase was primarily due to the upstream sector partially offset by a decline in the downstream sector. The strengthening of foreign currencies relative to the US dollar favorably impacted sales by $6 million.
Upstream sales in the fourth quarter of 2017 increased 27 percent over the fourth quarter of 2016 to $277 million, or 31 percent of total sales. The increase in upstream sales was across all segments, led by the US segment, which was up $35 million followed by the Canadian and International segments, which were each up $12 million as a result of increased customer activity.
Midstream sales in the fourth quarter of 2017 increased 40 percent from the fourth quarter of 2016 to $375 million, or 41 percent of total sales. Sales to transmission and gathering customers were up 73 percent while sales to gas utility customers were up by 12 percent over the same quarter in 2016.
Downstream sales in the fourth quarter of 2017 increased 8 percent from the fourth quarter of 2016 to $251 million, or 28 percent of total sales. The US downstream sector was the primary driver of the increase growing $26 million, or 16 percent, over the fourth quarter of last year.